Strategic Human Resource Management Report on Performance Pay

This report provides an in-depth analysis of Strategic Human Resource Management (SHRM), specifically evaluating the impact of individual performance-related pay on employee motivation and overall performance. The report examines the effectiveness of performance appraisal techniques, motivational strategies, and the circumstances under which these strategies are most and least effective. It uses the examples of Dyson and Zara to illustrate how these concepts are applied in practice, considering factors such as budget allocation, organizational structure, and individual differences. The report also explores the role of communication, employee expectations, and the potential negative impacts of improper performance pay systems. The conclusion summarizes key findings, emphasizing the importance of tailored motivational approaches and their relation to organizational objectives.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critically evaluate the extent for the individual performance related pay that can stimulate
higher level of performance of employees.............................................................................1
Circumstances that tends to motivate employees and situations in which it does not work so
well.........................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategy can be defined as an important system within the organisation which is related to
identification of action plan in order to improve the functions and achieve the objective in a
specific direction (Armstrong, 2019). This help in determining appropriate action policies and
decision in order to achieve the objectives and perform the function in an appropriate manner.
Strategic human resources management is helpful to the organisation in designing and helping
the organisation in order to meet the requirements of employees and promoting the goals and
objectives of the organisation. In context of this, HRM can we define the function which deal
with different aspects of the organisation which help in influencing the employees and improving
the functions which are performed under it. It includes different functions such as recruitment
benefits training and development in various others. In order to perform this report, it is based on
the study of zara which is considered as a Spanish apparel retailer and specialise in fashion
products such as clothing shoes beauty perfume accessory and various other. Along with this,
this report is consist a discussion about evaluation of individual performance related to the pay
and the trends which stimulate high level of performance in order to achieve the objectives as
well as perform an appropriate system to motivate the employees.
MAIN BODY
Critically evaluate the extent for the individual performance related pay that can stimulate higher
level of performance of employees
The current report the performance related pay system is undertaken in order to identify
the remuneration systems which will be used to revert the employees in an appropriate manner
for increasing their performance under the organisation Dyson. In context of Dyson, it include
recruitment of different individual on the basis of the project which are assigned to them where is
the substantial surface as well as contribution should be rewarded according to the ground of
finance (Delery and Roumpi, 2017). Order to this, the system which is used in order to perform
the related pay will be introduced within the organisation which helps in attend the public sector.
Contacts of Dyson global organisation where various kind of expectations are made by the
employees in order to increasing the efficiency and productivity where the manager within the
organisation used to pay focus on various functions so that profitability can be improved by
performing an appropriate system of paying employees. It is essential for organisation to use
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effective tools and techniques in order to pay the employees so that they can work in an
appropriate way as well as achieve organisational objectives. Payment to the employees is
directly associated with the functions of the organisation and is helpful in improving their
performance level so that different employees can work in an appropriate way according to the
needs and requirements. It is also identified that it help the employees in improving their
functions as well as managing their pay according to the current time so that they can easily
increase their performance level by getting satisfaction. In order to boost the profitability as well
as improve the functioning of organisation Dyson use appropriate system which help
Organisation in order to improving its function and manage profitability in an appropriate
manner. Some of these systems are discussed below:
 Performance appraisal techniques are the essential part of every organisation which is
helpful to the firm in improving its efficiency as well as performing in an effective
manner so that the desired results can be achieved by determining the pay and improving
the functioning of organisation. It is also identified that the light is using appropriate tools
and techniques in order to improve the performance of employee where it provide
appraisal techniques (Armstrong, 2016). This help in identifying the performance of
employee within the organisation in order to improve their performance and achieve
objectives. It is also identified that an appropriate management process will help in
working and make sure that every aspect will be covered according to the high
performance standard.
 It is also identified that line manager tends to develop various kind of significant
objectives which will help in reviewing the performance of employees as well as using
appropriate appraisal techniques which will help in gaining appropriate system of training
and development. It is also identified that in this term employer easily get benefits by
allocating an appropriate budget for performance appraisal techniques and managing the
capacity of different individual according to the effect efficiency development plan in
order to improve their performance.
 It is also identified that Dyson is using a small amount of budget in order to meet the
requirements of performance appraisal where manager used to motivate the employees by
giving them monetary benefits and terms of performance related pay (Rees and Smith,
2017). These benefits are essential for the organisation in order to provide the
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appropriate system where the sufficient budget is allocated to various activities which
help in improving the performance related pay and managing various kinds of benefits
which help in attracting and increasing the performance of different individuals working
within the organisation.
 Organisation will not follow proper performance pay system then it will impact on the
organisational performance as well as system as employees will get demotivated which
will impact on profitability level. This will also decrease organisational performance and
will lead to lower the profitability.
 It is identified that there are various factors within the business which will help in
improving the prominent system of human interaction their communication play
important role by improving the process word in a sudden the organisation and help the
management department to communicate effectively according to the employee’s
recruitment selection and various other process to execute the performance system. It is
also this is helpful to the organisation in improving its function as well as performing all
the function by switching appropriate system. this is helpful to the organisation in
improving its performance as well as increasing the staff in order to improve its
functioning and achieve better results. This will also lead to increase its functioning and
manage all the function according to the needs and requirements (Konrad, Yang and
Maurer, 2016).
Moreover, in Zara employee productivity stimulated by various factors as on the
significant among them is the PRP as it is useful for company in order to increase their
productivity for various reasons. As in first situation there is the chance of imbalance the
information regarding the abilities and competence that induce the amount of efforts that are
required. Moreover, in the process of hiring PRP system which is used as the technique of
overseeing and encouraging only those individuals who are capable and productive.
Circumstances that tends to motivate employees and situations in which it does not work so well
Motivation is helpful to the organisation in improving its performance as well as help in
achieving the business objectives in an appropriate manner. There are a number of motivational
tools which can be used by the manager in order to boost the motivation with employees and
help them in improving their function according to the needs and requirements full stop is also
identified that manager can provide various kinds of monetary and non-monetary benefits which
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will help the employees in getting motivated toward the work and improve their functions
according to the requirement of current business situation for staff in accordance with the current
situation of business, there are various kind of functions which can be performed by the manager
which help in boosting the performance and influencing the employee motivation within Dyson
(Wright and Ulrich, 2017). In order to create a proper motivated environment within an
organisation and achieve the target in an appropriate manner organisation is required to create
different kind of sources of motivation which help in improving the functioning and create
appropriate situations. It is also identified that by using an appropriate motivational technique
and satisfying the employees Dyson can improve the profitability and productivity level of
organisation to achieve the goals and objectives. It is also identified that Dyson can use
appropriate tool and technique which will help in motivating the employees and increasing the
functional performance of organisation. In the current business environment there are a number
of factors which can be used by dyson to improve the employee motivation and achieve the goals
in an appropriate manner. It is also essential for firm to manage the motivation and design an
appropriate working environment which support motivational functioning and help in observing
different individual in order to improve the functions.
 Relation to the current situation of the nation organisation is improving its current
function by enabling number of systems which help in increasing the motivation of
different individuals there are certain circumstances where there is motivation techniques
doesn't help the organisation this is because sometime the due to improper structure of
organisation or lack of flexibility impact on the organisational motivational techniques
this is because due to lack of flexibility there are various kind of system which doesn't
work as well as motivation will also staff.
 Improper allocation of income will also impact on the trend within the organisation
which leads to delay in the use of motivational techniques and will directly impact on
performance of employee as there are a number of functions which has to be performed
according to the needs and requirement of employees as well as help in motivating them
to improve the functioning of organisation. This is identified that employee start thinking
that they will give their best in the company but it doesn't work according to it because of
improper allocation (Lim, Wang and Lee, 2017). For the more it is also identified that it
is not worthy for the organisation according to its reputation because of improper use of
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systems which will lead to the satisfaction of employees and decrease the organisation
and functioning.
 It is also identified that there are a number of individual differences which act in relation
to differentiate between their behaviour attitude and attributes while working within the
organisation. All these functions are directly related to differentiation in people and act as
a difference between motivational factor which will encourage the team development and
act differently on the different employees. It is also identified that employees are
motivated according to their system of payment where due to changes within the
technology as well as use of system this will also lead to inappropriate allocation of
motivational system and will improve the organisational performance because of
decreased factor under the functioning of organisational pay (Marler and Parry, 2016)
CONCLUSION
It can be concluded from the above mentioned information that there are various
motivational factors which work according to the requirement as well as different in context of
organisation. It is also identified that providing appropriate training and development to the
employees is helpful in boosting the motivation and there are a number of chances where
motivation will not work within the organisation full stop it is also identified that there are
different kind of individual performance related system which impact on their pay as well as
improve the higher performance standard in organisation. It also describes the situation which is
useful in order to motivate employees and other circumstances that discourage workers for their
efforts and performance.
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REFERENCES
Books and Journals
Armstrong, M., 2016. Armstrong's handbook of strategic human resource management. Kogan
Page Publishers.
Armstrong, M., 2019. Strategic human resource management. pdf drive. com.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal, 27(1), pp.1-21.
Konrad, A.M., Yang, Y. and Maurer, C.C., 2016. Antecedents and outcomes of diversity and
equality management systems: An integrated institutional agency and strategic human
resource management approach. Human Resource Management, 55(1), pp.83-107.
Lim, S., Wang, T.K. and Lee, S.Y., 2017. Shedding new light on strategic human resource
management: The impact of human resource management practices and human
resources on the perception of federal agency mission accomplishment. Public
Personnel Management, 46(2), pp.91-117.
Marler, J.H. and Parry, E., 2016. Human resource management, strategic involvement and e-
HRM technology. The International Journal of Human Resource Management, 27(19),
pp.2233-2253.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.
Wright, P.M. and Ulrich, M.D., 2017. A road well traveled: The past, present, and future journey
of strategic human resource management. Annual Review of Organizational Psychology
and Organizational Behavior, 4, pp.45-65.
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