Over and over I have seen the performance appraisal process fail because -

• Manager lacks information concerning an employee’s actual performance.  This is one of the primary reasons 360 reviews are so beneficial.  They provide the opportunity to see an employee’s performance from the perspective of subordinates, peers, and management. 
• Standards are unclear. 
• Manager is not prepared or fails to take the evaluation seriously.  They schedule the review and then throw it together at the last minute. 
• Manager is not honest during the review.  The manager doesn’t know how to effectively provide constructive criticism. 
• Employee does not receive continuous feedback.  The only time they hear how they are doing is at “review time”.  Feedback must occur on a regular basis. 

There are also advantages for an employee to receive a performance appraisal -

• It provides a clear and complete view of how they are performing compared to expectations.
• It provides a time to discuss their strengths and weaknesses.
• It provides a time to set future goals and recommend a specific program designed to help them improve performance.
• It’s an opportunity to express opinions in two-way communication.

Although I mentioned earlier that I believe the process is more important than the form, I do want to mention a couple things to keep in mind while writing the performance evaluation -

• Review the performance throughout the entire evaluation period, not what has just happened recently.
• Include comments consistent with ratings.  If you rated them high, tell them why.  What specifically do they do that made you rate them that way.  Likewise, be sure to provide comments for “needs development” ratings. 
• Be sure to include specific examples:  customer comment cards, employee of the month, perfect balancing, etc.
• Finish the evaluation by adding comments to areas of strength and areas that need improvement.  Require the use of a self-evaluation. 
• Don’t hesitate to have HR read the evaluation before giving it.  Sometimes an unbiased observer can shed valuable insight into an employee. 

Now that you’re ready to give the performance evaluation –

• Schedule a time and place for the evaluation.
• Be specific, not general.
• Discuss the employee’s developmental needs and goals.
• Discuss the salary increase or lack thereof.
• Give the employee time to comment on the evaluation and to sign it.