CRITICAL METHOD OF HRM WITH ADVANTAGE AND DISADVANDAGE

1. Critical Incident Method of
Performance Appraisal
20XX

2. Topics Presented under critical
incident method
 Introduction
 Definition
 Importance
 Advantage
 Disadvantage

3. Critical incident method is a performance
appraisal tool in which analyses the behavior of
employee in certain events in which either he
performed very well and the ones in which he
could have done better. In critical incident
method the observer observes critical human
behaviors, skills used, incidents that occur on the
job.
In Critical incident method, the manager of the
employee gives all the details of the incident. It
helps to define the competencies and
Knowledge, Skills, Abilities and other attributes
required for a task or set of tasks that entails a
job. The observer not only looks at the hard skills
used but also the mental abilities that are
required by the job incumbent.
Critical Incident Method 3

4. Importance of Critical Incident
Method :
Critical incident technique is very important and helpful technique to create a
Job description and a job specification for a job. Providing a job description and
job specification is essential to attract the right candidates for the job and can
help to cut down the turnaround time for filling up a vacancy in the
organization. Critical Incident method notes down the important skills,
knowledge, mental abilities and other attributes that are required in the job.
Critical Incident Appraisal is used as a performance appraisal process method
for employees.
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5. Critical Incident Method Steps
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6. Critical incident technique has the following
steps:
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A. We start with determining and reviewing the incidents that have taken place during the course
of the job.
B. Fact finding which involves gathering information of the incident from the members.
C. The third step is to analyze the facts and the data collected by the interviewer from the
participants and determine the issues
D. The fourth step is to determine possible solutions for the issues that have been identified
E. Finally the last step is to evaluate whether the solution will be able to remove the cause of the
problem that was identified.

7. Advantages of Critical Incident Method:
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 Helps to identify rare events which might be missed by other methods as
they focus only on common events.
 The technique is cost effective and provides rich information.
 The respondent’s perspective is taken into account.
 The respondents are not forced into any framework.
 Many ways to implement the method like observation, questionnaires and
interviews.

8. Disadvantages of Critical Incident Method:
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 Many incidents may go unreported or might not be precise as the reporting
of incidents relies on memory of the respondent.
 Biasness might creep in towards the incidents that happened recently.
 The incidents narrated may not be representative of everyday situation that
takes place during the job.

9. THANK YOU!