Case Study on Performance Management and Employee Movement (ITech and Performance
Appraisal)
ITechnology has been selling computer hardware, software, and other computer gadgets and
accessories for the last 12 years. Sales are steady with total figures second only to MegaCD, the number
one retailer of computer parts and accessories. ITechnology has 10 branches nationwide and the
majority have sales personnel who man the stores. ITechnology is owned by Rolando Velasquez and his
family. Because of his age however, Mr. Velasquez handed the management to his daughter, Corazon,
who recently graduated with a degree in HRM. She is planning to pursue her MBA next year.
Within a week of staying at ITech’s office in Manila and visiting its store in nearby Glorietta, Cora
found out that the sales personnel are happy and satisfied. Pay increases are given every year. Spot
bonuses are given by her father in every branch based on observed outstanding performance every
month. However, Cora found out that the company did not practice performance evaluation. All
bonuses are based on “observed” evaluation. Cora did not want to take all things sitting down. She
believes performance evaluation is important as it would serve as basis for many major decisions in the
future.
She went around the store and wondered. She felt that the sales personnel are happy with their
work. She thinks that something must be done to maintain their satisfaction. They deserve to be
appraised fairly. Their performance should have been equally rewarded on fair measures of
performance.
WHAT WOULD YOU DO?
1. Is there really an urgency to install a performance appraisal system in ITechnology? Why or why
not?
2. Why do you think Cora felt the need to install a performance appraisal system?
3. How can the installation of a performance appraisal system help in maintaining the employees’
high morale?
4. How did ITech survive for the last 12 years without a performance appraisal system?
INSTRUCTIONS:
1. Please read, understand and answer the Question after the Case Study regarding Performance
Management and Employee Movement.
2. Do this as a Group Activity whereby everyone MUST contribute in answering the Questions. This will
test your understanding on the Chapter previously discussed.
3. Submit your answers in WORD Format; Times New Roman font; 12 Font size; 1.5 Spacing; complete
with cover page containing your Groups' Number and the Names of each Group.
4. Submit it on or before Monday, May 23, 2022 at 12:00 Noontime.
