Performance Management at Vitality Enterprises

Case backdrop\n energy enterprise was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. initi completelyy it started with importing products and grocery storeing them. In 1989 import tariffs and supply constraints labored vitality to start their stimulate manufacturing unit. In 1994, vitality partnered with some(prenominal) leading pharmacy retailers to market their products. In 1995, corporation went global, targeting markets nigh the Pacific Rim including Taiwan, china and Japan. In 1997, Vitality acquired HerbaPure Nutraceuticals. Vitalitys name was changed as Vitality health Enterprises. as well in this period caller-out went public. By 2007 company had round 5500 employees in HQ and well-nigh 1500 employees in global offices.\nIn mid 2008 Ms. Beth Williams was made the chief operating officer of Vitality Health Enterprises. In order to improve the company performance she implemented a refreshed performance steering formation in the organization. In 2010, a revi ew of the system gave mixed reviews from the employees with only 54% of the employees in affirmative.\n\nThe Problem\nThe confederacy needs to evaluate whether the new system was actually generating the coveted results in terms of monetary benefits and employee motivation.\nPerformance Management schema (before 2009): \n\nPros:\nLow turnover rove due to average compensations universe 7- 8% higher than the competition. The tolerate policy accounted for comparison ratios which deliberate the employee compensation to that of similar deal in other organizations and change the compensation accordingly.\n\nCons\nThe system needed the managers to rate the employees from 13 several(predicate) rating levels. The rating levels were non clearly defined which resulted in managers giving homogenous ratings to all the employees. The method de-motivation performers as some employees coasted while receiving the same benefits. though the attrition rate was low, the fiddling attrition t hat was happening was of the arable scientists and engineers since t...