Civil Engineering & Research Associates (CERA) is recognised as one of the leading organisations within the Australian Civil Engineering Industry. The organisation is not too much old in the industry as the firm was established in the year 2007. Since then the firm has succeeded to attain a positive, profitable and sustainable growth within the industry due to quality go-to consulting services in the civil construction industry of Sydney. The major aim of the organisation is to provide timely planning, high quality and structural civil engineering advice to the clients based in Australia. The management of CERA has asserted that they have 45 highly qualified and skilled employees in their firm. In addition, CERA has 15 independent contractors. The human resource management of the organisation has developed some important human resource management policies regarding the sustainability of the workplace as well as effective performance management of employees. Despite the adequate strategy development process and implementation of those strategies in the business management process, the human resource management team of CERA is facing different types of challenges related to the performance management of employees.
The major aim of this report is to analyse the ethical issues in the performance management related challenges faced by the management of CERA. Two different important managerial ethics theory will be implemented in this report to critically analyse the ethical dilemma. Moreover, the impact of these ethical theoretical concepts on the overcoming of the limitations will also be discussed. Some important recommendation plans will also be discussed to ensure adequate employee performance management through the consideration of the ethical perspectives.
Rachel Amaro, the manager and the professional training staff has expressed her concern regarding the employee performance appraisal, performance management and business process outcome of the organisation in near future. According to the human resource policy of the organisation, the human resource managers will always take care of the workplace demand and job satisfaction of the employees (Savery, 2015). There are different important driving factors, which enhance the motivation of employees and job satisfaction. Effective payment structure, standard working hours, limited workplace stress, effective employee engagement and high social recognition are some important employee motivation drivers. On the other hand, strong motivation and job satisfaction of the employees within the workplace actually assists an organisation to ensure quality workplace performance. Effective performance of the employees enhances adequate performance appraisal and performance management. Being a newly developed organisation, CERA has attained a positive business growth within a decade and has grabbed a certain market share due to quality human resource management planning, implications and employees’ skills as well as performance level (O’leary et al. 2011). However, the human resource management of CERA is facing some critical workplace-related challenges in this contemporary era due to inadequate performance management process. Rachel Amaro has admitted that the employees are highly skilled and knowledgeable. On the other hand, she has also admitted that the organisation has developed some sustainable human resource management policies, but the management has stated that the organisation has failed to satisfy the demand of the skilled employees in the workplace regarding quality performance appraisal and performance management. She has expressed that the top human resource management professionals sometimes act as a school teacher. Despite good performance and hard work in critical projects, the highly performing employees are rewarded poorly. Hence, she supported the existence of the bonus scheme, but critically criticised the pay-out for the high performance as rewards according to the bonus scheme (Oehlrich, 2016). This is also essential for the management of CERA to attain a quality business growth through effective employee motivation and high employee job satisfaction. However, the organisation management of CERA may face business profitability related issues in the near future if the firm does not satisfy the demands of the skilled employees through the consideration of quality performance management aspects. Hence, poor performance management, reward distribution and inappropriate performance appraisals are regarded as the major ethical dilemmas faced by CERA regarding the performance management of the skilled employees.
Managerial ethics generally deals with the organisations' internal values, which is an integral part of the corporate culture of an organisation and shape the strategy development process concerning the socio-cultural responsibility with respect to the important external environmental factors. In this particular case, the human resource department of CERA has strongly focused on the development and implication of adequate human resource management policies and strategies to satisfy the needs of the employees (Mooman, 2012). In terms of the ethical dilemma, the skilled and performing employees of the organisation are facing critical workplace challenges in the business operation process due to poor performance appraisal and reward distribution. Therefore, this particular aspect can be regarded as one of the critical managerial ethics issues (Nair, 2014). Hence, the researcher will implement two important theoretical concepts from the field of managerial ethics to critically analyse the ethical dilemma. Individualism approach and moral rights approach have been discussed in this part of the report.
Individualism approach is an important managerial ethics concept, which is considered by the management of different contemporary organisations to ensure a self-directed pathway by the organisational leader of a company to guide other individuals and followers to meet the developed organisational objectives. The effective individualism approach always concerns the growth and sustainability of each and every employee within a workplace of an organisation irrespective of different cultural traditions of people across the globe. The individualism approach is also applied by the organisational leaders or managers to maintain sustainability in the business management aspect (Mishra et al. 2013).
This is important to know that the human resource department of CERA has focused on the development of employee oriented strategies and implementation of those strategies in the workplaces. Despite such approach, the human resource management professionals have failed to maintain a quality performance management and employee satisfaction (Lussier, 2014). According to the views of a senior manager, it has been identified that some skilled, knowledgeable and highly performing employees are not happy with the reward distribution and performance appraisals. Application of the individualism managerial ethics theoretical concept, it is transparent that human resource management leaders and managers are not considering this particular aspect in the human resource management process. Therefore, the skilled and competent employees are suffering from this particular issue. Low job satisfaction of the skilled employees due to inadequate performance management process at CERA can be regarded as an important individualism issue, which needs to be overcome the by the administrators as well as the human resource management professionals of the organisation.
Moral rights approach is also considered as an important strategic management approach, which generally assists the human resource management of an organisation to take care of the growth and satisfaction of each and every individual within an organisation maintaining the fundamental rights of the particular employees. Moral rights of employees within an organisation generally include the fundamental right for workplace safety, right for speech, right for freedom, right for appropriate wage rate and right for workplace safety and sustainability (Johns, 2005). According to the case facts of CERA’s human resource management activities and strategy establishment process, it has been determined that the senior employees of the organisation are facing critical challenges. One of the senior managers of the organisation has expressed her view regarding the lack of employee motivation and employee satisfaction. It has been identified that the top management officials did not focus on the sustainability and demand of the common employees, who are skilled enough and performing effectively (Singh & Hardaker, 2014).
According to the moral rights managerial ethics approach, the skilled and performing employees are facing some critical motivation related issues due to the consideration of poor business growth (Cole, 2015). However, the human resource management department of the organisation adopted some centralised approach in the human resource management and business decision making processes, which are affecting the workplace effectiveness and employee collaboration. In terms of the moral rights approach, the human resource management team of CERA is failed to capitalise on the possible effective human resource management approaches in the contemporary era. Hence, the moral rights of the employees have been violated due to the consideration of the poor performance management approaches by the human resource management professionals of CERA (Snell, 2010). Therefore, it is highly important for the human resource management professionals of CERA to consider this individualism, as well as moral rights, the approach in the business operation process of the organisation to overcome the ongoing employee performance management related problem within the firm (Chen & Huang, 2011).
The human resource management professionals of CERA need to integrate the individualism approach in the business decision making process to ensure a conflict-free workplace environment (Wilson, 2014). The workplace environment of CERA is facing human resource management problems due to the consideration of poor employee engagement and inadequate performance management problems. Hence, the organisational leaders of the organisation should go for the individualism approach. Individualism approach will assist the human resource management professionals to understand the demand and satisfaction level of the employee’s basis on the performance of the employees within a particular workplace (Buchanan, 2010). The organisational management is constantly trying to lead the civil engineering counselling industry in Australia through adequate client service. Hence, the effective performance of the employees needs to be ensured by the management of the organisation to ensure quality business management approaches (West et al. 2010). Therefore, the implication of the individualism approach is highly necessary for the management of the organisation as this particular approach under the field of the managerial ethics will strongly support the human resource professionals as well as employees to lead the industry quite adequately by satisfying the demand of the skilled employees (Trkman, 2010). Most importantly, the organisations need to consider some important ethical human resource management aspects. This aspect will help the management to measure and evaluate the performance level of all the employees’ basis on the individual performance and contribution towards the growth of the business performance of CERA. Hence, the individualism ethical approach will help to focus on the development of performance level, needs and satisfaction level of the employees by ensuring the motivation level of all the employees (Beugelsdijk, 2010).
Apart from the individualism approach, the human resource department of the organisation should also focus on the implication of the moral rights approach as it is one of the important managerial ethics approaches of an organisation. The employees are regarded as the important business growth drivers of an organisation. This is also essential to know that the employees are important stakeholders of an organisation. The business performance of an organisation always depends upon the quality workplace performance of an organisation. Hence, against the effective workplace performance, the employees also like to fulfil the individual dreams as well as satisfaction level (Ubah, 2016). The professional dreams and satisfaction level of the employees are generally met by the fulfilment of the criteria regarding the moral rights of the employees. According to the given case study, human resource management professionals are trying to satisfy the needs of the employees, but the employees are facing difficulties to get effective performance appraisals from the human resource management professionals as well as team leaders of the organisation. The poor performance appraisal is also affecting the reward distribution as well as the workplace motivation level of employees (Adrichvi & Yoon, 2014). Hence, it is causing inadequate workplace performance as such issues are affecting the workplace performance of the organisation. Hence, the human resource management of CERA should try to implicate some important human resource management approaches in the decision making process. Therefore, the consideration of the moral right human resource management approach is highly justified for the human resource management department. The moral rights approach will encourage the team leaders and management of the organisation to distribute reward and develop a wage distribution policies basis on the individual workplace performance of the employees. In an addition, the organisational management should also consider adequate monitoring and evaluation of the strategies to maintain strong ethics and sustainability (Welch, 2012).
The Australian civil engineering construction industry is getting competitive day-by-day. However, CERA is regarded as one of the most potential organisations within the particular industry. The organisation is not that old within the industry but succeeded to attain a strong market position through adequate client service. The management of the organisation has developed adequate strategic and planned approaches and policies in the overall human resource management practices to maintain a strong ethics and sustainability in the overall business operation process. First of all, a firm should try to ensure a quality and skilled workforce for better business performance and competitive advantages. However, the skill, expertise, knowledge level and competency can be considered as some important aspects of the core competencies of the organisation. Despite these important strategic management aspects, the human resource management of CERA is facing some critical employee performance related challenges. A senior manager has expressed her concern that the skilled employees are not gaining effective bonus amount or reward due to poor employee management process. This is also essential to accept that the employees are facing these particular challenges in the business operation process due to poor reviewing and evaluation of the decision making and strategy application process within the workplaces. Following recommendation plans will assist the human resource managers to overcome the possible challenges.
First of all, the human resource management team should consider the implication of the sustainable managerial ethical approaches in the decision making process to take care of the growth and sustainability of the human resource management practices. The individualism ethical approach and moral rights ethical approach will significantly assist the organisational management to take care of the ethical demands and moral fundamental rights of the employees of the organisation.
Secondly, this is also important for the human resource management professionals of CERA to engage the important stakeholders in the decision making process. The important stakeholders include the senior managers, senior employees, shareholders etc. The engagement of these important stakeholders in the strategy development process will significantly assist the organisational management to develop ethical strategies, which can satisfy the fundamental rights of the skilled employees. In addition, this is also essential for the firm to ensure a quality workplace environment considering different conflict free approaches. The top management needs to consider the effectiveness of the overall communication approach by enhancing the effective integration of the skilled employees in the decision making process. The consideration of the skilled employees in the decision making process will significantly assist the firms to ensure quality sustainable business approaches. In an addition, effective bottom-up communication approach will also help the human resource management professionals of CERA to ensure an adequate performance management approaches as this particular aspect will assist to mitigate the communication gap between the skilled employees as well as the top management of CERA.
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