This paper present some aspects to be considered when defining firm’s performance. The focus is on defining three elements which are most important in functioning and development of every firm. The authors of this paper emphasized that “quality can happen only when you care enough to do your best”. Incorporating Total Quality Management (TQM) in firms is what we need today. TQM means developing a Quality vision, customer focus and overgrowing process of continuous improvement on the part of each and every person serving at the firm. Every organization needs a process to ensure that the systems witch shape its culture and way of business such as performance appraisal system, reward and recognition systems etc. are brought into alignment with TQM. The same is true in case of every.