One of the most important benefits of a performance appraisal is that it gives time for the supervisor and employee to address important work related issues that might not otherwise be addressed. In a busy, fast paced retail environment, this would provide an excellent opportunity to enjoy some uninterrupted time with the supervisor. It is very important to manage your employee's performance so you can decide whether or not this job is right for them. There are times where an employee just doesn't understand exactly what he needs to do. This is the time where you will need step in and correct the problem. If the problem continues it may be beneficial to the company to possibly put him in a different area of the workplace.

The systematic method employed will consist of a five step method of appraisal. Starting with a statement of the job responsibilities it then moves into the development and measurement step, then onto the coaching stage. This leads into the preparation for the formal interview and then the actual interview.

In adapting an appraisal plan it is necessary to include guidelines meant to avoid discrimination and gender biases that may otherwise unconsciously sneak into the process. Therefore, the appraisal improvement plan will include standards of clarity, openness and fairness to ensure and avoid discrimination. This is very important in managing an employee's performance.

Different types of appraisals include: Results-Focused Approach, in which they can produce short and long term results in the context of original performance and organizational objectives. This type of approach is generally perceived as fair and leads to a high level of commitment for the organization because they lead to a high level of participation from the employee. The weighted checklist is another method of an appraisal. This method provides a list of performance related statements that are weighted. Employee members are judged on a scale indicating the degree to which the statement accurately describes performance.

Any effective appraisal plan must include good preparation for it to be successful. At least one week prior to the appraisal, a notice will be sent to the employee with a list of certain things that will be discussed at the appraisal. These items can be career objectives and similar items. The notice should also include the date and time of the scheduled meeting. A review of the goals from the last meeting, if applicable, along with an opportunity for the employee to bring along any notes that he or she will find useful going into the appraisal interview. Such preparation will provide for a seamless transition going into the interview and will reduce anxiety for the employee while assuring a more productive outcome. Both the employee and company will benefit from this interview.

Guidelines should be kept to specifics in regard to the employees' related goals. The guidelines should be concerned solely with job behaviors and effort, not personality. Adhering to these guidelines will also avoid comparing the employee's performance with that of other employees.