Evidence on the compatibility of the HR performance evaluation system with TQM criteria can shed light on the value of the human factor in the successful implementation of quality practices. An examination of the works of the key researchers of the quality movement (e.g. Ishikawa, 1985; Juran, 1989; Deming, 1986) clearly indicates that all of them recognise the importance of employee performance evaluation in a quality-driven context. But Deming is the only one within this group who has given specific and extensive attention to this issue. Deming has made reform of the performance evaluation system an integral part of his action plan. In fact, he lists "evaluation of performance, merit rating and annual review" as the third of his "seven deadly diseases", and as the main cause of quality problems across American industries.