Case Analysis: Performance Management at Vitality Health Enterprises, Inc

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Case Analysis
Performance Management at Vitality Health Enterprises, Inc

Situational Analysis:
Vitality Health Enterprises initially started its business as Vitality by importing small quantities of cosmetics from Japan. Initially it started marketing in its neighbourhood and to local organizations. Slowly it started expanding and in 1989 it changed its business model by establishing its own manufacturing facility in the US. Its business continued to grow into various markets as it leveraged its unique supplier connections and technological superiority. Its venture of acquiring HerbaPure Nutraceuticals helped it expand into a new domain of health care and Vitality became Vitality Health Enterprises.
It continued …show more content…

The newly designed system follows 4 point scale instead of 13 point scale which made the manager task easier in evaluation.

Cons of Newly implemented PMS:

Some employees were reluctant to perform their duties outside the job as those responsibilities were not in the review system. So they preferred only to work in the domains which were taken into consideration for their reward.
Some managers felt that the new distribution system to be very rigid. High performing team need to come up with the targeted number of achievers even though they had many of them. On the contrary, the low performing team also had equal number of top achievers.
The new PMS uncovered some managerial dissembling. Because managers allotted ‘Not Rated’ ranking to new members and saved the higher rankings for their veteran employees irrespective of their performance. Hence the new member in team might be de motivated.
Some managers were reluctant in differentiating between their employees and allow any unfamiliar person to evaluate them. Because of this true performer might miss his/her rewards and incentives.
Some managers rotated the highest ranking between their employees from one year to the next. So the objective of developing new evaluation system was unfulfilled.


The new performance management scored well in the survey which collected response from all the affected employees. Around 54% of the

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