Performance Distributions: Measuring Employee Performance Using Total Quality Management Principles

There have been numerous criticisms of traditional performance appraisal systems made by Total Quality Management (TQM) advocates. This article describes a performance appraisal and management system that addresses many TQM concerns about appraisal systems. The Performance Distribution Assessment method (PDA) explicitly considers system versus person sources of performance variation and provides a means for developing “targeted” performance and quality improvement programs. The literature regarding the development and validity of the PDA method is reviewed, and the compatibility of this appraisal system with quality management principles is discussed.