The possibility that performance-based appraisal systems lead to organizational dysfunctional behavior (ODB) in Japanese organizations was investigated.Japanese employees (n=500;mean age 38.4 years;360 men, 140 women), working for corporations in Japan participated in the study by answering a specially designed questionnaire.ODB was assessedusing four sub-scales:(1) serious dysfunctional behaviors in the job, such as damaging workplace property;(2) sabotage, such as sending private e-mails during working hours;(3) verbal harassment, such as speaking ill out of earshot of other employees;and (4) verbal violence, such as arguing at work.Structural equation modeling revealed the following:(a) performance-based appraisal systems did not directly determine ODB;(b) job stressors were not related to ODB;(c) organizational justice was negatively related to ODB;(d) the more performance-based appraisal systems were established in Japanese organizations, the more fluid they became;and (e) ODB tended to occur in fluid organizational situations.