72 Approaches to HRM and L&D The performance management processes taking place in this cycle are: Plan: agree objectives and competency requirements as expressed in role profiles; identify the required behaviours; produce plans expressed in performance agreements for meeting objectives and improving performance; prepare personal development plans to enhance knowledge, skills and competence and reinforce the desired behaviours. Act: carry out the work required to achieve objectives by reference to the plans and in response to new demands. Monitor: check on progress in achieving objectives and responding to new demands; treat performance management as a continuous process ­ `managing performance all the year round' ­ rather than an annual appraisal event. Review: hold a `stock-taking' discussion of progress and achievements in a review meeting and identify where action is required to develop performance as a basis for completing the cycle and continuing into the planning stage. Reward management Reward management is concerned with the strategies, policies and processes required to ensure that the value of people and the contribution they make to achieving organizational, departmental and team goals are recognized and rewarded. It is about the design, implementation and maintenance of reward systems (interrelated reward processes, practices and procedures) which aim to satisfy the needs of both the organization and its stakeholders and to operate fairly, equitably and consistently. These systems will include arrangements for assessing the value of jobs through job evaluation and market pricing, base pay management (the design and management of grade and pay structures), performance management processes, schemes for re- warding and recognizing people according to their individual performance or contribution and/or team or organizational performance, and the provi- sion of employee benefits. But it should be emphasized that reward management is not just about pay and employee benefits. It is equally concerned with non-financial re- wards such as recognition, learning and development opportunities and in- creased job responsibility (the concept of total rewards). Managing the employment relationship The employment relationship is one which is established whenever employers and employees work together. A positive employment relationship is required, one in which there is mutuality ­ the state that exists when management and