Strategic HRM: Individual Performance Related Pay for Motivation

This report delves into Strategic Human Resource Management (SHRM) and the application of Individual Performance Related Pay (IPRP) as a key strategy for motivating employees. It explores the connection between company strategies, human resources, and organizational goals, emphasizing IPRP's role in fostering competitive advantages, innovation, and flexibility. The report covers the benefits of IPRP, including increased motivation, improved performance, and strengthened employee-employer relationships, and discusses trends such as prioritizing compensation budgets and personalizing rewards. It also addresses circumstances where IPRP effectively motivates employees, such as when goals are clear and responsibilities are defined. Furthermore, the report identifies situations where IPRP may not be as effective, such as when performance evaluation is difficult or when employees feel pressured. Ultimately, the report highlights the importance of IPRP within HRM and its impact on employee satisfaction and productivity.

Strategic human resource
management

Table of Contents
Introduction.........................................................................................................................................3
MAIN BODY.......................................................................................................................................3
IPRP trend for motivating employees................................................................................................3
Conclusion............................................................................................................................................7
REFERENCE......................................................................................................................................8

Introduction
The strategic human resource management is an connection between companies
strategies, human resource, goals and objectives. The main aim of the strategic human
resource management is too to provide company a competitive advantages, innovation an
advanced flexibility in there workplace.
This report will cover IPRP that is known as individual performance related pay is
used within a hrm. IPRP Are mainly implemented within a organisation in the respect of
different reason and some of them are two increase the strengthening between the
performance as well as reward. it is also used for employees Motivation and provide strength
to work effectively within organisation.
MAIN BODY
IPRP trend for motivating employees
Individual performance related pay plays an important role within an organization as
it motivates employees towards accomplishing goals of company. Within organization,
employees have different needs and if employer satisfies their needs and provides some
motivation to them then it makes employees feel valued and motivated. Employees have 2
types of needs such as financial and non financial. In financial, they want pay, bonus,
incentives and others. This pay and motivation is being given to employees on the basis of
their performance and when employees get such motivations or pay on the basis of their
improved performance then it motivates other employees as well. They also help company in
accomplishing their goals and concentrate of improving their performance. It strengthens an
effective relation between performances and rewards (Puplampu, 2018). It boosts their
confidence and makes them able to stay with the company for the long run. So, overall it can
be said that this way of motivation improves image of the company, increase productivity and
sales as well. Individual performance related pay requires detailed evaluation of performance
of employees and knowing their effectiveness as how they are doing at workplace and how
they perform tasks. There are some trends in this IPRP and there are several companies such
as:
Prioritizing compensation budget: According to this, employers focus on compensation
budget for motivating employees and on the basis of their performance they provide offers
and other financial rewards. It helps companies in maintaining and retaining talent within
organization and helps them out in improving productivity.

Personalizing rewards: Employers who find themselves unable to offer big pay to employees
on the basis of their performance then they make use non monetary approaches for engaging
employees. Companies who implement this trend within their organization are more likely to
have employees centric. They mainly focus on their employee’s satisfaction and treat their
employees as the most important resource of the company. So, they provide all other intrinsic
benefits as per the need of employees.
 There are several reasons by which companies implement this IPRP within their
organization such as:
 Retaining top performance or making a pool of talent workforce.
 Differentiating rewards in a justified manner.
 Improving image by retaining employees.
 Bringing innovation within an organization and taking competitive advantages.
 Satisfying customers needs by making employees able to improve their performance
by motivating them.
Overall it can be said that IPRP is one of the main effective trend which helps
companies in motivating their employees and accomplishing their pre determined goals. It is
beneficial for both employees and employers as it boosts confidence of employees increase
their self esteem and make them able to stay with the company for the long run (Marchington
and et.al., 2016). It can also be said that performance based pay satisfies needs of employees
and they become loyal towards company and put extra efforts for meeting their goals.
Increasing staff retention rate helps company in attracting customers and improving their
image.
The individual performance related pay provide Reward with the financial payment
that helps company to achieve their goals and objectives that they have set to achieve success
in their business. It was firstly introduced in a United Kingdom on a wider scale in year
1980and many organisation had hopes on the IPRP Would bring about the cultural change
and encourage high level of individual an organisational performance (Delery And Roumpi.,
2017) . IPRP I provided by the human resource management of the company who make
policies and procedures for the rewards to motivate employees within the workplace of
company. Providing a reward to the employees can increase the efficiency and effectiveness.
It’s not only helpful for working efficiency but also enable them to give support to the
company. Main benefits from the Individual performance related pay tents have on company

because motivation in employees will help them to grow their business and their employees
will support them to achieve their set goals and objectives. it will also enable them to show
their present within the market where they are operating their business.
Circumstances when IPRP Tends to motivate
It is normal that every company wants to improve the performance of the workers
with the payment that employees get. Theworkers who are creating a higher benefits for the
company tends to get promoted within the organisation and they can get her position within a
company (Boon, Eckardt, Lepak And Boselie., 2018) . The group of workers mainly creates
the condition where they tend to motivate by the performance of individual related pay
systems. When the goal an objective of the employees are clear and they are give on a certain
mission and proper responsibility within a organisation, this can motivate them to work more
effectively for a company to scale up the companies productivity an it is also develop their
knowledge and skills and make workforce of the company more stronger. Other circumstance
is that the job position which result in thegood benefits for the company due to enhance in
work volume and the efforts such as salesperson’s or marketing manager requires a
performance related way to encourage and motivate them to give their best for their role. Do
they work more effectively for greater incentives Ann Commission as end reward and it is
also getting a benefits to the company because their employees are giving best and promoting
company sales and promotion for the business.
Employees who get extra benefits From their superiors then they can fulfil their
personal requirements and basic needs of the life. It creates good image for the company in
employees mind an enable them to think like companies supporting us so they should also
support company by working hard and helping them to achieve this set goal and objectives
(Zehir And et. Al., 2016). It motivates the employees and improves the performance of the
workers. It is also necessary for managers and leaders of the company to make clear goals
and objectives, if the goals and Objective will be clear to the workers then they will able to
understand what they need to achieve and how they will achieve to provide success to the
organisation.When the goal an objective of the employees are clear and they are give on a
certain mission and proper responsibility within a organisation, this can motivate them to
work more effectively for a company to scale up the companies productivity and it is also
develop their knowledge and skills and make workforce of the company more stronger.
Circumstances when IPRP does not motivate employees

There are also some situation when the individual performance pay based scheme
does not work as they should be and it can result an increase many problems for the both
workers and company. It is necessary for company to identify the problems within a
scheme’s that is disabling the individual performance pay to provide its benefits. The
essential circumstances awesome right here by (Knies And et. Al., 2017) . It is often hard to
judge the workers performance, sometimes workers can be motivated in some of the rewards
they are getting but some of the employees can expect more than they are getting from the
company. they can demand for extra rewards or increasing the rewards so they can also be
motivated and they can give their 100% toward the task.SometimesWorkers of the company,
carry out activity that are not of their role & responsibilities which in turn benefits the
company it is necessary for the company to give responsibilities to the people who are able to
do it. They should also promote employees on the higher position if they really can work on
that position or they are having an ability to work effectively on particular position.Another
nation is that not all workers are equally communicative but while Activities are assigned
then they make quiet but being based by the top mangershead. It is necessary for the
superiors of the company two create good relationship between the employees so they can
understand each other and communicate each other. Having a good relation between the
employees will enable the functions of IPRP to run properly Anne it will able to motivate
employees effectively.
Circumstances like wrong judgement can occur that may work as a demonization and
for the employees an it can impact on they are walk behaviour negatively. It is important for
the superiors of the company before taking any this is unrelated to the employees in a conflict
situation or any other kind of situation. They should identify the real reason behind the
conflicts so they can judge and provide proper suggestion to overcome from the problems, it
will create trust among the employees and they will always listen to the superiors of the
company. Some of the workers who are working at the workplace of company can feel
pressure and carrying out some assigned activities by the superiors due to the several reason
such as lack of support from their sub ordinates, teammates and colleagues. leaders and
managers of the company should ensure that all the activities are carried with an proper
support and there should also ensure that all the employees are working in a team Anne
supporting each other in a task for the completion. It will help to remove negatives
circumstances and enable IPRPto work effectively for the company and it will help to
motivate (McClean And Collins., 2019) . If they no twill not look at the situation Then, Even

if the objectives will be clear to the workers in this situation is not Motivate them rather then
discouragingly him in executing the work an decrease the companies level of productivity
and efficiency of thefirm. Inan addition, in some higherrewards are given to the workers for
the high risk taking even through the workers are not well aware of type of task they will get
and cannot prepare trade-offs. In result employees are not ample to achieve the success
within a task and they get filled. Thus, in case, The individual performance related pay
Encourage the wrong behaviour inside the work environment of the firm. It is necessary for
the company’s managers and leaders To give task to those employees who are expert in risky
tasks. They should insure safety and security of the employees. if the employees will get
proper safety at the workplace environment then they will give their 100% and they will not
fear of risk. it will enable them to give their best toward the task and achieve objectives for
the company.
Conclusion
As per the report has been Discussed about IPRP which is known as individual
performance related pay are used within a Human resource management. this report has been
covered trend related to the IPRP for the motivation of employees. It has been explained the
trend such as personalising compensation budget, personalising rewards it is easy. this report
has been discussed about the circumstances when IPRP to motivate the Employees. It has
been discuss the benefits after the motivation of the employees and how it affects the
companies performance as well. In the end of this report has been discuss about the problems
when IPRP Does not motivate the Employees.

REFERENCE
Books and journals
Puplampu, B.M., 2018. Mechanisms guiding the use of Individual Performance Related Pay
(IPRP): a case study of three Ghanaian financial institutions (Doctoral dissertation,
Coventry University).

Marchington, M. and et.al., 2016. Human resource management at work. Kogan Page
Publishers.
Armstrong, M., 2019. Strategic human resource management. Pdf drive. Com.
Boon, C., Eckardt, R., Lepak, D.P. and Boselie, P., 2018. Integrating strategic human capital
and strategic human resource management. The International Journal of Human
Resource Management. 29(1). pp.34-67.
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital