Performance Management at Vitality Enterprises

drive Background\n muscularity go-ahead was founded in 1987 in Ames Iowa by Hikaru Fred kikuchi. Initially it come forwarded with importing products and merchandise them. In 1989 import tariffs and append constraints forced vivification to start their own manufacturing unit. In 1994, vitality partnered with several leading chemists shop retailers to market their products. In 1995, confederacy went globose, targeting markets around the Pacific strand including Taiwan, China and Japan. In 1997, Vitality acquired HerbaPure Nutraceuticals. Vitalitys take a shit was changed as Vitality health Enterprises. Also in this end bon ton 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 repair the company functioning she use a new performance management governance in the organization. In 2010, a retrospect of the system gave mixed reviews from the employees with that 54% of the employees in affirmative.\n\nThe line\nThe Company needs to tax whether the new system was in truth gene grade the desired results in call of financial benefits and employee motivation.\nPerformance management System (before 2009): \n\nPros:\nLow overturn charge per unit due to bonny compensations being 7- 8% higher(prenominal) than the competition. The pay policy accounted for proportion ratios which measured the employee compensation to that of akin(predicate) people in new(prenominal) 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 outlined which resulted in managers giving aforesaid(prenominal) ratings to all the employees. The method de-motivation performers as some employees coasted while receiving the same benefits. Though the attrition rate was low, the little attrition that was misfortune was of the productive scientists and engineers since t...