The main issue in this case is how Vitality can maintain being the industry leader in innovation

The main issue in this case is how Vitality can maintain being the industry leader in innovation. For Vitality to maintain their position as industry leader, innovation is an important for them to succeed. Several other factors also play a key role in the management process at Vitality Health Enterprises Inc. There is a high turnover rate of some of the best performing employees at the company. The evaluation process in which management scores individuals on their performance is poorly executed.
Some of the lead scientists who decide to leave the company have a voice that stands out towards other lower-level employees. Once the upper-level employees leave due to how discouraged they feel, it causes a chain reaction for other employees to leave as well. Although not all low-level employees will leave the company, they are left with some feelings of discouragement in the workplace and mistreatment from the upper management. These feelings of doubt within the employees can lead them to thinking why they are still working in a company that does not treat them fairly.
The management system that they had in place had a very complex and inadequate evaluation process. This poorly executed system of evaluating employees caused for employees to feel discouraged of the work they are doing within the company. Exhibit 2 in the case shows a 13-level rating system that has potential for abuse by management. The graph shows that management assigns most employees with “B’s” and “C’s” and in some cases “D’s”. This rating system fails to show how well certain employees improve within a given time frame. It also does not identify the poor performers within the company.


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