Be specific and discuss only one issue at a time. Provide some positive feedback in addition to the negative feedback. In fact, try to start the conversation in a positive manner. Allow the employee to give feedback freely. But be careful to not get caught in a repetitive conversation that goes nowhere.
Good managers are good coaches.
They can effectively communicate to an employee that a problem exists and they know how to listen effectively. How a manager handles problems as they arise can have a significant impact on employee morale.