Strategic Human Resource Management: How IPRP Stimulates Higher Performance and Motivates Employees

Strategic Human
Resource Management
(Assessment 1)

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
How IPRP stimulate higher level of performance from employees...........................................3
How IPRP motivate employees and how it does not..................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource is considered as the asset of the company who work day and night for
the success and growth of the organisation. Human resource management is a practice which
involves managing the people in order to achieve better performance. The HR of a company is
entrusted with the main task to manage the workforce and involves the primary function of job
analysis and job design, recruitment and selection, training and development and many other.
Strategic HRM is the HR which is consistent and coordinated with an overall business objectives
so that it can improve the business performance (Konrad, Yang and Maurer, 2016). The
organisation chosen for this essay report is Burberry, a luxury fashion house which is
headquartered in London. It deals in the fashion industry and distribute and design ready wear
clothes, fashion accessories, fragrances, eye wear, leather goods and cosmetic. This essay report
shall deal with the individual performance related pay (IPRP) and how it can stimulate higher
performance and motivate employees. Also how IPRP does not work so well.
MAIN BODY
Strategic human resource management refers to the human resource that is consistent
and coordinated with the business objectives as a whole so that business performance can be
improved. It mainly works in such a way that its actions differentiate the business from the
competitors. Through the strategic HRM, the HR builds the link between the strategic direction
of the organisation and its people who are considered as the asset of the company.
How IPRP stimulate higher level of performance from employees.
The individual performance related pay is one of the reward system which offers the
employees some financial reward which is based on the assessment of their performance within
the workplace. This reward system is applied to the individuals only and the performance related
pay is applied to the team and group. It is measured by the pre agreed objectives. If looking from
the perspective of employer, they can use this IPRP as a tool to make work faster and harder
from the employees (Kasemsap, 2019). It helps in improving the productivity and efficiency of
the employees as financial compensation is often considered as the effective way to boost the
morale of the workforce. The individual performance related pay is best worked in the hard
working environment where the efficiency is required to be enhanced as it works to give positive
effect on the employee's loyalty as it works on individual and not on the whole team.