Strategic Human Resource Management: Individual Performance Related Pay

Strategic Human
Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Individual performance related pay.............................................................................................1
Consider in what circumstances IPRP tends to motivate employees..........................................2
Why circumstances tends to motivate employees ......................................................................4
Circumstances where it tends not to work so well and why........................................................5
CONCLUSION................................................................................................................................5
REFERENCE ..................................................................................................................................6

INTRODUCTION
Strategic human resource management is the activity which is highly required in
organisation in order to manage all activities and function in order to operate and attain the
decided goals. It is true, without managing human resources and planning a business cannot be
success and faces the many problems while operations. Strategies are formulated by a
responsible person who have special type of knowledge, practices and skills to managing people
and completing task (Armstrong, 2019). The main purpose of human resources is to improve the
organisational performance by integrating with objectives and aligning with strategies. For
organisation it is important to have a Human resource management who can identify the business
condition and formulate the planning accordingly which can help to bring improvements and
attain the business goals. To understand about this Londis has been selected that is a retail
organisation in UK, selling different types of products and services to customers. In this, all
activities are functions are managing by human resource management who identify needs and
plans accordingly. This report covers evaluation of individual performance related pay which can
be stimulate high level of performance from employees.
Main Body
Individual performance related pay
Individual performance related pay is defined as pay which varies person to person,
where it is important for management to analysis the performance of employees and make the
decision to pay accordingly. It has been defined that performance related pay and pay for
performance, are different term which influences employees and getting the work done
effectively. Performance related pay rise by considering salary and wages paid system which
bases on positioning the individual and team's performance. In organisations, employers are
using basic standard for evaluating the performance of employees and setting salaries which may
motivate to work more (Collins, 2020). In Londis, employees are the assets of organisation who
identify the goals and decided their roles and responsibilities which is required to be perform in
order to attain the business goals and objectives. The HR management of such organisation,
formulate plans and measure the performance which can help to decide their salary and
incentives which is based on performance and activity completion on time. It is important for
firm to analyse the employee's needs and requirements so they can be motivate by filling their
1