Strategic Human Resource Management Report: Performance & Skills

This report delves into the realm of Strategic Human Resource Management (SHRM), evaluating the impact of individual performance-related pay (IPRP) on employee performance. It critically assesses the circumstances under which IPRP motivates staff, as well as situations where its effectiveness diminishes. The report further explores various strategies and approaches organizations can employ to enhance employee skills and knowledge, crucial for overall business success. It also examines the challenges faced by both employees and organizations, and how SHRM can help mitigate these issues. The report uses examples of companies like Zara, Morrisons, Waitrose, Unilever, and Sainsbury to illustrate key concepts.

Strategic Human resource
Management

Table of Contents
TASK 1 ...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Critically evaluate the extent to which individual performance related pay can affect higher
level of performance from staff members..............................................................................3
Situations in which IPRP(Individual performance related pay) motivates employees and
incidents in which it is not effective.......................................................................................5
CONCLUSION...............................................................................................................................7
TASK 2............................................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY..................................................................................................................................8
Examine the various strategies and approaches which are helps to enhancing skill and
knowledge of employees........................................................................................................8
Evaluate the various challenges which are facing by employees as well as organisation and
HRM helps to reducing this challenges................................................................................10
CONCLUSION.............................................................................................................................12
REFERNCES.................................................................................................................................14

TASK 1
INTRODUCTION
Strategy is termed as a multi-dimensional concept that goes beyond the traditional
competitive strategy which aid in setting specific direction. Along with this, it render the
effective patten of action, policies & decisions that is needed to guide teams for achieving the
objectives. On the other side, strategic human resource management is basically the combination
of strategy & people which assist in managing employees of the company (Vardarlıer, 2016). It
also help an organisation to fulfil employee needs which in turn impact on the performance and
productivity of staff members to execute activities in a proper manner. Human resource
management deals in various aspects of an organisation such as recruitment & selection, training
& development, compensation, employee benefit and so on. The present report will evaluate the
extent to which individual performance related pay can stimulate higher level of performance
from staff members. Along with this, there is discussion about circumstances IPRP tends to
influence staff members & why and in what situations it tends not to work well & why.
MAIN BODY
Critically evaluate the extent to which individual performance related pay can affect higher level
of performance from staff members
Individual performance related pay has increased significantly with the last year in a
motive to raise performance of staff members. In addition to this, it is the monetary reward of
staff members whose performance has surpassed or reached a set standards. It is analysed that
such concept is mainly used in situations where staff member performance cannot be properly
measured with the set standards. Individual performance related pay is different from other
method of incentive which are team and organisation based as it is performance a well as
payment driven. It is also known as remuneration system that employees rewards are based on
the effectiveness of staff members & Zara does same as well (Wu, 2020). Zara is one of the
renowned brand that is having expectations for raising the efficiency and productivity for the
legitimate efforts of employees that are recognised as performance indicator & is committed
towards the attainment of objectives. Moreover, performance related pay is stated as financial
benefit that is provided to individual employees when the reach or surpassed through the
expectation of company.

In every organisation, there are some issues & problems take place which is related to
how the performance is measured. IPRP can be consider as compensation that shows
significance to give rewards to the employees. One of the main advantage of using such pay
related system is it allow organisation to provide fair incentive to the staff members due to which
their productivity as well as efficiency is raised of performing the activities and operations. It
also decline the cost of company to hire new employee and provide them training that impact
positively on the revenue earned by organisation. IPRP is also beneficial in raising the morale &
loyalty of employees as they get rewards of their performance (Warner, 2020). Apart from this,
there are also some of the disadvantages that is there is control of managers or higher authorities
on the profitability. In addition to this, it is not easy to measure the performance and productivity
that arise issues at workplace. Moreover, there is high probability to give high bargaining power
to executives that get high compensation & benefits as well.
Zara can make use of appraisal methods or techniques that will assist them to enhance
effectiveness and performance of employees & leads to review of the staff members to analyse
the value & reward pay that is received because of their good performance. It is determine that
some of its employees are not able to execute and perform activities because of some reason and
for this it is important for an higher authorities of Zara to identify the reason and focus on
resolving them rapidly and properly. There are some of the situation occur at workplace where
employees are rewarded not because of their performance but to encourage them so that they can
put efforts in achieving objectives.
Carnival Corporation & PLC is the travel leisure that is having the IPRP system for its
employees so that they can do better and effective as well. It is determined that company made
appraisal with an objective to provide better and quality services to customer. It is one of the
renowned and best travel organisation as is provide many benefits to its staff members that
motivate and encourage them for performing activities (Analoui, 2017). Some of the staff of
respective organisation is not involve and participated in performance process as they did not
believe and faith in such system. For this. It is significant for the organisation to encourage its
staff members and develop faith that is the analysis of performance pay is free from external
factor that impact negatively on their performance.
Sainsbury has raised the salary of its staff members so that they can perform better and
focus on meeting with the targets of organisation. The organisation can also make use of

appraisal method or technique that is based on performance of different category of workers to
influence them to give efforts to the organisation. It is important for the organisation to develop
and set a budget for the performance related pay as it help in providing employees rewards on
time period. Moreover, Sainsbury's should allow employees to participate in the decision-making
procedure as it boost their morale and confidence level & also make them feel valued and
important to work within the company (Berman, 2019). All this will help business entity to
motivate its staff members and retain them for longer time period.
Communication is one of the major aspect for an organisation as it help in clarifying all
the policies and process to the employees that is important in order to execute the activities in a
proper manner. Along with this, it is determined that an effective communication help an
organisation to develop good relationship with staff members. Performance management system,
execution method, scheme rewards and many more are associated to the individual pay rewards
performance. In this, each of the employees who are eligible for pay system get rewards and get
motivated to achieve objectives of the organisation (Boella and Goss-Turner, 2019). Moreover, it
also help a company to raise the productivity and profitability along with the professional and
personal skills of staff members.
Situations in which IPRP(Individual performance related pay) motivates employees and
incidents in which it is not effective.
Motivation is chief element which drives employees to improve their skills and enhances
their capabilities, which help the organisation attain their goals effectively. In relation to this,
motivation encourages employees to accomplish various objectives in a collaborative effort with
their team to manage quality every task and complete every tasks in given time. Managers face
challenges related to enhancement of employee satisfaction and methods which effectively
increase motivation and encourage them to put excess effort in various activities to surpass
expectations and enhance performance (Järlström, Saru and Vanhala, 2018). In context of this,
employees of several British organisations which included Morrisons, Waitrose and Unilever
showcased demotivation after downsizing of the workforce. To tackle this situation, managers at
these organisation must implement a strategy which is based on monitoring employee
performance and providing deserving employees appropriate financial benefits. This type of
strategy involves continuous review of employee performance according to a specific standard
and assortment of all employees in categories which is based on their overall temperament

towards work and their ability to improve their performance and exceed specific level of
performance. This is also known as individual performance related pay. Investment in such
strategies encourages employees to work in a coordinated manner and allow the management to
supervise and direct their activities and career path which is beneficial for the employees and
enhances the productivity of the organisation (Nejati, Rabiei and Jabbour, 2017). This practice
allows deserving employees to gain higher positions in the firm and help the organisation
identify individuals which require training for improving their skills.
Conditions in which IPRP(Individual performance related pay) increases employee
motivation:
This strategy is able to motivate employees where the structure of financial incentive
system is easily understood by all employees and the monetary amount is revealed to all the
employees. This situation not only motivates employees but also increases healthy competition
between the workers. This strategy is advantageous for organisation such as Morrisons and
Waitrose where each employee is given tasks which utilize their skills and provides them
benefits according to their preferences and current requirements (Magrizos and Roumpi, 2020).
This practice is suitable for workplaces which have flatter organisational structure as it helps
them implement reward policies which are equal for every employee.
Conditions in which IPRP(Individual performance related pay) is not effective in
increasing employee motivation
This strategy does not increase employee motivation where reward systems are
prejudiced or allow favouritism and partiality. Reward structures which are based around
hierarchy of positions demotivate junior workers from achieving their highest potential. This
strategy is not effective for organisations where individual employee yield is dependent on their
co-workers. Such situations arise due to functions which are interdependent on various other
operations of the organisation, and make employee performance measurement difficult such as
Unilever (Zaid, Jaaron and Bon, 2018). Implementation of IPRP in such conditions discourages
employees from maximizing their capabilities and employees often view partiality in reward
systems due to inability to accurately measure individual employee productivity.
The implementation of individual performance related pay is successful in increasing
motivation of employees in organisations with independent employee role and impartial
management.

CONCLUSION
From the above study, it has been analysed that SHRM plays vital role in managing as
well fulfilling needs of staff members that develop a zeal in them to attain objectives within set
time frame. It is analysed that individual performance related pay enhance the productivity of
employees that leads to raise in performance of an organisation. It is important for an
organisation to ensure that the right pay is given to the staff members as it motivate them to
perform activities and dealing with the situation in a proper manner.
TASK 2
INTRODUCTION
Strategic human resource management is wider and broader concept which refers to HR
department plays vital role in order to conducting various activity such as hiring, selection,
training, orientation and performance appraisal. It involves HR providing training programmes
for employees in order to improving work performance of employees as well as enhancing
profitability and productivity of company (Boxall, 2018). The report about the Sainsbury which
refers to it is situated in United Kingdom. It includes providing wide range of products and
services as well analysed the market trend accordingly fulfil the requirement of customers. The
paper consist various strategies and approach which are help to trained the employees and
adapting effectively as well as various challenges and issues which are faced by organisation in
order to formulated new strategies which result as minimizing this challenges and issues.
MAIN BODY
Examine the various strategies and approaches which are helps to enhancing skill and knowledge
of employees.
Employees are the valuable asset of the organisation which result as enhancing
profitability and productivity of company. It includes organisation formulating various strategies
which result as increasing business success and growth depends on this factor. It involves
various tools and techniques utilising by organisation in order to enhancing profitability and
productivity of company. HR manger plays vital role in order to providing training for
employees in order to enhancing their skills and knowledge so help to achieving organisation
goal and objectives of company (Brunstein, 2016). In context of Sainsbury, it includes various

training programmes and seminars foe employees which helps to improving performance of
employees. There are conducting various seminar, conference and programmes for employees
which result as increasing employment engagement as well as manager of organisation
motivated for employees towards the work. There are ample numbers tools which are providing
by employees so discussed below.
Training-: This is important tool which are providing for employees in order to
enhancing employees performance and skill which result as achieving organisation goal and
objectives of company. It includes organisation invited guest to trained the employees due to
increasing knowledge and programmes. In relevance of Sainsbury, it includes HR manger
conducting seminar so presenting guest lectures for employees in order to videos, group based
assignment, presentation and many more.
Job task rotations-: It involves various job, roles and responsibility assigned for
employees in order to performed the work effectively and efficiently which result as achieving
specific target within specific period of time (Debroux, 2017). Team leaders motivated and
encouraged employees so motivating and encouraging which helps to developing team spirit
among the existing employees so they all work together so work accomplished efficiently. In
relevance of organisation, it involves superiors changing their task and job roles because
effectively completed work as well as enhancing their skills and knowledge,
Coaching-: This important tool and techniques which HR manger and top management
adapting effectively in order providing theoretical knowledge for employees so increase their
knowledge which result as perform their task in proper manner. It is essential concept because
smoothly run the business operations and activity. In context of organisation, it includes to know
about the basic thing and computer knowledge so accordingly effectively and efficiently
accomplishing work as well as various basic models to know the employees so HR manger
providing coaching for employees.
Conferences-: Organisation conducting various conference and seminar session which
result as increasing employees engagement as well as job satisfaction. It involves to gaining
knowledge and skill and providing practical exposure so employees have to chance they are
more understand the things effectively (Guest, 2017). In relevance of Sainsbury, it conducting
conference which refers to gathered al the employees and proper formal meeting are organised
which are taking such important decision so result to achieving organisation goal and objectives.

On the job development-: It is another techniques which most of organisation are utilised
in order to providing employees after recruiting of employees so trained them so it is necessary
concept for each and every employees. In context of organisation, it involves on the job method
which providing for the new employees so effectively accomplishing activity within time period.
It helps to top level of management which easily and smoothly running business functions and
activity.
Career planning-: Each and every organisation proper planning in order to providing
various opportunities which result as career development and focusing towards the organisation.
In relevance of organisation, organisation preparing separate column on their website as well as
various other column are fills. It is corporate website providing various information which helps
to providing various opportunity for career advancement which helps to improving the career
path as well as easily achieving organisation goal and objectives.
Therefore, it includes various measures which result as achieving organisation goal and
objectives so HR department plays vital role in order to achieving productivity and profitability
for company (Hannimitkulchai, 2019). It involves various tools and techniques which utilising
by organisation in order to survive in the market for longer period of time. It is process which are
essential for employees in order to effectively learn the various skill and knowledge which result
as gaining competitive advantages at market place. In context of organisation, it includes they
effectively adapting job rotation method which result as increasing knowledge and skill for
employees. It includes HR manger providing good and healthy working culture so they
effectively accomplishing work within specific period of time. Top level of management making
policy, rules, procedures and culture which result as employees followed this culture in order to
performing work effectively. With the help of this organisation maintain their decorum of office
which all the employees work and maintain discipline which result as attained goal and
objectives. It includes various measure which are follows.
Power distance index-: It includes process which result as index which helps to gives
overview as well as helps to utilising this power which known as dominating in the organisation.
In context of organisation, it involves superiors follow this procedures in order to their
employees as work professional and behave very professional way (Kamoche, 2019). It includes
they are not using more power in order to properly distance index measures because top level
management they cannot take disadvantage of this power.

Collectivism & Individualism-: It is factor which impact on organisation culture so
accordingly affecting the rules, regulation and policy as well as ample numbers of factor. In
context of organisation, it includes management team of organisation adapting both the culture
effectively in order to attained the goal and objectives as well as smoothly run the business
operations.
Uncertainty avoidance index-: This includes various measures which refers company
maintain index in order to easily handling the challenges and issues. Morrison manger analysing
the situation and market trend in order to servers the product and services for customers.
Femininity vs Masculinity-: It includes organisation utilising this measure which refers
to organisation culture focusing on male and female so they are equally treated both. In context
of organisation, it involves avoiding inequality of difference between the male and female staff.
Short term Vs long term-: It includes organisation set the goal and objectives on the
basis of this which result as accomplishing task within the short term goal. In relevance of
organisation, it involves mangers have long term vision so accordingly formulated new strategies
on that basis set goal and objectives.
Evaluate the various challenges which are facing by employees as well as organisation and HRM
helps to reducing this challenges.
Organisation facing the ample numbers of challenges as well as employees in order to
company utilising various tools and techniques due to minimizing such challenges and issues. It
involves Human resources management plays vital role in order to conducting various HRM
practice in order to arrangements of various seminars and training programmes which result as
achieving effectively organisation goal and objectives (Kontoghiorghes, 2016). In context of
Sainsbury, it includes HR mangers handle the various challenges which are faced by
organisation because essential foe company to analysis the internal and external factor. It
includes various external factor such as political, technological, economical, legal, social and
environmental which directly impact on business operations and performance of employees. It is
essential foe organisation to analysis the business environment on that basis mangers formulated
new strategies in order to gaining competitive advantages. It is process which refers to HR
mangers focusing employees policy and conducting proper training programmes so they cannot
face and kind of challenges and issue within the work related and effectively completed work

within short period of time. There are ample numbers of challenges and issues which are
discussed below.
Language barriers-: It is the challenges which are faced by most of organisation in order
to most of employees coming from different country and culture so their values and beliefs are
different so they impact on business operations and performance (Lasserre, 2017). It includes
employees comes from different culture so they cannot understanding the language to each other
which result as affect the work and performance of employees. It involves various process which
refers to focusing the training and skill in order to effectively measures in order to information
smoothly run the whole organisation.
The reaction towards new environment-: It is process which refers to they are expand
their business operations globally in order to formulating new strategies which are helps to
reducing challenges and issues which are facing by the organisation (Miebach, 2017). It
includes various challenges are impact on business profitability and productivity so accordingly
managing the work effectively and efficiently. In present environment, it involves external
environment changes very first so impact on various factor such as political, economical, legal,
technological and many more. In relevance of organisation, it involves various process which
refers to developing new strategies in order to reducing challenges and issues.
Ineffective recruitment-: It is challenge which refers to organisation hiring ineffective
recruitment means they are impact on business operation in order to conducting business in
another country so accordingly they hiring capable and able person which effectively performing
activities and business in order to accomplishing organisation goal and objectives of company.
In relevance of organisation, it includes organisation facing this challenges and issues which
impact on organisation goal and objectives. It is essential for HR manger hiring right person at
right place so effectively performed the business activity and performance.
Polycentric Approach-: It is an effective approach which result as organisation utilising
as reducing the challenges and issues which are faced by organisation effectively and efficiently.
It includes this approach utilising internationally in order to most of organisation operating their
business in another country (Mirkamali, 2016). In reference to Sainsbury, it includes they are
hiring and recruiting those individual who are local people so the cannot transfer from
employees in abroad. It hiring the local people so hey effectively performing work in order to
reducing cost of hiring of employees.

Geocentric approach-: It is process which refers to it is combination between the two
such as polycentric and geocentric which result as organisation facing many challenges so
adapting this tools and techniques because they operating business internationally. In context to
Sainsbury, it involves organisation adapting hybrid nature in order to effectively and efficiently
recruitment of personnel. It is most effective approach which utilising by most of organisation
and they utilising various measures in order to improving employees performance as well as
hiring those candidate who are capable and able to perform the business functions.
Ethnocentric approach-: It is approach which includes organisation cannot conducting
recruitment process cannot hiring employees from outside but they utilising another approach in
order to recruiting employees are not able so providing training programmes so HR manger
internal recruitment means they are promoting the exiting employees (Tung, 2016). It involves
they are already trained, experienced and capable to performing business activity and operation
in order to achieving organisation goal and objectives. Sainsbury management team adapting this
HRM practices so it helps to motivating and encouraging employees in order to successfully
survive the business at market place as well as various opportunities for employees in order to
developed their career.
Hence, it involves organisation focusing various challenges and impact on that basis
preparing and developing new strategies on order to minimizing the risk and challenges as well
as effectively and efficiently performed the work.
CONCLUSION
From the above study, it is determine that there are different strategies and approaches
adopt by companies for training the employees as it assist in performing all the operations and
activities in a proper manner at the time of internationalising as well. Some of the approaches are
coaching, virtual training, job training and so on. Along with this, it is analysed that strategic
human resource management consist of several policies & strategies that help business entity to
systematically and smoothly implement the activities which in turn leads to raise in profitability
and revenue of company. It is also been determined that giving training not only enhance skills
of staff members but also make them capable to perform activities at various locations globally
as well. Furthermore, it is stated that companies face a lot of issues at the time of performing
activities internationally & to resolve this, companies make use of various human resource
practices that assist in implementing and managing operations in a proper manner.