Performance Management at Vitality Enterprises

Case emphasise\n life enterprise was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. initi ally it started with importing products and securities industrying them. In 1989 import tariffs and supply constraints obligate vitality to start their make manufacturing unit. In 1994, vitality partnered with several(prenominal) leading pharmacy retailers to market their products. In 1995, phoner went global, targeting markets near the Pacific Rim including Taiwan, chinaware and Japan. In 1997, Vitality acquired HerbaPure Nutraceuticals. Vitalitys name was changed as Vitality health Enterprises. in like manner in this period beau monde went public. By 2007 company had near 5500 employees in HQ and 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 reinvigo evaluated performance counseling governance in the organization. In 2010 , a review of the system gave mixed reviews from the employees with only 54% of the employees in affirmative.\n\nThe Problem\nThe family needs to evaluate whether the new system was actually generating the craved results in terms of fiscal benefits and employee motivation.\nPerformance Management arrangement (before 2009): \n\nPros:\nLow turnover rate due to average compensations world 7- 8% higher than the competition. The catch up with policy accounted for comparison ratios which heedful the employee compensation to that of similar peck in other organizations and familiarised the compensation accordingly.\n\nCons\nThe system inevitable the managers to rate the employees from 13 different 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 or so employees coasted while receiving the same benefits. though the attrition rate was low, the weensy attrition that was happening was of the fatty scientists and engineers since t...