Evaluation of Individual Performance-Related Pay at Marks & Spencer

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) practices, specifically focusing on the implementation and evaluation of individual performance-related pay (PRP) within Marks & Spencer (M&S). The report begins with an introduction to SHRM, emphasizing its role in aligning HR activities with business objectives to enhance performance. It then delves into a critical evaluation of PRP, examining its potential to stimulate higher employee performance. The report explores how M&S can utilize performance appraisal techniques, set clear organizational goals, establish appropriate budgets, and address employee participation to maximize the effectiveness of PRP. It also discusses circumstances that motivate employees, such as fair treatment, skill-based work assignments, and adequate compensation, while also addressing situations where PRP may not be effective, such as unhealthy workplace cultures or favoritism. The report concludes by summarizing the key findings, reiterating the importance of SHRM in achieving long-term business goals and competitive advantages through strategic workforce management. The report highlights the importance of communication, training, and development programs to enhance employee skills and motivation, and the need to consider individual differences in motivational factors.

Strategic Human
Resource Management

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
TASK 2............................................................................................................................................2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals:....................................................................................................................7
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INTRODUCTION
Strategic human resource organisation is the series of the diverse activities and
procedures which help to connect the HR utility with the business enterprise’s goals and
objectives in the establishment to develop the performance in effective manner (Analoui, 2017).
Attracting and retaining skilled individual in the form is crucial but challenging work and task in
existing time changing of active firm world. In that context, it is highly important for a company
to select the effective people nevertheless no approach employment in adequate and appropriate
manner. SHRM is the effective idea of managing people that is supported to their value
framework that human source are one of most exclusive resources to manage in the organisations
working environment for long term. To accomplish appropriate form of outcomes, it s highly
crucial for venture to continually define own aptitude and initiative to remain competitive in
market place. Another key focus on the SHRM is to make sure the organisational culture,
method and structure of corporation and quality, obligation and empowerment is important to
achieve the firm aims and objectives in potential form. This report is maintained to Marks &
Spencer which is the British retail sector firm and operates its business globally. The company
specialise in garments, home commodities ad food items in the wider market place. Furthermore,
the written document will tends to assess the individual performance associated pay that tends to
stimulate the high extent of execution from the workforce and include circumstances of IPRP
which leads to encourage workers.
MAIN BODY
TASK 2
Critically evaluate the extent for the individual performance related pay that can stimulate higher
level of performance of employees
Remunerations are the duty of employers to give to employees according to their position
and performance. Pays becomes the tool of motivating and increasing the potentials and
productivity of employees so that they achieve their target and goals. Pays increase the
performance of employees through motivating towards the high performance and
accomplishment of goals and objectives (Ayaz and Kulualp, 2019). It is very important for the
Marks & Spencer to make scales of pay according to the roles and responsibilities of the
employees. Sometimes companies face problems regarding the issue of payments. Because at
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same position and same organisation, employees get conflicts for the payments differences. It is
arise because employees feels that they are getting lower payments even at a same position. But
companies can do this according to the performance or any other reasons. So the employees
should know about the reasons for that activity, it helps to solve the problems.
There is the one method that used by the companies to solve this type of problem i.e.
performance related pay. If the Marks & Spencer wants to make right actions then they should
measures the performance of individual and try to make payments according to them. It is type
of financial reward that gives to the employees so that they can motivate towards high
performance. It is only done on the basis of measurement of performance. For this it is very
necessary for the management to measure the performance with the set standards that helps to
make correct decisions (Bakker, 2017).
It is the performance appraisal method that helps to increase the performance of
employees and productivity. In order to increase the performance of individuals, Marks &
Spencer adopt PRP method to motivate employees towards high performance. In the following
points it is well evaluated given below:
 Marks & Spencer should use performance appraisal techniques so that they increase their
performance high. Higher performance leads to increase the productivity of employees
that directly helps to increase their profitability. In performance appraisal techniques,
Marks & Spencer should apply all necessary tools and techniques that help to effective
applicability of PRP policy in the organisations. Performance appraisal techniques
includes the rewards and recognition programmes that helps to make possible to raise
performance. Company's success is only depends on the performance of the employees
so they should know about the performance that actually performed by the employees.
 For making the performance high of employees, Marks & Spencer should make clear
about the objectives and goals of the organisation so that they can get clear directions. It
is very significance for the organisation to clear objectives in front of the employees.
Because it helps to increase their productivity and performance that raise the profitability
of the company.
 It is very essential for the manager of Marks & Spencer that they should make right
budgets for performance related pay. Because in the budget it gives blue print of
expenditures that can be brought down for the process of performance. Budget gives the
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right information about tools and techniques applied for performance related pay. Marks
& Spencer makes the budget that include the amount allocated for individual methods
used for performance related pay. It become the important factor that should be need to
consider in the process of PRP (Bao, 2020). Because it gives the clear direction towards
amount render to each and every part.
 If Marks & Spencer get to knowledge that their employees are not involving in their
activities then they should take appropriate measures to solve the problem. So the
company should take all the necessary corrective cations that helps to make participation
more. Because participation is very important for the company's success, it tend to
increase the productivity and high performance. This leads to make things good. Non
involvement of employees create many type of issue that are conflicts, reduce the
performance, quality work, etc. So it is very necessary for the company that they take all
necessary corrective actions to involve the participation of employees in each and every
functions. More participation helps to increase high performance because every
employees thought that they are important for the organisation. So it leads to high
performance of company.
Hence for a company communication is the key factor which helps in creating a link
among different levels of management. This will enhance the team work and employability skills
of the employees. In relation with Marks & Spencer, the company focuses on enhancing the
skills of the workforce which will help them in achievement of goals of the company. The PRP
method is an effective tool for judging the employees performance on the basis of the target
achieved by them in consideration of time. Time is the key factor as if an employee performs the
task before deadline then they will achieve higher pay. This will boost up their morale and they
will work with more focused way towards the achievement of growth prospects of the company.
HR departments analyse the performance of the employee and pay them accordingly which will
help them in completing more target which will enhance their pay I short time.
Marks & Spencer aims at building the change management in the organisation which will
help in diversification of the workforce according to their level of efficiency. The company
offers incentives to the employees to retain them and encourage them for high performance of
work. Moreover, in this PRP process the company aims at enhancing the effectiveness of
employee by providing them proper training which will provide them an experience of
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professional working environment. This will lead to overall motivation and development of
employees towards the achievement of growth and productivity prospects.
Circumstances that tends to motivate employees and situations in which it does not work so well
Motivation is signified as the key execution aspect that recommends the performance in
context of the function of capability, empowerment and opportunity. In context of it, ability
shows the competence of group to execute their work and options demonstrates the timing and
condition around the allotted work and task. In context of this, the administrator motivates the
workforce to become more productive or efficient by including the understanding of the sources
of inspiration and also generate source of empowerment for the workforce (Jiang and
Messersmith, 2018). Regarding it, workers of Marks & Spencer suffers due to discrimination
because they face favouritism around them which demotivate their working ability and tend to
cut down their effectiveness.
In context of it, the administrators of respective firm require to provide same and similar
treatment to their entire workforce and organise performance appraisal on time which is essential
to enhance the entire execution and make their effective to perform their job role. Apart from
this, it is essential for the administrator of particular firm to include the demands and necessities
of workers that are useful to attain their goals and aims that is essential for encouraging them to
perform adequately and be liable to accomplish suitable aims. In context of this, there are some
situations and circumstances within workers do not perform well which include; unhealthy
workplace, culture, partial performance appraisal and many more (Boon and et. al., 2018). For
example, if the manager of Marks & Spencer makes favouritism between their workers and it is
liable to demotivate workers in context of execute well and it automatically directs to influence
the sales and profit margins of establishment. For this, the administrators of organisation tends to
conduct effective training and development program because it beneficial to making them more
effective and offer them fulfilment towards their demands. In context of it, the demands of
workers noticeable themselves through the need regarding obtaining their new abilities and also
take new challenge on the side of new way that directs to attain life aims of workers.
 In context of this, circumstance consider the way of profession, if workers does not
perform the work and task as per their abilities of that matches with their interest then
they get demotivate in order to perform their job role. For instance, In M&S, their
administer be liable to assign work and duties as per the abilities and knowledge of
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workers that matches with the interest level because if they got work as per their skill
then they can execute in effective manner in given time frame.
 In regard of this, it also consider that the earning standard of income because if the
employees do not get effective pay then they not feel motivate and cause of which the
work productivity affect. For example, In Marks & Spencer, if the management of
company will not provide effective pay and salary to workers then it tends to discourage
their work performance and when the execution of employees work affect it directly
create an unfavourable impact over the organisation efficiency and performance as well
as its image (Meyer and Xin, 2018). Effective market image is crucial for respective firm
in order to become the leader of market and get attention of range of target audiences
regarding their performance.
 Individual diversifications, signifies as the difference in demeanours, characteristics and
attributed of people and more particularly of workers. These difference make individuals
exclusive from one another and it entails their different motivational aspects that
empowers them and make them work with utmost potentials (Nankervis and et. al.,
2019). For example, In Marks & Spencer, employees may be motivated when they got
effective pay in the end of the month within they will be encouraged through Individual
Performance Related Pay System. Apart from this, if the people do not effective pay then
they feel demotivate which can be a cause of leave the job.
CONCLUSION
It has been concluded and summarised from the above defined information that strategic
human resource management considers a future oriented activity of developing and executing
human resource programs which address and solve business issues and instantly contribute to
key long term business aims and objectives. It is the distinctive approach for administration of
workforce in context of gets or accomplishes rivalry benefits by strategic operation utilising
included and on that base their level of wok and effectiveness to attain their goals and aims. It
also define the circumstance that is beneficial in context of encourage workers and other
situations which discourage employees for their effectiveness and execution.
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REFERENCES
Books and Journals:
Analoui, F. ed., 2017.The changing patterns of human resource management. Routledge.
Ayaz, N. U. R. E. T. T. İ. N. and Kulualp, H. G., 2019. Strategic role of human resource
management in tourism enterprises.Recent advances in social sciences, pp.275-289.
Bailey, C. and et. al., 2018. Strategic human resource management. Oxford University Press.
Bakker, A.B., 2017. Strategic and proactive approaches to work engagement.Organizational
Dynamics. 46(2). pp.67-75.
Bao, J., 2020.Strategic Human Capital and Entrepreneurship(Doctoral dissertation, University of
Pennsylvania).
Boon, C. and et. al., 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management. 29(1), pp.34-
67.
Han, J. H., and et. al., 2019. The goldilocks effect of strategic human resource management?
Optimizing the benefits of a high-performance work system through the dual alignment
of vertical and horizontal fit. Academy of Management Journal. 62(5). pp.1388-1412.
Jiang, K. and Messersmith, J., 2018. On the shoulders of giants: A meta-review of strategic
human resource management. The International Journal of Human Resource
Management. 29(1). pp.6-33.
Kaur, A., HR Challenges and Strategic Management of Challenges.
Manoeuvres, E. S. and Sthapit, A., Management of Human Resource Surplus.
Meyer, K. E. and Xin, K. R., 2018. Managing talent in emerging economy multinationals:
Integrating strategic management and human resource management. The International
Journal of Human Resource Management. 29(11). pp.1827-1855.
Naik, A. and Zade, G., The Strategic Nature of Human Resource Management.Knowledge
Resonance.
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