Deming, E. W.
(1982).
Out of the Crisis.
"Basically, what is wrong is that the performance appraisal or merit rating focuses on the end product, at the end of the stream, not on leadership to help people. This is a way to avoid the problems of people. A manager becomes, in effect, a manager of defects....
The effect is exactly the opposite of what the words promise. Everyone propels himself forward, or tries to, for his own good, on his own life preserver. The organization is the loser.
Merit rating rewards people that do well in the system. It does not reward attempts to improve the system. Don't rock the boat."