POLYTECHNIC OF NAMIBIA
HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS

Performance Management at Vitality Health Enterprises, Inc Case Report

By

Leonardo Imerne

Strategic Human Resources Management (SHM910M)

Date: 21 June 2014

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EXECUTIVE SUMMARY

This report will focus on the performance management at Vitality Health Enterprises, Inc, which is a cosmetics and beauty products oriented business. The business started off well with a fast expansion approach. As the company grows, performance management of its staff was necessary to reward top performers as a motivation factor, and also to identify poor performers so they could be trained further or relieved from their positions. The report will therefore highlight the problems associated …show more content…

The system required employees to be rated in respect to one another, and emphasised on rewarding employees with performance related short- and long-term cash and equity bonuses. Managers felt the new system was more difficult to use since it was applied on yearly basis, and was tided too closely to merit increases. Employees were also less cooperative regarding the ranking system. PMET2 was established, and uncovered several unsatisfactory results of the current system, among them was the managers continual submission of uniform rankings, rather than following the new guidelines. The performance management and rewarding system at Vitality Health Enterprises Inc continued to be problematic, and the management was still in search of a permanent solution.

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RECOMMENDATIONS

Due to the continual lack of solution on the staff performance and rewards systems at Vitality Health Enterprises Inc, the writer proposes the solution, based on performance appraisal for different types of teams by Scott & Einstein (2001). This ratio combines the outcome, behaviour, competency and other critical traits that could help managers to rate subordinates without favouritism or manipulation of the system.

During the implementation of