CRITICAL INCIDENCE METHOD

NOTES FOR MSW HRDM

SEPTEMBER 12, 2016

--CHRIST UNIVERSITY

CRITICAL INCIDENCE METHOD

Critical incidents are a special category of employee behaviors that focus on two distinct areas:
particularly outstanding behaviors and particularly questionable behaviors. The critical incidents
method of performance appraisal is based on managers spending time during the year observing
and gathering behavioral data on their employees, while looking extra carefully for those critical
incidents.
At the end of the year, the managers take out all their notes on these critical incidents and
categorize them as either positive/satisfactory behaviors or negative/unsatisfactory behaviors. An
employees rating is then heavily influenced or even determined by which pile of data is taller
the satisfactory or the unsatisfactory.
FEATURES:

In this method of Performance appraisal the evaluator rates the employee on the basis of
critical events and how the employee behaved during those incidents.

It includes both negative and positive points.

The drawback of this method is that the supervisor has to note down the critical incidents
and the employee behavior as and when they occur.

Here are the advantages of the critical incidents approach to performance appraisal:

Its based on direct observations. The greatest strength of this approach is that
performance evaluations are based on actual performance that is observed firsthand by
the employees manager.

Its time-tested. In this approach, managers gather data over a full year, so its less likely
to be influenced by a mad last-minute scurry for data or the undue impact that can be
associated with an employees most recent behaviors.

It provides more face time. By definition, the critical incident approach encourages
managers to spend time on the floors with their employees, which allows them to provide

more coaching, guidance, and feedback, while also learning more about overall
developments in the department.
On the other hand, the critical incidence approach has some drawbacks:

It delays the giving of feedback. In order for feedback to be truly effective (whether the
feedback is positive or negative), it should be linked as closely as possible to the behavior
in question. With critical incidents, a greater emphasis may be placed on gathering data
and tallying it than actually using it to inform, educate, and motivate employees.

All satisfactory and unsatisfactory behaviors are not equal. Throughout the year, a
person may display many excellent behaviors but only one unsatisfactory behavior. In that
case, her pile of satisfactory behaviors would be much greater than her pile of
unsatisfactory behaviors. But weighing the number of satisfactory behaviors against the
number of unsatisfactory ones can lead to an erroneous conclusion if the one unsatisfactory
behavior cost the company its best client, or its computer system, or its line of credit.

Although managers should engage in managing by wandering around, the critical

incidence approach can cause managers to spend too much time on the floors. If the
manager is constantly wandering around with his employees, the employees can start to
feel as though the team is being micromanaged.