Team appraisal was widely spread and dominant system in Korean firm. But team appraisal has free riding problem and adverse selection. Performance-Based HR Practice (MBO Practice) is seeking to diffuse in performance-based culture.This case study concerned on HR Practice short history about diffusion of performance-based culture. Firm effort to acquire of individual consensus of HR Practice. By team based appraisal system, firm diffuse the performance based culture and overcome the problem of team based appraisal, and to settle the performance based HR Practice.This case study suggest about performance based HR Practice issue, like ratchet effect and adverse selection for future empirical study.