This study presents how HRM policies and practices can be optimally integrated to link individ- ual and organizational performance in KIFs. This is an empirical study of CompuSoluciones, a medium-size IT Mexican consulting firm. Findings suggest that encompassing various theoreti- cal perspectives on performance management systems connect strategic HRM to organization- al research via the study of performance management. These systems appear to serve as an integrative mechanism to centralize or decentralize decisions beyond its incentive effects. This organizational role of performance management systems in CompuSoluciones is supported by a clear strategic intent based on consistent principles and values promoted by top management and based also on managers and staff high levels of commitment to the appraisal process.