Critical incident method or critical incident technique 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 manager of the employee gives all the details of the incident. This method is quite subjective in nature as compared to other methods which may be very objective and would require just ratings out of 5/10 etc.
Critical Incident Technique Example:
On a particular day one Salesperson stayed 60 minutes beyond his break during the busiest part of the day. Whereas another salesperson fails to answer store manager’s call thrice.