Performance Related Pay and Soft vs Hard HRM Approaches in Human Resource Management

ONLINE EXAM HRM

TABLE OF CONTENTS
QUESTION 4...................................................................................................................................3
QUESTION-5..................................................................................................................................4

QUESTION 4
Performance related pay is one of the best approaches that human resource departments
while conducting their professional activities has been utilized in a company, which in turn
provide unpredicted advantages to them. This approach encompasses certain benefits as key
advantages that may put positive impact on performance and productivity of all candidates, who
work together to achieve strategic aim and objectives of their organizations.
Advantages-
The best thing about performance related pay is that it may aid to enhance the
performance and boost the morale of individual candidate, which is a challenging task for
human resource department to do so in systematic and effective manner. With the help of this
practice, HR manager may take pleasure of enhancing employees motivation level that is not
easy for them to do because of strategic resources and a lot of hard work, which they may have
to invest to obtain desire outcomes. Along with above benefits, performance related pay provide
more benefit to user such as HRM in term of increasing organizational performance and
productivity by maximizing the same in the context of employees who are working in the
workplace to reach expect outcomes. It may give all the candidates a specific reason to work
with existing organization instead of developing plan to work with others. PRP may drive the
attention of HR manager toward taking approach to retain and acquire skilled candidates that are
capable to work in a team, which will contribute to achieve set aim whether it is short, long or
medium term. Just because of this element, organizations in the recent time may take pleasure of
retaining employees among which each employee is able to gain competitive advantages in
term of completing daily work on time, without making any mistake that may put negative
impact on organizational performance and productiveness. It can be said that, in today’s period,
it is quite challenging for a company to acquire new candidates as they are unable to create
positive working environment where workers may feel motivated. Performance related pay may
give them chance in similar manner. For example, it may allow human resource manager to
create productive and progressive work atmosphere, where management is able to consider their
hard work and take approach to utilize current HRM method.
Disadvantages-