The critical incident approach involves taking a few minutes at the end of each week to record favorable and unfavorable incidents. The critical incidents are simply descriptions of behaviors that are especially effective or ineffective. The advantage of the critical incident approach is that it is based on observed behavior, rather than subjective perceptions. Also, it provides specific examples of how employees can improve their performance. The disadvantage of this approach is that if incidents are not systematically recorded, the performance evaluation can be skewed by one or two incidents.
Some managers expand the critical incident approach by placing a numerical rating on each incident.
The numerical rating measures the favorability of the incident and its contribution to organizational effectiveness. The purpose of a disciplinary interview is to discuss a particular incident or initiate a personnel action. The contribution appraisal focuses on what the employee has contributed to the firm and how the employee met the objectives and responsibilities. The contribution interview allows the employee to explain why he deserves a pay increase or promotion. The personal development appraisal should provide a supportive atmosphere, where the employer and employee can discuss how the employee can improve future performance through self-learning and growth.