An Analysis of Strategic HRM: Performance-Related Pay at Barclays Plc

This essay provides an in-depth analysis of strategic human resource management (SHRM) at Barclays Plc, a global financial services provider. It examines how Barclays aligns its HR practices with overall business objectives to enhance organizational performance, focusing specifically on individual performance-related pay (IPRP) and its impact on employee motivation. The essay explores various aspects of IPRP, including bonuses, commissions, and profit-sharing plans, and their effectiveness in different contexts. It discusses the advantages and disadvantages of IPRP, considering factors such as company culture, management skills, and the potential for demotivation in certain situations. The analysis also delves into motivational theories, such as content and process theories, and their application in the context of Barclays. The essay concludes by highlighting the importance of motivation in achieving business goals and objectives and maintaining employee turnover, emphasizing the need for fair and effective compensation strategies within the organization.

Strategic HRM

INTRODUCTION
Strategic human resource management refer to HR that is consistent and co-ordinated
with the entire business objectives to enhance organisational performance. In addition, it is the
practice of developing, attracting retaining and rewarding for the advantage of both the workers
as organisation and an individual as a whole. In this Essay chosen organisation is Barclays Plc
which is a leading global multinational financial service provider involved in retail and
commercial banking. It was founded in 1960 by John McFarlane and Jes Staley. This Essay is
based on the choices of two questions in which selected question is 1. It is mainly related with
individual performance about pay and its links to motivation.
MAIN BODY
As per the point of view of Kearns, (2015) it has been determined about the main reason
behind selecting Barclays Plc in this essay is they has an international network of more than
155000 people working crosswise a range of enterprises thus makes the human resource team of
Barclays face a new challenges. In such an international and divers spread firm, human resource
experts work with each and every unit of business. It assist the Barclays Plc stay ahead of the
rivalry by retaining and attracting the best people. It is also essential for the company to make
sure that they all are in the right job position and do the accurate work or activity. As it will
develop sustainable advantages for the shareholders and customers across the globe (Arunprasad,
2016). Focus of the human resource management team of Barclays is not only new recruit but
also bound up to raising its established co-worker. In this HR team play an essential and
effective role in monitoring employees performances and host of training programs. Human
resource management of Barclays plc is classified into various professional job titles. It mainly
deals with the HR related problem and plays a vital part in each and every unit of firm.
The motive or significance of strategic human resource management in Barclays group
cannot be over focused, the failure and success of an firm relay on its HR management.
According to the Kearns, (2015) the primary and main purpose related with HRM in Barclays
includes job evaluation and recruitment, utilization and organisation of workers, measurement
and appraisal of employee performance, application of reward system for workforce,
maintenance of workers and professional development of workforce.
Performance related pay of PRP is applied by employers to reward workforce on
individual and group basis. It is followed in a section of both private and public sector where it is
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often sensed to be a form of providing an incentive or benefit to those at the upper of their pay
circle. As per the Equal opportunities commission, a perfect and well designed PRP scheme
should have certain elements such as objective setting, consideration of performance against
objective, translation of evaluation into performance rating, a link between determination and
rating to pay, communication and understanding of objective etc. All these are applied by the
Barclays Plc to provide accurate and fair salary to their workforce. It has followed to employees
in related with salary structures rates and a performance (Beer, 2015). There are different reasons
of implementing PRP system in Barclays such as strengthen the relationship between reward and
performance, maintain top performers by appreciating them for sustained superior performance
level. Another common objective of the company for establishing this system is to necessitate
and facilitate performance constructing resulting in performance assessments and reviews.
Individual performance-related pay designed to encourage workers and to align their
effort and activity more closely with the goals and aims of the company. Any system that mainly
relates with the reward of a worker to the performance of company that she or he works for is
called PRP or performance related pay. There are different types of individual pay such as
Bonuses, Commissions, Profit-Sharing Plans and Piecework which are provided by the Barclays
to their all staff members (Beer, Boselie and Brewster, 2015). All these are essential and
beneficial for the workers to increase their performance level in the organisation.
Bonuses are mainly made to workforce who reach particular level of performance. In
Barclays, there are different departments such as sales, accounts and many other. All these are
work with aim of increasing their performance level in the organisation. It is the role of manager
to provide bonus to the salespeople so they can easily achieve sales goals. On the other hand
accountants can gain bonuses for decreasing expenditure to a various level. Therefore, it is the
role and responsibility of manager is to provide bonuses to the workers as per their performance
(Brewster, 2017). Thus, it help them to maximise their performance level and achieve personal
and professional goal within predetermined time period.
Commissions is another essential part of the individual pay which may be applied as a
part of incentive for employee. Those who employees work and perform on commission
atypically acquire income which is mainly based on the percentage of net income that they
generate. As an output, workers of the Barclays who are highly encouraged by money may enjoy
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employing on commission since income level of workers is strictly tied its productivity and
performance (Galang and Osman, 2016).
Profit-Sharing plans is another essential form of the individual pay in which Barclays
shares a part of its profit with its workforce. As it may motivate and encourage them to maximise
their performance and productivity. Such part of the PRP generally occurs on a yearly basis and
may be in the way of business stock or an involvement to a retirement plan (Gollan, Kalfa and
Xu, 2015). It may also be provided as a form of recruiting package in order to attract new
workers systematically.
Piecework plans is another beneficial aspect of PRP which is similar to commission
plans. It help the company to reward their employees which is beneficial for them to improve
their productivity and performance level. Therefore, it is important and essential for the
employee to improve their efficiency and effectiveness level in an effective and systematic
manner.
Therefore, all these element of individual performance related pay are effective and
beneficial for the Barclays in different ways such as increase productivity, lower production
costs, maximise earning of employees etc.
In Barclays, there are large number of employees are work with each other. All
workforce has their own purpose and motive about increasing performance and productivity.
Main circumstances in organisation are unsatisfied workforce because of improper inaccurate
distribution of salary, commission and many other pay related performance (Jamali, El Dirani
and Harwood, 2015). So it is the role of business manager is to provide accurate salary and
benefits to the employees as per its performance within specified time. IPRP (Individual
performance related pay) are suitable in different situations such as: the culture is entrepreneurial
with a focuses on competitiveness, growth and the accomplishment of financial objectives.
Another situation is line managers of the Barclays are skilled and knowledgeable in the
procedures of providing feedback and objective-setting on assessing performance (Kaufman,
2015). All these situations are mainly linked to the business strategy, its interlink with the
external surrounding, and whether performance related pay would assist the business's corporate
goals.
IPRP tends is essential and important for the Barclays to motivate their employees by
providing fair salary and bonus. There are different advantages of the individual performance
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related pay such as: it provides direct incentive, improves goal setting, generates a performance
culture, enhances employees productivity, performance and quality of work (Performance-
related pay, 2018). It is also important for the company to identify poor performance and its
solutions to overcome this within predetermined time period. IPRP trends also essential and
significant for the company to motivate their all workers effectively. In order to motivate
employees company use different types of performance related pay some are determined as
under:
Payment by result is refer as one of the most popular and effective process of
performance pay for employees where bonuses relay on assessed ground of result for workforce.
It is essential way of motivating to the staff members easily and effectively. Thus it help them to
achieve their personal and professional goal within predetermined time period.
Merit pay is another useful and valuable part of the individual performance related pay in
which manager provide bonus to their employees (Kaufman, 2015). It is mainly based on its
contribution in the completion of task and activity of company. Thus, it encourage and motivate
workers to maintain long-lasting relation with the organisation.
Both are effective and beneficial for the company to motivate workforce. It is necessary
for the Barclays because motivated employees give their full contribution in achievement of long
term goals and success. It will also significant for the future growth and development of an
organisation at large scale (Importance of Motivation for Employees | Employee Management,
2018). In order to motivate employees by providing performance related pay is require by the
Barclays. There are some importance of motivations are determined as under:
Motivation assist change negative attitude to positive attitude for example: without
motivation the workers of the company try to work minimum activities and tasks in the
enterprise (Knies and et. al., 2015). Like; If business has large number of usefulness resources
then motivated workforce make fundamental use of the resources.
The motivation enhances the efficiency and performance level of worker. It means the
workforce start working the activity to the best of their capability with few wastage of resources
and time period because motivated workers forever go for better utilisation of resources. It is also
essential because it cross the space between the ability and willingness to work (Kroon, Freese
and Schalk, 2015). Thus it is also essential for the Barclays to maintain employees turnover and
gain competitive benefits within predetermined time duration.
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Motivation also assist in accomplishing business goals and objectives in given time
period. For example: motivated employees always try to contribute their complete efforts to
attain better results. On the other hand, motivation also assist the managers in order to introduce
changes in the business environment. Motivated workers are always co-operative and supportive
in accepting all changes in the enterprise.
Motivation also important and essential in reduction of employees turnover. It develops
confidence level in the workers to acquire their desires satisfied in the firm itself. In this
Barclays use two types of motivational theory such as content and process (Marler and Parry,
2016). Both theories are help in maximisation of performance and productivity level of
employees.
There is difference in pay to employees having same power and designation but having
diffident job location. This can be because of work pressure on branch. In the situation individual
performance related pay is not suitable for the company. It is not essential and work in this
situation because in which each and every worker has same power but job location are not same.
There are different disadvantage of IPRP in such situation which are determined as under:
Workers can not be motivated if in order to set goals and objectives is hard to the
company to accomplish it. It also effects on business performance and productivity in a direct
manner. This system in such situation decrease pay equity and can make an organisation
responsible to costly balanced pay challenges or situation if not run fairly. Performance appraisal
process or activity can be impacted harmfully because of the emphasis on financial benefit rather
than the need of development (Paauwe and Boon, 2018). In this co-operation and team spirit can
be effected on employees as well as organisational performance in a direct manner. There is
danger or risk that workers can require a extra payout year on year. For example: In a minimum
inflation climate or status the rewards or benefit might not come out that great. Therefore this
system is not essential and effective for the service industry to pay salary, commission and many
other individual performance related pay to the workers.
There are different number of contextual issue such as type of occupation, standard of
income, individual difference and value in a county effected by applying individual performance
related pay. All these are influenced on employees performance and efficiency in a direct way.
Thus it is the role of manager is to provide accurate salary and compensation to their workers
according to its performance in the organisation.
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Types of occupation is different for the each and every people, it is the role of manager is
to provide pay as per the occupation of employees. It is mainly classified into three parts such as
professional, business and employment (Tang, Chen and Jin, 2015). For example: An employee
may not be capable in every field of Barclays department, so in this manager need to provide
effective training and development class to the incapable workforce. Employment is refer as an
another occupation which is proceed by an employee in which they works regular basis and get
salary or wage in return. Another occupation is business which is refer knowledge about the
service and goods. In this they require accurate salary and compensation from the business.
Standard of income is vital element which is consider at the period of rewarding an
individual with maximum salary and grades (Zehir and et. al.,2016). In this manager play vital
role by providing fair salary and compensation to the employees as per its performance. Thus, it
is essential because it reduce conflict and misunderstanding. It will also beneficial for the
company to accomplish long term goals and objectives within predetermined time duration.
Individual Difference is also another important and essential that effected by the
individual performance related to the pay (Arunprasad, 2016). For example: employees has good
knowledge, strong education and family background, then they need more salary as compare to
other workers. It will highly effects on the business as well as individual profitability and
performance in a direct manner. On the other hand value of country in which individual
performance related system is not work because in this employees has similar power but
different job position. Therefore it is not easy for the manager to provide bonus, incentive,
compensation, commission and many other pay related benefits to the employees.
CONCLUSION
From the above mentioned information it has been concluded that performance related
pay is important and essential for the company to motivate their workers by providing fair salary,
compensation, remuneration etc. IPRP is suitable in some situation like: improper distribution of
salary. It is the role of manager to provide different benefits to the employees as per its
performance in the organisation. Individual performance related pay is not suitable where
employees have same power but different job location. In this situation this system hinder of
company as well as individual performance and profitability in a direct manner.
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