The most basic problem is that performance appraisals often don't accurately assess performance.
W. Edwards DemingSub-optimization is when everyone is for himself. Optimization is when everyone is working to help the company.
W. Edwards DemingIt is important that an aim never be defined in terms of activity or methods. It must always relate directly to how life is better for everyone. . . . The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.
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