Strategic Human Resource Management: Individual Performance Related Pay

Strategic Human Resource
Management project 1

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT TASK....................................................................................................................1
critically evaluate the extent to which individual performance related pay can stimulate
higher levels of performance from employee..............................................................................1
what circumstances IPRP tends to motivate employees and why, and in what circumstances it
tends not to work so well and why..............................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic human resource management is designed to help companies best meet the needs of
their employees while promoting company goals. It is being used to enhance performance level
of company and also an innovative culture is being established because of it. SHRM assists an
organisation to gain competitive advantage. SHRM can also affect the process of recruitment and
selection in firm. They make sure that adequate knowledge is been provided to employees who
are working in organisation. Present report will lay emphasis on critically evaluate the extent to
which individual performance related pay can stimulate higher levels of performance from
employees. It will also analyse about how IPRP tends to motivate employees and why, and in
what circumstances it tends not to work so well and why.
ASSESSMENT TASK
critically evaluate the extent to which individual performance related pay can stimulate higher
levels of performance from employee
Individual performance related pay can be considered as a reward system that can be used as
a motivational aspect for employees so that they can grow. In this rewards are being paid on
basis of performance of workers. This scheme motivates employees in various circumstances. It
has been analysed that several organisations are been working in dynamic environment and they
want to survive in changing situation. So for them this method is considered best for
development of employees (Wang and Wang, 2017). This can also assist firms in increasing
level of performance of workers and because of this can they can also be able to gain competitive
advantage. It has been analysed that in order to motivate employees through this system, they
need to set objective in a way which is achievable. They will be de-motivated if goal is too hard
to be achieved. Performance related pay provides individual employees with financial rewards
based on their performance. It can be in the form of bonus, appraisals, sales commission. This
pay system can assist in enhancing productivity and managerial efficiency. It can be used for
growth of business and through this system employee loyalty can also be created. The business
will be able to achieve their set target and objectives because of this. A good PRP system can
support employees to focus on what they need to improve. This will also implement equality in
organisation as workers will be pay on basis of their work, ultimately increasing good will of
firm. It will also increase performance level of organisation that can develop competitive and
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