Individual Performance Related Pay and SHRM at Tesco Report

This report examines Strategic Human Resource Management (SHRM) practices, specifically focusing on their application within Tesco, a global retail organization. The report delves into the concept of Individual Performance Related Pay (IPRP) and its effectiveness in stimulating higher employee performance. It critically evaluates the extent to which remuneration based on performance can motivate employees, considering factors such as pay scales, performance appraisal methods, and the importance of a clear budget allocation. The report also explores the circumstances that motivate employees and those where such strategies may not be as effective, considering aspects like workplace environment, organizational culture, and the need to address individual employee needs and motivations. Furthermore, it highlights the significance of skilled leadership and communication in fostering employee engagement and achieving organizational goals. The report concludes by emphasizing the importance of SHRM in aligning HR activities with overall business objectives, ultimately aiming to improve performance and achieve competitive advantages.

Strategic Human
Resource Management

TABLE OF CONTENT
INTRODUCTION.........................................................................................................................2
MAIN BODY..................................................................................................................................2
CONCLUSION..............................................................................................................................6
REFERENCES..............................................................................................................................6
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INTRODUCTION
Strategic human resource organisation signifies different activity that assists in connecting
utility related to HR that help in achieving goal as well as objectives in timely manner. The
organisation focuses on improving performance level in an appropriate manner during particular
phase of time period. Therefore, it is necessary to retained skilled or knowledgeable individual
person in order to perform challenging work in an appropriate manner. In this process, it is
significant for organisation to choose appropriate process for conducting different work in proper
way. SHRM is determined as appropriate idea related to handling individual person which
provided support to framework in which they focus on handle business organisation in an
appropriate manner. To achieve outcomes, it is important for business venture to define attitude
as well as initiative to achieve competitive advantage over rivalries at market place. The
organisation emphasized on SHRM that help in making ensure that organisation culture,
structure and quality significant for accomplishing objective in time way. This assignment is
prepared on company named as TESCO. It is a British international retailing organisation who
operates their business globally. The organisation specialise in different sectors for satisfying
need and wants of its user. Therefore, the document will provide assessment regarding level of
performance of individual person that help in execution of work force and handle situation
related to IPRP that help in encouraging staff member (Ahlvik, Smale and Sumelius, 2016).
MAIN BODY
Critically evaluate the extent for the individual performance related pay that can stimulate higher
level of performance of employees
Remuneration is provided by employee to its subordinate as per their performance level
and position. It is considered as a technique related to motivating individual person that help in
increasing productivity level related to subordinate in future period of time. Therefore, it is
necessary for employer of organisation to pay rewards according to performance of subordinate
that help in achieving goal as well as objective in timely manner. Hence, it is significant for
TESCO to provide pay scale as per role as well it is responsibility of subordinate. In addition to
this, the organisation faces different kind of problem in respect of issue related to payment. If the
same level employees or subordinate get issues as well as conflict related to differences in
payment that arises. If subordinate get low payment even at the similar position, then they get
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demotivated. The organisation focuses on paying rewards as per level of performance. And, the
subordinate focuses on understanding reason regarding different activities that help in resolving
various kind of problem in an appropriate manner. This is determined as a method which is
adopted by organisation to resolve this kind of problem related to performance in an appropriate
manner. In context of TESCO, the focus is on taking right action and they should assess
performance of individual person and make appropriate payment according to them. It is kind of
monetary work that helps subordinate to motivate them towards their performance. Therefore, it
is important for management team to assess performance along with that standard that assists in
taking corrective decision during particular phase of time period. It is determined as a
performance appraisal method that assesses performance of subordinate and increase
productivity (Arunprasad, 2017). For enhancing performance level of subordinate, the manager
of Mark and Spencer adopt PRP method to encourage subordinate in respect of higher level of
performance. There is different pay scale according to performance of subordinates which is
going to be mentioned below:
 TESCO should focuses on using a performance appraisal method in order to increase
level of performance that results in enhancing level of productivity of subordinate for
increasing level of profitability. Therefore, by using performance appraisal techniques,
the TESCO focuses on adopting necessary tools that assists in implementing appropriate
application related to PRP policy within business organisation.
 The performance appraisal tools involve rewards as well as recognition program that are
used to raise performance level. The success of organisation is depending on level of
performance of subordinate so that they increase understanding regarding performance
that must be performed by subordinate. For increasing level of performance of
subordinate, the TESCO focuses on clearing objective as well as goal of company which
is necessary for success. It is very significant for clarify objective in mindset of
subordinate that helps in enhancing productivity level of business organisation. It is very
important for management team of TESCO to take a decision related to budget for
increasing performance connected to pay scale.
 The budget provides blueprint related to expenditure that help in brought down procedure
related to performance. Budget provides correct information regarding tools that is
applied in performance level. The TESCO focuses on making appropriate budget that
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involve amount that assign for individual person and pay according to their performance.
In context of TESCO, the focus is on increasing knowledge regarding activity and
functions of employees in order to resolve problem in an appropriate manner. The
organisation focuses on performing different activity in order to increase participation
level for success as well as growth of company (Sarvaiya, Eweje and Arrowsmith, 2018)
 There are different kind of issues arises if the employee do not increase their involvement
in activity and function of organisations such as reduced performance level, qualitative
work and many more so that it is important for organisation to consider all important
characteristics that involve participation of subordinate in an appropriate manner. More
participation assists in analysing level of performance that is significant for conducting
different work in an appropriate manner.
Therefore, the organisation communication is important that assists in generating link
between various levels related to administration process, this will increase team work as well as
employability skill of subordinate. In context of TESCO, the organisation focuses on enhancing
skills of subordinate that will assist in achieving goal. The PRP method is determined as a tool
for judging performance level of subordinate based on target which is achieved by them during
the period of time. In addition to this, time is important element as if subordinate execute task for
accomplishing higher pay and it increases morale of subordinate to perform their work in an
appropriate manner. The HR manager assesses performance of subordinates and provides
payment to them accordingly that assists in completing target that increases pay in short period
of time (Boselie, 2016).
TESCO focuses on managing change administration within an organisation that assists in
diversification related to workforce as per efficiency level. The organisation offer rewards to
subordinate that helps in retaining or encouraging them to increase their performance.
Furthermore, in PRP procedure, the organisation focuses on increasing effectiveness of
subordinate by offering appropriate training that increases experience level of subordinate. This
increases motivation and improvement of subordinate that help in increasing success and growth
of business organisation.
Circumstances that tends to motivate employees and situations in which it does not work so well
Motivation signifies ability of manager to motivate performance level of business
organisation during particular phase of time period. In reference of TESCO, the capability as
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well as competence of individual person signifies execute and assigned work in an appropriate
manner. Therefore, it is necessary for management team to pay rewards and appraisal in order to
motivate its subordinates during particular phase of time period. In addition to this, management
team focuses on motivate subordinate that help in increasing productivity level in future period
of time (Cooke, Xiao and Xiao, 2020). In context of TESCO, the focus is on influencing
subordinate in order to perform different task in an appropriate manner. The management team
of respective organisation offer the same treatment to staff member and conduct performance
appraisal in timely manner that aids assistance in conducting performance appraisal that is
important to execute work in an appropriate manner. In addition to this, it is important to analyse
specific demands and need of subordinate which is helpful in providing role as well as
responsibilities for conducting different work in proper way. There are various situations in
which subordinate do not execute their work in an appropriate manner such as and healthy
workplace, culture as well as appraisal and so on. For instance, if management team of TESCO
increases favouritism among worker and it is the liability of employees to motivate subordinate
in reference of execute performance in an appropriate manner. In addition to this, the
administration of business organisation focuses on conducting appropriate training and
improvement program for executing different functions in an appropriate manner. In this process,
the staff member focuses on confronting different challenges in order to achieve goal in timely
manner (L’Ecuyer and Raymond, 2017). In reference of this, if worker do not executive work in
an appropriate manner according to capability than it demotivate them to perform work in timely
manner. For example, the TESCO focuses on administrating and assigning work to its individual
person in order to perform different function in an appropriate manner. In addition to this, they
also focus on earning standard because subordinate do not get appropriate wage then they feel
demotivated that decreases productivity level of organisation. For instance, in context of
TESCO, the administration of organisation will not offer appropriate pay as well as salary to
subordinate then it discourages performance level of staff member that generate unfavourable
environment within business organisation. Therefore, it is necessary for organisation to have a
skilled leader in order to motivate subordinate of business organisation in respect of their
performance level. Individual diversification signifies differences and characteristics, attributes
of individual person as well as worker. These differences make one person different from
another and it signifies various motivation aspects which empowers them to perform their work
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in an appropriate manner. For instance, in context of TESCO, the subordinate must be motivated
in order to get appropriate pay in end of month and it encourages them to perform their work in a
proper way and they get pay according to individual performance related pay system. If a person
do not get appropriate pay and they get demotivated and they can quit the job (Emeagwal and
Ogbonmwan, 2018).
CONCLUSION
On the basis of above given report, it is assess that strategic human resource organisation
signifies different activity that assists in connecting utility related to HR that help in achieving
goal as well as objectives in timely manner. The organisation focuses on improving performance
level in an appropriate manner during particular phase of time period. Therefore, it is necessary
to retained skilled or knowledgeable individual person in order to perform challenging work in
an appropriate manner. In this process, it is significant for organisation to choose appropriate
process for conducting different work in proper way. SHRM is determined as appropriate idea
related to handling individual person which provided support to framework in which they focus
on handle business organisation in an appropriate manner. To achieve outcomes, it is important
for business venture to define attitude as well as initiative to achieve competitive advantage over
rivalries at market place. The organisation emphasized on SHRM that help in making ensure that
organisation culture, structure and quality significant for accomplishing objective in time way.
Therefore, the document will provide assessment regarding level of performance of individual
person that help in execution of work force and handle situation related to IPRP that help in
encouraging staff member.
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REFERENCES
Books and Journals:
Ahlvik, C., Smale, A. and Sumelius, J., 2016. Aligning corporate transfer intentions and
subsidiary HRM practice implementation in multinational corporations. Journal of World
Business, 51(3), pp.343-355.
Arunprasad, P., 2017. Inevitable knowledge strategy: A paradigm shift in strategic HRM
practices to augment firm’s performance. Employee Relations.
Boselie, P., 2016. Strategic HRM. In Encyclopedia of human resource management. Edward
Elgar Publishing Limited.
Cooke, F.L., Xiao, Q. and Xiao, M., 2020. Extending the frontier of research on (strategic)
human resource management in China: A review of David Lepak and colleagues’ influence and
future research direction. The International Journal of Human Resource Management, pp.1-42.
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of Strategic
Management Journal, 17(2), pp.1-19.
L’Ecuyer, F. and Raymond, L., 2017. Aligning the e-HRM and strategic HRM capabilities of
manufacturing SMEs: A “gestalts” perspective. Electronic HRM in the Smart Era (The Changing
Context of Managing People, Volume), pp.137-172.
Sarvaiya, H., Eweje, G. and Arrowsmith, J., 2018. The roles of HRM in CSR: strategic
partnership or operational support?. Journal of Business Ethics, 153(3), pp.825-837.
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