Conflict between theory and practice: TQM and performance appraisal

A remarkable amount of theory‐based research is beginning to suggest that, even in organisations that pride themselves on having a quality orientation, the approach driving current policies and practices for human resource (HR) performance appraisal might be in fundamental conflict with essential requirements of total quality management (TQM). Seen in this light, this article aims to explore such (in)consistency between HRM theory and TQM precepts and assumptions.

Given that there is relatively little evidence regarding the nature of HR performance appraisal in quality‐driven organisations, this research used a combination of quantitative and qualitative investigation of performance appraisal and TQM assumptions.

The research highlights that while some of the quality management gurus, followed by other TQM scholars, advise organisations to relinquish and eliminate performance appraisal practices, this is not a unanimous view in both the literature and practice.

The research has the potential to aid researchers in comprehending the broad and complex mix of performance appraisal practices with those criteria underlying TQM. Therefore, the fundamental need is for more empirical research and analysis in order to test various theoretical assumptions about the impact of HR‐related practices on organisational performance in quality‐driven organisations.

The results of the research should enable practicing managers to determine which HR performance characteristics are more consistent with TQM initiatives. In particular, the research findings should also facilitate more valid diagnosis of TQM failures.

The paper highlights that the effectiveness of TQM can be enhanced by designing a performance management system that fits the culture and strategy of the organisation and also strongly supports a quality‐driven management strategy.