MGMT 301: Performance Management at Network Solutions Inc. Case Study

This case study examines the employee performance management system at Network Solutions Inc. The report begins with a company profile, highlighting issues such as inconsistent performance reviews, lack of recognition for high achievers, and pressure from competitors. The analysis identifies problems at both macro and micro levels, including ineffective performance measurement and an inability to link employee goals with organizational objectives. Causes are attributed to inefficient systems and ineffective human resource management. The study explores alternative solutions like the implementation of a forced distribution system and a global cross-divisional HR team. Recommendations are provided for improving the performance management system, including setting meaningful short-term goals, providing effective feedback, and developing coaching skills for managers. The conclusion emphasizes the need for a revised system that addresses unproductive practices and ensures alignment with shareholder interests.

Running head: MANAGEMENT
Summary
Title:
Name of the Student:
Student Number:
Name of the University:
Author Note:

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Table of Contents
Introduction:....................................................................................................................................2
Company Profile:.............................................................................................................................2
Analysis:..........................................................................................................................................3
I. Problems.......................................................................................................................................3
A. Macro..........................................................................................................................................3
B. Micro...........................................................................................................................................3
II. Causes.........................................................................................................................................3
III. Alternatives:...............................................................................................................................4
IV. Recommendations.....................................................................................................................4
Conclusion:......................................................................................................................................5
References:......................................................................................................................................6

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Introduction:
The report provides an insight into the employee performance management of Network
Solutions Inc. Performance management refers to a procedure of ensuring those activities and
output that is able to meet the objectives of an organization in a competent and efficient manner
(Yadav and Sagar 2013). Performance management might focus on organizational performance,
departmental performance, employee performance or the processes for managing specific tasks
(Mone, London and Mone 2013). This report however focus on the employee performance. The
report commences with a company profile followed by an analysis. The report also provides an
overview of the necessary recommendations.
Company Profile:
Network Solutions Inc had been an international leader in software, services and
hardware that are vital for computer networking. In spite of using over 50 diverse systems for
measuring the performance within company, there were employees who does not receive a
review, lower than 5 percent of the employees received the lowest rating and there was no
specific program for recognizing the higher achievers. It had been recognized that performance
problems had not been addressed and immense burden from the competitors raised cost of
handling the performance of human resource. The organization undertook measures for meeting
the organizational goals and understood that the one means of doing it is by linking themselves
with the goals of every employee. In the year 2001, the CEO of Network Solutions made an
announcement of implementation of forced distribution system of performance management
where a particular percentage of the employees would remain classified in several categories
(Chattopadhyay 2019). For instance, rating 1 would be allotted to the highest 20 percent of the
performers, a rating of 2 would be allotted to the 70 percent middle level performers and the

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rating 3 remains allotted to the lowest 10 percent of the performers. An international cross
divisional team of HR was planned to keep in place for implementing the system.
Analysis:
I. Problems
A. Macro
1. Performance problems are not properly addressed. Most of the employees does not go
through a review and lower than five percent of all employee got bottom rating.
2. Non recognition for rewarding the higher achievers.
B. Micro
1. Pressure from the competitors hiked the expenses thereby leading to ineffective
management of human performance.
2. Absence of quality initiatives.
II. Causes
1. Inefficient performance measurement systems within company.
2. Inability in meeting the organizational goals and its linkage with the goals of the
employees.
3. Ineffective management of human performance through a proper human resource
team.

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III. Alternatives:
1. Implementation of forced distribution system of performance management that
allowed only specific percentages of the employees to remain classified at each categories
(DeNisi and Murphy 2017). Rating 1 is remains allocated for the highest 20 percent of the
performers while rating 2 denotes the middle level performers that comprise of 70 percent.
Rating 3 is allocated to the 10 percent of the lowest performers.
2. Introduced cross divisional human resource team at a global scale for implementing
and designing the new performance system (Purce 2014).
3. To develop a business case for the new system that portrayed organizational strategy to
be linked with team contributions and the team contributions being translated to the individual
goals which would ultimately lead to the fulfillment of the business goals.
4. The outcome of new system lay in raising the performance of employees at all levels.
It involved retaining the topmost talent and identification of the low key performers along with
improving the performance.
5. Network Solution also wanted clarity in the performance expectations of its
employees. The organization also encouraged its senior leaders to understand the process and
accept it so that they are able to support the system whole heartedly.
IV. Recommendations
To ensure effectiveness of the performance management system, some of the
recommendations would include:

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1. Setting of goals with short term performance management objectives that are not only
challenging but also possess some meaning.
2. Educating the management on the ways of providing performance feedback of the employees
that are ongoing in context of the work instead of outside of their work.
3. Need for the development of the coaching skills for managers such that the feedback is
acccepted by the employees thereby leading to an improvement in performance.
Conclusion:
On a concluding note, it can be said that, the previously implemented performance
management systems of Network Solutions Inc had never been successful in evaluating the
performance of its employees. This has led the company to undertake initiatives in introducing a
forced distribution system of performance along with a formation of HR team to look forward to
its successful implementation. The new system had a specific rating classification for evaluating
the employee performance. It also had a plan of monitoring unproductive practices and
implemented the corrected practices and policies. The company also ensured continuous checks
with its shareholders for ensuring whether the system served their intended purpose.

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References:
1. Yadav, N., Sagar, M. Performance measurement and management frameworks. Business
Process Management Journal, 2013
2 .Mone, E.M., London, M., Mone, E.M. Employee engagement through effective performance
management: A practical guide for managers. Routledge, 2018
3. Chattopadhyay, R. Impact of forced distribution system of performance evaluation on
organizational citizenship behaviour. Global Business Review, 2019. 20(3), pp.826-837.
4. DeNisi, A.S, Murphy, K.R. Performance appraisal and performance management: 100 years
of progress? Journal of Applied Psychology, 2017, 102(3), p.421.
5. Purce, J. The impact of corporate strategy on human resource management. New Perspectives
on Human Resource Management (Routledge Revivals), 2014, 67.