I have a vector $a \in \mathbb{R}^n$ that has the following decomposition:
$$ a = a_1 + a_o $$
where $a_1$ represents the component of $a$ along vector $b \in \mathbb{R}^n$ and $a_o$ is the remainder, i.e., $a - a_1$.
I would like to remove from $a$, some component of $a$ along the direction $b$, i.e.,
$$ a - \gamma . \text{proj}_b (a) $$
for some $\gamma > 0$ using the defn of projection from rmm93's answer. However, when I set $\gamma = 1$, the results were the same as with $a$. So, I am not sure what I might be missing here.
From you equation $\bar a_1^T b = \frac{a_1^T b}{\gamma}$ I read that you want to set $$ \bar a_1 = \frac{1}{\gamma} a_1. $$ Since $a_1 = \operatorname{proj}_b(a)$ this does indeed yield $$ \bar a_1 = \frac{1}{\gamma} \operatorname{proj}_b(a). $$
I'm not sure if that's all you are asking for. If it isn't, please clarify in your question.