Coming soon · Book Profile

Managing Employee Performance and Reward Shields

An integrated and critical examination of the theory and practice of managing employee performance and rewards to achieve strategic alignment, organizational effectiveness, and employee well-being.

A profile of this book is on the way.

Get the book →

What it’s about

Managing Employee Performance and Reward provides a detailed and cohesive coverage of two pivotal and closely connected yet challenging aspects of human resource management. It critically examines current theory and practice, offering a practical framework for analyzing and addressing the myriad performance and reward issues confronting today's managers. Drawing on up-to-date research from organizational psychology, strategic management, and critical management studies, the book covers fundamentals like employee psychology and strategy, delves into performance management practices (managing results, behavior, and competencies), explores options for structuring base pay and benefits, and details the configuration of various performance-related rewards for individuals, groups, and executives. Complete with hands-on case studies, this text is essential for students and managers seeking to design systems that are not only organizationally effective but also supportive of employee satisfaction, equity, and felt-fairness.

The through-line

Who it’s for: An ambitious student, manager, or HR professional who wants to design and implement effective performance and reward systems that drive organizational success and genuinely motivate employees.
The problem: Designing and managing performance and reward systems is fraught with peril. Ill-conceived plans fail to motivate, create unintended negative consequences like unhealthy competition or cynicism, and can be costly without delivering a return on investment. They feel frustrated and uncertain about how to create a system that is fair, effective, and strategically aligned, fearing that they might implement faddish solutions that demotivate staff and erode trust.
The plan: Understand the fundamentals of performance, reward, psychology, and strategic alignment.
Master the tools for managing performance through results, behaviors, and competencies.
Learn to structure base pay and benefits effectively, choosing between position-based and person-based systems.
Evaluate and apply the right mix of performance-related rewards for individuals, groups, and executives.
Integrate all elements into a coherent, strategically aligned system through systematic review and development.
The payoff: You will confidently design and manage systems that are strategically aligned and organizationally effective. · Your systems will foster a culture of high performance, trust, and felt-fairness. · You will successfully attract, retain, and motivate top talent, driving both organizational success and employee well-being.

See our guide

Related profiles we’ve built

Additional reading

Human Resource Champions · David Ulrich
The preface references this as a landmark book in the effort to define HR core competencies and the role of HR as a strategic business partner.
The Human Side of the Enterprise · Douglas McGregor
Mentioned in the preface as a key influence in shifting the perspective from 'personnel administration' to 'human resource management,' providing historical context for the evolution of the HR function.
The Compensation Handbook, A State-of-the-Art Guide to Compensation and Design · Berger, L.A., and D.R. Berger, editors
This book provides a deep dive into the practical application of finance and accounting; a broader handbook like this one would provide context on the design elements (internal/external equity) that this book deliberately does not cover in detail.
How to Be a Star at Work: 9 Breakthrough Strategies You Need to Succeed · Robert E. Kelley
Referenced to support the idea that a key trait of high performers is their ability to leverage learning opportunities, which is a core tenet of the book's framework for excelling as a compensation professional.
Average Is Over: Powering America Beyond the Age of the Great Stagnation · Tyler Cowen
Cited to highlight the increasing economic value of individuals whose skills are complementary to computers, underscoring the book's argument that 'soft skills' and strategic thinking are becoming critical for compensation professionals in a data-driven world.
Drive: The Surprising Truth about What Motivates Us · Daniel H. Pink
Cited as a contrasting viewpoint that questions the efficacy of financial incentives, highlighting the importance of autonomy, mastery, and purpose. This is relevant to the book's deep focus on designing effective incentive systems.
Creative Destruction: Why Companies That Are Built to Last Underperform the Market · Sarah Kaplan and Richard N. Foster
Referenced to illustrate the increasing pace of change and business complexity, which provides the context for why compensation professionals need to be more strategic and business-savvy.
Beyond HR: The New Science of Human Capital · John W. Boudreau and Peter M. Ramstad
Listed as an additional resource to provide a deeper dive into the strategic management of human capital, which is a central theme of the handbook.
Pay and organizational effectiveness: A psychological view · Lawler, E. E., III (1971)
This is cited as a foundational text that comprehensively applied psychological theories, particularly expectancy and equity theory, to understand how pay systems affect employee motivation and behavior.
Economics, organization & management · Milgrom, P., & Roberts, J. (1992)
Serves as a key reference for the 'new economics of personnel,' particularly agency theory. The book uses its concepts to frame decisions about behavior- vs. outcome-based contracts and the challenges of incentive design.