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A performance appraisal (PA), performance review, performance evaluation,[1] (career) development discussion,[2] or employee appraisal[3] is a method by which the job performance of an employee is evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
Developmental PA include:
Identifying an individual’s strength & weaknesses
Setting goals
Identification of training needs

Evaluation is characterized as comparing a person’s performance to:
Set of standard
Other organizational members
The individual’s previous performance

(Evaluation) frequently supports Human Resource activities such as:
Salary administration Promotion or termination decisions
Identification or recognition of performance (productive or non productive)

http://www.ju.edu/humanresources/Miscellaneous%20Other%20Forms/Performance%20Appraisal%20Interview%20Guide.pdf ) link on Conducting PA interview.

Performance Appraisal Tips
1. Prepare for the appraisal meeting well
It’s vitally important that you prepare well for the appraisal meeting. After all, what does it say to your employee if you don’t?
You need to prepare the practical (timing, venue and documentation) and most importantly you need to prepare to review the employee’s performance

2. Help your employee prepare for the appraisal meeting
Your appraisal meeting will be far more collaborative, and far more successful, if you give your employee time to prepare for the meeting and if you help them prepare

3. Think about your employee’s motivational needs
What would need to happen for your employee to find the appraisal meeting really motivational? Don’t know? Then simply ask your employee!

4. Take your time
It’s really important that you and your employee have enough time to think. Plan for around 2 hours. Don’t rush, and don’t rush your employee
5. Listen well
It’s so important that your employee feels listened to. Ask

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