ABSTRACT

https://orcid.org/0000-0003-0893-0432

This chapter discusses the book’s second main lever of control: an organization’s systems, processes, and procedures. This lever of control has consumed the bulk of the performance management literature’s descriptions of how organizations seek to influence their employees’ implementations of their organizations’ strategies. Organizational systems, processes, and procedures represent formalized approaches to directing and encouraging specific types of employee behaviour (i.e., those behaviours that will support the implementation of an organization’s strategy). Three primary organizational systems are identified and extensively discussed: performance measurement systems (including financial, non-financial, and hybrid systems), employee incentive systems, and human resource systems. Numerous examples and references are made to contemporary organizational practice.