Enhancing Innovation at Vitality Health Enterprises

Vitality Health Enterprises, a prominent player in the beauty products and nutraceuticals industry, has traversed a remarkable journey since its inception in 1987. Founded by the astute entrepreneur Hikaaru “Fred” Kikuchi, the company originated from a simple idea fueled by dissatisfaction with beauty product quality. Today, with global reach and a diverse product portfolio, Vitality stands as a testament to entrepreneurial vision and resilience.

The company's evolution includes strategic relocations, the establishment of a proprietary manufacturing facility, acquisition of HerbaPure Nutraceuticals, and a successful IPO.

However, despite its growth, challenges have emerged, particularly in the realm of employee turnover and innovation. This essay delves into the intricacies of these challenges and proposes solutions to maintain Vitality's industry leadership.

The Evolution of Vitality

Vitality's journey from a humble beginning in Ames, Iowa, to a global enterprise mirrors the tenacity and vision of its founder, Fred Kikuchi. Fueled by his wife's dissatisfaction with available beauty products after their migration from Japan, Kikuchi seized a business opportunity by leveraging his connections to import quality products.

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Over the years, the company expanded, shifting its headquarters to Des Moines and establishing a dedicated manufacturing facility with in-house chemists.

Key strategic moves, such as the acquisition of HerbaPure Nutraceuticals and the initiation of an IPO, reflected Vitality's commitment to diversifying its product range and fueling further growth. The leadership transition from Kikuchi to Beth Williams in 2008 marked a pivotal moment, with the board anticipating fresh perspectives to navigate the competitive market. The recent appointment of James Hoffman as Vice President of Human Resources underscores the ongoing efforts to address challenges and bolster Vitality's position in the industry.

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The Challenge of Employee Turnover

A critical issue plaguing Vitality Health Enterprises is the high turnover rate among its high-performing research scientists, particularly those driving innovation. This phenomenon is directly linked to deficiencies in the company's incentive structure, which fails to retain top talent. In the rapidly evolving landscape of the beauty and nutraceuticals industry, innovation is paramount for maintaining a competitive edge.

Moreover, the existing performance management system poses challenges for managers in evaluating teams effectively. The lack of proper training and concerns about the system's alienating effects on team members further exacerbate the issue. Legal implications, including potential discrimination concerns related to the evaluation process, add another layer of complexity to Vitality's workforce dynamics.

Revitalizing Performance Management

The declining motivation and increased turnover attributable to the performance management system necessitate a comprehensive reevaluation. James Hoffman, in his role as Vice President of Human Resources, faces the formidable task of leading the Performance Management Evaluation Team. This team aims to assess the system's success and present findings to the board, potentially shaping the future trajectory of Vitality.

Addressing the core issues requires a nuanced approach. The performance management system should serve as a catalyst for improved employee behaviors, fostering innovation rather than hindering it. The current system, as Hoffman suggests, may need modification rather than a complete overhaul. Vitality's proactive stance in recognizing and addressing deficiencies demonstrates a commitment to fostering a positive working environment and organizational culture.

Proposed Solutions

We propose several modifications to Vitality's existing performance management system to align it with organizational goals and employee motivations. Firstly, recognizing the time constraints faced by managers, we recommend extending the evaluation process by three months. This extension allows for a more thorough and thoughtful assessment of individual and team performance, giving managers the necessary time for a comprehensive review.

Teamwork, integral to product development, should be acknowledged and incentivized within the evaluation framework. Allocating a portion, say 20-30%, of the evaluation to team accomplishments encourages collaboration and collective success. Drawing parallels to sports, individual achievements contribute to the overall team performance, fostering a sense of shared responsibility and reward.

Furthermore, we propose a shift away from rigid force-ranking components. Instead, managers should have discretion in determining rankings, promoting a more flexible and tailored approach. A pool of funds, at the manager's disposal, could be distributed based on performance evaluations. This approach ensures a fair and personalized distribution of rewards, motivating employees to excel in their roles.

To invigorate innovation, a specific bonus/kicker structure tied to new product development should be integrated. This incentive not only recognizes individual contributions but also encourages teams to collectively bring innovative products to market. In essence, the revised performance management system aims to strike a balance between individual achievements, teamwork, and innovation, aligning with Vitality's overarching objectives.

Additionally, considering the concerns raised about the clarity of the evaluation system, we recommend implementing comprehensive training programs for managers. This training should focus on equipping them with the necessary skills to evaluate teams effectively and avoid potential legal pitfalls. Clear guidelines and standards should be communicated to ensure a transparent and fair evaluation process across the organization.

Moreover, introducing a feedback mechanism where employees can provide input on the evaluation process could enhance transparency and address concerns about the system's fairness. This inclusive approach fosters a culture of open communication and collaboration, further strengthening the organizational fabric.

By incorporating these additional measures, Vitality can reinforce its commitment to employee development and organizational excellence. The holistic approach ensures that the proposed modifications not only address immediate concerns but also contribute to the long-term success and sustainability of Vitality Health Enterprises.

Conclusion

Vitality Health Enterprises stands at a crossroads, grappling with challenges that, if unaddressed, could jeopardize its industry leadership. The high turnover of talented researchers, coupled with concerns about the existing performance management system, underscores the need for strategic interventions. James Hoffman's role in leading the Performance Management Evaluation Team presents a pivotal opportunity to reshape Vitality's approach to employee engagement and innovation.

By recognizing the shortcomings and proactively seeking solutions, Vitality demonstrates a commitment to its workforce and the broader goal of sustained excellence. The proposed modifications to the performance management system, emphasizing teamwork, flexibility, and innovation, aim to strike a harmonious balance. As the company navigates this crucial juncture, the collaborative efforts of leadership, employees, and the Performance Management Evaluation Team will play a pivotal role in revitalizing Vitality's trajectory and reinforcing its standing as an industry leader.

Updated: Jan 10, 2024
Cite this page

Enhancing Innovation at Vitality Health Enterprises. (2016, Apr 29). Retrieved from https://studymoose.com/performance-management-at-vitality-health-enterprises-inc-essay

Enhancing Innovation at Vitality Health Enterprises essay
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