1) A performance review is an important occasion that allows both employee and manager to establish realistic goals and expectations for the near future. 2) Managers often tend to sugarcoat problems out of hesitation or wanting to avoid unpleasant situations. While it may be important to maintain good working relationships, you will harm both your business and the employee by not being candid and open. 3) Objective and healthy feedback will help your employee grow and contribute more to the company. 4) Prepare yourself by reading the job description and the self-appraisal; consult your notes 5) During a review, focus on both the positive and the negative aspects of the employee’s performance and bring out areas where improvement is required. 6) It is important to have objective, quantifiable criterion to measure performance. Typically, these fall into areas of quality, quantity, and time. 7) Considering quality of work, you could be measuring and discussing the following factors: • Customer satisfaction and feedback • Any complaints • Work output that must be redone (in percentage terms) • Peer perception of job performance • Adherence to procedures • Budget management • Attitude and behavior • Percentage of leads that result in sales • Consistency of quality 8) Be sure that you define quality norms well in advance so that all employees know what is expected of them. 9) When measuring quantity, be careful to ensure that the quantity of work or output is qualitatively sound. The gadgets that an employee produces must be saleable. Sheer quantity without quality is only harming your business. 10) Measuring time-related issues is equally important. Can you rely on the employee to get things done on time? Does the employee coordinate complex activities with peers and customers? Is the employee punctual?