BusM 540
Performance Management at Vitality Health Case

1. Skill Variety- 6
Justification: In order to perform the job requirements an individual must exhibit a number of different skills and talents. For example, the person who fills the position must do the following: * Decide whether the research has commercial application * Move patent applications forward * Consult with management on corporate strategy * Teach, manage, and assist subordinate researchers * Develop top-notch scientific research

In order to be successful in performing the aforementioned duties, the applicant must have high level research skills, interpersonal skills, leadership skills, management skills, organizational skills,
3. Old System New System A-E system, managers didn’t want to offend employees, so they only gave B and C ratings | The rating levels are limited to four options so all the levels are used and comparison is more visible | Job Evaluation Points for compensation, with a value multiple, based on job position | Uses metrics to rate employees efforts and achievements instead of just job description | Percentage pay raise is based on where they currently stand in industry pay grade. People paid above industry average get smaller percent raise than equivalent performance by someone who is paid below industry average. | Employees are compared to one another rather than to preset industry standards, or compared to arbitrary grade marks | No provision for bonuses, flat rates across the table, but all were at 7-8% over competition | Forces managers to rank their employees above or below each other | | Compensation is now not only cash based, but equity is involved | | Performance-based compensation |

The biggest difference seems to be that the old system would only correctly compensate someone for their efforts the first time they produce well. After that, their compensation increases at a slower rate than peers regardless of their effectiveness. Even though people were paid 7-8% over the industry averages, the structure of the compensation made people feel undervalued and eventually led many to devalue