Current performance and remuneration system issues at O’Meara Electronics
Performance management systems when led effectively help to improve not only employee’s individual performance but also ensure their development, behavioural management to improve involvement in job which makes them more productive. In current case study of O’Meara there are some notable issues in performance and remuneration systems that have resulted to poor productivity, low motivation, higher resentment and low accountability of employees which has influenced drop of profitability and market position of enterprise. In this report the current systems of company are examined to interpret issues and their reasons. Also two performance management systems are compared to understand their usages and a suitable method is recommended for O’Meara that can support them to address the present issues.
The prime purpose of this report is to identify the performance management systems that are existing now at O’Meara electronics and their recognise their present remuneration systems, identify the issues that prevails in both systems as in context to employees and identify the reasons for O’Meara electronics fall in profits and weak market position. Another purpose of the report is to recommend two suitable performance management systems for O’Meara and contrast those and their respective components and/or operations. Further pinpointing which of the recommended systems O’Meara can move ahead for implementation to resolve their present issues is another purpose of report.
The scope of this report encircles understanding conceptualisation of performance management systems and their related relevance for enhancing firm’s performance in general. Various secondary research materials such as academic journals, articles and e-books will be used to carry out the research and decipher relevant inferences. According to Tabatabai, Karbasian & Mirbagheri (2014) Performance management is an organised procedure through which enterprises enhances their effectiveness by involvement of employees so as to accomplish the organisational mission and objectives. As such it is vital for enterprises as well as for each individual associated who are responsible to drive performance of individual self or groups and hence it is equitably shared among managers and employees to attain desired outcomes. Furthermore the research has some limitations like all pertinent information is based on the human resource insights that are applicable for the present case study thus restricting generalisation of extracted conclusions.
Present performance management and remuneration system of O’Meara Electronics and its issues
The performance management procedure is applicable in enterprises to convey the organisational goals and intentions, reinstate individual responsibility for attaining defined goals and monitor and assess individual and organisational performance outcomes against defined criteria (Qamar & Asif, 2016). It contemplates collaboration where managers of enterprise shares accountability to flourish the employees in such as manner that allows them to make considerable contributions towards organisational goals. As such performance management systems illustrates a procedure for guiding people that can lead to success for both individual and enterprise.
Importance of Performance Management Systems and employee involvement
In the present case study the president of O’Meara electronics upraised the emerging issues of performance that were resulting to fall in profit generation and drop in market scale of organisation. Nonetheless the president emphasised the need to improve the current performance management systems and related remuneration systems through development of proper strategic decisions that would propel effectiveness through establishment of approaches that would include international subsidiaries in Germany and Southeast Asia. Inspite of having position base remuneration systems within O’Meara electronics at present the HR director is reluctant in changing the approach through discussion with the staffs for transforming the position base remuneration system into person base. As opined by Zavadsky & Hiadlovsky (2014) the director has further proposed to commission an HR consultant to put together an all employees forum to exchange views in context to remuneration and performance management systems at place. As HR consultant it was contemplated that though O’Meara electronics have remuneration system but is more focused on positions resulting into soaring inconsistency between a conscientious employee and a manager who does very little hence leading to resentment and pulling down workforce performances. In addition to this, the current performance management systems for workforce is not assessed or examined on basis of individual performance rather evaluated on customer relations as such missing performance objectives. Besides O’Meara electronics, systems and usual procedures lack well structured proceedings and exercises for administering performance and there is inadequacy of synchronisation between managers and workforce. Moreover presently there is no defined motivational measure in place in O’Meara to bring people together so as to work in the direction to mutual success through achievement of better outcomes. According to Atkinson (2012) the shortcoming in both performance management and remuneration systems in present has lead to resentment amongst workforce, specifically the employees at entry level thus making them largely de-motivated. The implication of this resentment and lack of motivation reflects on performance of individual employees and ultimately on organisational productive capacity. Other than this the shortage of any incentives in current remuneration systems of O’Meara for achieving extraordinary end results makes employees work with low enthusiasm towards outperforming their jobs which is also the major reason for low profit generation of the company and drop in their market situation.
According to Schläfke, Silvi & Möller (2013) in order to adequately deal with the shortcomings that have been identified in the current remuneration and performance management systems of the O’Meara electronics, the management needs to acknowledge the existing lacking in their present systems and then interpret the requirement for instant interventions so as to move their centre of activity towards low and mid level workforces’. It is vital for O’Meara to realise that nowadays workman remain dissatisfied with unrewarding jobs as they seek more value addition, experience and hence applications of outdated employee involvement process may become inefficacious. Hence as opined by Gadenne, Sands & Mia (2012) in order to refine the present remuneration system in O’Meara the management needs to interpret employee needs so as to provide better advantages more than just compensations. This can be done by offering employees additional benefits in form of monetary rewards or through non monetary encouragements like appreciations, recognition etc which would motivate employees thus driving them towards attaining larger consequences besides generating loyalty and accountability in workforce.
Recommended performance management systems for O’Meara Electronics
According to Smith & Bititci (2017) in order to resolve resentment in employees that is based on current position led remuneration systems it is proposed that O’Meara can change to more effective performance based remuneration systems as these drive better motivations amongst employees through promotions and other recognitions thus giving adequate acknowledgement to hard work of employees in form of rewards and benefits. Also performance led remuneration systems offer instruments and facilities that can support employee’s enhancement of knowledge gaining through industrial education, well being plans, adaptable work plans so as to improve their work life balance to boost higher fulfilment.
O’Meara electronics need to improvise their present performance management systems by making it high powered in context of recognising calibre of individual employees so as to boost their performance levels by making sure that their personal goals are well aligned with intentions of company. According to Cardy & Munjal (2016) additionally to make sure that employees and managers work together for attaining reciprocal success and also to attain company growth it is suggested that management should shift their focus to make performance guidance a continual process which could emphasise employee coaching and enrichment programs throughout the year through series of interactions between managers and employees. According to Lopez-valeiras, Gonzalez-sanchez & Gomez-conde (2016) it is recommended that O’Meara should fabricate a new system that can effectively meet employee’s expectations by fitting to their culture and this can drive better engagement of employees towards attaining performance parameters. Nonetheless it should be made sure that any intervention to performance management are not made suddenly and are administered efficaciously to avoid any further drop in performance of employees through lower involvement in job deliverables (Deepa, 2012). Improving performance management systems will ensure several leverages for O’Meara in form of rise in profitability, growth in sales, low cost, alignment of operational functions with strategic functions and most significantly driving high motivation among employees who are primary components to drive overall performance and success.
According to Arora (2016) though there are various forms of performance management systems but O’Meara can choose strategic performance systems and/or individual performance systems. Both these kinds can be compared by identifying the reality that though the manner employees are given incentives, flourished and administered is largely based on Human resource performance management standards but these have considerable implications on major functions of enterprise specifically in performance and strategic innovations. As such by creating an alteration in the manner employees are developed and governed the management of O’Meara can constructively bring transformation in the manner performance is managed. According to Ján & Milan (2013) however strategic performance management systems drive change in organisation through better management of strategic and operational functions by focusing on issues, administering inconsistencies and influential rectifications. These are more long term changes as compared to individual performance systems. Moreover as opined by Ukko, Hildén, Saunila & Tikkamäki (2017) the pre-requisites for strategic performance management interventions can influence the manner operational performances are administered through augmentation of balanced scorecards which sets simple operational measures in outlook. While individual performance management systems brings interventions in perspective of employees at individual level as compared to strategic performance systems which visualises performance at holistic level. Both of these fulfil diverse performance management needs and so best one should be opted by O’Meara that complements their requirement to address issues.
Benefits of Performance Management Systems at O’Meara Electronics
In order to improve responsibility and liability amongst employees so as to boost customer involvement and profit generation the initial activity that director of HR needs to perform is to evaluate overall management systems in the company (Cadez & Guilding, 2012). After interpretation it was obvious that O’Meara’s financial advances clashed with organisational planning in context to having goals extended as targets for employees. This situation can be resolved by implementing individual performance management systems where after recognition of extraordinary performances the employees can be incentivised with adequate measures to recognise extra push to targeted goals (Maley, 2014). This new performance management system can be implemented after discussion with employees and should focus on both establishments of ambitions and motivation for individual performances with wider administrative approach for better outcomes. These measures will bring significant change in both performance and remunerations systems of O’Meara thus driving employees to accountability for goals so as to excel in their own goals as well as ensure enhanced profits for company.
Conclusion
The poor profitability and market position of O’Meara were driven by inefficient performance and remuneration systems within their company at present which led to employee resentment and poor productiveness so in order to improve the situation the company needed to establish measures to motivate employees towards better outcomes. Hence it was suggested that systems of company be recreated to focus more on incentives that were based on individual performance rather than position based. Also it was recommended that O’Meara adopts organisational performance management systems as these will improve accountability and responsiveness towards meeting deliverables.
References
Arora, R. (2016). Role of performance improvement and instructional design in strategic human resource management. Journal of Strategic Human Resource Management, 5(1) Retrieved from https://search.proquest.com/docview/1839187446?accountid=30552 [Accessed on 25 Sep. 2018]
Atkinson, M. (2012). Developing and using a performance management framework: A case study. Measuring Business Excellence, 16(3), 47-56. Retrieved from doi: https://dx.doi.org/10.1108/13683041211257402 [Accessed on 25 Sep. 2018]
Cadez, S., & Guilding, C. (2012). Strategy, strategic management accounting and performance: A configurational analysis. Industrial Management & Data Systems, 112(3), 484-501. Retrieved from doi: https://dx.doi.org/10.1108/02635571211210086 [Accessed on 25 Sep. 2018]
Cardy, R. L., & Munjal, D. (2016). Beyond performance ratings: The long road to effective performance management. Industrial and Organizational Psychology, 9(2), 322-328. Retrieved from doi: https://dx.doi.org/10.1017/iop.2016.18 [Accessed on 25 Sep. 2018]
Deepa, R. (2012). Impact of performance management system on HR outcomes. Review of HRM, 1, 43-57. Retrieved from https://search.proquest.com/docview/1655811883?accountid=30552 [Accessed on 25 Sep. 2018]
Gadenne, D., Sands, J., & Mia, L. (2012). The association between sustainability performance management goals and organisational Performance1. E – Journal of Social & Behavioural Research in Business, 3(2), 27-42. Retrieved from https://search.proquest.com/docview/1372122843?accountid=30552 [Accessed on 25 Sep. 2018]
Ján, Z., & Milan, D. (2013). Organization maturity through consistency of its management system. Advances in Management, 6(12), 1-8. Retrieved from https://search.proquest.com/docview/1470793038?accountid=30552 [Accessed on 25 Sep. 2018]
Lopez-valeiras, E., Gonzalez-sanchez, M., & Gomez-conde, J. (2016). The effects of the interactive use of management control systems on process and organizational innovation. Review of Managerial Science, 10(3), 487-510. Retrieved from doi: https://dx.doi.org/10.1007/s11846-015-0165-9 [Accessed on 25 Sep. 2018]
Maley, J. (2014). Sustainability: The missing element in performance management. Asia – Pacific Journal of Business Administration, 6(3), 190-205. Retrieved from doi: https://dx.doi.org/10.1108/APJBA-03-2014-0040 [Accessed on 25 Sep. 2018]
Qamar, A., & Asif, S. (2016). Performance management: A roadmap for developing implementing and evaluating performance management systems. South Asian Journal of Management, 23(2), 150-153. Retrieved from https://search.proquest.com/docview/1813593695?accountid=30552 [Accessed on 25 Sep. 2018]
Schläfke, M., Silvi, R., & Möller, K. (2013). A framework for business analytics in performance management. International Journal of Productivity and Performance Management, 62(1), 110-122. Retrieved from doi: https://dx.doi.org/10.1108/17410401311285327 [Accessed on 25 Sep. 2018]
Smith, M., & Bititci, U. S. (2017). Interplay between performance measurement and management, employee engagement and performance. International Journal of Operations & Production Management, 37(9), 1207-1228. Retrieved from https://search.proquest.com/docview/1930858129?accountid=30552 [Accessed on 25 Sep. 2018]
Tabatabai, S. A. N., Karbasian, M., & Mirbagheri, S. M. (2014). A CONCEPTUAL MODEL FOR PERFORMANCE MANAGEMENT IN ORGANIZATIONS. Kuwait Chapter of the Arabian Journal of Business and Management Review, 3(10), 28-41. Retrieved from https://search.proquest.com/docview/1545528253?accountid=30552 [Accessed on 25 Sep. 2018]
Ukko, J., Hildén, S., Saunila, M., & Tikkamäki, K. (2017). Comprehensive performance measurement and management – innovativeness and performance through reflective practice. Journal of Accounting & Organizational Change, 13(3), 425-448. Retrieved from https://search.proquest.com/docview/1940941394?accountid=30552https://search.proque st.com/docview/1470793038?accountid=30552 [Accessed on 25 Sep. 2018]
Zavadsky, J., & Hiadlovsky, V. (2014). The consistency of performance management system based on attributes of the performance indicator: An empirical study. Quality Innovation Prosperity, 18(1), 93-106. Retrieved from doi: https://dx.doi.org/10.12776/qip.v18i1.314 [Accessed on 25 Sep. 2018]
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
