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Case 16: Performance Management Systems at V-Pharmel

In: Strategic Human Resource Management and Employment Relations

Author

Listed:
  • Arup Varma

    (Loyola University Chicago)

Abstract

This case illustrates the importance of paying attention to the behaviors of individual managers in all organizations, beyond their formal, assigned roles. The case emphasizes the importance of paying attention to the informal relationships in the workplace. Most, if not all, organizations have no way of measuring the informal relationships, even though those are known to have significant impact on individual performance, intent to stay, and ultimately the organization’s bottom line. Supervisors are known to create in-groups and out-groups among their subordinates, based on personal factors, such as race, gender, and perceived threat. This ends up leading to low performance from those cast in the out-group, who often end up leaving the organization. While it is difficult to include these “under the radar” interactions in formal evaluations, organizations need to acknowledge the existence of such behaviors and work towards minimizing their impact on organizational processes. In addition, organizations should avoid creating division among employees by instituting two-tier systems for employees who have the same qualifications.

Suggested Citation

  • Arup Varma, 2022. "Case 16: Performance Management Systems at V-Pharmel," Springer Texts in Business and Economics, in: Ashish Malik (ed.), Strategic Human Resource Management and Employment Relations, edition 2, pages 343-351, Springer.
    • Handle: RePEc:spr:sptchp:978-3-030-90955-0_32
    DOI: 10.1007/978-3-030-90955-0_32
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