It is almost impossible to really understand another person. So, the Human Resource department always finds the task of evaluating and appraising the employees' performance to be very difficult.

Even when one tries to be unbiased and non-judgmental, it is in human nature to compare two employees who work similar job profiles and to evaluate the better performer. Every one evaluates other person's performance but may try not to express it or give feedback.

Performance appraisal of the employee not only aids in the development of the overall organization, but also personal development of each employee. Integration of personal goals with organizational goals can be done through proper performance appraisal.

But, when a person judges another, often he evaluates the other through his own view points and perspective. If the Evaluator values timeliness more than perfection, a person who finishes his task some how n time would be given better marks over some one who does a better job tad slower. Such issues often lead to conflicts in the organization.

To lessen such bias, the organizations like military, governments and corporations have tried to design performance appraisal based on logic so that the system is free of personal bias of the evaluator.

Even non-profit organizations need a proper evaluation of their employees. Non profit organizations try to bring equality for all in the society. As equality begins with the organization itself, the internal evaluation process of such organizations must therefore, be bias-free and most reliable.

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Be sure that your employee has been given a job description and knows what he or she is being evaluated against.
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Let the employee see a blank copy of the evaluation form and have him or her fill out performance ratings.
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Set up a time and place to meet so that you'll have privacy and quiet.
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Set aside at least an hour, even though you might not need it.
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Outline your goals for the evaluation - to improve the employee's performance, reward good performance, establish new performance expectations, receive feedback or other goals.