The first advantage of using this evaluation method is that it encourages managers to set realistic objectives. The aim is to get managers to think about results rather than activities and to encourage a good and healthy working relationship between managers and employees. Employees actively participate in setting objectives. However, the downside of using this method is that it is time-consuming and requires a lot of communication and interaction from employees and managers. An employee may not be able to achieve set goals due to unforeseen circumstances. Another disadvantage of this method is that it is focused on achieving goals. It does not assess employee work behaviors such as dedication, teamwork, or interpersonal and managerial skills. Critical Incident Method Secondly, critical incident in performance appraisal is a method wherein the manager records the positive and negative behavior of an employee throughout the evaluation period. . It generally takes place once or twice a year. The manager creates and manages a file for each employee in the organization. They can be in electronic form or in paper form. The manager records instances where employees display exceptional work behaviors. The manager also takes notes related to poor work behavior, such as arriving late for work or being disrespectful to customers. Notes can take the form of documents such as letters from customers appreciating and thanking an employee for a job well done or a warning note. At the end of the year, the manager reviews the employee's critical incidents and classifies them as satisfactory or unsatisfactory behavior. The main advantage of this evaluation...... middle of paper ......?coursenum=940609. Denisi, AS and Pritchard, RD 2006. Performance appraisal, performance management, and individual performance improvement: A motivational framework. Journal of Management and Organization, 2 (2), pp. 253--277.10. Ali, N. and Zia-Ur-Rehman, M. 2014. Impact of job design on employee performance, mediating role of job satisfaction: A study of FMCG sector in Pakistan. International Journal of Business and Management, 9 (2), p. 70.11. Arvey, RD and Murphy, KR 1998. Workplace performance assessment. Annual Review of Psychology, 49(1), pp. 141--168.12. Jacobs, Rick. “narrative method of performance evaluation.” The Blackwell Encyclopedia of Management. Cooper, Cary L. Blackwell Publishing, . Blackwell reference online. May 4, 2014 http://www.blackwellreference.com/subscriber/tocnode.html?id=g9780631233176_chunk_g978140511697817_ss1-1