¶ … Aggarwal (2013), the critical incident method of performance appraisal was first formalized by Fitts and Jones as early as 1947. The first purpose of the technique was to classify pilot error experiences with the reading and interpretation of instruments within aircraft. Although referring to "critical incidents" as "errors," the authors served as the harbingers of this method of performance appraisal in the workplace. John Flanagan was the first to refer to the method as the "Critical Incident Technique," defining it as a description of events associated with special significance in order to describe human behavior in various circumstances. For the workplace, this means that an employer or a team of analysts would monitor employee behavior in various circumstances or during specified events. This can then be used to determine the effectiveness or quality of employee performance.
According to Marrelli (2005), one of the main rationales for the critical incident method is identifying specific needs in terms of performance improvement and the sources for these needs. Although quantitative methods offer useful information, these are not as thorough an overview of life in an organization as critical incident data collection. By examining employee performance during critical incidents, whether positive or...
This data can then be used for planning employee interventions that would remedy any shortcomings identified. With the regular recording of critical incidents, the employer then has a collection of behavioral records to conduct a fair and balanced employee analysis during formal appraisal events. This method, like all others, have both its advantages and disadvantages.
There are several advantages. One of these is that critical incident reports are specific regarding the actual behavior of employees. An employee is therefore more likely to apply feedback and accept the results of the appraisal, as opposed to one that is based only on vague or abstract information. The way in which critical incidents are recorded can also offer emotional data without jeopardizing the privacy and identity of specific individuals. A much lower cost is therefore involved than with direct observations. They are also relatively easy and economical for those administering the appraisals.
On the other hand, some disadvantages must be taken into account when considering the use of the critical incident method. Because of the nature of data collection, reports of behavior…
