Individual Performance Related Pay in Human Resource

Human Resource

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview of the company...........................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Individual performance related pay is the link between the salary progress to an
assessment of individual performance and this is usually measured against the pre-agreed
objectives(Gallardo Gallardo and Thunnissen, 2016). It is also known as the individual PRP or
merit pay that also includes the role of manager, evaluation of the employee’s performance,
distribution of the awards and the impact on employees behaviour. Tesco is the chosen
organisation for this report, It is the leading retailer in the United Kingdom and its headquarter in
Welwyn Garden City, England. This company is formed by the Jack Cohen in 1919 and this
report will cover the circumstances of IPRP in the motivation of the employees and what
circumstances they tends not to work so well.
MAIN BODY
Overview of the company.
Individual performance pay has been grown since the 1980s as the employees finding the
ways of improving the performance by connecting the employees earning in consideration to
achieve the business objectives. It also includes the main consideration of the employees to get
the effectiveness in the business and ensure the deserving compensation to the workforce so that
they give their best in attaining the organisational goal. In context to Tesco, they must ensure the
evaluation of the individual performance so that they can get the effectiveness in the business in
order to achieve the higher profitability. There are various roles of individual performance
related pay which is explained as follows:
Motivate the employees for their retention: It is important to give the emphasis on the
employees performance and give them the required salary so that they can get the effectiveness
in the company by retaining their top level employees in order to work them in the right
direction. In contest of Tesco, they are making the best use of their various aspect so that they
evaluate the employees performance and retain the talented employees who can perform their job
role in the well define manner.
Motivate the employees to perform at the top of their skills: When the organisation is
having the effectiveness in the business). (Kanagavalli and Sangeetha, 2017). This would helps
in making the best use of the employees in order to complete the certain task in an appropriate