Analysis of CERA's Individual Performance Measurement System

This business report analyzes the human resource management practices of Civil Engineering and Research Associate (CERA), focusing on its individual performance measurement system. The report identifies several limitations within CERA's current approach, including improper treatment of employees, excessive focus on problems, information exposure, favoring underperformers, and seniority-based incentives. The analysis considers CERA's organizational strategy and recent developments in HRM. To address these limitations, the report recommends two alternative measurement approaches: the Balanced Scorecard System and Individual Reward and Recognition. The Balanced Scorecard System offers a comprehensive view of performance beyond financial metrics, while Individual Reward and Recognition systems can improve employee motivation and recognition. The report aims to provide CERA with insights to improve its HRM practices, fostering a more effective and equitable work environment.

Running head: HUMAN RESOURCE MANGEMENT
HUMAN RESOURCE MANGEMENT
Name of the student
Name of University
Author note

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Executive Summary
The aim of this paper is to analyze the human resource scenario of a hypothetical
company where the task of the assignment is to solve the individual performance
measurement structure of the company. Firstly, it will try to identify the problems associated
with the company starting from the basic structure of the company to the process of earning
incentives. Then, it will identify the problems focusing on the current limitations of the tool
and try to provide better alternatives. Lastly, the paper shall provide a conclusion for the
improvement in the human resource management of the organization.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Limitations of CERA’s individual performance measurement..............................................4
Importance of individual performance measurement............................................................4
Limitations of Individual Performance Management............................................................5
Evident Limitations of Individual Performance Measurement in CERA..............................6
2 Alternative management approaches for CERA.................................................................9
Balanced Scorecard System...................................................................................................9
Individual Reward and Recognition.....................................................................................11
Conclusion................................................................................................................................12
REFERENCES.........................................................................................................................13

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Introduction
Every organization runs its daily business with the help of several elements. One of
the key factors is the human resource. Human Resource managers have a tough task to
appoint the right candidates to the required job and to provide the employees their right
compensation in terms of quality and quantity of output. Measurement of output is an integral
task of every concerned Human Resource Manager. On the other hand, it is important to align
the output of the employees with the requirement of the organization. Keeping the employees
content with fair remuneration and appreciation is also important s this will help the company
to sustain in the long run as finding efficient employees is not an easy task. The managers on
the other hand must be unbiased towards factors such as background, nationality, age,
ethnicity, caste, creed and so on. As the customers of a company can represent any
background it is the role of the human resource manager to recruit employees who can fulfill
the needs of the customer directly or indirectly in the business (Collings, Wood&Szamosi,
2018).
The concerned case study is related to the performance of the Human Resource of
Civil Engineering and Research Associate, an Engineering Based Organization in
Australia. The Human Resource Manager of the Company is Israel Tobin and is addressing
the problems and asking for probable solutions to the problem. As, the case is highly related
to the employee’s individual performance measurement, it shall first discuss the process, the
scenario currently prevailing in the company. Then it will provide an insight into the case
study.
Individual Performance Measurement maybe defined as a process which involves
collection, analysis and reporting the collected information related to the performance of

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individual employees. Individual Performance Measurement is predictive in nature as t is
assumed that the performance of an employee can be measured.
Discussion
Limitations of CERA’s individual performance measurement
Before getting directly into the concerned case study it is evident that understanding
the importance of the individual performance measurement is crucial. Therefore, it will help
the examiner to get an in depth analysis of the problem as the case study s hypothetical in
nature.
Importance of individual performance measurement
i) Measures the productivity of the individuals: One of the biggest importance of this
tool is it can quantify the performance of individual employees. With the help of
specified guidelines and standards which differs by the organization and the trade it is
concerned with. In addition, the different department in an organization uses this tool
differently (Cappelli & Tavis, 2016). For example: In the sales department the
performance of the individuals is measured in either in terms of frequency of sales
unit or in terms of money it is bringing towards the organization. In the finance
department the measurement of individual performance is done on the basis of quality
of audit and quantity of calculations executed within a specific period (Anitha, 2014).
And in the human resource department the performance of the individual employees
is done on the basis of quality employees he or she has attracted towards the
organization.
ii) Command Chain: Every successful company follows a particular performance
measurement system. In an organization, every employee has a different role and their
difference in quality and work sets different kinds of goals within the organization

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(Cappelli & Tavis, 2016). Individual performance system enables the employees align
with the organization directly inculcating them with the revenue of the company. It
creates clarity among the employees about the performance and makes their targets
more specific (Cascio, 2014). It also helps the concerned organization to eliminate
confusion among the employees regarding the roles to be played by them within the
team.
iii) Identification: The effectiveness of individual performance system helps the
company to identify the well performing and underperforming employees. As the
process assumes that performance can be measured, it has the capability to identify to
identify and justify the remuneration of the employees (Anitha, 2014).
Limitations of Individual Performance Management
i) Negative effect on output: Often it has been seen that imposition of a structural
performance measurement system creates an automatic pressure on the output of the
employees (Cascio, 2014). On the other hand, it also measures the top performing
employees in the same metric which may be unfair to both the parties.
ii) Difficulties in Communication:If the structure of the individual performance
measurement is not defined in a proper way then it may lead to ineffectiveness in
communication and employees may face difficulties in understanding the whole
process. This may lead to the decrease in output and efficiency of the employees
(DeNisi & Murphy, 2017). As a result employees main quit their job due to the
complexity of the structure or process.
iii) Lack of commitment: The robustness of the structure which makes it more output or
efficiency oriented may lead to decrease in the commitment of the employees towards
the organization. The employment of such structures make the process more target
oriented (Cascio, 2014). As a result, the employees often may attend unfair means to

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fulfill their target. Do this would help the employees and the company in the short run
but in the long run the company will face various types of difficulties as the methods
affect their Goodwill in the market.
iv) Subjectivity of the process: One of the main drawback of implementing individual
performance measurement tool is that it assumes that performance of the employees
can be quantified. It is controversial that this is a machine is a boon or a bane for the
companies which employs such structure it is evident that the total basket of
employees may be divided and only e the performers who are performing in terms of
quantity is taken into account (Cappelli & Tavis, 2016). This would only allow the
company to sustain in the short run because in the long run quality is an important
aspect, which helps them to create or maintain the level of goodwill in the company.
v) Decrease in motivation: One of the main floor of implementing individual
performance measurement structure in a company is that it assumes the level of
motivation among the employees is always high or uniform in nature (DeNisi &
Murphy, 2017). As the measurement, metric irrespective of its scenario is long-term
in nature the employees often feel exhausted and demotivated in achieving the targets
of the company. Ultimately the employees are working in the organization to earn
money but the company becomes too much target oriented irrespective of the
department, the employees tend to lose motivation and questions themselves about the
hygiene factor inside the company (Cappelli & Tavis, 2016). Careful management is
required and sometimes-qualitative approach should be employed to retain the
performing employees over a considerable period of time.
Evident Limitations of Individual Performance Measurement in CERA
The limitations of the process in the concerned organization is as follows:

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a) Improper treatment of the employees: from the key study has been observed that the
employees are being treated like school children. This means that within the
organization the employees are not giving proper freedom so that the qualities for
which they have been selected for are not being used to the potential. Too much focus
on the individual performance measurement system me adversely affect the output of
the employees in search a way that the performance will be only based on the quantity
of output generator from them rather than the quality for which they have been hired
for. On the other hand, monetary benefits are not the only thing that drives in
employee to work hard. Behavior and proper way off communicating with their
employees is also very important as baby them either positivity will either employees
and help them to read there efficiently and fulfil their targets.
b) Focusing too much on problem and neglecting good aspects: from the case today it
has been observed that too much focuses giving on the problems and let's focus has
been given on the good aspects of the business. Focusing too much on the problems
which mainly arises from acquiring new clients for the business is evident but the
problem is uniform focus is violated in the process. On the other hand, if list focus is
been provided on the older and loyal plans or rather the people of dealing with them
may result in discrepancies and if any mistakes are executive on this part then loss of
business me occur, which made directly affect the revenue of the company.
c) Exposing the information: one of the major floors of individual performance
measurement processes that older employees are aware of the performance of the
other employees. this creates a major mishap wedding the organization and everybody
gets to know the flaws of the other employees. As a result, employees often may get
demotivated and underperform which may directly affect the revenue of the company.

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As the process is expository in nature employees can question the employer and
compare individual performances which other employees at the time of appraisal
without knowing the quality generated from the other employees.
d) More attention on preferences and lesson top performers: One of the major driver that
can be understood from the case study is that more attention are preferences are being
provided to the under performers and less on the top performers. Moreover, this
creates a negative environment in the organization. If proper importance is not given
to the good performers in the organization, then it may lead to neglecting quality and
trading off with inferior quantity. The main problem in this case is that the good
performers will get more opportunities in the market. If proper importance is not
given to them then higher packages in terms of nominal and real terms may lure them
away. This will not only result in loss of good employees, they may also take the
contacts away from the company and provide business to the new companies they are
joining. This will directly have a negative effect in the revenue of the company and
loss of business in the long run (Bianchi, 2016).
e) Seniority based incentives: one of the major floor of implementing the individual
performance measurement system is that remuneration is highly based on the
seniority of the employees. this means that the ground level employees who are
requiring business for the company are getting less rewards in compare to the
manager who are operating within the company and providing instructions on how to
acquire business. This creates an imbalance between the benefits and the performance
of the employees both ethically and nominally. when employees understand that the
remuneration they are getting are not justified with the effort they are employing in

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the work, they may feel demotivated after a certain point of time and may leave the
job(Bititci, Cocca,&Ates, 2016). Worse they may shift to the company who is actually
the competitors of the concerned organization who has a better measurement tool to
justify the efforts of the employees. Moreover, they may also lure away the clients
who are in direct contact with the employees.
2 Alternative management approaches for CERA
The above study revealed the problems associated with the company and how it is
affecting its present revenue and the future business of the company. This section will
provide alternative or rather improved methods so that the flaws of the earlier measurement
tool can be fixed and the motivation level of the employees can be increased (Jacobsen &
Andersen, 2014).
The alternative tools for measuring individual performance are as follows:
Balanced Scorecard System
Balanced scorecard is a strategy performance management instruments which is demi
standard in nature providing a structural report which can be used by the employer for
tracking their employees so that that decided strategies and tactics for executor activities are
in control and can be monitored so that the actions are plan and properly executed. the
primary dimensions of the system are strategy management strategy thinking and using game
theory. the 4 dimensions of balance scorecard are finance learning and growth customer
orientation and international business process. In the financial perspective the major element
are financial results and grow rich directly focuses on the revenue generated for the company.
Moreover, it is also concerned with the future results and growth of the company which shell
help the company to sustain in the long run(Morschett, Schramm-Klein &Zentes, 2015). This

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process helps the organization to maintain a higher profit margins which helps them support
company during recession and moving ahead of its competitors in the market. it also
improves the gas flow of the company and maintain a balance between the creditors and
debtors of the organization. this process also helps to reduce the overall expenses of the
company as the miscellaneous portion get accounted and other expenses are calculated and
predicted. Finally, it also creates a proper revenue mix for the company and identify sources
of generating alternative revenues.
Learning and growth: This process also held the employees and the employers devil of
critical thinking ability and skills. it also has them to gain knowledge about the actual market
conditions and the requirement of the client s. it also helps the organization to developer
proper knowledge management system so that the floor information from the ground level
employees to the management and visor versatile aligned with the girls of the
company(Fındıklı, Yozgat&Rofcanin, 2015). It also helps to provide strategy information to
the management and the employ so that new strategies and tactics can be created to stay
ahead of the computers in the market. Finally, it also helps to retail the best employees of the
company by providing them proper qualitative and quantitative remuneration and keep them
satisfied (Shields et al., 2015).
Customers: The process also helps to increase the customer’s satisfaction. customer
satisfaction is increased is the demand are properly aligning with the services been provided
by the company. it also helps improve the customer loyalty which enables the company to
engage with customers in the long run helping the company to increase its longevity in the
complicated market. It also helps to retain customers of the business who are the primary
stakeholders of the company. If analyzed from individual consumer’s perspective, then the
sales revenue per customer increases because this tool helps the organization to identify

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accurate requirements of the customer and align with the offerings of the organization (Noe,
Hollenbeck, Gerhart, & Wright, 2017).
Competitive pricing and product offering: When a company operates in a very competitive
market where the number of computers are hi ben the prices have to be kept at margin and
bros it has to be generated in terms of quantity. This tool health to identify the customers
accurately so that volume increase and the profits of the company are maintained.
High quality services: This tool also has the company to provide services to the customer of
the best quality as it identifies the requirements of the customer with higher accuracy does
offering them the best services in the market. this helps the company to increase the customer
base and play bought in terms of quality and quantity. Therefore, this helps to increase the
customer preferences for the organization in comparison to its competitors (Marler& Fisher,
2013).
Internal business process One of the main advantage which can be gained through attaining
this tool is that the company or rather it employees can cross sell products (Rothaermel,
2013).
Individual Reward and Recognition
This is the second suggestive process that will directly have a positive impact
on the company’s revenue. Instead of employing incentives based on the seniority of
the employees, it is important to directly provide incentives to the staff for whom the
target has been achieved (Rausch, Sheta, &Ayesh, 2013). On the other hand, this will
also motivate the other employees to perform well in the next tenure.
If the seniority-based incentive continues in the organization then a biasness is
created and the person, who has employed actual effort in the work, may lose interest
in the concerned job and may be consumed by the market competitor. Direct

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employment of incentives will create a strong bonding with the organization with the
concerned employee and longevity of the employees with the company shall be
attained (Mone& London, 2018)
Conclusion
From the above study, we can conclude that CERA is a well-established company in
the market and has great potential in the future. The problems in the human resource of the
company has been properly identified and the solution of the problems have been provided
which shall help the company in the future. In the annual review of the company some major
structural changes in the human resource has to be executed. One of the main objectives of
the company, in terms of human resource should be employment of direct incentives and
payment system must be attained aligned with the standard of living of the locations in which
the branches of the company are located.

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