This is the third module in a four-module training package for use in inservice seminars or workshops on performance appraisal and employee development. Module 3 focuses on the actual performance review process. The first part outlines requirements for constructing objective, workable employee development plans, in particular factors resulting in high quality performance objectives. The second part addresses rater errors (predispositions and tendencies in raters leading to biased/inaccurate performance ratings), such as halo, horns, central tendency, positive leniency, negative leniency, contrast, similar to me. Causes and methods for reducing their impact are investigated. The module includes both instructor and student manuals. The instructor's manual consists of two major parts. Details of Workshop contains the following information: objectives, time needed, agenda and time allocation, resources and materials needed, and bibliography. The second part is the Module Outline for Instructor with copies of transparencies needed. The participant's manual contains copies of all materials the student will use, including the pre/post-test and copies of all transparencies. An answer key for the test is provided. (YLB)