Conflict between Theory and Practice: TQM and Performance Appraisal

Purpose – 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.

Design/methodology/approach – 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.

Findings – 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.

Research limitations/implications – 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.

Practical implications – 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.

Originality/value – 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