Performance Management at Vitality Health Enterprises, Inc Case Study

Performance Management at muscularity Health Enterprises, Inc - Case Study ExampleVitality Health Enterprises, Inc was founded by Hikaru Fred Kikuchi in Ames, Iowa in 1987. within the first three months, Kikuchis achieved sales revenue of more than $15,000 from the moving in. In late 1989, the firm naturalised its own manufacturing facility in order to minimize the firms dependency on Nipponese products. By 1991, Vitalitys revenues grew to $3 million per year and the company s backped depending upon Japanese finished-goods suppliers. over the next few years, Vitality strived to spread its business across United States and Canada and moved its head living quarters to Des Moines with intent to take advantages of better expansion opportunities. By 1995, the company gained a strong globose presence by launching its products in countries like China, Japan, and Taiwan. In 1997, Vitality increased the size of its business notably with the acquisition of HerbaPure Nutraceuticals, and a decade later the company grew to nearly 7,000 employees. In order to turn the stagnation caused by the 2008 global financial crisis and to deal with rising material costs, the Vitality recruited a bare-ass CEO, Beth Williams. As part of implementing the in the raw business strategy developed, Williams organized the Performance Management Evaluation squad (PMET) to evaluate whether performance way goals were met. The PMET discovered that the many of the employees had not been satisfied with the current performance management remains because it often failed to appreciate top performers adequately. Williams identified that rewarding top performers adequately and retaining them with the company for a long time were essential to accelerate the company growth. She also observed that a well mean restructuring of Vitalitys compensation practices would be inevitable to bring the change identified and to attract newborn top talent. As a result, Williams implemented the new performan ce management system in June 2009. To be specific, the problem with the firm was that the new performance management system characterized with a forced distribution mold of performance rankings, moving from an absolute ranking system to a relative one (Bingham & Beer, 2012). The company act this system for the next two years. James Hoffman, the newly appointed vice president of human resources at Vitality, found that the new performance management system was not really helpful to motivate top performers despite six straight quarters of strong revenue growth. Evidently, the new system also underappreciated the aptitude of top performers and assisted poor performers to survive, because many of the managers had not been effectively abiding by this system. Some shortcomings of the new system also contributed to this problem. Section 2 2. Effectiveness of Vitalitys Performance Management placement While analyzing the corporate history of Vitality Health Enterprises, it seems that the firms performance management system has not been effective. The firms previous performance management system posed numerous problems to its master key staff including scientists, engineers, and product