Designing alignment: Human-centered performance and reward systems in FMCG

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DOI code: 
10.15167/1824-3576/IPEJM2025.3.1762
Abstract: 

This article explores which tools within performance management and reward systems most effectively align managerial actions with organizational goals, focusing on the fast-moving consumer goods (FMCG) industry. This sector’s operational speed, strategic complexity, and lack of universal governance models provide a rich context for the study. After a literature review grounded in agency theory and traditional governance mechanisms, the article shifts toward motivational theories as alternative frameworks. A conceptual model is proposed, structured around three core alignment mechanisms and shaped by a set of individual and contextual influences identified in the literature. The empirical core involves a qualitative case study with semi-structured interviews of five managers and two directors in a multinational FMCG firm, aiming to uncover alignment gaps and effective bridging mechanisms. Thematic coding and cross-analysis yield evidence-based insights and practical recommendations. The study concludes with reflections on its limitations and suggests directions for future research.