The most basic problem is that performance appraisals often don't accurately assess performance.

...a person and an organization must have goals, take actions to achieve those goals, gather evidence of achievement, study and reflect on the data and from that take actions again. Thus, they are in a continuous feedback spiral toward continuous improvement. This is what 'Kaizan' means.

To optimize the whole, we must sub-optimize the parts

Without theory, there are no questions.

Adopt a new philosophy of cooperation (win-win) in which everybody wins.

Shrink, shrink variation, to reduce the loss.

You can not plan to make a discovery. You do not plan innovation.