Results of an examination of research literature on performance-appraisal interviewing and its implications are presented in this report. The appraisal interview functions to (1) provide feedback on performance, (2) counsel and provide help, (3) discover what the employee is thinking, (4) teach the employee to solve problems, (5) help the employee discover ways to improve, (6) set performance goals, and/or (7) discuss compensation. Important appraiser characteristics are credibility, a consistent style between day-to-day behavior and interview behavior, and the ability to engage in active listening. Employee participation in the performance-appraisal process involves preparation for the interview (by engaging in self-rating and working through a structured worksheet) and actual participation in the interview, including goal setting. The research suggests the need for students to be trained in skills involving supportive behavior, problem solving, active listening, and goal setting theory. (EL)