Case Study †The O Meara Electronics Company-Samples for Students

Question: Discuss about the Case Study The OMeara Electronics Company. Answer: Introduction Remuneration can be defined as the extra money that is provided to any particular employee by their employer for the extra services they have provided. This is not donation or giving away. There are various complementary advantages for remuneration and also provide high and famous remuneration mechanism (Shields et al. 2015). The fair remuneration strategy is extremely important for any business and it provides motivation to both the employee and the employer. There are significantly two types of rewards for the remuneration. They can be both cash as well as non cash. The employment relationship remains extremely effective and strong with this type of strategies. The following essay outlines a brief discussion on the case study of The OMeara Electronics Company. This particular organization is an electronics organization and the President of the organization has decided to implement new strategies for remuneration for all of their staffs. The organization has decided to hire an HR consultant for this purpose. This report will describe about the choice of the remuneration system as the HR consultant. The position based and the person based remuneration systems will also be discussed here. Remuneration System in the Case Study The OMeara Electronics Company is an electronics organization of Australia that is been operating for more than 20 years and also has a good market share (Bertone and Witter 2015). More than 1000 staffs are working this reputed organization and the production department comprises of ten teams with twelve members each. The main business of the organization is in the subsidiaries of four countries and they have decided to expand their business to the European countries. The President of this particular organization have decided to bring out new remuneration management strategies in their business since he thinks that their profitability is getting down and the market position is declining thoroughly (Ragin 2014). Previously they have worked with the position-based remuneration strategy, however now they have thought of person-based remuneration strategy. The forum of the Executive Staff was eventually set up and all of the executive staffs attended. They decided to hire an HR consultan t for starting the person based strategy within the organization. They wanted to develop a more systematic approach for identifying the issues and drawbacks that were stopping them from reaching to the height of success (Ma, Pope and Xie 2014). This new system would be helping the organization as well as all the employees. The system of performance management was an all day forum and all staffs attended this forum. The major organizational performance management is completely regarding customer contracts or numbers and their approach is ad hoc (Bharadia et al. 2018). Each and every staff of the organization performed the performance management system for the customers and finally their performance was evaluated. The President mentioned that they had a zero tolerance policy and whenever any faulty product was found, it directly impacted on the morale of the staff and their performance. They decided to undertake different systems for rating and feedback methods. Remuneration system wa s needed in this particular scenario, where the employees, who would be performing really well, would be getting rewards for their jobs (C. Harris and Daunt 2013). The employees would be extremely motivated in this case. Position Based System This is the most basic type of remuneration strategy that is undertaken by various organizations. Position based system is also termed as the job based pay, where the extra payment is made according to the position of the employee. For example if the person is the chief executive officer of the organization, he would be getting much more pay than the junior manager of that particular organization (Stachov, Stacho and Bartkov 2015). This is known as the traditional structure of payment, where the jobs are always slotted into the schedule of salary. Each and every position is solely assigned on a fixed range of remuneration and it also depends on the duties and responsibilities of the job. This type of position based system eventually offers all the employees and staffs a predictive pay method and thus making the entire system extremely easier (Kwenin, Muathe and Nzulwa 2013). The reduction of discrimination in the pay scale is one of the most important advantages of the position based system. The main problem with this particular system is that there is a little room for the upward mobility payment. The employees of the organization, who do not have any desire for promotion, get almost zero incentive for their work, even if they are working really well. Frustration is again one of the major disadvantages in this type of position based remuneration strategy (Terera and Ngirande 2014). The third important disadvantage of this strategy is that it leads to major office politics as the employees feel that partiality is being done with them. The OMeara Electronics Company previously had the system of position based remuneration strategy in their organization. They used to pay their employees on the basis of the position they are working and thus performance of the employees were not being evaluated properly (Strohmeier 2013). This would again be brining frustration in the minds of the workers and thus they thought of changing their strategy to the person based strategy. Person Based System The second type of remuneration strategy or system is the person based system. The other name of this type of strategy is knowledge based, skills based or performance based remuneration strategy. This is completely different form the position based system (Supanti, Butcher and Fredline 2015). This type of remuneration strategy pays their employees, who have set goals and objectives for learning new and innovative skills, acquired new knowledge, performed really well and have gained utmost popularity amongst all of the customers or clients. The self motivated and the ambitious employees usually prefer to go with approach as it helps them to succeed in their career and develop their career (Babalola 2016). This type of person based system gives a distinct mechanism for rewarding their employees, who have wanted to perform at the highest level. The organizations usually pay for their skills and knowledge development, and thus a systematic and structured approach is solely followed here. The person based remuneration system is completely modern and is followed by various organizations (Joskow 2014). The main advantage of this type of remuneration system is that it does justice to the skilled and well performer employees. The next important advantage of this type of remuneration strategy is that there is no chance of partiality and thus strategy is accepted by various companies and their staffs and employees. The main disadvantage of this type of person based remuneration strategy is that it increases excess competition within the organization and their employees (Kleinlercher, Huber and Kirchler 2014). For example, if two colleagues are working for same tenure of time and any one of them has performed better and gets remuneration or salary hike, it is evident that the other person would be feeling bad. Moreover, more skills and knowledge are required in this type of remuneration strategies. The OMeara Electronics Company wants to implement the person based remuneration strategy in their organization as they feel that this would encourage the employees and they would be learning new skills and gain more knowledge. It is expected that this type of strategy would be brining major success in their organization and thus the organization would be gaining the organizational goals and objectives. Drivers or Elements of Different Remuneration System There are eventually various types of remuneration strategies (Nankervis et al. 2013). The first and the foremost amongst them is the salary or wages strategy. The salary is paid on a monthly basis; however, the wages are paid on an hourly basis. The main driver or element of this type of remuneration strategy is the competitive employee compensation strategy. The other remuneration strategies mainly include non cash options, where remuneration is given not in terms of money. The non cash options in this type of scenario are the accommodation, clothes, power, mobile phones, rent and many more (Shields et al. 2015). The third type of remuneration strategy is the profit sharing, where the overall profit of the organization is being shared with the employees. Three important factors that solely affect or drive the above mentioned three remuneration strategies of any organization are as follows: Changing Nature of Work: This is the first and the foremost factor that defines that the nature of the work should be changed or altered. Employee Confidence: The second factor that affects the remuneration strategy of an organization is the employee confidence (Babalola 2016). Knowledge Based: The third and the most important factor or element in the different remuneration strategies is knowledge based. Comprehensive Analysis of the Case Study The comprehensive analysis of this particular case study is done by analytic approach and critical approach. Analytical Approach: The analytical approach is the utilization of any particular procedure for breaking the problem into small pieces and this segregation helps to solve the problem easily (C. Harris and Daunt 2013). For using the analytical approach in this case study, the problem should be broken into few steps. The first step was the discussing with the employees of the organization. The second step was the performance evaluation management, where the skills of the employees were evaluated in terms of various activities. The next activity is to evaluate the results of the activities. The final step is to identify the best employees on the basis of their skills and thus provide them remuneration. Critical Approach: The critical approach for analyzing any case study is to solve by criticism. The case study could be criticized on the basis of criticizing the past remuneration strategy of the organization (Awadh and Alyahya 2013). The position based strategy was not bringing success to the organization and the customers were also not happy with it. Thus, this type of traditional approach is required to be removed as soon as possible. This critical approach to the case study would help it to understand the complete scenario perfectly. Recommendation for the Organization The organization of The OMeara Electronics Company has recruited an HR consultant for solving their dilemma regarding remuneration strategies. Previously, they utilized the position based strategy in their business for providing remuneration. However, recently, they have decided to change their strategy to the person based strategy. The remuneration strategy is not bringing success to the organization anymore and the shares of this organization are going down drastically. This drastic downfall in the shares has brought a major loss within the company and thus they have decided to motivate their employees after identifying their skills and performance. As the HR consultant of this reputed organization, after analyzing the complete case study, the best recommendation to this Australian electronics company would be the mixture of both person based and position based remuneration strategies. This type of remuneration system or strategy is known as the hybrid system. This is the best strategy as it helps to reduce all the issues or disadvantages of the position based or the person based strategies. The hybrid system would help the organization in identifying all the faults and also improving their market shares and the position of the company. This new and revised remuneration system will be bringing excess profit within the organization and the employees would be extremely motivated. Conclusion Therefore, from the above discussion it can be concluded that the extra expenses or money that is paid by the employer for motivating its employees for their extra services is known as remuneration system or strategy. These are the several types of complementary benefits that comprise of the famous mechanisms of remuneration. The reasonable strategy of remuneration is very vital in any company and this strategy even gives spectacular motivation to the employee. Two types of remuneration rewards are possible. These are the non-cash and the cash. The cash remuneration is giving money for the extra work that is done by the employee; whereas, the non-cash remuneration determines the type of gifts or things that are offered to the employee for his extra work. The relationship of employment between the employee and the employer remains explicitly efficient as well as strong with the help of these strategies. The above essay has provided a brief description on the entire case study of an Au stralian electronics organization, namely, The OMeara Electronics Company. The President of this particular organization has eventually taken the decision that they should implement new remuneration strategies for all their staffs. They have decided to recruit an HR consultant. The report has properly described regarding the selection of a remuneration system in the point of view of an HR consultant. The two systems of remuneration like position-based and person-based are also described in the report properly. References Awadh, A.M. and Alyahya, M.S., 2013. Impact of organizational culture on employee performance.International Review of Management and Business Research,2(1), p.168. Babalola, S.S., 2016. The effect of leadership style, job satisfaction and employee-supervisor relationship on job performance and organizational commitment.Journal of Applied Business Research,32(3), p.935. 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