Human Resource Management Report: O'Meara Electronics Case Study

This report analyzes the case study of O'Meara Electronics, an electronics company facing declining profitability and market position. The report focuses on the human resource department's role in addressing these challenges through an evaluation of the company's remuneration and performance management systems. The company, with subsidiaries and a significant workforce, seeks to implement new international strategies, starting with its Melbourne office. The report examines the existing position-based remuneration approach and explores methods to enhance it, including executive staff forums and the implementation of a pay-for-performance program. The HR consultant's role in evaluating employee performance, implementing management by objectives (MBO), and ensuring consistent training is highlighted. The report concludes by emphasizing the benefits of a performance-based remuneration system, proper employee appraisal, and the importance of aligning individual and organizational goals for improved profitability and organizational success. The report suggests that the company should focus on performance appraisal and remuneration systems that benefit both the company and its employees.

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Table of Contents
Introduction................................................................................................................................1
Discussion..................................................................................................................................2
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
The report reflects the case study of the O`Meara Electronics company and will
mainly focus on the working of the human resource department. The human resource
department of an organization is one of the vital pillars for successful growth and expansion
of the business. In this case, the electronics company wants to evaluate its remuneration
system by which it can implement a new international strategy in the company and attain
maximum profitability for the business. The company has subsidiaries, and at present, the
organization is experiencing a downward fall in its profitability level; even the company is
losing its current market position because of high competition in market. To regain the
market position and to maximize profits, president of company decides to evaluate the
performance management and the remuneration management strategies, as these are the vital
parts of an organization that helps the management towards achieving the ultimate goal of the
business (Ling & YUMASHEV, 2018).
The article will examine the remuneration system of the company and will articulate
specific factors by which the system could be enhanced so that overall performance of the
organization increases. Even director of the HR department suggested that before
implementing any new international strategies in organization overall performance of the
employees in various levels of the company must be analyzed (Martono, Khoiruddin &
Wulansari, 2018). Thus, a profitable outcome can be obtained. As the new strategy will be
implemented first in the Melbourne office and after that in other subsidiaries. The
performance evaluation and the remuneration system of the Melbourne staff will be taken
into consideration. The purpose of the report is to evaluate remuneration and the performance
management system of the organization that will help the company to implement
international strategies in the business in an efficient manner and this step will lead the

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company to attain its market position in the era of global competition and will result in
maximum profitability.
Discussion
In this organization, as the evaluation process is going to be conducted in the
Melbourne office, the HR consultant needs to ensure that all relevant information about the
existing staff force is available with the consultant. In Melbourne, there is 250 staff, and the
production department consists of ten teams having twelve employees in each team. The
other department, such as marketing, research, and development, and all other sections have
almost five to fifteen employees at different levels of the organization (Halacheva, 2014). It is
decided that there will be an executive staff forum related to the new remuneration system
and the performance management system, the HR consultant needs to put extra efforts to
make this evaluation process a successful one as by this the company’s plan to expand its
business activities into other European countries could be fulfilled.
In this organization, the existing remuneration system is position based remuneration
approach that has been followed by the management. Position based remuneration system
directly related to the performance of an employee. A performance-based remuneration
approach refers to a payment method in which the employee is paid for the work they deliver
to the organization instead of taking into consideration an hourly wage rate. The HR
consultant decided an executive staff forum will be helpful to know the opinion and thoughts
of the employees and the outcomes can be helpful to make some necessary changes in the
organization that will be profitable for the company (Gerasimov & Gerasimov, 2015). The
discussion will be based on the current performance-based remuneration system, and all
employees need to put forward their perceptions related to the remuneration management
system. From manufacturing department to the marketing department, all must be
participative in this process so that all levels of the management could be given equal

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importance and even if any changes done in the remuneration management system that
proves to be beneficial for the overall organization. As an HR consultant, it is the prime
responsibility to analyze position based and person based remuneration system. In this case,
as organization is following a performance-based remuneration method, the HR consult must
focus on the critical aspects of this remuneration approach.
The first executive staff forum includes executive staff, and each has a different
perceptive related to the position based compensation approach. The head of the research and
development state that adequate emphasis must be given to find ways by which the
organization can achieve its ultimate goal. A systematic approach must be followed by the
management that will be profitable for company as well as for the employees. The marketing
manager claims that a participative approach must be followed that will include all
employees by which the organization would get a chance to analyze the overall opinion of the
workforce (Juchnowicz & Kinowska, 2018). The discussion with the executive staff
suggested that all staff forums must be conducted in the factory that will include all
employees, and even it will be the responsibility of the consultant to examine how the
performance of all individual employees will result in the profitability of the company.
As an effective pay-for-performance program is being conducted by the organization,
and the HR consultant will head the program. The consultant must take into account-specific
components that will help to analyze the workforce efficiently. Evaluation forms are
necessary that will differentiate each group of employees from one another. The form must
indicate a clear rating option related to each category or overall ratings (Pang & Lu, 2018).
The evaluation form must specify what the criteria for outstanding performance related to a
particular specific goal are. The consultant must specify what an employee must do to be
rated as outstanding performers in the overall process that is related to a specific project. The
marketing manager stated that performance management at the organizational level and the

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individual level could be better managed if an adequate facility is given to the workforce
(Soltes & Gavurova, 2015). The organizational performance mainly deals with the customer's
contacts and passes it on to the individual level for further processing of the information.
However, evaluating the performance of all individuals is not an easy job. Thus, the
individual employees are not getting benefits most of the time as the organization depends on
the performance remuneration approach. If performance of all the employees cannot be
examined efficiently, then it is evident that not all employees will be benefited from this
remuneration system.
According to the consultant, the organization must follow the position based
remuneration system as by adapting to this method all employees will work as per their job
role and will try to deliver productive work for the organization as they are well aware that
they are going to get paid for the work based on their performance level (Murali, Poddar &
Seema, 2017). The consultant identified that in the organization, not all work teams are self-
managed due to which some issues arise in the organization that affects the operational
activities of the business. Even an employee of research and development department
claimed that there are different types of employees in the organization that belongs to
production, marketing, and many other departments, even each of them has different
perceptive related to a particular project (Changezi & Saeed, 2014). Therefore, the
organization must develop a self-managed work team that can make profitable decisions for
the organization without any conflicts (Wlodarkiewicz-Klimek, 2015). As it an adequate pay
for performance program, the consultant must make sure that consistent and ongoing training
is being given to staff. As most of them are not well aware of the fact that organizational
performance must be linked to individual performance as if an organization is adopting a
position based compensation system, all individual goals must be fulfilled that will result in
overall development of the organization.

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The HR consultant must ensure that all employees are well aware of the concept of
management by objective (MBO) as this concept includes the planning process where all
employees are included from top to bottom level of the organization. MBO refers to a
personnel management method where managers and employees work together towards
achieving a specific goal. In this process, the organizational goals and planning operated from
top to bottom of the organization and converted into personal goals for organizational
employees. In this case, if the organization follows the MBO approach, it will be profitable
for the company, as all employees will become more productive and efficient in delivering
their work. In this case, as the consultant will be responsible for implementing an efficient
remuneration strategy for the organization, MBO will prove to be a profitable one (Khanna &
Sharma, 2014). MBO improved the performance of the overall organization. Managers are
compelled to do detailed planning and concentrate on improving employee performance by
reducing costs and harnessing opportunities (Effendi & Usman, 2019). The individual staff of
the company will experience a sense of identification with the company goals. This leads to
an improvement in employee morale, and they will be more committed to organizational
objectives. In this scenario, goals are achieved by evaluating individual employee abilities; it
requires maximum contribution from them. Thus, it results in maximum utilization of human
resources (Saeed & Sundararaman, 2018). Even proper communication is maintained in the
overall organization, and there will be no role of ambiguity in the company. A bright and
specific goal is set by the organization for each level of the management and even for each
employee; thus, all managers and subordinates are well aware of their specified roles. By
adopting the MBO, approach the overall structure of the organization is improved, as there is
a revision of job descriptions of different positions by taking into account the individual goals
(Shaout & Yousif, 2014). The HR consultant needs to ensure that the MBO approach
provides a realistic means to evaluate training needs and opportunities for employees. The

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employees will give extra efforts and interest towards the particular project as by working on
this project, they can improve their skills and knowledge, even will get a scope for career
development (Singh, 2015). Even the organization will get opportunity to evaluate each
employee’s performance, and based on the performance, his or her appraisal can be done.
The appraisal process tends to be more objective specific and equitable. The organization will
give more focus on measurable and quantifiable objectives.
Conclusion
Lastly, the report concludes that adopting a performance-based remuneration
management system will be profitable for the company. As an HR consultant, I would say
that before heading towards implementing new strategies, the company must evaluate
performance of the overall workforce, thus ensuring that all employees will contribute their
full efforts towards achieving ultimate goal of organization. In this case, if the electronic
company wants to expand its business, it needs to ensure that an adequate performance
appraisal of all employees is done, and even the organization is following an appropriate
remuneration system that is profitable for company as well as for employees.

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References
Changezi, N. I., & Saeed, A. (2014). Impact of corporate governance framework on the
organizational performance. IOSR Journal of Business and Management (IOSR-
JBM), 16(1), 73-78.
Effendi, R., & Usman, A. U. (2019). DESIGN OF PERSONNEL PERFORMANCE
SYSTEM USING MANAGEMENT BY OBJECTIVES (MBO) METHOD. Journal
of Innovation and Future Technology (IFTECH), 1(2), 131-144.
Gerasimov, B. N., & Gerasimov, K. B. (2015). Modeling the development of organization
management system. Asian Social Science, 11(20), 82.
Halacheva, T. (2014). Performance Indicators and Remuneration of Personnel. KSI
Transactions on KNOWLEDGE SOCIETY, 7(4), 38-41.
Juchnowicz, M., & Kinowska, H. (2018). Factors Infuencing the Evaluation of Remuneration
Justice. Kwartalnik Nauk o Przedsiębiorstwie, (3), 41-52.
Khanna, M., & Sharma, R. K. (2014). Employees performance appraisal and its techniques: a
review. Asian Journal of Advanced Basic Sciences, 2(2), 51-58.
Ling, V. V., & YUMASHEV, A. V. (2018). Estimation of worker encouragement system at
industrial enterprise. Espacios, 39(28), 22.
Martono, S., Khoiruddin, M., & Wulansari, N. A. (2018). REMUNERATION REWARD
MANAGEMENT SYSTEM AS A DRIVEN FACTOR OF EMPLOYEE
PERFORMANCE. International Journal of Business & Society, 19.
Murali, S., Poddar, A., & Seema, A. (2017). Employee loyalty, organizational performance &
performance evaluation–a critical survey. Journal of Business and
Management, 19(8).

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Pang, K., & Lu, C. S. (2018). Organizational motivation, employee job satisfaction and
organizational performance. Maritime Business Review.
Saeed, F., & Sundararaman, V. (2018). Employee performance evaluation in agile work
environment.
Shaout, A., & Yousif, M. K. (2014). Performance evaluation–Methods and techniques
survey. International Journal of Computer and Information Technology, 3(5), 966-
979.
Singh, P. (2015). Performance Appraisal and it’s Effectiveness in Modern Business
Scenarios. The SIJ Transactions on Industrial, Financial & Business
Management, 3(4), 36-40.
Soltes, V., & Gavurova, B. (2015). Modification of performance measurement system in the
intentions of globalization trends. Polish Journal of Management Studies, 11.
Wlodarkiewicz-Klimek, H. (2015). The influence of human capital on shaping agility of a
knowledge-based organization. Management science during destabilization. Global
perspective. Cracow: International Management Foundation, 129-138.