Employee Review can be very tricky.

Many times you don't find real facts for which there are several reason including:
1. It is not taken as a serious development exercise.
2. The critical nature is not correctly communicated.
3. Too much of performance related stress is involved with it.
4. An honest feedback is not available for improvisation because everyone wants to prove a point to move forward.
5. Many times, it is close ended and extremely objective. It is important that you ask open ended questions and listen actively for facts.
6. Communicating this as a development exercise for better performance of company and people in order to achieve the ultimate goal is beneficial.
7. I have seen this happening in review meetings for sales people. Only and numbers are discussed. This is not helpful for any development exercises. You surely need more information on various factors like a realistic funnel, customer behavior, innovative strategies, future needs of the business, etc. There are many such critical factors that need to be involved.
8. If a particular person hasn't done very well in 1 qtr, an honest discussion followed by some coaching can resolve and retain that person as an achiever.

Here are some key questions you can ask. However, other specific questions must be asked depending on that person job description to ensure you get enough generic and specific data for assessment of the real situation.

1. Past performance
-How have your job and responsibilities changed since your last review?
-What skills or areas have you grown or improved in?
-What lessons have you learned over the past year?
-How well did you meet your goals and objectives over the past year? Compare the past year with previous reviews. Be specific.
-What areas can you improve your performance in? And what activities/plan would assure that improvement?

2. Present situation
-What are the predominant current requirements of your job?
-What areas of challenge do you currently face?
-What do you enjoy about your job?
-Where does your job fit in the organization? (How does your job impact internal and external customers?)
-How happy are your customers with your performance?

3. Future
-How will your job responsibilities stay the same or change in the future?
-List your job goals/objectives for the next 6-12 months.
-What areas do you need to grow or improve in to meet your goals?
-What training programs or coaching areas, if any, do you need to meet these goals?
-What additional assistance do you need to reach your peak performance level?
-What are your career goals?
-How can management help you be more effective?

- DeTimes