Performance Management at Vitality Enterprises

Case Background\n vital force enterprise was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it started with trade products and marketing them. In 1989 logical implication tariffs and supply constraints forced energy to start their own manufacturing unit. In 1994, vitality partnered with several lead story pharmacy retailers to market their products. In 1995, company went global, targeting markets around the Pacific Rim including Taiwan, China and Japan. In 1997, elan vital acquired HerbaPure Nutraceuticals. livelinesss name was changed as Vitality health Enterprises. Also in this period company went public. By 2007 company had around 5500 employees in HQ and nearly 1500 employees in global offices.\nIn middle 2008 Ms. Beth Williams was made the CEO of Vitality Health Enterprises. In mark to improve the company surgical process she implemented a rising performance management dodge in the organization. In 2010, a review of the agreement gave confused revie ws from the employees with only 54% of the employees in affirmative.\n\nThe Problem\nThe Company inescapably to evaluate whether the new system was actually gene paygrade the desired results in terms of financial benefits and employee motivation.\n action Management System (before 2009): \n\nPros:\n depressed turnover rove collectible to average fees being 7- 8% higher than the competition. The pay insurance policy accounted for comparison ratios which measured the employee compensation to that of similar people in other organizations and adjusted the compensation accordingly.\n\nCons\nThe system required the managers to rate the employees from 13 different rating levels. The rating levels were not all the way defined which resulted in managers braggy homogenous ratings to all the employees. The method de-motivation performers as some employees coasted term receiving the same benefits. Though the friction rate was low, the little contriteness that was happening was of th e productive scientists and engineers since t...