Case study on Performance Management at Vitality Health Enterprises, Inc.

--~-------~-------------- ------- HRM 5365,Talent Management OnLine Winter 2013 I'" Students areresponsible fortwo case study reports:

CASE STUDY REPORTS (15points * 2 reports =30points).

You arerequired tosubmit twocase study reports. Thetwocases arelisted asthe required materials ofthis course. Themain textofeach report should be10pages in length. Thereport isdue onWeek 4,February 3,2013 onSunday at5:00 p.m.No submission isallowed afterthedeadline. Youshould submit eachreport withtheNSU , cover sheet. Submission withoutthecover sheetwillnotbegraded.

Case #1 Performance Management atVitality HealthEnterprises, Inc.by Michael Beer,JohnB.Bingham (2012) Source: Harvard Business Publishing BriefCases 14pages. Publication date:Jul12, 2012. Prod.#:913501-PDF-ENG Vitality HealthEnterprises, amedium-sized firmthatmanufactures healthandpersonal care products, hasexperienced sixstraight quarters ofstrong revenue growth.Jaes Hoffman, thenew Senior VicePresident ofHuman Resources, fearsthatthechain of success isshifting thecompany's focusawayfromeffective performance management.

Recently, Vitalityhasbeen faced withincreasing turnoveramongthecompany's talented research scientists thatmay bedue toaperformance management systemthat leaves topperforming employeesslightedbythe practice ofuniform ratings.Inan effort toretain topemployees, thecompany institutesaforced distribution modelof performance rankings,movingfromanabsolute rankingsystemtoarelative one.

Hoffman andhisperformance management evaluationteammust assess thepractical and strategic effectiveness ofthe new system andpresent theirfindings and recommendations tothe Board.

The main textshould include twosections, besidesintroduction andconclusion:

• Section One:Asummary ofthe case andidentification ofthe problem proposed by the case.

• Section Two:Answer thefollowing questions:

1. How effective hasVitality's Performance Management Systembeen?

2. Should Vitality usecontinue touse thenormal/bell-shaped gradingdistribution?

3. Howshould Vitality manage thosewhoranked consistently atthe bottom ofthe distribution?

4. Ifyou were incharge ofimproving thePerformance Management Systemat Vitality, whatchanges wouldyoumake?