Overview Vitality Health Enterprises is a multinational organization that started out in 1987 with humble beginnings in a garage as a result of the founder’s wife being unable to find comparative, quality cosmetics that would otherwise be available in Japan. The business began with a very small scale approach, importing the quality cosmetics that were unavailable in America, and marketing the products to neighbors and local organizations that shared the demographics of the target market (women). After two years, Vitality Health Enterprises grew rapidly, to the extent where import tariffs and supply constraints hindered the business model and opportunity for profit, which lead Vitality Health Enterprises to create their own manufacturing facility …show more content…
This acquisition allowed Vitality Health Enterprises to develop a market presence in Europe and further solidify their markets in Asia. By 2007, Vitality Health Enterprises grew to 7000 employees with ¾ of the workforce located near corporate headquarters and the remaining in global offices of Asia, southeast Asia, and Europe. However, the crash of 2008 brought about the first real slow down of the organization which led to brining in new leadership in a new CEO (Williams), who had a contrasting style of management than the original CEO (Kikuchi). This was done in the hopes of bringing in new ideas and promoting a new era of growth.
Issues/Solutions
Legacy
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To tackle some of these inefficiencies, Williams analyzed the performance management system that was in place at the time of her introduction to Vitality Health Enterprises. Ideally, Williams desired a performance management system that held employees accountable for their actions as well as incentivized employee performance through salaries bonuses and equity opportunities The PMET of 2009 was created to analyze the legacy performance management system over the course of four months through the use of studying evaluation/reward systems in place, investigating implementation of internal and external benchmarking, focus groups, and the employee interviews. The findings of the PMET of 2009 were that the 2500 members of the professional staff that made up the research and development teams were dissatisfied with the legacy system. In this system, 13 different ratings (A-E with plusses and minuses) could be given to employee based on their performance. The system was abused by management for the fear of giving feedback leading to indistinguishable performance ratings for top performers, mid-performers, and low performers. Top performers were rarely given high ratings due to the fear of upsetting the teamwork and egalitarianism aspect of the
Nerenz, D. R. & Neil, N. (2001). Performance measures for health care systems. Commissioned paper for the center for Health management research. [PDF document]. Retrieved from Systemswww.hret.org/chmr/resources/cp19b.pdf
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
Given the information in the case pertaining to products of Genicon, various factors are analyzed for the choice of the country for international expansion. The structure of the healthcare system, the size of the total market, distribution structure of health care products in target countries and purchasing power parity are the key determining factors for the choice of the country for international expansion. The analysis below carries out an evaluation of the attractiveness of the particular region for Genicon’s international growth.
The NHS has adopted a performance measurement system that is based on the concept of balanced scorecard in order to obtain a broader view of performance within the organisation (Department of Health, 2001). Although, measuring performance evaluation of health care system could be difficult, it can on the other hand serve several purposes and can help facilitate change and improvements in the effectiveness and quality of health care. It seems peculiar to focus on performance measures in organisation such as NHS, but even NHS is facing increasing competitive pressures when considering ageing populations increasing demand, improved treatment...
The performance assessment and appraisal forms are crucial within the performance management system (Aguinis, 2014). However, the appraisal form within the case study provided is designed for the supervisor’s use thus missing one vital factor throughout the entire process, employee participation. Thus, questioning the validity and reliability of the process. This is especially concerning as the bottom 10 per cent of employees are being fired and the top 20 per cent are being rewarded with $5,000.00 based on what their supervisor records on the form without consultation with employees. Thus, supervisors may not provide accurate scores as they do not have to justify their responses (Aguinis,
Healthy and thriving workforce is key asset to any organization and the workplace has significant impact on people’s health and well being. Most of the companies, especially in the current economic climate, are actively seeking ways to reduce operating costs. Yet most organizations are ill prepared to meet the challenges associated with the changing demographics of their workforce.
Strategic issues are the most profound issues in health services management which occurs due to lack of strategic planning in many aspects like financial planning, performance and lack of coordination in management in health care sector. To solve these issues health organizations needs proper strategic planning with acceptance of all the workers. Leaders plays vital role by making good coordination with other staff members and by making policies to take organizations to higher level . The second fundamental issues found to be as issues in successional planning which includes the replacement of experienced staff because of getting higher positions in other organizations and retirements. These issues needs to be solved by the staff members by making such situation that are easily acceptable by new employee to work in the organization. The role of the leadership is not just to manage the organization and making policies it also include providing proper facilities to the staff and the patients and management of several issues with in health care sectors. Moreover responsibilities of leadership also include making specific goals and provide certain way to the organization to achieve those goals with improvement in
Johnson & Johnson (J&J) is an American powerhouse in the healthcare industry. It is number 46 on Forbes list of the World’s Biggest Public Companies (DeCarlo, 2013). It has sixty international locations. J&J has been involved in health related products since 1886. The management structure is decentralized allowing for strategic operations depending on need and location. There are four central business divisions, consumer, pharmaceutical and medical devices and diagnostics. J&J has a significant presence in China and has targeted dominant health concerns, which includes the health issues of their aging population. J&J are not the only global company positioned to address China health care needs. Emeritus and Merrill Gardens are two Seattle, Washington companies whose focus is on senior care. These two companies met in Hong Kong with a group of global investors to discuss the development of the Western for...
The company shows a flat organization in which there are few layers of management but has broad span of control. According to the chart, the company develops a decentralized authority in the level of their management due to which they focus more on adapting to what customer wants based on decision making from the lower level managers who are more familiar in the local conditions. This type of authority allows them to understand customers such as patients’ needs in order to develop strategies to fulfill this requirement According to Figure 1, they primarily focus more on the health care system and invested in about $7.5 billion dollars in research and development to create a strong product portfolio. The culture of this organization demonstrates a formal organization in order to guide the lines of authority as well as the responsibility for the company. According to Johnson and Johnson Credo statement, their main focus is towards the responsibilities of the doctors, nurses, and patients as well as their employees. They also state their growing responsibilities toward the shareholders and to the communities in order to research and develop new innovations in towards civic improvement to the communities. This entails that they fully care for their customers and employees in which its shows in
Due to longer life expectancy and the rapid increase of the world’s population, the pharmaceutical industry is becoming increasingly important. The problem of aging population and high healthcare cost is particularly serious in Japan. This essay will focus on a Japanese drug maker – Takeda Pharmaceutical Company Limited (Takeda, the company). First, in order to provide background information, the current business model and relevant information of Takeda will be outlined and analysed based on financial data and the company’s annual reports. Second, the essay will examine the most significant challenges that the company has faced over the past five years, including the cause and effect behind this challenges. Finally, the discussion will be looking at the pharmaceutical industry as a whole, exploring the merger and acquisition activities of large pharmaceutical firms in the world, i.e. Big Pharma.
The Mayo Clinic (Mayo) provides a compelling and instructive example of the critical role of performance measurement in managing performance behaviors. An analysis of the Mayo approach offers insightful understanding of effective performance management practices. Accordingly, this paper reviews the Mayo performance management system from four perspectives (a) leadership strategy, (b) performance measurements, (c) human resources management, and (d) the alignment of performance with strategy. The discussion concludes with an assessment of the alignment of the elements comprising the Mayo performance management system with recommendations for strengthening those alignments.
The original case was about Chiron, a biotechnology company, in the United States. Chiron was acquired in 2006 by Novartis, a Swedish company formed by the merger of Ciba-Geigy and Sandoz Laborites. Since Chiron itself no longer exists, we have focused our case around Novartis as of 2013. Novartis specializes in diagnostic services, generic and name brand medications, ophthalmological tools, as well as a small segment in pet health. The business prides itself in producing the latest drugs, hiring the best talent, and being a global leader in the pharmaceutical industry. Over the years the company has survived by focusing on its internal development in addition to a series of mergers, acquisitions, and corporate restructurings. Being a pharmaceutical company, the entire population is impacted: patients, physicians, employees, hospitals, and investors are some of the most important stakeholders.
Various conflicts in the RM system can affect the benefits that can be obtained. It has been argued that performance management systems only provide superficial motivations and have little effect on underlying behaviours and attitudes. Although the RM system can have some limitations, there is strong argument for the benefits, and logic also deems it as a credible strategy to assist in improving employee performance.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
Executive SummaryIn order to measure an organization’s success in meeting or achieving its strategic objectives is to evaluate the performance of its employees. If it is to be effective or of substantial value to the organization, it needs to be systematic and purposeful. In this organizational analysis I would like to explorer the performance management performed at the organization I am part of and suggest improvement to enhance the process to achieve better results. I will also explore the stressful environment performance evaluation creates and suggest ideas to enhance the experience to achieve positive results. The company I am part of is a financial technology solution company. Organizational Analysis