MGT5ARP: O'Meara Electronics Performance Management Report

This report examines the performance management and remuneration systems of O'Meara Electronics, an Australian electronics company facing declining profitability. The report begins with an introduction, followed by a diagnosis of the existing position-based remuneration system and its shortcomings. It then compares three performance management systems: Management by Objectives (MBO), 360-degree feedback, and psychological appraisals, ultimately recommending a 360-degree feedback approach for O'Meara Electronics. The report emphasizes the need for improved communication and employee engagement, concluding with recommendations for implementing the chosen system to address the company's performance issues and improve employee motivation. The report is based on a case study, acting as an HR consultant to the case study organization, and follows a report format with clear headings, subheadings, and a table of contents. The report uses at least fifteen contemporary academic journal articles.

Advanced Remuneration and
Performance Management

Table of Contents
1.0 Introduction...........................................................................................................................................2
2.0 Diagnosis of Performance Management Systems..................................................................................3
3.0 Comparison of three performance management system........................................................................6
4.1 Conclusion.............................................................................................................................................7
4.2 Recommendations.................................................................................................................................8
References...................................................................................................................................................8
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1.0 Introduction
The report is focusing on the purpose of wholesome discussion of the issues that are hampering
the business of the corporation O'Meara Electronics in regards to the improper Performance
Management System. A good diagnosis of the system is being made and proper suggestive
actions are being suggested for them accordingly. The scope of this report is that a comparative
study of other two performance management system is being done to make sure which suits the
best according to the ongoing situation of the company. In accordance to the mentioned case
study the corporation O’Meara Electronics has been working for over 20 years. It has a elevated
market share in Australia in the electronic sector. The company initially has a position based
Remuneration System (Špalková, Špaček & Nemec, 2015). But now they are planning to change
it with the person-based system. The issue with the spot based remuneration system creating a
hurdle in the development of the organization in the market. The Performance Management
System is an attribute that provides a mechanism to significantly improve the performance of an
organization. This works by aligning and linking the individuals, team and sometimes the
objective of the organizations (ullah khan, 2013). There are several importance of this
performance management system such as creates an ongoing process. Then gather information
from multiple sources for development. The limitations of this report are that all the performance
management systems are not properly recommended to O'Meara Electronics.
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Figure: Performance management cycle
Source:https://www.clearreview.com/resources/guides/what-is-effective-performance-
management/
2.0 Diagnosis of Performance Management Systems
O'Meara Electronics is selling its product in Australia. The organization has also set up
subsidiaries in Germany and Southeast Asia. The organization has more than 1000 staffs. David
O'Meara is the president of the organization. In 2016, the president raised concern over
profitability and overall development of the organization. According to the president, the
business has to implement useful performance management strategy along with an effective
remuneration management process. The requirement of a new Performance Management System
has been elaborated in the meeting. In this case, the organization has to make a significant plan
for its subsidiaries that are situated in other countries. Director of HR Management Sarah Jones
addressed the meeting with the employees. Sarah Jones talked about the current remuneration
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system of the organization. Since the beginning of the formation, the organization is using a
position-based Remuneration System for the employees (Toppo, 2012).
Sarah Jones wanted to change the traditional remuneration system to increase the performance of
the employees. According to Sarah Jones, the person-based remuneration system can provide
significant satisfaction to useful employees. In this case, the management team of the
organization has to evaluate the Performance Management and Remuneration Management
policies. Organization is intending to appoint an HR consultant for change in performance
management and remuneration management. Sarah Jones announced that the Executive Staff
Forum has been organized for a new remuneration system. The management team of the
organization agreed to organize a separate Performance management forum. However, Sarah
was pretending that the president was providing more focus on remuneration management rather
than performance management.
In Executive Staff Forum, the important executive staffs were attended. In this forum, discussion
of current position-based remuneration system has taken place. Sarah also wanted to know the
comments of the key executive staffs over the current remuneration system. All the top
management team provided their views on the new remuneration system. All of the management
team members agreed that the new Remuneration System can be very advantageous for the
workforce. The business will also be benefited by the new remuneration system. Sarah Jones
wanted an open discussion related to the new remuneration system (Ntanos & Boulouta, 2012).
In performance management all-day forum, all the staffs have been invited. James is a marketing
person in the organization. According to him, the performance in organizational level and
individual level is decreased. Kurt Turner has appointed as the consultant for the Performance
Management System all-day forum. He opened up the discussion with the staffs. He was trying
to know the personal views of the staffs in regards to performance goals. A negative comment of
engineering technician Nick created an impact on the mind of Kurt. Kurt intended to discuss the
managerial goals with entity goals and performance of the employees. Kurt evaluated of
Management by Objectives System MBO on a whiteboard. He explained the monitoring and
controlling procedure of managing the performance of the workers through the MBO system.
According to him, the MBO system will help the employees in their individual career goals.
Apart from it, the organizational goals can be achieved through effective implementation of
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MBO system. Kurt discussed the activities of current Performance Management Systems. The
existing Performance Management System is operated for customers relations. But, the activities
of the existing Performance Management System are not helped in managing individual
performance. Due to this reason, the organizational top management team is not been able to
assess the act of the employees (Calvin, 2017).
The organization has no such programs where the supervisors and the employees are working
towards success for each other. In the performance management all-day forum, discussion over
performance evaluation happened. The comments of the top management are different from each
other. Ross is an engineer of the organization. He evaluated his experience of an organization
where he worked previously. In a word, Ross tried to show the usefulness of the accomplishment
of the new Performance Management System. From the accounts department, Maria advocated
the priority of skills and capabilities of the people. Sally is a member of the General
Administration. Sally commented that 360 Degree Feedback Methods will be very suitable for
the organization in case of implementing an efficient Performance Management System. Self-
appraisal is one of the significant factors of performance evaluation (Aguinis, 2019).
After completion of the Performance Management Forum, Kurt was able to understand the
current condition of the business regarding the Remuneration Management System, and
Performance Management System. Initial duty of Kurt will be to convince every employee of the
organization. He has the responsibility to make the employees understandable about the activities
of remuneration management system and Performance Management Appraisal System. Kurt
knows that Remuneration and Performance Management System is more than measurements. To
implement useful and effective remuneration and performance management system, the
consultant has to undertake the perceptions of the employees. The group is planning to generate
superior job performance through an effective performance management system. Similarly, by
implementing a person-based remuneration management system, the organizational top
management team can motivate the employees towards tasks (Aggarwal & Thakur, 2013).
3.0 Comparison of three Performance Management System
The comparison of the three Performance Management System are being discussed below-
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Management by Objective 360-degree Feedback Psychological appraisals
This is a form of appraisal
method where the mangers
and the employees in a group
identify, organize,
communicate and plan goals.
After planning and setting of
the clearly identified goals the
subordinates and the mangers
occasionally discuss the
evolution that is being made to
manage and argue on the
companies’ achievability
(John, 2018).
This lays extra tension on the
corporeal work or some
career-oriented goals.
Whereas the indefinable
aspects are brushed under the
rug, like job commitment,
interpersonal skills, etc.
This method is time- intensive
and much expensive (Idowu,
2017).
In this method, every worker
in a business appraises his or
her managers, suppliers, peers,
customers and self-evaluation.
This process makes sure that
there is an effective analysis
of the performance and there
is TEI (Total Employee
Involved). This method should
be handled properly. If it is
not handled well then this can
undergo from the prejudice of
the evaluator (Chand, 2018).
This method helps the
employees to stay
communicated and motivated
continuously with the upper
level of the organization. This
is a widely used appraisal tool
(Kanaslan & Iyem, 2016).
This is a holistic kind of
approach for viewing the
employees from behavioral
and performance level.
This is mainly used to
determine the hidden potential
of the employees. This mainly
focuses on analyzing the
worker's performance for the
future rather than their past
works. This performance
appraisal system involves
several tests for the employees
to analyse their emotional and
mental constraints.
This is a complex and slow
process. The quality of results
in this method is highly
dependent on the
psychologists who administer
the process (Jain & Gautam,
2014).
From these above mentioned three Performance Management System the MOB and 360 Degree
feedback are considered as the most suitable for the company O’Meara Electronics in accordance
with the case study. These two methods are a very easy method of evaluation. These methods are
a fine way to see if any worker is a good candidature for advertising and leadership. This two
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helps to manage the performance in a well-behaved manner and that ultimately works for gaining
profitability for the firm. These are the collaborative approach that includes input from the
employees themselves. This proves to be suitable for developing employees. This is considered
as future-oriented methods and that too is modern. These are much more efficient in regards to
performance management from the traditional approaches (DeNisi & Murphy, 2017).
A psychological appraisal is also disadvantageous as it is reflecting the development of impact
on the performance management processes. It is identified to be a rather slow and complex
process. Due to this reason, the delays in the performance measurement of the employees are
seen. The administration of this procedure is seen to be more complex as the discussions are
based on the psychological tests and the interviews. The analysis is also identified to be time
taking procedure. Due to this reason, the delay in the performance analysis is seen which is also
creating an impact on the organizational objectives. The impact is also seen on the activities
which are carried out during the process of the performance management process. Thus, this
process is not selected as it is identified to be disadvantageous for the organization (Hoffmann-
Burdzińska & Flak, 2016).
4.1 Conclusion
The President and Director of HR department of O'Meara Electronics concerned about the
current Remuneration Management System and Performance Management System. The
organization has planned to appoint Kurt Turner as an HR consultant. The main duty of the
consultant is to convince everyone for effective implementation of remuneration and
Performance Management System. The current remuneration and Performance Management
System were not very effective. Organizational top management is not able to determine the
performance of the staffs on an individual basis. Due to this reason, the performance of the
employees is not improved. Similarly, the remuneration method is also a position-based system.
The organization is planning to implement 360 Degree Feedback Methods for the Performance
Management System. Apart from it, the business is implementing a person based remuneration
system by replacing a position-based remuneration system.
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4.2 Recommendations
For O'Meara Electronics, the 360-degree appraisal process is recommended to mitigate the
issues. It is reflecting the ongoing communication which is present in between the manager and
the employees. The communication processes between the managers and the employees are
lacking. Due to this reason, the impact is created on the employees' performance as is seen in the
context of O'Meara Electronics. The upper managerial groups are seen to be gaining the
performance appraisal facilities appropriately without focusing on their jobs in an appropriate
way (Ngacho, 2018). In the case of the lower-level staff, the performance management processes
are not carried out for them instead of carrying out their duties in an appropriate way. This type
of segregation is leading to the development of an impact on the activities. The gatherings of the
feedback from the employees are not properly carried out. As a result of this, the impact is
created on the performance of the employees as is seen in this context. The managers should be
actively involved in gathering feedback from the employees. This will help them to enhance their
communication process with the employees. Apart from this, it will be helping in attaining the
organizational objectives by forming a good bonding between them (McMahon, 2013). Thus, the
360-degree Performance Management System is recommended so that the employees can be
easily able to get motivated. The remunerations will be properly carried out for the employees
and also it will be providing benefit to the employees. If the feedbacks are not properly gained by
the managers, then employee satisfaction cannot be provided.
References
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Review. International Journal Of Engineering And Advanced Technology (IJEAT).
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Aguinis, D. (2019). Performance Management. Retrieved from
https://www.ebsglobal.net/EBS/media/EBS/PDFs/Performance-Management-Course-
Taster.pdf
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Calvin, O. (2017). The Impact of Remuneration on Employees' Performance : A Study of Abdul
Gusau Polytechnic, Talata-Mafara and State College of Education Maru, Zamfara
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