Analysis

As mentioned before, this report intends to solicit remuneration and performance management issues that O’Meara Electronics faces. Such issues, as put by the president of the company, are likely to affect its operation and success. Worse put, such issues have already caused a decline in O’Meara’s market position as well as its profitability. Therefore, in line with the problems faced by O’Meara, we shall discuss:

1. Remuneration systems
2. Systems of performance management
3. Goals of performance
4. Evaluation of performance

In relation to the named discussion issues, some ideas were put across by stakeholders to ensure that the outlaid objectives are achieved. Such ideas included:

1. The development of international strategies of management with regards to legislative requirements and country practices.
2. Alteration of the company’s position-based remuneration systemto a more advanced person-based system (Stephen and Timothy, 2015).

• The appointment of a Consultant to organize Staff Forums for discussing such Remuneration Systems alongside Performance Management.  

1. Encouraging employee motivation and equality
2. Implementing a participative approach for the new remuneration management system (ensuring that all the stakeholders are involved in the affairs of the company) (Silverman, 2004). 

1. Developing a system for Performance Management

• Ensuring that the work teams are self-managed.
• Developing performance related goals.

1. Performing Performance Evaluation
   • Scope

In the abstract section, we gave a brief outline of the company to be discussed in this report. In the section, we also highlighted the history of the problems faced alongside what the paper intends to do. The second section is the introduction. In this section, some issues have been illuminated. Such issues include, but not limited to:

1. Identifying the purpose of the paper
2. Discussing the limitations faced in the paper

The next section is analysis where we shall expertly outline the process of diagnosis for our case study. We shall also provide evident approaches to systems of performance management and give the route map to choosing a good system for the company. Other issues that will be discussed in this section include but not limited to:

1. The development of international strategies of management with regards to legislative requirements and country practices.
2. Choosing a good person-based system.

• Establishing ways of encouraging employee motivation and equality

1. Providing a participative approach for the new remuneration management system (which would ensure that all the stakeholders are involved in the affairs of the company).
2. Choosing a good system for Performance Management
3. Outlining how the company’s work teams would be self-managed.

• Outlining performance related goals.
• Determining how Performance Evaluation would be achieved

The section after that would, however, outline a comparison between two systems of performance management. We shall also argue out one of the two systems by demonstrating why it’s better than the other system (Northouse, 2007). Last but not least is the conclusion and recommendation section. Here, the report will provide a comprehensive and insightful summary of the entire report regarding performance management. We shall also provide recommendations for performance approaches, measures, and tools determined as the best for O’Meara Electronics.

• Limitations

Every performance management system needs to emphasize some important issues to realize success (Bass, 2015). Most of such issues are tackled by our identified system. However, we still fail to tackle issues about:  

• The creation of appreciation and a clear understanding of values associated with IDS as a performance management system.
• Employee development through their performance in the organization (Robin and Peter, 2015)

1. ANALYSIS
   • Performance Management (PM System)

In this section, we shall begin by defining “Performance management.” By definition, it is an integrated and strategic approach towards the delivery of success that is sustained (within an organization) (Lewis and Thornhill, 2009). In this way, the performance of stakeholders is improved. Such performance improvement is, however, achieved through the development of team capabilities as well as personal contributions (Brikend, 2011).

In this scenario, we recommend the use of An Integrated Development System (IDS) (Koys, 2011). This system is all inclusive (it incorporates strategic and co-coordinative plans for the alignment of company resources). As a framework, it forms the platform by which O’Meara’s annual budgets are based. It also forms the principal strategic instrument to guide all processes of management, planning and development, investment, and implementation of decisions while taking into account the stakeholder input (Keller, Berryman and Lukes, 2009). IDS reflect on O’Meara’s:

1. Long-term development vision
2. Assessment of the current development level
3. Development objectives and priorities
4. Strategies for development
5. Plans for disaster management
6. Performance targets and Key Performance Indicators
   • IDS’ International Strategies of Management

Comparison of two systems of performance management

International strategies outlined alongside the implementation of IDS are to ensure that O’Meara continually improves its international operations with regards to the local and international legislative requirements. The identified system will ensure that the company:

1. Develops appropriate performance indicators alongside impacts and outcomes associated with its priorities and objectives.
2. Develops targets that are measurable

• Reviews and measure its performance twice every year

1. Establishes a regular reporting process
2. Develops a warning system for the identification of poor performance areas (John, 2014).

The ID System is designed in a way that it improves organizational effectiveness and strategic focus by seeking to continually improve organizational and individual performance (Jennifer and Gareth, 2015). 

• Organizational vs. Individual Performance: Encouraging Employee Motivation

The performance of an organization is linked to that of its staff in a way or another (Russell, 2013). Therefore, it is important that the performance of an organization is tied to that of an individual. Such enables management (at the same time) for the two performances (but separately). According to our new system, a manager is required to sign employee performance contracts. Such contracts contain targets and objectives for such performances. Such objectives are required to be measurable, practical, and key performance indicators based (Gregory, Lyman and Richard, 2013). Effectively, the organizational scorecard is executed by the employees of the municipality. From a practical point of view, such a case means that organization’s strategic scorecard is the sole responsibility of departmental managers. The departmental heads must create performance plans. These must be aligned with the individual performance plan of the head of the department. In this way, employees are encouraged to work towards a common organizational goal. On the contrary, the employer is held responsible for creating an environment in which workers can deliver set targets and objectives in their job descriptions and performance contracts (Grant, 2014).

Regarding incentives and bonuses as remuneration, workers need to be paid bonuses in different work situations for various reasons. Such bonuses should be performance-related. However, the company also needs to have another type of compensation given to all workers whenever a particular project is successful or for a successful year. Apart from such bonuses, workers may also be given Holiday bonuses. Simply put, incentives are supposed to be motivational. They are supposed to be appreciative. This system is thus, involving the implementation of an incentive program to motivate workers. Such will be done through the giving of non-cash gifts including wellness programs and trips (Brown, Trevino and Harrison, 2015).

Here, we are going to compare and contrast two important systems – The Service Delivery Budget Implementation System against The Integrated Development System. The comparison is as shown below:

Service Delivery Budget Implementation System (SDBIS)	Integrated Development System (IDS)
– This is mainly a budgeting system and mostly supplements the IDS – It contains objectives and goals set by the organization. – It also provides the basis for performance measurement. – SDBIP that is properly formulated ensures that it internally and externally circulates appropriate information to monitor budget performance execution	– Develops appropriate performance indicators alongside impacts and outcomes associated with its priorities and objectives. – Develops targets that are measurable – Reviews and measure its performance twice every year – Establishes a regular reporting process – Develops a warning system for the identification of poor performance areas.

After such a comparison, the company settles for IDS because:

• It is a framework that forms the platform by which O’Meara’s annual budgets are based.
• It also forms the principal strategic instrument to guide all processes of management, planning and development, investment, and implementation of decisions
• It takes into account stakeholder input (Claudia and Jonathan 2014).

Conclusion and Recommendation

This remuneration and performance management report has solicited issues that O’Meara Electronics face in relation to its workforce development and management. To ensure that such issues are cubed, this system proposed An ID System. The system comes hand in hand with the development of international strategies of management and changing of the company’s position-based remuneration system to one that is person-based (Daniel and Sam, 2011). The system ensures that: 

• Appropriate performance indicators alongside impacts and outcomes associated with its priorities and objectives are developed.
• Targets that are measurable are also developed
• The performance of the company is measured and reviewed twice every year
• A regular reporting process is established
• A warning system for the identification of poor performance areas is also developed.

However, this report suggests that O’Meara implements the ID System alongside the Service Delivery Budget Implementation System (as a new remuneration system) to tackle employee compensation issues. The system will also help in:

• Increasing the efficiency of IDS
• Providing the basis for performance measurement.
• Ensuring that appropriate information is internally and externally circulated in the organization to monitor budget performance execution (Ezeani, 2008). 

References

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