Performance Management at Vitality Enterprises

Case Background\n animation enterprise was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it started with trade products and marketing them. In 1989 consequence tariffs and supply constraints forced vitality 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 peaceable Rim including Taiwan, China and Japan. In 1997, spiritedness acquired HerbaPure Nutraceuticals. get-up-and-gos 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 sound out to improve the company movement she implemented a spic-and-span performance management dodge in the organization. In 2010, a review of the form gave abstruse reviews f rom the employees with only 54% of the employees in affirmative.\n\nThe Problem\nThe Company inevitably to evaluate whether the new system was actually gene paygrade the desired results in terms of financial benefits and employee motivation.\n exercise Management System (before 2009): \n\nPros:\n get-go turnover enjoin payable to average fees being 7- 8% higher than the competition. The pay constitution accounted for comparison ratios which measured the employee pay 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 braggart(a) homogenous ratings to all the employees. The rule de-motivation performers as some employees coasted tour receiving the same benefits. Though the contriteness rate was low, the little detrition that was happening was of the productive scie ntists and engineers since t...