Performance Management at Vitality Health Enterprise Ibrahim Lebbie.

Performance Management at Vitality Health enterprise

Ibrahim Lebbie.

MBA 6334: Talent Management.

March 2, 2019.

Introduction

 Vitality health enterprises is an immense beauty and nutraceuticals company which offers full health, beauty product and wellness around the world. The company was founded in 1987 with Bath Williams who become the CEO of the company. After she took over the company, she was finding a way to reward top performance to engage and retain them in the company. She established a new performance management team to distinguish who is to be a reward and compensated and what change is made. This system has some advantages and disadvantages. Based on that, she observed that the 2008 grading system from A to E created a problem of managerial abuse. The system allowed managers to manipulate the system in other to maintain the relationship with their employees. Most managers gave B or C grading with the avoidance of given A or D, which resulted in the system not sorting employees according to their performance and non-performance. The compensation and bonuses pattern also led to employee turnover in which scientist and engineers who were the top talent in the company began leaving the company in search of better opportunities. The top talent was moving because they felt that their effort was unrecognized in which they received lower raises due to the compa – ratio, and structure. Williams appointed Hoffman with other key leaders in the company to the new system in addition to compare the performance ranking data from 2008 to early 2011. Although it was a step n the right direction, there were also issues of reducing the link between compensation and appraisal system because in the evaluation managers were not adequately trained to handle the new system. To retain the employees, Vitality health enterprise creates a force distribution model of performance ranking from absolute ranking to a relative one.  

Application of course concept

In this article, the underlining issues are areas that Vitality health enterprise is struggling and strongly need to provide a large room for improvement towards the development of the company. Vitality health enterprise has a problem with turnover rate, employee engagement and retention, and training the managers for a better outcome. According to the article, Vitality health was faced with low turnover rate because top talent especially scientist and engineers whose effort led to the development of new product, were leaving because the realized that effort was unrecognized and given minimal salary and bonus. Training managers was another problem faced by the Vitality health enterprise. The managers are not trained on how the rating system should be organized. They had a problem of managerial abuse where they were grading from B or C instead of A or D. In the article; the employees are not engaged and retained because higher performing employees received smaller raised because the “compa-ratio” brought frustration between salary calculation and performance-based raised. The company needs to refresh the new system where they will be able to distinguish among employees with a high level of performance than a low level of performance. They should provide a training program for managers and a coaching system for underperformance.  

Problem Statement

Vitality health enterprise did not have effective performance management of an evaluation system in place. James Hoffman needs to provide an evaluation team to access the new system and make some changes that will benefit the company and how to find a better way to identify and reward performing employees.

Executive Summary

This essay is about Vitality health enterprise which was founded in 1987 in Ames. The company first started in a garage sale which later expanded to a large company that produces a large number of cosmetics and retail in pharmacy. The company CEO, Beth Williams, who recently promoted James Hoffman has observed that vitality health enterprise needs an effective performance management team to evaluate the new system and make new charges from the old system as a step to the right direction. The previous company system was problematic and ineffective, so they implemented a new method of force ranking by shifting from an absolute ranking to a relative one, but they are still experiencing problems with the new system. Although the new system has advantages and disadvantages, the company is experiencing an increased turnover rate of top performing employees who are mostly scientist and engineers that leaving the company for better opportunities because of the salary and bonuses. Vitality health also has a problem in training their managers to effectively managed the evaluation of rating employees to distinguish between top performance and low performing employee in the company. In other to solve these problems, I will recommend that employees should be evaluated according to how they frequently exhibit the required behavior for effective performance.