In today's changed environment where the economy and industry are driven by customers, business is open to worldwide competition. Manufacturing firms have looked at employee performance improvement as a means to succeed. These findings advocate setting up priorities for employee performance improvement. This requires a continuous improvement training program. In this article, interpretive structural modeling is used to analyze interrelationships among performance appraisal factors to design and plan a training program for employees. (Contains 4 tables and 4 figures.)