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or fast moving organizations of the 21st Century. This will form the analysis of the organization as to determine whether the organization uses 'new pay' as compared with traditional forms of pay.

In comparison Stacey (1996), states 'if the rewards are suitable it will stimulate individuals to make actions which are directly relevant to the strategy of the organization' Stacey 1990 as cited in Maund (2002, p. 439) implies this will result in the aims of the organization being realized through employees.

Bowey and Thorpe as cited in Thorpe and Homan (2000, p. 81) in order for remuneration systems to be effective there needs to be a sound understanding of how people at work are motivated. This forms the basis of the next section of the literature review, which focuses on method used to encourage motivation of employees that is performance.

Performance Management
Baron and Armstrong, (1998: 38-39) as cited in Beardwell and Holden (2001, p. 538) states that performance management can be defined as 'a strategic and integrated approach to increasing the effectiveness of organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors,' and also can be seen as a continuous process involving reviews that focus on the future rather than the past' In the same vein, Bartol and Martin (1998, p. 529) states that performance management 'focus on ensuring that specific goals that have been set are achieved. Henley Management College (2000, p. 25) states that performance management 'is about people and motivation - the system can get in the way', it further states that performance management is a 'management process and the key if the relationship between a manager and his her people - performance management system are often an elaborate way to foul that up'.

Hendry et al., (1997) as cited in Beardwell and Holden (2001, p. 538), advocates that performance management is not simply the appraisal of individual performance: it is an integrated and continuous process that develops, communicates and enables the future direction, core competences and value of the organisation, and helps to create an 'horizon of understanding'. It identifies who or what delivers the critical performance with respect to business strategy and objectives and ensures that performance is successfully carried out. Effective performance ensures that employees and managers understand each other' expectations, and how corporate strategy and objectives impact on their own context- their roles, behaviours, relationships and interactions, reward future.

Performance management is a holistic process that ensures that the following are developed and effectively carried out: - setting of corporate, department, team and individual objectives; performance appraisal system; reward strategies and schemes; training and development strategies and plans; feedback, communication and coaching; individual career planning; mechanisms for monitoring the effectiveness of performance management system and interventions.

Thus performance management incorporates the effective day to day management and support of people, and is not simply concerned with appraisal forms, procedures and interviews or the paternalistic evaluation by superior of a subordinate's performance. Employee commitment and performance are secured through a mutuall