Performance appraisal is the systematic evaluation of employees with respect to their performance on their job and their potential for development. In other words, it is the process of measuring productivity in terms of efficiency and effectiveness.

Gather foundational information. Review your performance journal notes.  Prepare a list of your accomplishments. Do a self-evaluation. Prepare a list of areas for development. Draft goals for the coming period. Share your preparations with your manager.

An employee evaluation is the assessment and review of a worker's job performance. Most companies have an employee evaluation system wherein employees are evaluated on a regular basis (often once a year). Typically these assessments are done at year end or on the employee's service anniversary.