1) What were the specific issues with Vitality’s old performance management system? Provide evidence to justify your answer from Exhibit 2, 2008 data.
2) What is a compa-ratio? Using the salary calculation formula on Exhibit 3, calculate the base salary of an entry-level management trainee whose job is evaluated at 350 points and who has a compa-ratio of 85.
3) Do you think the new system is an improvement from the last one? Justify your answer.
4) What is your main takeaway about rewarding and managing employee performance after studying this case and based on the content we covered in class on these subjects?
