Managing Human Resources

Managing Human
Resources

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
REFERENCES................................................................................................................................4

INTRODUCTION
Human resource is the lifeblood for an organisation by which the goals and objectives are
achieved. There are plans and policies for managing the people working in the organisation for
making them give their efforts (Cascio, 2015). Furthermore, programs and development sessions
are conducted in order to encourage personnel to achieve the goals. In this report, TESCO has
been chosen which has its headquarters in Hertfordshire, United Kingdom. Performance related
pay has been chosen in this report. Furthermore, this assignment covers overview of chosen
reward system, its advantages offered to organisation, fulfilment of motivational needs with this
reward system. In addition to this, budget for such system, impact of internal and external factors
for implementation, examples of successful implementation of this reward system and reason for
opting the same.
MAIN BODY Overview of performance related pay- It is a reward system in which financial or
monetary benefits are given to employees on the basis of their performance. There is a
standard or mark which reflects the expectations of the company from its workforce. If an
individual perform the required standard and/or above that, then extra payment in the
form of bonus or incentives are paid (Shields, J., and et. al., 2015). It involves review of
performance on regular basis followed by categorisation of them into groups which helps
the company to determine the exact reward to be given to them. There is no major
variations in this reward system and considers performance as the sole element to judge
the capabilities of a person.
 Advantages- It offers numerous advantages which make performance related pay a
suitable reward system. Some of these are as follows:
1. Tasks and goals are defined clearly to each and every individuals on which they have
absolute focus.
2. It is an effective way of managing poor performance of employees.
3. It encourages the staff to give their best performance.
4. Targets are achieved without any delay which leads to higher profit.5. It enhances the focus of workforce on the goals and objectives.
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