A Study of Performance Related Pay and HRM Approaches in Management

This assignment delves into performance-related pay (PRP), examining its advantages, such as enhanced employee motivation and increased organizational productivity, and disadvantages, including time consumption, planning challenges, and potential for employee demotivation. It further explores soft and hard HRM approaches, contrasting their core philosophies. Soft HRM emphasizes employee value, competitive pay, and employee empowerment, while hard HRM focuses on workforce needs, performance management, and business transparency. The assignment highlights the key differences in their features, stressing that soft HRM prioritizes employee well-being and engagement, while hard HRM concentrates on profitability and strategic organizational goals. The document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.

ONLINE EXAM HRM

TABLE OF CONTENTS
QUESTION 4...................................................................................................................................3
QUESTION-5..................................................................................................................................4

QUESTION 4
Performance related pay is one of the best approaches that human resource departments
while conducting their professional activities has been utilized in a company, which in turn
provide unpredicted advantages to them. This approach encompasses certain benefits as key
advantages that may put positive impact on performance and productivity of all candidates, who
work together to achieve strategic aim and objectives of their organizations.
Advantages-
The best thing about performance related pay is that it may aid to enhance the
performance and boost the morale of individual candidate, which is a challenging task for
human resource department to do so in systematic and effective manner. With the help of this
practice, HR manager may take pleasure of enhancing employees motivation level that is not
easy for them to do because of strategic resources and a lot of hard work, which they may have
to invest to obtain desire outcomes. Along with above benefits, performance related pay provide
more benefit to user such as HRM in term of increasing organizational performance and
productivity by maximizing the same in the context of employees who are working in the
workplace to reach expect outcomes. It may give all the candidates a specific reason to work
with existing organization instead of developing plan to work with others. PRP may drive the
attention of HR manager toward taking approach to retain and acquire skilled candidates that are
capable to work in a team, which will contribute to achieve set aim whether it is short, long or
medium term. Just because of this element, organizations in the recent time may take pleasure of
retaining employees among which each employee is able to gain competitive advantages in
term of completing daily work on time, without making any mistake that may put negative
impact on organizational performance and productiveness. It can be said that, in today’s period,
it is quite challenging for a company to acquire new candidates as they are unable to create
positive working environment where workers may feel motivated. Performance related pay may
give them chance in similar manner. For example, it may allow human resource manager to
create productive and progressive work atmosphere, where management is able to consider their
hard work and take approach to utilize current HRM method.
Disadvantages-

The biggest drawback of performance related pay is time consumption, which mean
human resource department and their manager may put a lot of efforts and give time to create list
of those candidates who are suitable to gain benefits of current method that chance the way they
perform. It is a time consuming activity, which gain the attention of HR manager and their team
members toward developing list of employees that had work harder and make possible chances
related to daily activities, just because of achieving set goals of an organization, for which they
conduct multiple task and attempts. Another term that included in category of performance pay
disadvantage is planning. It can be said that poor planning and overall analysis of employee’s
performance may lead to decrease the effectiveness of this HRM approach, which in turn provide
negative outcomes to management in form of decreasing candidate efficiency and productivity.
Without developing effective and strategic plans, it is not possible for Hr manager and overall
team members to implement performance related pay as strategic approach, because it may lead
to create several challenges in front of management.
Another drawback of this method, is employee de-motivation, when the aims set are too
hard to reach. It may affect the way individual candidate react or act in the workplace as it
contributes to create complex or challenging work environment, where people may do not prefer
to perform. In additional to that, performance related pay may lead to eliminate pay e equity
and also make a firm liable to expensive equal pay issues when they may do not operate fairly.
All because of these disadvantages, management may do not take pleasure of working with those
productive, skilled, talented and knowledgeable candidates that are capable to create creative
ideas that may add more value in existing products or services to a company. It is quite essential
for human resource department is to develop strategic plans and take better precautions that aid
to overcome the impact of these drawbacks or eliminate the reason behind there occurrences.
Performance related pay enable workers to perform successfully when they in turn obtain
rewards otherwise they may take less interest. It is not beneficial for organizational growths and
success in the world of business.
QUESTION-5
Human resource department has utilized several strategic approaches such as soft and
hard HRM, that may play significant role in regard to candidates and companies where they

work in professional manner. Both approaches are quite different from each other on the basis of
certain points. For example, soft human resource management approach drive the concentration
of HR manager and other team member of this department toward treating all candidates as an
essential part of businesses, because it may contribute to enhance their performance and boost
morale that is so important for HRM to do so.
Competitive pay is the key element of this method that make is effective and beneficial for
companies whom human resource department may accept that and utilize systematically. It is
one of those elements that may do not cover under the term of hard HRM method, which may
drive management concentration towars another level. Soft approach enable manager to consider
and utilize those techniques through which they may provide workers unforgetable experience of
work in the workplace where management consider their hard work and efforts and in turn
provide valuable benefits in bulk. It may allow HRM to pay more attention on needs and
expectations of candidates whether they are new or existing workforce. It may give them power
to boost the morale of all employees appropriately in term of developing plans such as appraisal
systems that appraise the performance and hard work activities of all workers.
It can be said that soft human resource management is a different method that HR
manager may utilize more than hard because it provide unexpected outcomes in bulk, that might
be not up to the mark or expectations of candidates. The biggest difference factor, between soft
and hard HRM approaches is their key features along with meaning and advantages that affect
the daily. It can be said that some key characetristics of soft HRM tool incude a concentration on
how candidates are rewarded or appraizsed for their attempts and performance and how they are
encouraged to be productively engaged themselves in reaching expect outcome according to the
expectations of stakeholders who are related with companies and work with that.
Another feature of current method is a great push to empower all workers in term of
motivating them to take accountability for their professional roles and duties, open interaction
between management and other applucants and more performance based recognitions, which is
necessary for them to do so appropriately. It may give firms power to give tough competition to
other brands as they may have skilled and creative workforce among which each player play
their role unpredictely that management may expect from them to act in same manner.
On the other hand, Hard human resource management approach is different from above
chosen in several manners. For instance, it may concentrate on determining workforce needs

instead of making them precious. It may enable manager to manage staffs performance and
recruit skilled people, who are as precious as existing workforce. This method is different from
soft HRM approach, on the basis of strategic features. For examplem, continuous change in
employee numbers is the major feature of current technique that soft method may do not
encompasses. It may drive the attention and concentration of human resource department toward
making possible changes related to candidates in term of developing plan to recruit more that
enlarge workforce and enhance organizational strength to sustain businesses in the competitive
market where competition level betweeen existing organizations reach at high level. Alon with
only this feature, it may covers more suchn as certain business transparency that is important for
management to create between employees and high authority. As individual candidate may
expect to create this term of relationship in the workplace that give them reason to work for
longer with productive and profitable companies.
It can be said that in hard human resource management, manager may concenrtaye on
profitability and treat candidates as key souerce of business growth, while in the context of soft
approach they may prioritize only employees more than profits that they may gain with talented
workforce. This approach is feasible in term of achieving startegic organziational goals that
management expect to achieve from longer time period. It is fact that Hard human resource
management method may contain components of soft, but not all.