Performance Management at Vitality Health Case

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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, marketing skills, time management skills, technical scientific knowledge, etc.

Task Identity- 7
Justification: In order to successfully fill this job, an individual must understand each of the necessary tasks in performing a given project. An individual must be able to see their own projects from start to finish and the ability to identify specific tasks is essential to do so.

Task Significance - 6
Justification: Vitality expects their researcher to have an impact science. The researcher can do so by producing high-quality scientific literature and presenting at conferences for scientific literature. Vitality expects the scientific contributions of the researcher to be worthy of receiving patents. The contributions of the research can have a large impact on people, on women specifically. As we know, cosmetic products are important to many women. Also, nutritional supplements can help to improve an individual’s overall health.  As a result, research breakthroughs at Vitality can have a large and lasting impact.

Autonomy - 6
Justification: Overall, the scientist at Vitality seems to have complete freedom over the projects that he/she wishes to take on. The project must meet the following requirements: aligns with corporate strategy, receives management’s approval and has commercial applications.

Feedback Scores - 4
Justification: Currently, evaluations are conducted once a year. It may be desirable to conduct evaluations more frequently. Also, there is some question as to the appropriateness of managers’ ratings. Some feel that they are timid in their ratings in order to avoid conflict. It has been reported that managers are telling the employees they received one rating, while officially giving them another, or by rotating the good ratings to different employees each year.

MPS = (6 + 7 + 6)/3 * 6 * 4 = 152

2. Both the equity and expectancy theories of motivation can be used to illustrate why scientist turnover at Vitality Health was primarily occurring among the more productive scientists under the old performance management system.

Equity Theory: Equity theory helps us to understand why the scientist turnover at Vitality Health was primarily associated with the more productive scientists leaving for better job opportunities. If applying the equity theory of motivation, a scientist at Vitality Health would determine the fairness of what he/she is receiving relative to what he/she is putting in, compared to others. For example, Vitality Health used a rating system consisting of 13 different rating levels. However, managers were guilty of abusing the system. They were afraid to offend employees. As a result, scientists ended up with rather homogenous ratings regardless of their actual performance. In other words, regardless of top-performing scientists’ input (performance), their performance ratings (output) were similar to the performance ratings of the low-performing scientists. Furthermore, these performance ratings were used to determine merit-based wage increases. Therefore, even though actual performance was different between low and top performers, due to similar performance ratings, merit-based wage increases were similar. Consequently, top-performing...
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