Performance Management at Vitality Enterprises

fountain Background\n push enterprisingness was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it scribbleed with importing products and merchandise them. In 1989 import tariffs and interpret constraints forced invigoration to start their own manufacturing unit. In 1994, vitality partnered with several leading drugstore retailers to market their products. In 1995, corporation went international, targeting markets around the Pacific shore including Taiwan, China and Japan. In 1997, Vitality acquired HerbaPure Nutraceuticals. Vitalitys establish was changed as Vitality wellness Enterprises. Also in this hitch federation went public. By 2007 company had around 5500 employees in HQ and nearly 1500 employees in global offices.\nIn mid 2008 Ms. Beth Williams was make the CEO of Vitality health Enterprises. In order to remedy the company transaction she use a new performance management administration in the organization. In 2010, a come off of the system g ave mixed reviews from the employees with whole 54% of the employees in affirmative.\n\nThe caper\nThe Company needs to tax whether the new system was truly gene rating the desired results in impairment of financial benefits and employee motivation.\nPerformance instruction System (before 2009): \n\nPros:\nLow turnover crop rate due to clean compensations being 7- 8% higher(prenominal) than the competition. The pay policy accounted for par ratios which measured the employee compensation to that of comparable 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 clearly outlined which resulted in managers giving homogenized ratings to all the employees. The method de-motivation performers as some employees coasted while receiving the very(prenominal) benefits. Though the attrition rate was low, the little attrition that was chan ce was of the productive scientists and engineers since t...