The employees who are in lower levels than the management are disregarded. The management failed to comply with giving proper employee compensation and proper performance evaluation systems. The effort of achieving low operating expenses is often found the main reason why management is giving low compensation rate. The management's pay rate is set based on two other law firms: Melbourne-based and Sydney-based law firms. This type of political system is not good since it tries to limit the pay rate at some level, which in our study is of equal rate. This type of management is biased since it eliminates the employees' right in situations where pay rate is inversely proportional with its job functions. On the management's part it will only sound effective if the agreements between firms are followed. But the case was not, the management failed to climb up to the rate level imposed by the other two firms which led them behind in the competing market. The power to dictate market activities is unethical in nature. The fact that these market levels are set by business owners giving less consideration to the employees' part showed management's overuse of authority.
2-Within the case study organization, how should performance management be integrated with other management activities
One of the main issues confronting management is employee management. Employees are often disregarded by some organization despite the fact that they are playing a very crucial role in the organization in achieving its goals. Employees are considered as one of the primary resources of any organization. Successful Human Resource Management is giving value to developing and motivating employees to cooperate towards achieving productive outputs. To motivate employees is to give them due respect, give them proper compensation, and maintain employment equality by avoiding discrimination in terms of rank and gender. In our case study, there are problems that the management needs to address: Equal employment opportunity, compensation, recruitment and retention. All of these are the main functions of HR department, and are all affected by systems of performance management. Performance management should be integrated with other management activities since though these activities differ from each other in lots of ways, but the bottom line is still the same. These are all directed towards high productivity rate, cutting down operational expenses, and maintaining competitive advantage. As stated, the firm is dominated mostly by males. In the issue of equal employment opportunity, it is biased to give female employees lowly levels in the organization. In the issue of recruitment, selection, and retention of employees, the management should consider the value of hiring employees that fits the qualifications needed for any vacant positions. The picture of a male dominated organization should be wiped out. Every individual should be given equal employment opportunity regardless of gender, age or disabilities as long as he/she is found effective and qualified for any position being applied. Employee selection system should be clear on the viewpoint of any organization to encourage new applicants, and existing employees could clearly see that the organization treats all employees equally and considers them valuable. The compensation system of the firm is not effective. The procedure of how the compensation system work should be clear at the viewpoint of the employees. Performance appraisal is playing a very important role in determining the proper compensatio