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1. Concentrate on what you and the employee can achieve together in the future. Don’t use performance reviews just as a means of telling workers everything they’re doing wrong.
2. Strive for consistency and fairness. Apply performance criteria to all employees, not just a few.
3. Encourage employees to evaluate themselves and to discuss their own strengths. Your view of an employee and the employee’s view of himself should match fairly well. Otherwise, it’s a warning signal.
4. Be honest about poor performance, but not brutal. Document your observations in writing.
5. If you’re small enough that constant communication and feedback are taking place, you may be able to avoid performance reviews. But don’t send the message that performance isn’t critical.

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