Performance Appraisals or evaluations are a process where job performance is measured, documented and evaluated.  The evaluation of performance can be formal and/or informal. It all sounds very black and white and process driven, with very little room for humanity. This is where many companies go very wrong. If we can't allow the human side to enter our performance appraisals we are setting ourselves up for failure, as we are cutting out a key part of what makes our business function. People are your greatest assets in any business, and you need to think of all of your internal processes from this view point, if you really want to build a sustainable and successful business.

Planning for your business evolution is also very important, early in the development of organizations things are very fluid and people are asked to step in and perform multiple roles.  The performance evaluations during these early stages may be more informal, occurring over a series of conversations that are suitable for the changing environment.  As the company grows there is a need to move toward formal performance evaluations that is part of a systematic approach used to help manage employee performance, and conversely employee engagement and success. Whilst also establishing internal accountability and acceptance.