Vitality Health Enterprises Case Study Summary

In: Business and Management

Submitted By crystalbhavya
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Vitality health enterprises was formed by kikuchi when his wife complained tat she cudnt find the kind of cosmetics she wanted whn she was in japan.
Vision : outer beauty can only be achieved as inner harmony is reached.
So they brought in the Herbalpure nutraceuticals which included health, wellness and beauty products. They expanded their consumer target.
In mid 2008, global economic crisis hit, which brought vilitiy’s growth to stagnation. So kikuchi decided to bring in fresh executive suite. So he brough Williams.

Points to be noted:
- There was a poor earnings in 2009. Exhibit 1a and 1b shows. So the PMS had to review the policies and track the perf goals of all non sales n non executive employees in the entire company.
- PMS had to hold employees accountable for their actions n incentive strong employee performance by offering thoughtfully designed compensation packages, including salaries, bonuses n equity opportunities in the form of options.
- The PMET studied evaluation n rewards system. Employed internal n external bench-marking, focus groups n employee interviews.
PROBLEMS that PMET discovered:
- There was problems for 2500 professional staff approx. Which consisted of mostly scientists n engineers in R&D labs.
- 113 different rating levels (from A to E including pluses and minuses)
- Managers were worried about offending employees so they gave almost everyone a C or a B, provided few D or A ratings n rarely gave Es/ this resulted in homogeneous ratings and failed to distinguish performers from non performers. (exhibit 2 shows it)
- Employees felt undervalued financially.
- This happened because of the point system that they used to calculate salary n pefr based raises. This was derived from the point factor job evaluation methods such as Hay Guide chart profile.
- Pay policy line = base salary +(job evaluation points * Increase per…...

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