Strategic Human Resource Management

This report discusses the significance of strategic human resource management in achieving organizational goals and the role of individual performance related pay in motivating employees. The case of Barclays bank is used as an example.

Strategic Human
Resource Management
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CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Evaluation of research with individual performance related pay................................................3
Circumstances related with IPRP tends for motivating employees.............................................4
Circumstances in which IPRP not perform their work well........................................................6
CONCLUSION................................................................................................................................7
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INTRODUCTION
Strategic human resources management is defined as the way through which a connection
between the human resource of an organisation as well as its strategies, objective and goal. The
main purpose of an strategic human resources management is to advance the flexibility and
innovations within organisation so that operations can be enhanced and competitive edge can be
achieved. The current report is based on determining the importance of human resource strategy
within na organisation and manner in which it remain helpful to a company in achievement their
goals and objectives (Jackson, Schuler and Jiang, 2014). For this the Barclays bank is consider
for this report which is a British multinational bank that offer range of financial services
throughout the world. The current report put emphases toward elaborating about the significance
of individual performance related pay and manner in which it support in motivating the
employees while performing their role in appropriate manner.
MAIN BODY
Evaluation of research with individual performance related pay
The performance related pay is defined as the way of managing the pay by connecting the
salary progression of an employee with the assessment of their performance which is usually
measured against the pre agreed objective. The concept of performance evaluation through the
appraisals is an essential factor constituent by the organisational management which directly
reflect about its achievement as well as progression. The performance related pay is considered
to be an essential methods for fuel up the motivation, as employees use it for accomplishing their
need and want. This is so because the employees mainly perform work for obtaining a better
salary so that they can improve their living standard and fulfil their basic need, so for this
Performance based compensation is also considered to be effective practices to adopt by an
organisation (Jiang and Li, 2019). As by providing fair compensation to its employees as per the
efforts they exert toward company it become easier to keep them motivated to perform more
better for getting high pay over their efforts.
Barclays operated in a banking sector which is well known for the quality of financial
services it provide and the customer satisfaction they hold which make it one among the top
player within banking sector. But in banking sector, the handling of financial and economic risk
at broad level is consider to be biggest challenge along with the competition in market. This
make the human resource management more significant for the Barclays bank, as by managing
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the efficient and skilled manpower within sector can be able to deal with such kind of financial
risk (Kramar and Parry, 2014). So, for encouraging better performance from the employees the
Barclays bank must adopt IPRP system which ensure more efforts from the employees to
enhance their operational quality for better earning. Additionally, it must focuses toward
regularly evaluating the performance of employees and try to fill up the gap between the
performance of employees by keeping them motivated with fair compensation and performance
related pay. This is so because the performance appraisal is also one of the significant policies
that support Barclays in getting more focuses toward regularly evaluating the performance level
of employees and taking corrective actions toward sharpening up them to the level required for
executing the work.
Therefore the human resource manager of Barclays must put emphases toward keeping the
employees motivated toward their work by adoption the performance related pay (Flowerday and
Tuyikeze, 2016). As the performance related pay system will support in bringing the cultural
change within the organisation and help in motivating the employees to perform well. At current
scenario this system is consider as the key element for the reward strategy specially for the
financial sector. This performance related pay system is based on the motivation theory which
represent the extend to which the financial compensation can influence the individual
performance. The main focus behind this practice of compensation is that most of the employees
het encouraged and motivated by their pay (Marler and Parry, 2016). So, with this the employees
starts to perform better when the rewards are directly connected with the outcomes and targets
that the employees are required to accomplish. This help in enhancing the productivity as well as
level of output also get increased when the employees get the pay related with performance.
Other than this it also support Barclay in creating a healthy working environment where the
higher management have to put emphases over controlling the productivity as employees by
themselves try to maintain the productivity and always put effort toward increasing it to enhance
they pay scale.
Circumstances related with IPRP tends for motivating employees
IPRP or individual performance related pay is consider to be an essential factor in keeping
the employees motivated for their work and encourage them to remain more concentrated toward
improving their performance further to get better compensation and reward (Han and et. al.,
2019). On the other hand, organisations are also working toward connecting the salary of their
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employees with the manner in which they completed their work in organised manner. When it is
talk in context of banking sector their remains a different set of role and responsibility which an
employee have to fulfil in order to ensure development of customer trust and confidence toward
the bank. In this IPRP plays a significant role by generating the better benefit which support an
employee to get better promotion as per their payment related mechanism (Noe, Hollenbeck,
Gerhart and Wright, 2017). This is so because by adopting IPRP mechanism Barclays bank
would eb able to create a positive working culture which create right perception among
employees toward management. This in turn encourage them to put their efforts toward
enhancing the level of performance and productivity so that they can get a better promotion as
per the efforts made by them. Other than this when the employees are clear about their goals and
objectives then they are given with certain circumstance and responsibilities which make it easier
for them for accomplishing their objectives.
Another circumstance can be consider as the job position which brings up the greater
benefit to the organisation with the increase in work efforts and volume like sales executive,
public relation experts etc. require performance related pay for getting motivated and encouraged
to perform well (El-Kassar and Singh, 2019). For this Barclays must ensure that such employees
who are responsible for maintain the relations with customers and have a skilled based work
need to get adequate incentives and commission over their work so that they remain motivated to
perform well and help Barclays in expanding their approach. This in turn further support
Barclays in enhancing their brand image when the employees more willing to maintain better
relationship with customer and tend to increase the customer base with their skills and
capabilities.
Hence it can be said that the money is a crucial incentive for keeping the employees
motivated toward the work as it serve as a scorecard where with the help of their pay scale the
employees assume their value within the organisation which can motivate them by providing a
sense of accomplishment (Sezerel and Tonus, 2014). As per the theory of reinforcement if he
income of an employee is contingent to the performance then it help in encouraging the
employees to maintain their high level of efforts. On the other hand the expectancy theory
suggest that the money will motivate the extend that employees perceive it as a medium to
satisfy their personal goals and to extend they perceive their pay to be dependent over the
performance criteria. Therefore, it can be said that IPRP is a crucial human resources
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management policy which support Barclays in keeping its employees motivated to perform well
and help it in improving its overall performance in market place. As there are certain
circumstances such as fulfilment of basic need of employees, a promotional growth, a status
among social group, value within organisation etc. are the factors which goes with individual
performance related pay policy in order to keep the employees motivated toward work and help
in enhancing their overall performance and productivity.
Circumstances in which IPRP not perform their work well
The individual performance related pay is consider to be an effective way for motivating
employees as in this their compensation is directly linked with the performance they present in
term of completing their job role and responsibility (Sikora and Ferris, 2014). This in turn try to
encourage them for improving their working pattern to enhance their performance level so that
they become able to gain a better compensation and achieve personal growth at workplace. But
apart from that there are certain specific situation when the individual performance based scheme
not always work properly by sometimes increase problem for the employees as well as
organisation. As this remain sometime difficult to determine the performance of employees
accurately when an employee execute certain work which is not a part of their responsibility but
bring profit to organisation. Other than this while evaluating the performance of employees the
HR manager of Barclay may get wrong assumption about the employee which restrict them to
evaluate their performance appropriately. This in turn leads to a wrong judgement about the
employees which can de motivate them and may also affect the work behaviour of employees in
negative manner. this is one of the mostly found circumstance within the case of IPRP where the
compensation based on performance does not work well in motivating employees.
Despite of this, other circumstances like insufficient reward also lead the IPRP get
ineffective in motivating employees. As at the time of low inflation or pay restraint the awarded
are consider to be less effective and very small factor that provide motivation to employee.
Hence the Barclays must not always depend over the payment as the main force or motivating
the employs as there are certain situation when there is a inadequate resources or inappropriate
facilities which is affecting the working practices and condition of employees (Armstrong,
2019). In such situation the employees do not get motivated with the financial compensation
rather they require a better working condition to perform their operation in well manner. Other
than this the intrinsic motivation through the monetary incentives get demotivated and once the
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behaviour of employees get associated with the reward then its performance does not occur until
they get any kind of incentives. So it can be said that the excessive use of IPRP system in
compensation fro employees, may also lead Barclays in damaging the creativity and intrinsic
motivation of employees to perform work for the bank (Camps and et. al., 2016). So, due to this
factor it is suggested that the pay must be considered as the assistive but not the main driver of
motivation toward the culture of organisation. Hence Barclays must take into consideration the
other component of the HR system along with the IPRP factor in order to maintain the intrinsic
motivation of the employees to perform well within workplace.
CONCLUSION
From the above mentioned report it can be summarised that the strategic human resources
management plays a significant role within an organisation by setting up a connection between
strategies and human resource practices. This in turn help in enhancing the execution of
operations in effective manner as hr policies provide definition for work to be performed while
on other side the strategies help in directing the actions to get performed in right manner.
Therefore, the strategies remains crucial for the human resources department for getting a right
direction to develop and implement the hr policies that help in improving the organisational
performance and also allow them to acco9mplkish the goals of organisation. The individual
performance related pay system is consider as one of the most effective HR policy which support
a company in keeping its employees motivated by connecting their salary hike with the
performance they deliver at workplace. this help in brining more employee engagement toward
work and also help in enhancing the overall productivity and performance of employees.
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REFERENCES
Books & Journals
Armstrong, M., 2019. Strategic human resource management. pdf drive. com.
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Flowerday, S.V. and Tuyikeze, T., 2016. Information security policy development and
implementation: The what, how and who. computers & security, 61, pp.169-183.
Han, J.H and et. al., 2019. The goldilocks effect of strategic human resource management?
Optimizing the benefits of a high-performance work system through the dual alignment
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