HR performance evaluation in the context of TQM: A review of the literature

While the concepts of performance evaluation and total quality management (TQM) have been explored in the management literature of the last decades, there has been relatively little work on the particular characteristics that an organisation with a TQM approach to human resource (HR) performance evaluation should adopt. To this end, this paper provides a review of the literature in the area of TQM and HR performance evaluation, in order to establish the context for future empirical research. This study provides a brief overview of the implications of a quality orientation for the evaluation of employee performance. It reveals the main difficulties with the concept of performance evaluation from a quality perspective; and it also examines particular characteristics of performance evaluation that could maximise the effectiveness of HR performance evaluation in organisational environments with a quality orientation. Both the assumptions of TQM and the requirements for HR evaluation are used as a foundation from which to examine the ways in which HR performance evaluation might have changed to integrate TQM requirements. By examining the relevant literature, the main criteria of a TQM‐based HR performance evaluation system are refined and enhanced, thus moving towards a situation in which TQM can drive HR performance evaluation in practice. The results also serve as a guide for the evaluation of the effectiveness of such a system.