Many companies carry out regular performance appraisals of their employees to identify areas where they are succeeding and displaying good work, as well as noting areas that need improvement. The results of appraisals can also be used to decide the extent of salary increases and bonuses. A number of different strategies and methods are available for carrying out a performance appraisal.

Conventional Appraisals

The most conventional form of performance appraisal is a written evaluation carried out by an employee's manager or supervisor. These reviews will cover a specific time period, listing achievements and strengths, as well as identifying areas that need improvement. They are often carried out annually, with all employees assessed at the same time.

These appraisals will often list objectives that are to be achieved by the time of the next appraisal; evaluating progress against these objectives allows the manager to assess how well an employee is doing.

Provide specific and constructive feedback to the employee that she can use as a basis for improvement, as well as to define objectives for the next year.

Employee Self-Evaluations

Some companies incorporate a self-evaluation section into performance appraisals, giving the employee an opportunity to think about his performance over the time period being assessed and list what he thinks are his strengths and weaknesses. An employee can also detail his achievements and successes over the period, as well as areas where he feels he can improve. This will give you, as a manager, good material on which to build discussion and objectives.

Self-evaluations should follow a guideline or template to guide the employee through the process. Encourage employees to provide substantiation and evidence to areas where they feel they have made achievements.

360-Degree Reviews

Because an employee's colleagues interact with her on a daily basis, they are often better equipped and experienced to provide feedback on that person, with details of her strengths and weaknesses. This can be confidentially passed on to you, the employee's manager, who can then tactfully incorporate it into your performance appraisal.