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Vitality Health Company
Transcript of Vitality Health Company
CONCERNS FOR THE FUTURE OF VITALITY
Is the company missing the point by forcing managers to rank scientists and lab engineers like marketing and corporate associates?
Is there a better way to evaluate performance & distribute rewards ?
ABOUT THE COMPANY & ITS SECTOR :
– Vitality was founded
good quality cosmetics in the US
– 1st manufacturing factory
– Distribution agreement with several pharmacies
NEW CEO : BETH WILLIAMS
2009 – Cost cutting measures &
Performance Management Evaluation Team (PMET)
DECEMBER 2011: Actual situation
Time to review the new PMET
– Going global to Taiwan, China and Japan
– Acquisition of HerbaPure Nutraceuticals
– 7,000 employees,
9 global offices in Asia,
Vitality Health enterprises
New ideas to revitalize the company
Problems for 2,500 staff
Top-performing employees felt slighted
Employees felt under evaluated financially
JUNE 2009: REVITALIZING THE PMET
Clarify the ratings process
Ineffective performance management
Increase in employee turnover
CONCERNS : Vitality couldn’t remain leader much longer
JAMES HOFFMAN – NEW VICE PRESIDENT OF HR
Get the product engineers motivated
Is the new distribution meaningful ?
Review the ranking data
Performance management before PMET
13 different rating levels (A to E)
Salary calculation based on a point system and modified by a comparative ratio
Is it more beneficial to measure employees solely on company standards or against each other?
Does the company's’ culture,
size and location play an important
role in this matter?
Imagine you are a manager in a
company that uses an employee-comparison system:
how would you ensure the harmony within your team?
Individual and Team Effort
There is no ultimate winning formula!
Forced distribution model of performance ranking (rated with respect to one another)
Specific goals set by managers
Performance related short and long term cash and equity bonuses
Manager feared to go against teamwork
Employees felt undervalued
Failed to keep A players and to motivate
Why it had to be changed?
Managers where not trained to use it
Made it more difficult to discuss performance
Employees are less likely to do
duties outside their job
The forced distribution is
Why it can be improved?
More HR work
Harder to understand
Base Salary +
Thank you !
Discussion questions (I)
Discussion questions (II)