Performance management leaders often feel uncomfortable in this role because managing performance requires that they judge and coach at the same time. In other words, supervisors serve as judges by evaluating performance and allocating rewards. Supervisors serve as coaches by helping employees solve performance problems, identify weaknesses, and design developmental plans. Supervisors feel may uncomfortable when they need to convey bad news and feel employees may react negatively.

Because performance management leaders play these paradoxical roles, it is usually helpful to separate the types of meetings related to performance. Separating the meetings also separates the discussion of rewards from the discussion about future career development. This allows employees to give their full attention to each issue, one at a time.

Performance management systems can involve as many as six formal meetings. Although six types of meetings are possible, not all six take place as separate meetings. For example, the self-appraisal, classical performance review, merit/salary review, development plan, and objective setting meetings may all take place during one umbrella meeting, labeled “performance review meeting.”

Performance review discussions serve very important purposes. First, these discussions allow employees to improve their performance by identifying performance problems and solutions for overcoming them. Second, they help build a good relationship between the supervisor and the employee. The supervisor shows that she cares about the employee’s ongoing growth and development and is willing to invest resources to help the employee improve.

Third, good performance management leaders use review discussions as stay interviews. Stay interviews investigate why employees stay in the organization and help managers enhance employee engagement and retain star performers.