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Strategies to Manage Human Resource

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Added on  2020-01-07

Strategies to Manage Human Resource

   Added on 2020-01-07

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Strategies to Manage Human Resource_1
Table of ContentsINTRODUCTION...........................................................................................................................1CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
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INTRODUCTIONThe term strategic human resource management (HRM) is generally an approach tomanage human resources which supports the long term goals of business. The strategic HRM isbasically concerned with analysing opportunities and threats which are present in externalenvironment and according to that it formulates strategies (Boeri, Lucifora and Murphy, 2013).The present essay will help to understand the concept about strategic human resourcemanagement. Further, this essay also includes the concept about performance related pay (PRP).In this context, how motivation is linked to the individual's PRP is also described in this essay. Italso helps to understand the impact of motivation and contextual issues which are faced at thetime of deciding PRP in the organization. Performance related pay is basically a salary paid which is based on the performancelevel of employees. In an organization, PRP is usually a financial reward to the employees and inthis, their work should reach at above the average or at required standard. It is also known as amerit pay because performance level of individual is considered for their salary. As per theAgwu, 2013, “ The process of performance related pay is a remuneration method which is linkedwith both the performance and motivation because through this method, employees would feelmotivated to perform their best. By implementing PRP method in the organization, workingquality and skills of the employees would be increased” (Agwu, 2013). However, Armstrong andTaylor, 2014 stated that “There are basically three main objectives of this performance basedsystem. First objective is that by linking pay scales to the performance, it motivates employees toperform best. Further, it also helps to build high performance based culture in the organization,so, it is the second objective that encourages organization to adopt this system. Third objective isthat, in organization the employees who perform better gets the better monetary awards, so, theywill be motivated toward work” (Armstrong and Taylor, 2014). But in contrast, Banfield andKay, 2012 said that complex process of performance measuring is now reduces to the simplemethods with the help of this PRP system.” (Banfield and Kay, 2012). According to Boeri,Lucifora and Murphy, 2013 “Employees in the organization tend to work even harder as rewardsystem and pay scales are tied up with their performance” (Boeri, Lucifora and Murphy, 2013).Bregn, 2013, also stated that “Performance related pay helps to increase the productivity of boththe employees and organization. It also helps to develop a working environment in which lowerlevel of supervision is needed because all the employees perform their best to get high monetary1
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