The purpose of this study is to examine the impact of performance evaluation systems on wage negotiations between labor and management, and thereby to describe the characteristic structure of an efficient performance evaluation system that can contribute to the improvement of labor-management relations. A performance evaluation system consists of performance measures and a compensation scheme. The hypothesis was established that labor-management conflict would manifest differently depending on the forms of performance measures and wage systems. The empirical investigation of this hypothesis was conducted through variable measurement via questionnaires and association testing using log-linear analysis. According to the empirical results, labor-management conflict arising during the wage negotiation process between labor and management can be partially mitigated through the efficient operation of the firm's performance evaluation system. In particular, when the uncertainty of performance measures is low, an incentive system in the form of performance-based pay can be helpful in resolving labor-management conflict.