Essays on Evolution of Remuneration System Case Study

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The paper 'Evolution of Remuneration' System is a great example of a Management Case Study. Organizations may utilize either a person based remuneration system or even adopt the position based remuneration system depending on the systems in place. However, both remuneration systems may be perceived differently since they may affect the individual performances in the long run. However, performance management is important since it helps in establishing the right balance between the employee's performance and the remuneration system in place. In this case, O'Meara Electronics is seeking to change from a position based remuneration system to a person based remuneration system.

While relying on the position based remuneration system, employees may often feel overlooked especially given that they have the responsibility of executing certain tasks and at the same time their superiors may not be willing to participate in the execution of various organizational activities. However, the person based remuneration system considers the employee's skills and their individual performances when determining the type of remuneration system to be used by the organization. Even though the position based remuneration system may be fundamental to ensure that the management is adequately motivated, their directions are needed to ensure that the organization is successful.

Therefore, O'Meara Electronics should adopt the person based remuneration system to ensure that they are remunerated based on their set of skills and the performances in the organization. Position based remuneration system The position-based remuneration helps in offering the remuneration system based on the responsibilities that individuals hold in the organization. This remuneration system helps in rewarding the employees based on the pay depending on the value that an individual has on the company (Abelsen, and Olsen, 2012).

Organizations have the responsibilities of protecting the employees who have the highest value to their operations, and through this, they mainly utilize the position based remuneration system. Fairness and equity is an important part of the position based remuneration system, and they may help in protecting some of the most vulnerable groups in the organization such as women and the disabled. The disabled may not be able to execute certain responsibilities like other employees, and this remuneration system helps in establishing the right balance within the organization by protecting them.

According to Grecu, and Grecu, (2011) the position based remuneration system can contribute to establishing a platform where the pay comparisons can be made and through this ensure that the remuneration is standard across the industry. This may assist in eliminating cases of employee turnover based on pay since their value is well protected within the organization (Grecu, and Grecu, 2011). Promotions within the organizations lay the foundation where people are awarded a higher pay rise due to various promotions. Even though this is the case, this system may be detrimental to the company organization in the long run.

The position-based remuneration system can link job positions to the pay structure available, but it fails to consider other performance-based factors that may be used to determine their remuneration system (Smithers, 2016). Therefore, this may affect the employee's motivation especially those who work hard and may feel that they are alienated by the system in place since other measures can be used to determine if the employees are working in the right manner.

As a result, this payment system may lead to an increase in employees' turnover especially in regards to the low-level employees who may feel that their work is not appreciated by the company (Abelsen, and Olsen, 2012). Remuneration, in this case, follows a hierarchical system, but this may not signify that a position holder can execute certain responsibilities but may rely on the subordinates to execute the job.

Reference

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