O'Meara Electronics: Performance and Remuneration Strategies Report

This report examines the case of O'Meara Electronics, an Australian company facing declining profits and market share due to ineffective remuneration and performance management strategies. The report diagnoses the existing issues, including a position-based remuneration system, poor communication of organizational goals, lack of individual staff assessment, resistance from older staff, absence of self-managed teams, poor employee-supervisor relationships, lack of rewards and recognition, and unachievable deadlines. The report recommends the implementation of a Management by Objectives (MBO) technique to improve employee motivation, facilitate a positive work environment, and address the strained relationships between supervisors and employees. The MBO approach aims to empower employees by allowing them to voice their views and set their work schedules and targets, ultimately helping O'Meara Electronics regain its market position and achieve success.

Running head: REMUNERATION AND PERFORMANCE MANAGEMENT
REMUNERATION AND PERFORMANCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Executive summary
This paper is a case study about the company, O’Meara Electronics that has been facing issues
because of the lack of effective remuneration and performance strategies that has resulted in the
decline in sales and also market share. This paper provides the issues that has been identified and
also provides recommendations that will help the company in getting back the positive position
they had in the market and also help in the overall development of the organisation as well as the
employees.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Brief overview of the case study.................................................................................................3
Diagnosis of the performance management systems in O’Meara Electronics Company............4
Suitable performance management strategies.............................................................................7
Conclusion.......................................................................................................................................8

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Introduction
Remuneration and performance management is one of the important aspects of an
organisation which helps in motivating employees to provide fruitful production for the benefits
of the organisations as well as the employees. Performance management is considered to the
process which helps in ensuring the outputs and the set of activities of the employees meet the
goals of an organisation in an efficient and effective manner (Cappelli and Tavis 2016).
Performance management usually focuses on the performance of the organisation, the process
and the employees. On the other hand, remunerations mean the salary of an employee which is
provided by the organisation in exchange of their work for the organisation. Remuneration
management is managing the salaries and the rewards of an employee based on the performance
of the employee (Lišková and Tomšík 2013). Remuneration management is highly important as
it is one of the main aspects that help in motivating employees and help in facilitating positive
and fruitful work in an organisation. This paper is going to focus on the case study about the
organisation, O’Meara Electronics Company and provide the current issues in terms of
remuneration and performance management in the organisation and will provide suitable
recommendation that will help the organisation or the company overcome the existing issues and
thrives positively and successfully in the market.
Discussion
Brief overview of the case study
O’ Meara Electronics Company is an Australian based company that has been operating
in the country for the past 20 years and has acquired a good market share in the electronic sector

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in the country, Australia. The company has been a quite a success in the market which has led
the company expand their business in four different countries. However, in the year 2016 in the
mid of August the president of the company, David O’ Meara conducted a meeting where he
addressed the fact that the company that had acquired high market share in the past is now not
generating profits and there is a decline in the market share of the company. This reason led the
president consider making significant changes in the company starting with the performance and
remuneration management strategies of the company.
Diagnosis of the performance management systems in O’Meara Electronics
Company
From the case study, it has been seen that the company is concerned about the
deteriorating profits and market share of the company. in order to improve the situation that has
arised in the organisation it has been seen that the company has been putting emphasis and trying
to make changes in their performance and remuneration strategies in order to motivate the
employees of the organisation which will help and contribute to the overall growth of the
organisation. In this case study it has been seen that the company, O’Meara Electronics had been
following the position based remuneration system, which is considered to be one of the factors
that has led to the decline of profits and the market share of the company. Position based
remuneration system is defined as the payments like bonuses and salaries that are used to
rewards the employees on the basis of the job (Spisakova 2019). This system is considered to be
the traditional type of remuneration strategy which in recent times is considered to be an
outdated method. In this strategy the salaries of an employee are decided on the basis of the
position they hold in the organisation. In this case study the company organizes an Executive
Staff Forum to understand the different perspectives of the employees about the current

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performance and remuneration strategies used by the organisation and what are the changes they
would suggest that can implemented in the organisation for the betterment of the organisation as
well as the employees.
After the Executive Staff Forum there were various issues that got highlighted which the
company did not think about before. According to an employee one of the major issues in the
company was the remuneration system. The employees who work hard do not get the sufficient
amount of money according to the efforts and hard work they put in however, the supervisors get
paid more in comparison to the employees though they do not work positively for the
organisation. The other issue is that the organisation is inefficient in communicating the goals of
an organisation to the employees of the organisation that has led to the low productivity. Taiwo,
Lawal and Agwu (2016) states organizational goals of a company should be clear to the
employees in order to facilitate positive work in the company or an organisation. The other issue
that has been identified through this forum is that there is a lack of efficient performance
management in the organisation as performance management in the company is only based on
the numbers and the customer contracts and there is no individual staff assessment in the
organisation.
The other issue that has been identified is that the old staffs are resistant and do not
cooperate which has negative effects of the organisation. According to scholars, resistance in
employees creates an unhealthy working environment which negatively impacts organisations or
companies (Sedikides and Campbell 2017). One of the employees of the organisation stated that
the teams that have been developed in the organisation are not self managed and there are no
concrete teams in the organisation, there are permanent as well as temporary teams in the
organisation. Paunova and Lee (2016) opines self managed teams have the freedom to work

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positively to provide improved services and increases the commitment of the employees of the
organisation which helps organisations gain a competitive advantage in the market.
One of the issues which are important in this case study is the poor relationship between
the employees and the supervisors. The supervisors do not like any kind of complaints which has
had negative impacts on the organisation as well as the employees. Ariani (2015) states
supervisors and employees should have a positive relationship that helps in achieving the goals
of an organisation and paves way for engagement among the employees that automatically
results in a healthy and positive working environment. A healthy working environment and a
positive relationship among the employees is one of the main reasons for positive work in the
organisation and is considered to be a motivational factors for employees to produce in a better
manner.
The absence of reward and recognition in the organisation is another issue that is
highlighted in this case study. According to one of the employees of the organisation the
company does not provide any incentive schemes or proper reward policies for the employees of
an organisation for the extra work they put in for the organisation. According to scholars,
incentives and rewards are the policies that help in motivating employees to perform better in an
organisation and provide positive outcomes to the organisation (Friebel et al, 2017).
Unachievable deadlines are considered to be the other issue that has been identified from
the case study and there are employees who have stated this issue. Unachievable deadlines in the
organisation take a toll on the health and mind of the employees which automatically pressurizes
the employees. Saleem, Ahmed and Saleem (2016) states unachievable deadlines is one of the
demotivation factors for the employees that often result in employee turnover in an organisation.

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These are the major issues that have been identified from the forum that was conducted which
show why the company has been suffering because of the low profits and market share.
Suitable performance management strategies
Performance and remuneration strategies are the ideal aspects in every organisation and
the lack of these strategies can have negative effect on the organisation as well as the employees
of the organisation. The company needs to come up with suitable performance management
strategies that will help the company overcome the current situation.
Participatory approach is one of the strategies that an organisation can use to motivate
employees and facilitate positive work in the company. Participatory approach means where the
employees have the freedom to express their views and participate in the decision making
process of an organisation. Niemeyer (2016) states participatory approach helps in motivating
employees in the workplace and provides the employees with a sense of belonging which helps
in motivating the employees to work hard for the production of the company. However scholars
have suggested that this approach often creates a dilemma in decision making which may have
negative impact on the organisation due to late decision making (O’Donovan, Rust and Price
2016).
Management by Objectives (MBO) is another performance management strategy that
helps in motivating employees in an organisation and also helps in maintaining a record of the
performance of the employees. MBO is a management technique where the employees and the
managers work together in harmony, maintain records and monitor the goals for a specific time
(Campbell 2015). Organisational planning and goals flow through the company and is translated
into personal goals for the members of the organisation. Effendi and Usman (2019) states that

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MBO helps employees in working properly and set their own goals which not only helps the
organisation but also helps the personal development of the employees. This also helps in
creating a cohesive working place. However, according to scholars conflicts may arise while the
employees and managers work together (Olatunji et al, 2015).
O’Meara Electronics needs a concrete performance strategy that will help the company in
overcoming the existing issues in the organisation. The MBO technique will be the ideal strategy
that will help the company overcoming the situation and also help in facilitating a positive
relationship between the supervisors and the employees in the company and also help in fixing
the strained relationship they have among each other. The freedom of voicing out their views and
setting their work schedules and targets with the managers will also help in providing the
employees with a sense of belonging which will help in motivating the employees to work
harder.
Conclusion
O’ Meara Electronics has identified several issues in the workforce that has had negative
impact on the organisation and has resulted in decrease in profit and market share. It is important
for the company to implement the MBO technique that will help in motivating employees to
work efficiently and also give them freedom to work in their own way which will help the
company in overcoming the issue, gain their position and thrive successfully in the market.

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