SourcingSpider

​Critical Incident Appraisal is a performance appraisal technique, where the employer keeps a log of negative and positive behavior (critical incidents) of his/her subordinates. After a specific period, say every 6 months, superiors and subordinates meet to discuss the subordinate’s behavior and performance using the recorded incidents as examples. It takes into account the qualitative behavior of an employee.

Some managers ask their employees to record their own critical behaviors. This makes the employers’ job easy as he doesn’t have to be present everywhere. After compiling these incidents, the superior can provide examples of good or bad behavior and rate his subordinates accordingly. This helps the supervisor appraise his subordinates based on concrete examples of his performance. It also takes into account the behavior of a particular employee throughout the year and not just the recent performance.

It also helps the employees know about their behavior and they can work on the deficiencies to improve their overall performance.

Limitations of Critical Incident Appraisal:

• No numerical base

• Difficult to compare the performances of all the employees

• Difficulty in making salary decisions

Example:

The objective for a manager was to reduce the costs of the stored goods. However, there was a 15% increase in the inventory cost. The following can be undertaken to ensure that costs be saved: