Although performance management can benefit a firm in its strategic planning,the method is considered ineffective for firms that want to implement total quality management.

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Performance management can be beneficial in improving individual and team performance in the short term, but total quality management requires a more holistic approach to continuous improvement and customer satisfaction. Total quality management focuses on a culture of quality throughout the organization, and performance management may not align with this approach. Therefore, performance management is not considered effective for firms that want to implement total quality management.

Although Performance Management Can Benefit a Firm in Its Strategic