Vitality Health Enterprises

Topics: Management, Performance management, Leadership Pages: 12 (331 words) Published: June 4, 2015
CASE STUDY:
PERFORMANCE MANAGEMENT AT VITALITY
HEALTH ENTERPRISES, INC.
Stephanie TCT. (12111007)
Arya BC. (13111002)
Alvin DP. (13111009)

QUESTION #1
Who should evaluate employees’ performance?
What should leaders do when (individual, team,
organization) performance is lacking?

ANSWER #1
• Managers and employees, two sides of the coin will be
easier to compare and crosscheck
• Performance monitoring system
• Performance management evaluation team
• If performance is lacking, leaders need to review the
performance management system by conducting
interviews, surveys, etc.

QUESTION #2
What are the problems with VHPMS?
What were the root causes of the problem?

ANSWER #2
• Homogenous ratings from the managers resulted in
employees felt undervalued financially, since the
evaluation system was used for salary calculations and
raises
• The system made it difficult to identify, reward, and
retain top performers, and vice versa (low performers)

QUESTION #3
Explain the new system of VHPMS!
How do you think of it?
Do you have other recommendations for VHPMS?

ANSWER #3
• Fewer ranking categories
• having target constraints for each category
• It has positive and negative sides (will be elaborated on Answer #4)

QUESTION #4
Is the revised PMS better than the system it replaced?
In what ways?
In what ways is it worse?

ANSWER #4
Positive



Negative

Easier to determine which category each employee
fit into.


54% of the employees preferred the new system
because it values top performers more.



Fewer categories put more burden for the managers.


The forced distribution system was too rigid, did not
able to portray the real situation.

QUESTION #5
How important is the relative nature of the new
PMS?

ANSWER #5
• It is very important to review, revise, and improve the
new performance management system in order to satisfy
and motivate the employees, in the hard times (lack of
performance, tight competition in the personal care
product, global expansion) the company is experiencing
right now.

RECOMMENDATION
• Minimize the ranking categories
• No need to set target constraints for each category
• The evaluation can also come from employees
evaluating their peers.

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