Performance appraisals, sometimes called performance reviews, are one of a number of performance management tools that aim to ensure employees’ performance contributes to business objectives, and should be used as part of a holistic approach to managing performance. The value of annual performance appraisals has increasingly been challenged in recent years in favor of more regular ‘performance conversations’. However, performance feedback or appraisal remains a crucial aspect of the performance management cycle'(CIPD,2016)’ Performance appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards'( Dessler,2013)Talks between employee and manager happen on an almost daily basis. The annual Appraisal Interview however offers the opportunity to systematically discuss the following content: • Discuss work and performance of the past year – tasks, work conditions and cooperation • Resolve problems and misunderstandings • Mutually voice acknowledgement and critique in a factual matter • Agree on measures to boost development and further education •Mutually agree on long term goals and focus points Hence, an Appraisal Interview is a One?on?One interview which: • Takes place at least once a year • Requires both parties to prepare for it • Is semi?structured • Is carried out by the employee and the direct supervisor using specific contents INTERVIEW TECHNIQUES1. Avoid an atmosphere of stress.2. If the employee has earned a good appraisal, break the ice by saying so up front.3. If the employee has earned an appraisal that is critical of his/her performance, either overall or for a particular task, make sure he/she understands the reason for the rating.4. Since a fundamental part of the appraisal process is the avoidance of surprises in the appraisal interview, supervisors must be aware of when and how previous criticism and suggestions for improving performance, counseling, etc., occurred and have documentation available for reference should the employee question the validity of the rating, occurrence, etc.5. Employees should be encouraged to write their own comments on the appraisal form. The inclusion of comments by the employee is purely voluntary. 6. End the interview on a positive note. Encourage the individual who has done well. It is just as important to encourage the employee who, although he/she has received a less than satisfactory report, has the potential for improvement and has admirable qualities.CONCLUSIONIn many organizations, ‘the appraisal’ is still seen as an annual event, but in this case its impact will be limited. Conversations on performance should be an integral part of regular meetings with line managers, and if performance is measured quantitatively, employees should be regularly informed of their progress towards targets. What’s vital is that meaningful and open performance conversations happen regularly; whether or not there is also an annual review is secondary.More specific factors that make for a constructive appraisal are:A clear purpose – to inform management decisions or employee developmentRecognition of achievementsGenuine two-way conversation and reflectionThe whole period is reviewed, not just recent or isolated eventsAgreed action plans.