Step 1:
The first step in performance appraisal is to establish and communicate standards to employees.
\[
D = \text{First Step}
\]
Step 2:
After standards are set, actual employee performance is measured.
\[
A = \text{Second Step}
\]
Step 3:
Measured performance is compared with predetermined standards.
\[
C = \text{Third Step}
\]
Step 4:
After comparison:
• Appraisal is discussed with employees
• Corrective actions are taken if necessary
Thus:
\[
B \rightarrow E
\]
Final order:
\[
D,\; A,\; C,\; B,\; E
\]
Hence, the correct answer is:
\[
\boxed{\text{(2) D, A, C, B, E}}
\]