Giving performance appraisals is important for both personal and business benefits. It ensures success by providing improvement feedback that everyone craves in order to learn and be aligned. Top companies that implemented excellent feedback systems refused to share their forms and processes because it was critical for competitive advantage. When giving appraisals, managers should spend time on the process, think carefully about ratings, choose a good time and place, and provide specific examples to support ratings. It is important to address potential rating errors like biases or allowing recent small events to outweigh past performance. The goal of appraisals should be understanding, honesty, and fairness.