Advanced Remuneration and Performance: O'Meara Electronics Report

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This report, prepared as an HR consultant's analysis of O'Meara Electronics, examines the company's current performance management system, which is facing challenges due to declining market position and profitability. The report analyzes the case study, identifying key issues related to performance management and remuneration strategies. It explores various performance management systems, including general appraisal, 360-degree appraisal, technological appraisal, employee self-assessment, manager appraisal, project evaluation review, and sales performance appraisal. Through a comparison of these systems, the report recommends the 360-degree appraisal system as the most suitable approach for O'Meara Electronics, suggesting it will help improve employee behavior, address organizational issues, and ultimately enhance performance. The report includes a detailed discussion, conclusion, and recommendations, supported by references to academic journal articles.
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Running head: PERFORMANCE SYSTEM
Advanced Remuneration and Performance: O’Meara Electronics Company
Name of the Student
Name of the University
Author’s Note:
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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Analysis of Case Study and Evident Approaches to Performance Management Systems
and Practices...........................................................................................................................2
2.2 Comparison of Two or More Performance Management Systems and Practices with
Suggestion for One Performance Management System for O’Meara Electronics Company 3
3. Conclusion..............................................................................................................................7
4. Recommendation of Performance Management System and Practices.................................7
References..................................................................................................................................8
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1. Introduction
Performance management system can be stated as the systematic approach that is
utilized for measuring the entire performance of few employees. It is a significant procedure
by which the entire company can align their respective objectives, goals and mission with
available resources and systems and also by setting the priorities (Noe et al. 2017). The
following report outlines a brief discussion on the performance management system of
O’Meara Electronics Company. They had been operating for more than 20 years and
currently they have decided to rationalize their performance management strategies with
details.
2. Discussion
2.1 Analysis of Case Study and Evident Approaches to Performance Management
Systems and Practices
O’Meara Electronics Company is a popular organization in general electronics sector
and has a reasonably high market share in this industry. They even have a smaller market
internationally (Van Dooren, Bouckaert and Halligan 2015). They have mostly semi-
automated the factories and then employs electronics technicians and engineers, who are
responsible for designing audio equipment, digital cameras, telephones and many more
accessories. The staff of this organization are employed in various departments of production,
dispatch, storage, marketing, development, human resources and accounting and more than
1000 staff are working here (Decramer, Smolders and Vanderstraeten 2013). In August 2016,
the President of this particular organization, O’Meara Electronics Company decided
rationalize their existing strategies of performance management and remuneration
management.
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PERFORMANCE SYSTEM
For this purpose, they have hired a HR consultant, Sarah Jones for getting
recommendations to bring new strategies and plans within the organization. The performance
management all day forum was being organized during the middle of the week on
Wednesday at a resort in Yarra Valley. The organizational performance management is about
customer contracts as well as numbers and the individual staff performance is ad hoc to be
measured (Heras‐Saizarbitoria and Boiral 2013). The execution administration framework is
one of the major continuous process to characterize and convey the duties, activity parts,
goals and execution desires for incorporation of association of work. Performance
management system helps in easy identification of knowledge, skills and competencies.
The performance goals of this organization were required to be shared with all
employees and the organizational performance should be linked to individual performances
(Bednall, Sanders and Runhaar 2014). At the end of the performance goal achievement, the
organizational manager or supervisor provides feedback to the worker and a performance
appraisal would be done for understanding the position of the employee. The results of this
performance review eventually become the foundation for any changing objective and setting
of new goals.
2.2 Comparison of Two or More Performance Management Systems and Practices with
Suggestion for One Performance Management System for O’Meara Electronics
Company
Performance management system is responsible for providing new and innovative
opportunities to the employees for their growth and development and even defusing the major
conflicts and grievances amongst team members by proper and subsequent performance
evaluation system (Laudon and Laudon 2016). The employee performances are accurately
and fairly assessed against the major standards and targets of performance. These employees
would be able to obtain proper results for their clarity over performance targets. Performance
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management system eventually provides a basic platform for discussing, developing as well
as designing of the individual or departmental goals and objectives by discussion amongst the
managers and their sub ordinates.
In O’Meara Electronics Company, Sarah is the newly appointed HR consultant, who
would look after the performance management and remuneration system for bringing more
profit in their business and make the respective market position even better. With the up
gradation of performance management system, they would be able to easily and promptly
identify the under performer through performance reviews and could even raise the skill
levels majorly (Sharma, Sharma and Agarwal 2016). Moreover, it quantifies the learning
requirements and could even bring more efficiency in performance improvement plans. It is
extremely beneficial and effective as well as efficient for all organizations and thus
performance management is enhanced on top most priority.
It helps in supporting to provide confidential data for finding out of skills as well as
knowledge gaps of staff for the core purpose of improvising them via mentoring systems,
coaching and trainings. The primary purpose of this particular system is to improvise the
performances at all times in future and it eventually helps out the business in better
identification as well as categorizing of employees on the basis of their working conditions
and characteristics (Blume, Rubin and Baldwin 2013). The performers are well motivated and
proper training is being provided for the under performers.
There are few important and significant performance management systems that are
extremely effective and efficient in comparison to other types of system to measure
performance and these are as follows:
i) General Appraisal: The first and the foremost type of performance appraisal system
is general appraisal. It is an ongoing communication within the employer and the
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organizational manager in the entire year. At the end of one year, the manager determines
whether the previously determined goals and objectives are being met and then provide
feedback about the employer before setting new goals. The manager negotiates with the
employer before giving any type of feedback and after a review is being set, subsequent
feedback is provided to the employer and he gets hike on the basis of that particular review
and feedback.
ii) 360 Degree Appraisal: This is the second important and significant type of
performance appraisal system (Melnyk et al. 2014). This is different from general appraisal
and here manager or supervisor apart from checking the yearlong communication and
performance, also takes valuable feedback from the colleagues and peers of the employee so
that the entire work schedule and passion of the employee is known to the organizational
management. 360 degree appraisal is being contrasted with downward feedback and upward
feedback. Both of these feedback are delivered to the management or supervisory employees
by only sub ordinates (Wang et al. 2016). The evaluation purposes are required to be
analysed properly so that it becomes easy to obtain new methodologies of performance
management and thus the employee is being analysed eventually.
iii) Technological Performance Appraisal: The third important as well as noteworthy
type of performance appraisal system is technological performance appraisal. In this
particular appraisal process, the technical capabilities and expertise are being checked for any
particular employee and thus employee throughput is determined easily and promptly (Haupt,
Vadenbo and Hellweg 2017). Moreover, this performance management system even can
easily identify how sound any employee is technically in comparison to others and hence
enhancing performance of the employees to a high level.
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iv) Employee Self Assessment: This is the third and yet another important and
significant type of employee performance management system. In this type of appraisal, the
employee can assess himself or herself and then finally compare this assessment with the
respective completed assessment outcomes of the manager (Hammer 2015). As soon as the
self-assessment results of employee and assessment outcomes of the manager are being
matched, proper discussions or negotiations are being done for checking whether there is any
type of difference or discrepancy present in the appraisal or not.
v) Manager Performance Appraisal: In the fourth distinctive type of performance
management system, the respective organizational managers go through the entire procedure
of appraisal (Xavier et al. 2013). It is the major responsibility of the manager that he can
easily and promptly handle both the client and the team. This manager even has to satisfy the
clients without disrupting the employee’s or team’s morale under any circumstance.
Maximum time, it is being observed that the manager appraisal procedure eventually is
involving feedback from respective team members and even from clients. Several narrative
responses are being required for the core purpose of identification of milestones, which are
coinciding with major objectives and goal of the business. The managers comprise of two
primary functionalities of job, which include management of employees in respective
departments and overseeing the departmental procedures (Rashidi 2015). Thus, manager
performance appraisal is termed as one of the most basic and important type of performance
management system, which relates to the organizational leadership.
vi) Project Evaluation Review: The next type is project evaluation review. It is
considered as one of the best methods for identification of how good any employee is at
work. This performance management system does not wait for feedback for one long year,
rather it helps in analysis of the employees at the end of any one project. When any specific
project ends in an organization, the human resource department searches for the outputs and
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how well the project team has performed (Zizlavsky 2014). Amongst the best team member
is selected and is evaluated whether project is successful or not.
vii) Sales Performance Appraisal: The final type of performance management system
for the employees is sales performance appraisal. The sales department of the organization is
judged by objectives that he or she has set for achievement of their position in market. The
entire sales department as well as organizational manager should find out methods for
achieving these goals that are prior to which they should set realistic goals.
One suggestion to O’Meara Electronics Company amongst the above types of
performance management system is 360 degree appraisal. It is a procedure by which
feedback from any subordinate, supervisor and colleague is being undertaken for
understanding the performance of any specific employee of staff O’Meara Electronics can
use this particular system of performance management for soliciting feedback regarding their
feedback about employee’s behaviour and hence they would be able to understand the
working condition of organization and how to deal with the other employees.
3. Conclusion
Therefore, from the above discussion, it can be concluded that the major purpose of
performance management system is to manage the performances of an employee after
consideration of few aspects such as strategic, administrative, communication,
developmental, organizational maintenance and documentation. It also provides new
opportunities to the employees for their growth and development in professional careers. The
above report has clearly outlined a detailed analysis of performance management system in
O’Meara Electronics Company and recommendation for a suitable performance management
system is provided in the report.
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4. Recommendation of Performance Management System and Practices
A basic recommendation of performance management system for O’Meara
Electronics Company regarding their reorganization of performance management is 360
degree appraisal. With a better performance management system, the employees would be
highly motivated and O’Meara would gain their market position once again.
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References
Bednall, T.C., Sanders, K. and Runhaar, P., 2014. Stimulating informal learning activities
through perceptions of performance appraisal quality and human resource management
system strength: A two-wave study. Academy of Management Learning & Education, 13(1),
pp.45-61.
Blume, B.D., Rubin, R.S. and Baldwin, T.T., 2013. Who is attracted to an organisation using
a forced distribution performance management system?. Human Resource Management
Journal, 23(4), pp.360-378.
Decramer, A., Smolders, C. and Vanderstraeten, A., 2013. Employee performance
management culture and system features in higher education: relationship with employee
performance management satisfaction. The International Journal of Human Resource
Management, 24(2), pp.352-371.
Hammer, M., 2015. What is business process management?. In Handbook on business
process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Haupt, M., Vadenbo, C. and Hellweg, S., 2017. Do we have the right performance indicators
for the circular economy?: insight into the Swiss waste management system. Journal of
Industrial Ecology, 21(3), pp.615-627.
Heras‐Saizarbitoria, I. and Boiral, O., 2013. ISO 9001 and ISO 14001: towards a research
agenda on management system standards. International Journal of Management
Reviews, 15(1), pp.47-65.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
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PERFORMANCE SYSTEM
Melnyk, S.A., Bititci, U., Platts, K., Tobias, J. and Andersen, B., 2014. Is performance
measurement and management fit for the future?. Management Accounting Research, 25(2),
pp.173-186.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., and Wright, P. M. 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Rashidi, R., 2015. A REVIEW OF PERFORMANCE MANAGEMENT
SYSTEM. International Journal of Academic Research, 7.
Sharma, N.P., Sharma, T. and Agarwal, M.N., 2016. Measuring employee perception of
performance management system effectiveness: Conceptualization and scale
development. Employee Relations, 38(2), pp.224-247.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the
public sector. Routledge.
Wang, Q., Rao, Z., Huo, Y. and Wang, S., 2016. Thermal performance of phase change
material/oscillating heat pipe-based battery thermal management system. International
Journal of Thermal Sciences, 102, pp.9-16.
Xavier, M.G., Neves, M.V., Rossi, F.D., Ferreto, T.C., Lange, T. and De Rose, C.A., 2013,
February. Performance evaluation of container-based virtualization for high performance
computing environments. In 2013 21st Euromicro International Conference on Parallel,
Distributed, and Network-Based Processing (pp. 233-240). IEEE.
Zizlavsky, O., 2014. The balanced scorecard: Innovative performance measurement and
management control system. Journal of technology management & innovation, 9(3), pp.210-
222.
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