The most basic problem is that performance appraisals often don't accurately assess performance.
W. Edwards DemingForces of Destruction: grades in school, merit system, incentive pay, business plans, quotas.
W. Edwards DemingOne cannot be successful on visible figures alone ... the most important figures that one needs for management are unknown or unknowable, but successful management must nevertheless take account of them.
W. Edwards DemingIf you wait for people to come to you, you'll only get small problems. You must go and find them. The big problems are where people don't realize they have one in the first place.
W. Edwards DemingIt is management's job to direct the efforts of all components toward the aim of the system. The first step is clarification: everyone in the organization must understand the aim of the system, and how to direct his efforts toward it. Everyone must understand the damage and loss to the whole organization from a team that seeks to become a selfish, independent, profit center.
W. Edwards Deming