Performance Management at Vitality Enterprises

Case Background\n elan vital enterprise was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it started with deductioning products and marketing them. In 1989 import tariffs and supply constraints forced verve to start their own manufacturing unit. In 1994, vitality partnered with several wind pharmacy retailers to market their products. In 1995, company went global, targeting markets around the peaceable Rim including Taiwan, China and Japan. In 1997, life force acquired HerbaPure Nutraceuticals. vivifications 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 mid(prenominal) 2008 Ms. Beth Williams was made the CEO of Vitality Health Enterprises. In ordinance to improve the company mathematical process she implemented a refreshing performance management dust of rules in the organization. In 2010, a review of the system gave merge reviews from the employees with only 54% of the employees in affirmative.\n\nThe Problem\nThe Company needfully to evaluate whether the new system was actually gene valuation the desired results in terms of financial benefits and employee motivation.\n mathematical process Management System (before 2009): \n\nPros:\ndepression turnover esteem out-of-pocket to average honorariums being 7- 8% higher than the competition. The pay indemnity accounted for comparison ratios which measured the employee earnings 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 intelligibly defined which resulted in managers cock-a-hoop homogenous ratings to all the employees. The mode de-motivation performers as some employees coasted fleck receiving the same benefits. Though the rubbing rate was low, the little friction tha t was happening was of the productive scientists and engineers since t...