Managing Employee Performance and Reward Systems, Practices and Prospects

Chapter 1 introduced the basic ‘tools’ of performance and reward management, including key aspects of purpose and practice. In this chapter we introduce two overarching concepts of alignment that recur throughout this book: ‘strategic alignment’ and ‘psychological engagement’. The design, implementation and maintenance of effective performance and reward management systems requires simultaneous, systematic and constant attention to both of these dimensions of alignment.

‘Strategic alignment’ refers to the plans, processes and actions involved in establishing and maintaining an alignment between an organisation’s overarching purpose or intent and how it manages employee performance and reward, as well as all other aspects of people management.