Topic
Performance Management at Vitality Health Enterprise
Instructions
What are the problems with Vitality health’s old Performance management system? What were the root causes of those problems? Is this evident from 2008 in Exhibit 2? How the levels of salaries determined at vitality Health? Are salary levels at Vitality Health high or Low? Is pay (or the changes related to performance under the old system?
Briefly summarize the key features of vitality health revised program. What problems under the old system are solved or mitigated by the new system. What problems arise the new system? Is pay more closely related to performance under the new system.
Should the performance review system at Vitality Health be revised? Consider the pros and cons of the old and the revised system. Is the revised performance management system better (or worse) than the system it replaced? In what ways? What changes would you recommend to the new performance management systems? Carefully consider the consequences of your recommendations.
Answer preview
Some of the key problems facing the performance management system of Vitality health comprise of; the fear of managers to reporting the actual performance of the worker to evade offending them. The performance results disclosed by the managers can barely differentiate between the top performers and the under-performing employees in the firm. Consequently, extraordinarily performing workers feel unrecognized and their efforts towards the prosperity of the company disregarded. In addition this, the procedure of determining the salaries is fallacious as it is founded on a comparative ratio and the pay policy line formula. One of the notable weaknesses of the formula embraced in calculating the employee’s salaries is that the merit falls with the increase in the comparative ratio.
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