By almost every measure manufacturing quality has improved tremendously in the past decade; unfortunately, the same is not true for service. Yet, manufacturing processes represent less than 5 per cent of all business processes. Clearly, the opportunity area for the twenty‐first century is in the...

Performance evaluations (appraisals) have been blamed for everything from team destruction to personal demoralization. The problem is not the concept of performance evaluation but the way they have been implemented. This technical report provides a sound path to effect constructive appraisals.