Case Study: Managing People
•Goodyear adopted the force distribution system two years ago •The force distribution system’s feature is 10-80-10, which essentially graded all salaries employees on a curve, the top percent was rating A, the middle 80 percent was rating 80, and the bottom 10 percent was rating c, because of the rating divided into three different type A, B, C, then the employer can according to their performance A, B, C to paid employees salaries and rewards.
Those got the bottom 10 percent , Goodyear might not for raises or bonus, and might be layoff some of employee, because Goodyear want to layoff those employees that didn’t have required qualification or didn’t patient to work in their working, so the employer want to layoff those employees, and want to reduce their cost, what’s more, it can develop a good behavior in their employees, some pressure come into their work, therefore, the better performance will come out from these employees, lastly, the employer want to apply the better employee that meet their requirement. One example is that the system is similar to one developed by General Electric chairman John F, Welch, Jr and is often credited with helping him build a high-performance corporate structure. Because the bad performance employees can be send to training, after the training then they can produce a good performance, and also it is increase the employees motivation, in this situation, the employees can come out a good performance, in addition to increase their employees performance improvement.
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Cons •There are 10% employees getting rating c that aren’t eligible for raises or bonuses and are warned that they might lose their work, most of the employees that getting rating c are over 50 year old, • jack McGilvrey, a59 year old salaried employee gets rating c, lastly, he was dismissed because he was transferred to a new department to work. The performance rating schemes that target older workers •It’s unfair and not be tolerate by the old employees •the workers who got c ratings thought that it’s humiliated and stigmatized among their peers and managers •By the used the force distribution system used in Goodyear, the system hit strong resistance, most of abstract is that enforce the system.
Question 2. I don’t agree with the plaintiffs in the lawsuit, because the performance came out that was true, it wasn’t controlled by someone and didn’t up to by the managerial person’s emotion whether he/she likes the employees or not, the force distribution system was equal to everyone, the employees was assessed in the same standard and the same situation, but the outcome came out was different, so it was not the force distribution system’s question, the issue might be come out from themselves, the factors might be not hard to work, and might be come out from their own behavior or attitude, in addition to, arising from inadequate skills, knowledge and ability, after all, these factors could cause the employees made bad performance, so I don’t agree with the plaintiffs in lawsuit. Question 3 •Change the three rating A, B, C to exceeds expectations, meets expectations and unsatisfactory. •At the same time, Goodyear supplement another appraisal method is 360 degree feedback evaluation •Goodeyear can build a new communication system, making the employees knows more about the force distribution system and solving some problems come out in their work, what’s more, employees can provides feedback to their managers.