Vitality Health Enterprises

QUESTION #1
Who should evaluate employees’ performance?
What should leaders do when (individual, team,
organization) performance is lacking?

ANSWER #1
• Managers and employees, two sides of the coin will be
easier to compare and crosscheck
• Performance monitoring system
• Performance management evaluation team
• If performance is lacking, leaders need to review the performance management system by conducting interviews, surveys, etc.

QUESTION #2
What are the problems with VHPMS?
What were the root causes of the problem?

ANSWER #2
• Homogenous ratings from the managers resulted in employees felt undervalued financially, since the evaluation system was used for salary calculations and raises
• The system made it difficult to identify, reward, and retain top performers, and vice versa (low performers)

QUESTION #3
Explain the new system of VHPMS!
How do you think of it?
Do you have other recommendations for VHPMS?

ANSWER #3
• Fewer ranking categories
• having target constraints for each category
• It has positive and negative sides (will be elaborated on Answer #4)

QUESTION #4
Is the revised PMS better than the system it replaced?
In what ways?
In what ways is it worse?

ANSWER #4
Positive

Negative

Easier to determine which category each employee fit into.

54% of the employees preferred the new system because it values top performers more.

Fewer categories put more burden for the managers.

The forced distribution system was too rigid, did not able to portray the real situation.

QUESTION #5
How important is the relative nature of the new PMS?

ANSWER #5
• It is very important to review, revise, and improve the new performance management system in order to satisfy and motivate the employees, in the hard times (lack of performance, tight competition in the personal care product, global expansion) the company is experiencing right now.

RECOMMENDATION
• Minimize the ranking categories
• No need to set target constraints for each category
• The evaluation can also come from employees evaluating their peers.