What does the term 'critical incident' refer to in performance evaluation?

The term 'critical incident' in performance evaluation refers to an event that signifies either superior or inferior performance by an employee. This concept is based on the idea that specific, noteworthy occurrences can provide key insights into an employee’s work behavior and effectiveness. Critical incidents are typically documented as they happen, allowing managers to provide concrete examples of performance that illustrate the employee's strengths and weaknesses.

This method is particularly valuable because it focuses on actual events rather than generalities or subjective impressions. By analyzing these incidents, managers can have more informed discussions with employees about their performance, leading to targeted development opportunities and more effective performance management.