Evaluation criteria should be job-related.
Evaluations must be frank and objective - do not be afraid to let workers know about their faults just because they happen to belong to some minority group - courts have held it to be discriminatory to fail to let minority workers know when their performance or attitude needs improvement.
Design the form to where it is detailed enough to give the needed feedback to the employee, but not so complicated that managers will be reluctant to use it properly.
Give evaluations at regular intervals.
Use measures that are as quantifiable as possible.
Discuss the evaluation with employee; have the employee sign it.
Provide a space for the employee's response / self-evaluation.
Inform the employee that signing the form does not necessarily mean agreement, but rather only receipt and a chance to review.
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