Case Analysis
Performance Management at Vitality Health Enterprises, Inc
Situational Analysis:
Introduction:
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
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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.
Recommendations
The new performance management scored well in the survey which collected response from all the affected employees. Around 54% of the
changes in the nature of running a healthcare business. Lastly, they were able to realize the
Performance Management at Intermountain Healthcare Key Points Operational focus - strategy rather than management. How will the organization prepare for the future if their primary customer (government) reduces spending? How will they address decreasing revenues caused by their increasing effiencies?
The employees can be afraid that the observations of their weak performance can eventually result in dismissal or extra
The performance had to be forced in a bell curve like curve where high performers could be maximum of 14%; Achievers (A) min 70%; Low Achievers (L) min 7% and Unacceptable (U).
The performance evaluation process should support the organizational goals. For instance, the new culture focuses should be on training and development. This should be a major component in the performance evaluation process. Moreover, the performance evaluation process should support career advancement and the employees should clearly understand the link. By instituting these changes, promotion and supervisor satisfaction should improve. These improvements should contribute to positive improvements in overall job satisfaction, which should improve organizational
The measurement of employee’s performance is only internal. A good performance appraisal should have multiple raters, both internal and external.
The forced ranking is a very harsh rating system in my eyes. I believe the forced ranking system is unethical. Eliminating the bottom ten of an organization ever year can be costly to a company. It promotes employee turnover and increases the company’s labor cost. Recruiting, hiring and training new people to replace the terminated employees can be very expensive. There is no guarantee that the newly-hired employees will be any better than the old employees that were eliminated. This system is not fair to employees and emp0loyees don’t have faith in this system. There is better ways to manage performance and there are effective ways to improve performance level of employees. Management can control performance by exploring the causes of performance problem, what cause the problem, develop an effective plan and empower their employees to reach a solution, communicate with the worker and provide positive feedback. Once an employee has been identified as a non productive employees, management should find out why the employee is not productive and offer them coaching or training to help the individual.
Performance evaluations are important parts of all employees and managers tools to ensure positive actions are rewarded while negative actions can be evaluated and fixed to decrease problems in the future. Performance evaluations benefit supervisors and employees by identifying how to bring out the employees best attributes for the company (Hamlett, nd.). Evaluations provide a look at how a worker is doing compared to earlier reviews of their skill, knowledge, initiative and participation in the company’s vision (Hamlett, nd.). Introducing performance review evaluations is important to most organization for the success of their organization and the advancement of its employees. Performance evaluations provide a way for managers and supervisors to manage the performance of an organization and the people who make of the human resources of the organization (McCarroll, nd.). When implementing a new system it is important to understand the process must be realistic, challenging, yet attainable for performance expectations and standards to be successful for employees and the organization (McCarroll, nd.). Balanced scorecards are utilized in performance evaluations to essentially provide a way for organizations to align their strategic plans with day to day operations (Balanced Scorecard Institute, 2015). Balanced scorecards look at traditional financial measures, which are past events and long-term investments like
The principles of a high performing organization relates to achieving outstanding results by clarifying its strategy, aligning processes and systems to that strategy, and by making each person, manager, and department a contributing partner in the business. Management has an important role in this continuous process of improving performance by setting clear expectations with employees, defining distinct and measurable goals and deadlines, facilitating and evaluating employees’ work and providing clear feedbacks for improvements and encouraging performance by rewarding a well done job and demonstration of desired attitude and behavior fairly and timely. According to "COD - The High Performance Philosophy" (2012), “Companies that redesign their workplace using high performance philosophy consistently outperform more traditional companies and showed an average productivity improvement of 37%” (para 1).
There were four employees, Sam, Tom, Sarah and Felicia had same job description and task. Each-one obtained different reward by their employer and they knew what each one got. Sam have been working for the company more than 10 years, Sarah have been working for eight years, and Felicia have been working for three years and Felicia have been working for one year. There performance was as follows:
359). The change was also a mistake and did not have the affect the company thought it would. Employees simply were not motivated by the firm’s new performance evaluation system.
In the future it could be recommended that the committees should define specific rating parameters for evaluating the performance of individuals. The selected evaluation criteria must not be dominated by other organization members because it creates injustice to the deserving candidates. There should be a separate performance system for different groups of employees in the organization on the basis of seniority and experience 9advanced). The decisions made by committee must not be influenced by others if it not based solely on the parameters in which the nominees will be scored against each other. This will help in building trust and motivation among employees on the committee and will increase dedication to the organization. The advanced performance
Justification: In order to perform the job requirements an individual must exhibit a number of different skills and talents. For example, the person who fills the position must do the following: * Decide whether the research has commercial application * Move patent applications forward * Consult with management on corporate strategy
To conclude, we can say that the Performance Management System does not include fairness in what regards to performance. One can see that there is a lot of variation in employees’ performance but those differences are not being pointed and consequently there are no consequences in the compensation package of low,
However, the value of a fair determination of the employee, can take only by a number of factors, some of which is a very subjective evaluation for the moment, time and attendance, while others are very subjective, and instantly, attitude and personality. Human resources or personnel department records on the basis of accurate assessment of the objective factors, but no equipment, accurate measurement of subjective factors. Nevertheless, the evaluation of these factors must be done every employee has the advantage of in order to achieve full appreciation.