Mr Birthwright wants to implement a pay programme where differences in job performance will determine his employees compensation. Under this pay programme, employees will get permanent increases to their base pay based on their previous years performance. He wants to ensure that employees can see the link between their performance and pay increases. However, he is uncertain about the need for or benefit of a performance appraisal system linked to this type of pay programme.

1. Identify the type of pay programme in the above scenario.

2. Explain why performance appraisal would be / not be required in this situation.

3. If the organisation is using a lowest cost strategy in the market, list two actions that HR should seek to encourage in employees in creating a lowest-cost competitive strategy?

Can you answer soon as possible? Thank you