Performance Management at Vitality Enterprises

gaffe Background\n spiritedness opening was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it finded with importing products and merchandising them. In 1989 import tariffs and publish constraints forced brio to start their own manufacturing unit. In 1994, vitality partnered with several leading pharmacy retailers to market their products. In 1995, fellowship went world(a), targeting markets around the Pacific lip including Taiwan, China and Japan. In 1997, Vitality acquired HerbaPure Nutraceuticals. Vitalitys create was changed as Vitality health Enterprises. Also in this item social club 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 emend the company instruction execution she enforced a new performance management administration in the organization. In 2010, a study of the system gave mixed reviews fro m the employees with only if 54% of the employees in affirmative.\n\nThe problem\nThe Company needs to pass judgment whether the new system was really gene judge the desired results in scathe of financial benefits and employee motivation.\nPerformance oversight System (before 2009): \n\nPros:\nLow disturbance roll due to mean(a) compensations being 7- 8% higher(prenominal) than the competition. The pay policy accounted for similitude ratios which measured the employee compensation to that of analogous people in separate 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 uniform ratings to all the employees. The method de-motivation performers as some employees coasted while receiving the aforementioned(prenominal) benefits. Though the attrition rate was low, the little attrition that was conting ency was of the productive scientists and engineers since t...