Advanced Remuneration and Performance: O’Meara Electronics Company

Running head: ADVANCED REMUNERATION AND PERFORMANCE
Advanced Remuneration and Performance: O’Meara Electronics Company
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ADVANCED REMUNERATION AND PERFORMANCE
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Critical Analysis of Remuneration Systems..........................................................................2
Assessment of Type of Remuneration System for O’Meara Electronics Company..............5
Conclusion..................................................................................................................................6
Recommendation........................................................................................................................6
References..................................................................................................................................8

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ADVANCED REMUNERATION AND PERFORMANCE
Introduction
Remuneration is the compensation or payment that is being received for employment
and services. It eventually includes the base salary and any kind of bonus and other economic
benefit, which the employee or executive receives while employment (Bryson, Frick and
Simmons 2013). Remuneration even refers to the total compensation and the amount depends
on several factors like value of the employee to the organization, type of job, organizational
business model and many more. O’Meara Electronics has been operating for 20 years and in
2016 the President decided to change their existing remuneration strategies for the employees
since they were facing loss in the business.
Discussion
Critical Analysis of Remuneration Systems
According to Freund et al. 2015, remuneration system is one of the major and the
most significant requirements for employee motivation in any specific organization. It refers
to the monetary rewards, which the employee gets, however these rewards could eventually
take different forms. Few of the commissioned positions subsequently offer the base salary,
however others are majorly dependent on commission. Several positions of any organization
rely on these remuneration systems since their base pay does not fulfil the minimum wage.
The remuneration can come in the form of health insurance or any other. It is the number of
complementary advantages like pay and these are increasingly significant remuneration
systems. Remuneration system is the major part of reward management. The employees of
the respective organization may be paid bonuses at several times and for several reasons
(Cybinski and Windsor 2013). Few such bonuses are completely performance related,
whereas others are provided to the staff within the organization after their work as incentives.