Abstract
The companies which are seeking total quality management suffer from some problems related to human resources management practices such as performance appraisal. That is the reason why some companies fail to achieve employee commitment which is vital for TQM. In this study, traditional performance appraisal system is analyzed based on TQM principles and seven proposals are offered. The main proposals are about; integrating performance appraisal system with the strategic planning process of the organization, aligning individual performance measures with organizational goals, adding multi-rater feedback and team-based performance measurement models to the individual performance appraisal, shortening of the performance appraisal periods, eliminating measurement errors which have steam from the systems and impacts on the individual performance. Also, there are comments on redesigning of the forms using to appraise the performance in terms of measures and measurement scale.