Performance evaluations are important for employees, managers, and the organization. Managers should avoid common traps like basing evaluations solely on recent performance or favoritism. Evaluations should provide honest feedback in all areas and accurately reflect performance throughout the year, not just the last month. While difficult, managers should not shy away from confronting underperformance, as failing to do so could result in poor performers remaining and even legal issues down the road. Fair evaluations build a stronger team for both the manager and company.