Problems Regarding CERA

Question: Discuss about the Problems Regarding CERA. Answer: Introduction: CERA is one of the consulting firms that provide their consultation to different civil construction organization. They have provided their services in more than 500 projects with their 45 skilled staff. The existing HR function of the company seems ok, but the senior level management thinks that their bonus scheme needs to develop. However, they provide an excellent package to their employees to retrieve better level of performance from them. Senior managers of CERA think that their present bonus system is not capable because the fulfilment of the employee does not consider them while deciding the bonus for the employees. Therefore, they are unable to utilize the extraordinary talent of the employees.The main reason behind this is they are treating an employee like students and helps them in every matter to perform their goals. Along with that, they provide a high level of bonus to only the senior level managers because they think that are mode loyal and more enriched with great skil ls so that they can give more productivity to the company. Therefore, this approach of the company de-motivates the lower level staff. The main reason behind this is workers are getting high-level wages despite the high-level performance. It is seen that at the starting of the year, they provided some goals to their employees and ordered them to achieve those. Therefore, this inefficient bonus system can create a frustration among employee and might lower their organizational productivity (Broderick Mavor, 2011). On the other hand, a higher level of wages to the senior manager without any assessment of the performance can generate a superiority complex among the senior level managers; therefore, there are enormous possibilities that they can create bad performances. Recommended solution: Employee motivation is the key aspects that canproduce an adequate level of performances in the company, but most of the company suffers from the weak employee performances. It is seen thatCERA does not provide bonuses to their employees based on the performance. However, according to the Maslows hierarchy of needs financial needs is one of the core needs that any employee required to fulfil all of their needs (Duffhues Kabir, 2012). Any organization cannot achieve sustainability by only motivating their senior level employee; along with the top-level staff providing motivation to the junior level staff is also necessary because it helps any organization to reduce the employee turnover. Therefore, it will be effective for the CERA to implement a bonus scheme as per the performance of employees. It is recommended to CERA to divide their employee compensation into two different segments. They must provide a fixed basic pay wage to the employee based on their experiences and loyalty in their company. Along with that, they should provide an individual bonus scheme to their employees based on their effort on the enterprise (Terborg Ungson, 2015). For offering a premium to their employee, it is important for the CERA to judge the performance level of the employees based on the responsibilities assigned to them and overall their capabilities to achieve the responsibilities in the most efficient ways. The effectiveness of the solutions: For motivating employees in greatest extent, the performance related pay is highly required. As stated by Thompson (2013), performance related pay is providing wages to the employees based on the performances of the employees. There aredifferentadvantages of the performance-based pay for which CERA must implement this bonus strategy. A good performance based pay helps the employee to provide more effort to their organization which in turns increases the innovativeness and productivity in the company (Zhu Dowling, 2014). Along with that, it increases the employee retention and employee motivation by providing sufficient level of bonuses based on the performance of employees irrespective of the experiences of employees. Moreover, performance-based pay also increases the cost control by decreasing the additional pay to the employees (Weibel, Rost Osterloh, 2010). Along with that, performance-based payments help CERA to reduce the employee turnover in the company. However, there is one disadvantage of this bonus scheme that is if this bonus plan does not be regularly monitored then the uneven result and even unexpected results can be generated in the company. Reference list: Broderick, R. F., Mavor, A. S. (2011).Pay for performance: Evaluating performance appraisal and merit pay. National Academies Press. 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