By now you may understand that the performance appraisal process is part of an ongoing year-round process of giving constant feedback and support, making sure people know what is expected, and setting goals for the future. However, understanding the performance appraisal process in theory and actually sitting across from an employee and following through are two very different things. If employees always behaved the way they do in theoretical books, life would be easy. Unfortunately, people don't always respond predictably and knowing how to handle difficult performance appraisal situations is imperative for holding on to good employees and gently transitioning poor performers out of the organization to someplace where (you hope) they'll be a better fit.

For just these situations, I've developed key points that you'll need to remember. I've given this system the perhaps corny acronym HAPPY, with the hope that it will be easy to remember and that it will lead to at least happier, if not happy, reviews. The key points to hold onto as you're talking with a difficult employee about a challenging review are:
Honestly tell the employee exactly how you see the performance situation.
Ask for their feedback about what you've said and listen to their response.
Partner with the employee to find the solution.
Persist until the change you've requested happens.
Y Remember why you do performance reviews (to help people learn and grow) and ask yourself why they would want to improve.

What's in it for them? In the next sections we'll drill down on each of these in order to flesh out how to do each one.