Strategic Human Resource Management

Strategic Human resource
Management

Table of Contents
TASK 1 ...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Critically evaluate the extent to which individual performance related pay can affect higher
level of performance from staff members..............................................................................3
Situations in which IPRP(Individual performance related pay) motivates employees and
incidents in which it is not effective.......................................................................................5
CONCLUSION...............................................................................................................................7
TASK 2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY..................................................................................................................................8
Examine the various strategies and approaches which are helps to enhancing skill and
knowledge of employees........................................................................................................8
Evaluate the various challenges which are facing by employees as well as organisation and
HRM helps to reducing this challenges................................................................................10
CONCLUSION.............................................................................................................................12
REFERNCES.................................................................................................................................14

TASK 1
INTRODUCTION
Strategy is termed as a multi-dimensional concept that goes beyond the traditional
competitive strategy which aid in setting specific direction. Along with this, it render the
effective patten of action, policies & decisions that is needed to guide teams for achieving the
objectives. On the other side, strategic human resource management is basically the combination
of strategy & people which assist in managing employees of the company (Vardarlıer, 2016). It
also help an organisation to fulfil employee needs which in turn impact on the performance and
productivity of staff members to execute activities in a proper manner. Human resource
management deals in various aspects of an organisation such as recruitment & selection, training
& development, compensation, employee benefit and so on. The present report will evaluate the
extent to which individual performance related pay can stimulate higher level of performance
from staff members. Along with this, there is discussion about circumstances IPRP tends to
influence staff members & why and in what situations it tends not to work well & why.
MAIN BODY
Critically evaluate the extent to which individual performance related pay can affect higher level
of performance from staff members
Individual performance related pay has increased significantly with the last year in a
motive to raise performance of staff members. In addition to this, it is the monetary reward of
staff members whose performance has surpassed or reached a set standards. It is analysed that
such concept is mainly used in situations where staff member performance cannot be properly
measured with the set standards. Individual performance related pay is different from other
method of incentive which are team and organisation based as it is performance a well as
payment driven. It is also known as remuneration system that employees rewards are based on
the effectiveness of staff members & Zara does same as well (Wu, 2020). Zara is one of the
renowned brand that is having expectations for raising the efficiency and productivity for the
legitimate efforts of employees that are recognised as performance indicator & is committed
towards the attainment of objectives. Moreover, performance related pay is stated as financial
benefit that is provided to individual employees when the reach or surpassed through the
expectation of company.

In every organisation, there are some issues & problems take place which is related to
how the performance is measured. IPRP can be consider as compensation that shows
significance to give rewards to the employees. One of the main advantage of using such pay
related system is it allow organisation to provide fair incentive to the staff members due to which
their productivity as well as efficiency is raised of performing the activities and operations. It
also decline the cost of company to hire new employee and provide them training that impact
positively on the revenue earned by organisation. IPRP is also beneficial in raising the morale &
loyalty of employees as they get rewards of their performance (Warner, 2020). Apart from this,
there are also some of the disadvantages that is there is control of managers or higher authorities
on the profitability. In addition to this, it is not easy to measure the performance and productivity
that arise issues at workplace. Moreover, there is high probability to give high bargaining power
to executives that get high compensation & benefits as well.
Zara can make use of appraisal methods or techniques that will assist them to enhance
effectiveness and performance of employees & leads to review of the staff members to analyse
the value & reward pay that is received because of their good performance. It is determine that
some of its employees are not able to execute and perform activities because of some reason and
for this it is important for an higher authorities of Zara to identify the reason and focus on
resolving them rapidly and properly. There are some of the situation occur at workplace where
employees are rewarded not because of their performance but to encourage them so that they can
put efforts in achieving objectives.
Carnival Corporation & PLC is the travel leisure that is having the IPRP system for its
employees so that they can do better and effective as well. It is determined that company made
appraisal with an objective to provide better and quality services to customer. It is one of the
renowned and best travel organisation as is provide many benefits to its staff members that
motivate and encourage them for performing activities (Analoui, 2017). Some of the staff of
respective organisation is not involve and participated in performance process as they did not
believe and faith in such system. For this. It is significant for the organisation to encourage its
staff members and develop faith that is the analysis of performance pay is free from external
factor that impact negatively on their performance.
Sainsbury has raised the salary of its staff members so that they can perform better and
focus on meeting with the targets of organisation. The organisation can also make use of