Which of the following is important for aligning people's performance with business goals?

Establishing effective communication systems is essential for aligning people’s performance with business goals. Clear and open communication allows employees to understand organizational objectives, their roles within the company, and how their contributions impact the overall success. When communication is effective, it fosters collaboration, ensures that everyone is on the same page, and helps to build a culture where feedback is welcomed and acted upon. This alignment is crucial to drive performance in a way that supports business goals, as employees feel informed, valued, and motivated to achieve these objectives.

In contrast, other options lack the fundamental qualities needed to promote alignment. For instance, increasing employee turnover disrupts continuity and can lead to a loss of institutional knowledge, negatively affecting performance and alignment with goals. A rigid hierarchy in management can stifle innovation and communication, making it challenging for employees to voice their ideas and understand their impact. Focusing solely on profit margins can lead to short-term thinking and disregard for employee engagement and satisfaction, which are vital for long-term success and alignment with broader business objectives.