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Good Health Products ltd is a diversified company engaged in the production of sugar, alcohol

and bio pesticides. This company is one of the major players in the sugar industry with a

significant market share and a workforce of 8200 with 4800 unionized employees. It has full

fledged manufacturing information system and marketing information systems, which have

ensured the complete automation of these departments operations. Its HR department isheaded by the HR manager, Mr. Atul, who is supported by 120 employees. Atul made a request

to the management for installing an HRIS in order to enhance the efficacy of its operations but

the request has been pending with the management.

Meanwhile, the HR department released the performance evaluation reports of the employees.

As per the general practice of the company, the line managers conducted performance

interviews with the employees to hand over the evaluation reports and the employees. As per

the general practice of the company, the line managers conducted performance interview with

the employees to hand over the evaluation reports and this decided the employes future

financial benefits, including promotion. Due to its importance, the performance evaluation

process and the reports often get embroiled in controvercies and invite criticism from those

employees whose performance are found to be insufficient for good rewards. The protest over

the performance evaluation process and results become more vociferous this time and the

management asked for the detail of the performance evaluation process and an explanation

from the HR department what the results of performance evaluation.

The HR manager reminded the management about his long pending request for automation of

the HR operation of the organization. He pleaded with the management to full fill atleast a part

of his request by installing the performance management system ( PMS ) immediately, if notthe complete HRIS. He strongly believed that the introduction of the information system in

performance management would improve the visibility in the measurement, communication

and accountability in the entire evaluation process. For the HR manager, the introduction of

PMS appear to be the best solution to solve the reccuring performance evaluation related

problems in the organization.

However, the forceful argument of the HR manager in favour of PMS were rejected by the

management for four reasons. One, it was not cost effective since the benefits are not tangible

and substantial. Two, the labour reduction in the HR department on account of the introduction

of the PMS is not possible due to strong unions. Three, it cannot be an immediate solution for

the present problem. And Four, the HR department has so far not choosen the most effective

appraisal method for performance evaluation and this, according to the management, was the

root cause of the problem. The HR manager is now contemplating his response to the

observation of the management.

Questions.

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1) What is your assessment of the entire situation at Good Health Products. LTD.2) Do you agree with the stand and the arguments of the HR manager regarding the

introduction of an HRIS and PMS.

3) What have you to say about the arguments of the management of the Good HealthProducts against the introduction of PMS.

4) If you were to be the HR manager of Good Health Products, what would you do now.