Individual Performance Related Pay: Evaluation and Circumstances for Motivation

This article evaluates the effectiveness of individual performance related pay (IPRP) in stimulating higher levels of performance from employees and analyzes the circumstances in which IPRP tends to motivate employees. It also discusses the strengths and weaknesses of IPRP and its impact on employee motivation.

Strategic HRM
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Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Critically evaluate the extent to which individual performance related pay can stimulate
higher levels of performance from employees............................................................................3
Consider in what circumstances IPRP tends to motivate employees..........................................5
Conclusion.......................................................................................................................................7
REFERENCES..............................................................................................................................10
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INTRODUCTION
Human resources is set of individual and group members who are participating in the
organizational activities. Human resource is demanding concept and its requirement is more in
each and every enterprises. HR department is the backbone of the enterprises because it can
useful to monitor and record all the activities of the manpower. HR manager is contain all the
consideration of the strategic Human resource Management so that manager can effectively
manage all the operations of the workforce in an organization. Organisation is also considered
the IPRP ( individual performance related pay ) so that all the employees can focus on their
performance & productivity. This project is based on the Morrison which is largest retailer
organization established by William Morrison in 1899. The headquarter of this corporation
situated in Brandford , UK. The motive of this essay is to evaluate the concept of individual
performance related pay. This report will analyze that individual performance can stimulate be
higher level of performance . Moreover this report also determine the circumstances IPRP trends
in order to motivate the employees and not work so well. This report will determine the if
specific applications related to the individual performance related pay and generalize the concept
related to the motivational theory.
Main Body
Critically evaluate the extent to which individual performance related pay can stimulate higher
levels of performance from employees.
Individual performance related pay famously known as IPRP is an appropriate scheme which can
improve the productivity of the organization and incorporated with various factors which are
involved to improve the productivity. This scheme consider the group initiative & profit sharing.
On the basis of Summer specific empirical evidence, it can be generalized that specific policies
intervention mainly facilitate PRP which can be successful in contest of the productivity which
can be generalized from the young & also small organization (Miyamoto, 2018). The scheme
related with the IPRP can determine the specific payment and reward system on the basis of
their individual performance in the organization. This scheme is useful to improve the
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performance was culture in the organization so that it and every individuals can provide their
best contribution in order to perform well and achieve organizational objective. IPRP is provide
an appropriate platform which can useful to improve the core competencies of the individual so
that they can effectively improve their job role and play their duties and responsibilities as for a
given deadline. In the organization, the performance of the individual vary as a matter of time &
circumstances (Aydınlı Kulak and Elmas Atay, 2020). Those individuals who are not performing
well they will be unsatisfied and demotivated for the time of getting the salary and no monetary
and non monetary benefits. Morrison organization manager maintain all the consideration related
with IPRP so that company can effectively payment their staff members as per their performance
level (Resce and Sestili ,2021). Company can adopt a specific legitimate efforts in order to
obtain the objectives . Manager of the organization use specific indicators or measurement tool
which can use full to to analyze the performance level of the individuals. Company need to adopt
some specific policies in respect of individual performance related pay, which can useful to to
reduce the discrimination and improve the fairly treatment amount employee. Equal and fair
treatment with the employees will improve their motivation level so that they can easily satisfied
with their job role and provide their best efforts to improve their performance level (Park, 2018).
In 2015, CIPD define that it is a process that include specific considerations related to the
management of salary, payment, progression of the individual on the basis of their performance.
The system of PRP is totally based upon the specific assumption that is "money motivation". On
the basis of Suff and et. al., 2007, revealed that company can improve the behavior of their
employees through appropriate rewards and discourage them why the punishment. It is analyzed
that positive attitude play a significant role in order to to improve the behavior of the individuals
towards their job role. On the basis of Taylor , 2005, it is determined that monetary rewards is
useful to motivate employees and enhance the performance level of the employees. Through
rewards, individual can appropriately it was their performance and improve their effectiveness.
Individual performance related pay is stimulate the higher level of the performance off the
individual in the organization. On the basis of Mora 2010, determined that organization need to
to generalize is specific theory which can improve their employees for competencies and
motivate them. With the help of Vroom expectancy theory, organization can easily motivate their
employees through appropriate elements of this theory like efforts, performance & rewards. In
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order to improve the performance of the individual, organization need to arrange advanced level
of training and development sessions so that all the individuals can easily aware about their job
role & duties and responsibilities (Bano, 2018).
Strength and weakness of IPRP
Individual performance related pay is appropriate for the organization and the businesses and it
is considered as the specific Framework which can improve the every individual performance
and their effectiveness in the organization. IPRP improve the honesty & motivation level of the
employees. IPRP contain specific strength and weaknesses which need to be considered by the
organization. IPRP evolve the the core competencies of the individual so that they can keep
motivate themselves in order to to improve their performance level. If individuals are constantly
provide their attention on their performance so that they can get good remuneration. IPRP
enhance the commitment level & motivational level of the employees so that they can achieve
the organizational goals. It is also determined that IPRP can improve productivity and
performance of the poor performers with the help of appropriate training sessions so that they
can get better payment. This is also a main strength of IPRP that it can useful to to improve the
employee retention and increase the competitive spirit among the employees so that they can
effectively achieve the organizational objective (Paauwe and Boon, 2018). On the basis of
Harris, IPRP can give appropriate platform for the individual in order to create good and healthy
environment in which they can work without any pressure and improve their productivity level.
There are few businesses also involved in context of individual performance related pay. IPRP
can the motivated the individual because of difficulty to achieve the critical organizational goal.
It is analyzed that the process of individual performance related pay is wide and it require more
attention of the individuals. IPRP is totally depend upon the quality of the judgement which is
taken by the top management and higher authority of the organization. For example, the
judgement is totally based on the higher authorities and managerial positions people so If an
individual work hard word their performance but top management department is not satisfied
with their performance then they will provide them remuneration on the basis of their
performance and take fairly decision as per the judgement .
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Consider in what circumstances IPRP tends to motivate employees
Circumstances under which IPRP tends to motivate employees -
Individual performance related pay IPRP, is also motivate employees and improve the core
skills. Manager of the organization adopt specific strategies and theories in order to improve the
motivational level of their employees. There are various theories adopted by the organization like
Herzbergs theory of motivation, expectancy theory, Maslow's theory of motivation. All these
theories are useful to improve the motivational level of the individuals so that they can
effectively fulfil their basic requirements and keep motivate themselves so that they can get good
payment, salary, monetary and non monetary benefits, compensation, rewards and recognition in
a organization. There are some specific circumstances determined in which IPRP train to
motivate the individuals like new product development, business expansion, project
management, Change management and crisis management are considered as the specific
circumstances in which IPRP trends can motivate the employees of the organization (Haque,
2020). The main reason to to motivate the employees is that it can useful to enhance the moral of
the employees so that they can effectively accept the condition and work towards fulfil the
requirement of specific circumstances. Morrison manager and leaders need to utilize specific
motivational theories and model so that organization can appreciate improve the effectiveness of
their employees and enhance their motivational level. Individual performance related pay can
consider a specific drivers which can improve the motivational level of the employees so that
they can contribute their best efforts in order to achieve the organizational objective. It is
analyzed that IPRP will useful to improve the chances of better pay so that all the staff members
can effectively improve their performance in each and every task so that they can improve their
higher level of performance. Financial rewards can provide positive impact on the performance
of the individual but some organizations do not disclose the exact amount of the compensation
but they can provide specific potential to motivate the performance of the employees in context
of their salary (Haque, 2018).
Circumstances under which IPRP does not work so well -
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There are various circumstances generalized in which IPRP does not perform well such as take
more time in order to complete the task, lack of resources, less time to read the performance of
the employees, all these kind of circumstances improve the disappointment level of the
employees. So in the circumstances individual performance related pay does not work well
because the motivation of the employees is low and they are not show their active participation
in the operational activities of the organization. In this situation, IPRP is important but not that
much sufficient for the employees (Ali, Lei and Wei, 2018). It is determined that those
individuals who worked really hard and put lots of efforts in their performance but they receive
only less rewards than in this situation they became demotivated and unsatisfied with their job.
The size of rewards can vary according to the performance of the individuals. Company needs to
pay more attention to adopt the legislative and specific policies so that company can reduce the
discrimination in their organization. When the robots are discriminatory based then in this
circumstances, the morale and motivation level of the employees because low and then it can
provide adverse impact on their performance and productivity level. Some another circumstances
are also analyzed by the organization such as fluctuation in economic situation, irregular duties
and responsibilities of the employees, poor performance of the employees are also a specific
circumstances in which IPRP does not perform well because in the circumstances the mindset of
the employees affected because their remuneration and performance constantly decline and their
motivation level also affected negatively (Arunprasad., 2017). Morrison organization needs to
pay more attention to mainatin the circumstances and improve the motivation level of their
employees.
Conclusion
According to this study it can be concluded that individual performance related pay is prominent
concept which can improve the overall performance of the individuals at the high level. IPRP is
also helpful to improve the motivation level of the individual so that they can enhance their
productivity in order to fulfil the requirement of organizational objective. On the basis of this
study , it is determined that individual can improve their performance regular basis it can provide
positive impact on the overall performance of the individuals. This study also determined that
IPRP trends provide positive and negative effect on the basis of specific circumstances. This
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report determine 2 circumstances in which IPRP can provide positive impact on the performance
of the employees and also motivate employees so that they can achieve appropriate rewards and
good remuneration. This report also determined specific circumstances in which individual
performance became low and their motivation level also affected negatively. On the basis of
evergreen study it is analyzed that company need to adopt a specific appraisal system which can
improve the overall performance and core competencies of the individual so that they can feel
motivated and perform well so that individual can get appropriate pay on the basis of their
performance.
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REFERENCES
Books and Journals
Ali, M., Lei, S. and Wei, X.Y., 2018. The mediating role of the employee relations climate in the
relationship between strategic HRM and organizational performance in Chinese banks.
Journal of Innovation & Knowledge, 3(3), pp.115-122.
Arunprasad, P., 2017. Inevitable knowledge strategy: A paradigm shift in strategic HRM
practices to augment firm’s performance. Employee Relations.
Aydınlı Kulak, F. and Elmas Atay, S., 2020. The Prevalence of Performance-Related Pay: A 23
Country Examination.
Bano, A., 2018. Individual Performance Related to Pay and Motivation. Available at SSRN
3129568.
Haque, A., 2018. Mapping the relationship among strategic HRM, intent to quit and job
satisfaction: a psychological perspective applied to Bangladeshi employees.
International Journal of Business and Applied Social Science (IJBASS), 4(4).
Haque, A., 2020. Strategic HRM and organizational performance: does turnover intention
matter?. International Journal of Organizational Analysis.
Harris, L., 2001. ‘Rewarding employee performance: line managers values, beliefs
andʹperspectives. International Journal of Human Resource Management, 12(7), pp. 156
- 175
Miyamoto, M., 2018. Reform of the Work Organisation: Performance-Related Pay and
Employment System. In The new Japanese Firm as a Hybrid Organisation (pp. 23-43).
Springer, Singapore.
Paauwe, J. and Boon, C., 2018. Strategic HRM: A critical review. Human resource management,
pp.49-73.
Park, S., 2018. Pay for performance in modern compensation practices. Compensation &
Benefits Review, 50(1), pp.21-35.
Resce, M. and Sestili, E., 2021. Evidence from Monitoring on Tax Incentives on the
Performance Related Pay in Italy. In The Collective Dimensions of Employment
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Suff, P., 2001. Performance management. s.l., IRS Management Review.Relations (pp. 303-
344). Palgrave Macmillan, Cham.
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