Essay on Performance Management at Vitality Health Case

1543 WordsOct 22, 20127 Pages
BusM 540 Performance Management at Vitality Health Case 1. Skill Variety- 6 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 * Teach, manage, and assist subordinate researchers * Develop top-notch scientific research In order to be successful in performing the aforementioned duties, the applicant must have high level research skills, interpersonal skills, leadership skills, management skills, organizational skills,…show more content…
Expectancy Theory: Salaries tended to be 7%-8% higher at Vitality Health than the competition. However, the pay model was focused on a flat salary. Therefore, there were little to no provisions for bonuses or alternative forms of compensation. The expectancy theory of motivation is related in a few ways. When applying the expectancy theory, scientists at Vitality Health would ask themselves three questions. First, “Will my effort lead to high performance?” Scientists had complete control over their effort. As a result, it is probably safe to say that greater effort would lead to greater performance for a scientist. Second, “Will performance lead to outcomes?” In other words, will increased performance lead to higher compensation or higher performance ratings? In the case of scientists at Vitality Health, based on the homogenous performance ratings and flat-salary pay model, it is unlikely that higher performance would lead to either of these outcomes. The third and final questions scientists would ask themselves is, “Do I find the outcomes desirable?” Do the high-performing scientists want to be rated the same as their low-performing counterparts? Do they want to be compensated similarly? If money were an outcome, is that the compensation I desire for my effort and performance? Although, scientists can control their effort, and thereby control their performance, the fact that performance
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