Describe how a company might initiate annual reviews of employee performance without discouraging worker satisfaction and engagement

One way is to do annual reviews, what you have said, but instead of saying"you are horrible at this or that", say it in a different way. I would say thatbif they didn't communicate with customers as well as you would like them to say it like this ... "So and so, you are doing well, but I would like to see more customer service from you"