This paper identifies the
role of
performance appraisal as a
management tool to increase productivity of an employee and the organization as a whole. The paper contends that performance appraisals and reviews can be used in conjunction with various other management tools such as Total Quality Management (TQM) to improve the overall performance. The paper examines the salient features of performance appraisal and the role it plays in quality awards such as the Malcolm Baldrige
award in the United States, the
Deming Award in Japan, and the EFQM in Europe. Performance appraisal approaches, both in theory and practice, are not without flaws. Japan has been selected for a study of the strengths and weaknesses of the performance appraisal approach, and special focus is placed on the effect of culture on the use of this tool.