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CASE # 2: Vitality Health. The Problems with Vitality’s Old Performance System

Case Study Instructions:

Answer questions specifically. 825 words requirement is only the minimum and not includes questions provided. Please as detail as possible.

CASE # 2: Vitality Health

Response to case questions (5% of total grade); 
Participation on case day (1. 5% of total grade); you must be in class to receive these points on Wednesday, April 15th.
General Information: During the course of this semester, we will have three case days. The second case we will discuss is Vitality Health. You may purchase each case from Harvard Business Publishing for $4.25. You can access the cases at the link below:https://hbsp(dot)harvard(dot)edu/import/621820[*If this is your first time using Harvard Business Cases, you will need to create an account by pressing the “register now button”. You will be prompted with a registration screen, after completing this, you should have access to the cases. You may be asked to purchase both cases at the same time, if so be sure to download both cases (we will discuss Cirque du Soleil case study later)].
Instructions for Case # 2:Prior to class:• Read the Southfield Packaging Case and take detailed notes• Answer the below questions and submit to UB Learns. • When answering the questions, you are required to support your opinions with arguments and specific facts from the case. A simple yes/no answer is not acceptable. You will be graded based on the arguments and facts you use in supporting your answers. Also, please make sure it is clear what question you are answering in your submitted assignment.During Class:• Come to class prepared to discuss the case on the case day.• Make sure to bring your class notes and the case• Speak at least 1 time during the discussion (this is worth 1.5% of your course grade). You should offer a unique and insightful comment relevant to the specific discussion topic.Although I am sympathetic to fears concerning public speaking, these fears can hinder your career advancement. Thus, for developmental purposes, it is very important to practice sharing your opinion in a public setting. Every student is expected to contribute to the class discussion. By just coming to class you will not get credit during the case days. You are required to participate in case discussion at least once to get participation credit. Think of class as a safe and friendly environment to develop your communication skills, just like you successfully did as part of your role-plays.
CASE QUESTIONS:1. What were the problems with Vitality Health’s old performance management system? (40 pts.)
2. How are the levels of salaries determined at Vitality Health? (30 pts.)
3. What are the key features of Vitality Health’s revised program? (30 pts.)

Case Study Sample Content Preview:

Vitality Health Case Questions
Name
Institutional Affiliation
Vitality Health Case Questions
References
The Problems with Vitality’s Old Performance System
Performance management system plays a crucial role in motivating employees, providing direction to the institution’s management, and making sure that the business maintains its competitive position in the market. However, Vitality’s PMS had some problems that made it impossible for the management and the company itself to meet the business goals and determine the areas of improvement. The first flaw was in the rating system. According to the case, the company had thirteen different rating levels running from A to E. While it is important to have rating systems for managers, Vitality’s rating system was prone to managers. Managers were afraid of offending their employees; hence they rated them around B or C. This rating system became homogenous across the company. According to the case, the reason the managers avoided “A” and “E” ratings was to avoid creating inequalities in the job environment. As a result, it was impossible to distinguish performers from non-performers due to generalized approach used in rating employees.
The case study also explains that managers hardly awarded “A” to top performers in the firm because they thought that they could upset the spirit of teamwork. The outcome from this is that instead of motivating employees to work as a team, it created divisions within work environments. Performing employees felt underrated when they realized that their efforts were not being rewarded. New employees or those that were not familiar with the company were rated “E” even if they had a determination to give their best at the company.
How Vitality Health determined Levels of Salary
Vitality’s performance management system was not the only issue affecting employees. Employees also had to survive on poor methods of determining salaries for their work. According to the case, the company had a flat level salary system. The company benchmarked salary policy to keep it at 75% with an average performance of about seven to eight percent. Even though employees did not complain about this system, it is evident that it affected the company in a greater deal. The company kept paying high salaries regardless of the performance of its employees. The flat salary level system also affected top performers just like the rating system.
According to the case, Vitali...
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