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Means are considered whereby maturing firms can maintain the initial surge of enthusiasm and productivity of their technical creative staff. The drive and motivation of such staff often characterise the birth of new firms, but without careful management the energy of these key personnel is too often lost.

Questions the real purpose of performance appraisal and describes how it is best achieved. Notes that criticism breeds defensiveness but performance feedback can be done without criticism. Discusses effective performance evaluation and the use of self‐evaluation. Concludes that performance appraisals should be a series of steps to ensure expectations are clear and as an opportunity to cement the working relationship between employee and manager.