Total quality or performance appraisal: choose one.

"Most advocates of total quality believe that total quality management (TQM) and performance appraisal are incompatible. For them, company managers can choose to promote either of these two approaches but not both. Since fundamental TQM requirements contradict the basic elements of performance appraisal, it would be impossible to combine them. Thus, companies may have to reexamine their approaches to corporate leadership."

"At the center of the case against performance appraisal are the fundamental values and principles of TQM. TQM requires customer-consciousness, systems-thinking, an understanding of variation, an appreciation of teamwork, a mastery of improvement methods, and an understanding of the process of personal motivation and learning. These very requirements of TQM are subverted by performance appraisal. TQM requires us to understand, control, and improve processes for the benefit of the customer. Performance appraisal aims at controlling an individual's behavior to the satisfaction of his or her manager. The two approaches represent a fundamental choice for leaders: one or the other; not both. "


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