The Opening
To skip the opening phase of a performance review interview is just as serious a mistake as to forget to set up an agenda for any other meeting, or to forget to introduce the topic when you are making an oral presentation. The opening phase of an interview includes three basic steps: rapport, orientation, and motivation. Usually they are done in the order listed, but the order is less important than remembering to do them.
Rapport
Developing rapport with your employee is key to their receptivity. You actually need a good rapport together before this meeting, so make sure that you are one of those supervisors who gets to know their staff, and have a professional relationship with them. When the appraisal meeting comes, choose neutral territory, or at least arrange the room informally, rather than across a desk from each other. Shake hands, show the person where to sit, offer coffee or juice, engage in small talk for a few minutes, and adopt a friendly, interested expression.
Orientation
Once you have established rapport, explain approximately how long the review will take, and exactly why the company does reviews. Tell the employee how much you appreciate the opportunity to meet one on one for a conversation with all employees. Tell them you want to get their opinion on their performance and you want to add a few thoughts of your own. Tell them you would like to see them leave this review with a good idea of how they are doing and some goals for the year/period ahead.
Motivation
Explain the benefits to the employee for being a willing and cooperative participant in this review. Suggest that this is their opportunity to tell you some of the things that have been on their mind, and perhaps give you some suggestions of how you can be of more help to them. Let them know that this is an opportunity for the employee to think about a personal development plan; a way to enhance their career.