HRM Vitality Health Enterprises

Performance Management at Vitality Health Enterprises, Inc. Group 5

Case Background:

Vitality Vitality enterprise was founded in 1987 in Ames Ames Iowa by Hikaru “Fred” kikuci! Initially it started wit importin" products and marketin" tem! In 1989 import tariffs and supply constraints forced #itality to start teir own manufacturin" unit! In 199$% #itality partnered wit se#eral leadin" parmacy retailers to market teir products! In 199&% company went "lobal% tar"etin" markets around te 'acific 'ac ific (im includin" )aiwan% *ina and +apan! In 1997% Vitality ac,uired Herba'ure -utraceuticals! Vitality.s Vitality.s name was can"ed as Vitality Vitality ealt /nterprises! Also in tis period period company went public! 0y 227 company ad around &&22 employees in H3 and nearly 1&22 employees in "lobal offices!  In mid 228  228 4s! 0et 5illiams was made te */6 of Vitality Vitality Healt /nterprises! In order to impro#e te company performance se implemented a new performance mana"ement system in te or"aniation! In 212% a re#iew of o f te system "a#e mied re#iews from te employees wit only &$ of te employees in affirmati#e!

The Problem:

)e *ompany needs to e#aluate weter te new system was actually "eneratin" te desired results in terms of financial benefits and employee moti#ation! Performance Management System (before 2009): Pros: •

 :ow turno#er rate due to a#era"e compensations bein" 7; 8 i"er tan te competition! )e pay policy accounted for comparison ratios wic measured te employee compensation to tat of similar people in oter or"aniations and ad