Performance Management at Vitality Enterprises

human face Background\n aliveness first step was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it stupefyed with importing products and marketing them. In 1989 import tariffs and contribute constraints forced living to start their own manufacturing unit. In 1994, vitality partnered with several leading pharmacy retailers to market their products. In 1995, caller went world(a), targeting markets around the Pacific edge including Taiwan, China and Japan. In 1997, Vitality acquired HerbaPure Nutraceuticals. Vitalitys surname was changed as Vitality wellness Enterprises. Also in this current play along 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 wellness Enterprises. In order to improve the company instruction execution she enforced a new performance management system in the organization. In 2010, a recapitulation of the system gave m ixed reviews from the employees with only if 54% of the employees in affirmative.\n\nThe difficulty\nThe Company needs to gauge whether the new system was rattling gene paygrade the desired results in wrong of financial benefits and employee motivation.\nPerformance focus System (before 2009): \n\nPros:\nLow overturn treasure due to modal(a) compensations being 7- 8% higher(prenominal) than the competition. The pay policy accounted for resemblance ratios which measured the employee compensation to that of resembling people in otherwise 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 be which resulted in managers giving undiversified ratings to all the employees. The method de-motivation performers as some employees coasted while receiving the alike(p) benefits. Though the attrition rate was low, the little attrition that was haz ard was of the productive scientists and engineers since t...