Which method of performance appraisal focuses on individual incidents that significantly impact an employee’s performance?

The critical incident method is a performance appraisal technique that concentrates on specific events or behaviors that have a substantial effect on an employee's performance. This approach emphasizes identifying particular incidents, whether positive or negative, that are crucial in evaluating how well an employee performs their job. Each incident is documented and discussed during the appraisal, providing detailed examples that can highlight strengths and areas for improvement.

This method is particularly effective because it provides concrete evidence of behavior and performance, rather than relying on vague assessments or general impressions. It can lead to more constructive feedback and is beneficial for both the employee and the supervisor to understand precisely what actions influenced performance outcomes. By focusing on actual incidents, this method aids in creating targeted performance improvement plans based on factual observations.

Other appraisal methods, although valuable, do not emphasize significant incidents to the same extent. For example, management by objectives may focus on goal achievement, while graphic rating scales tend to evaluate employees based on pre-defined criteria across a range of categories. Peer evaluations, while they provide insight from colleagues, do not typically center around critical incidents affecting performance directly. Thus, the critical incident method stands out as the most relevant for this specific aspect of performance appraisal.