MGT5ARP Case Study: Analyzing Performance at O'Meara Electronics

This case study examines the performance and remuneration systems at O'Meara Electronics, highlighting issues that have led to decreased profitability and market position. The report identifies problems such as position-based remuneration causing resentment, lack of performance-based assessments, and inadequate motivational measures. It compares strategic and individual performance management systems, recommending that O'Meara adopt individual performance management systems to improve employee accountability, customer involvement, and profit generation by incentivizing employees based on individual performance and aligning personal goals with company objectives. The implementation of these measures, along with open communication with employees, is expected to drive significant changes in performance and remuneration systems, fostering a more motivated and productive workforce.

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Performance Management System
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Contents
Introduction.................................................................................................................................................2
Purpose....................................................................................................................................................3
Scope and limitations..............................................................................................................................3
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Introduction
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.
Purpose
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.
Scope and limitations
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
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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.
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
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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.
Comparability of performance management systems
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.
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
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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
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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.
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
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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.
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References
Arora, R. (2016). Role of performance improvement and instructional design in strategic human
resource management. Journal of Strategic Human Resource Management, 5(1)
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Atkinson, M. (2012). Developing and using a performance management framework: A case
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Cadez, S., & Guilding, C. (2012). Strategy, strategic management accounting and performance:
A configurational analysis. Industrial Management & Data Systems, 112(3), 484-501.
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