The first advantage that comes from using this appraisal method is that it encourages managers to set realistic objectives. The focus is to get managers to think about the results rather than the activities and encourages a good and healthy working relationship between managers and employees. Employees actively participate in setting goals. However, the disadvantage of using this method is that it is very time consuming and requires a lot of communication and interaction from both the employees and managers. An employee may not be able to meet the goals established due to unforeseen circumstances. Another disadvantage that comes with this method is that it is focused on goal achievement. It does not evaluate the work behaviors of employees such as dedication, teamwork or interpersonal and managerial skills.
Critical Incident Method
Secondly, the Critical Incident in performance appraisal is a method in which the manager records the positive and negative comportment of an employee throughout the evaluation period. It usually takes place once or twice a year. The manager creates and maintains a file folder for each employee in the organization. They can be in electronic form or in hard copies. The manager records down instances when employees display outstanding work behaviors. The manager also take down notes relating to poor work behaviors such as coming in late to work or being disrespectful to clients. Notes can come in the form of documentation such as letters from clients appreciating and thanking an employee for job well done or a warning note. At the end of the year, the manager reviews the employee’s critical incidents and classify them as either satisfactory or unsatisfactory behaviors.
The main benefit of this appraisal method is that the manager directly observes the employee’s performance. This appraisal method provides manager with a time frame of over a year to collect all the necessary data. They constantly record employee’s positive and negative incidents at the time of occurrence. So, an employee’s most recent accomplishment or problems do not sway managers when conducting a performance appraisal. This approach gives manager the chance to spend time with their employees in their workstation. It allows them to guide and coach their workers in the right direction and also give feedback on ways they can improve. Although these are the obvious advantages, there are certain drawbacks that we have to understand when we use the critical incident method in performance appraisal. The first disadvantage is that reports taken down may be inaccurate and not truthful. As critical incident rely mostly on memory, the user may only remember the most recent events. As a result, some incident may go unreported. The second disadvantage is that critical incident takes up a lot of time and is very laborious to encapsulate and evaluate data. Lastly, employees may be unwilling to share their critical incident, as they are afraid that it would...