Strategic HRM and Individual Performance Related Pay

Strategic HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1 ..............................................................................................................................................3
a) Examine how the individual performance related pay can stimulate higher level of
performance from the employees...........................................................................................3
b) Explain the reasons why Individual Performance Related Pay (IPRP) tends to motivate
employees in some situations but not in others......................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic management is the ongoing process of planning, monitoring and analysing the
all the business environment which is essential in achieving the organizational goal as well as
objectives (Aust and et., al., 2019). Change in the business environment require the organization
to constantly use the strategic for success. This management process help in stocking the present
situation and make out the strategies and deploy the tool and techniques which help in improving
the creating positive environment. This present report is bases upon strategic management in the
organization and how individual performance related pay can stimulate higher level of
performance from the employees.
Task 1
a) Examine how the individual performance related pay can stimulate higher level of
performance from the employees
The individual performance related pay is the method which pay by linking the salary
progression to an assessment of the individual performance. This is usually measured by the pre
agreed objectives. This is done with the help of schemes and on the basis of balance score card
and the benefit is given in order to motivate the employees. For example the car sales man can
paid as the form of commission and hard work. Many of the organization the performance pay
related to the pay rise system and it would see the reward as there is increase in the pay scale.
The better the performance of the employees in the organization the higher will be the pay scale
in coming years. In other words, it can be describe as the performance appraisal and at the end
the employees are categorised in the performance group which help in determining the level of
appraisal (Thite, 2019).
The performance related programme has grown widely in the recent years mainly in the
public sector. This is an essential movement towards compensating the individual performance
which leads organization towards meeting firm aims and objective. Along with this, rewarding
employees does little encouragement to the employees and teamwork. There are different kinds
of motivation for different employees as they do not want monitory benefits. They need to have
healthy and peaceful environment in the organization (Reade, McKenna and Oetzel, 2019).
Many of the firm around the world have increased the performance by making changes in the
traditional pay method with the more variable pay. This is done to motivate and encourage the