Strategic HRM: Individual Performance Related Pay and Employee Motivation

Strategic HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1 Project Task...................................................................................................................1
a) Examine how the individual performance related pay can stimulate higher level of
performance from the employees...........................................................................................1
b) Explain the reasons why Individual Performance Related Pay (IPRP) tends to motivate
employees in some situations but not in others......................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In today's business environment, Strategic HRM is said to be one of the crucial process
that stays enclosed with different elements like monitoring, analysing, controlling and planning
the whole situation. Over the years, change in the business environment has updated the working
of Human Resource Department of every single business company (Zehir, Karaboğa and Başar,
2020). Including this, present essay is going to be enclosed with how Individual Performance
Related Pay (IPRP) could effectively lead employees to raise their performance level.
Away with this, there are a few reasons that has also been taken into consideration that
are directly linked with Individual Performance Related Pay (IPRP), which tends to staff
motivation among a few situations only. This will lead to better understanding of what specific
modifications within the Strategic HRM needs to bring so that companies could effectively gain
competitive advancement through motivating staff.
MAIN BODY
Question 1 Project Task
a) Examine how the individual performance related pay can stimulate higher level of
performance from the employees
In present situation, it has become vital for business companies to assess the overall
performance level of the employees. Here, it has been found that there are ample number of tools
and techniques present within the business environment that aid companies in evaluating and
enhancing the performance level of the staff workers. One of the crucial program that came in
front is Individual Performance Related Pay (IPRP), that is being considered as a method, which
helps employers to manage the payment through linking salary progression to an assessment of
individual performance, usually measured against the targets that are already been agreed. Most
of the time, different organisations take into consideration of balance score card and this also
benefits to deliver motivation to staff members. This can effectively be understood with a good
example of a small business company, where manager gets the commission on the basis of extra
work he/she has given to the subordinates (Zehir, Karaboğa and Başar, 2020).
United Kingdom underwent a massive crisis during the year 2008. As a result of this, the
businesses functioning as a part of the country had to facilitate increment in employee
recognition schemes. These were aimed at retention of employees for a longer period of time
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