Network Solutions, Inc.

Case Study 1.2

Ans1. The overlap between Network solutions and an ideal system is that

o The Network solutions want to align their employees’ goals with the organizational.
o Another overlap was the standardization of the performance management system at all
the divisions.
o Developmental programs for the employees to enhance their performance.
o Two-way communication was encouraged so that managers and employees can share
positive and negative about the performance.
o The rating system which was the core part which evaluates each employee with the rating
of 1, 2 or 3.
o To rectify the policies and practices continuous checks were made at different intervals.

Ans2. The features of the system implemented at Network Solutions correspond to what is
described as ideal characteristics are as follows:

Strategic congruence:

The design team is initiated by creating the performance management system by aligning
individual goals with organizational goals and by focusing on the development of all the
employees.

Practicality:

Implementing performance system is time consuming and expensive but the design team made
the senior leadership agreed upon it as they would be evaluating all their employees’
performance.

Standardization:

As design team already convinced the senior leadership to stop all the other development
programs which were 50 programs, basically the idea was the standardization of evaluating
performance across all divisions

Acceptability and fairness:

The employees knew that they will be awarded or penalized according to their performance, as
the rating scale would help to evaluate their performance.
Openness:

As stated in the case the Network Solutions encouraged two way communications on an ongoing
basis and all the employees knew the criteria of the evaluating system.

Thoroughness:

Network solutions planned to monitor all policies and practices and rectify if required and then
all the employees were evaluated.

Reliability:

Network Solutions planned on continuous check on performance of all employees- with all
stakeholders.

Specificity:

With the help of rating system the employees will have a sense of improving their performance
and what benefits they can be given at 1,2 and 3 rating scale.

Inclusiveness:

The employees were given responsibility to develop the performance management system along
with managers.

The ideal characteristics which were missing are:-

Correctibility:

Looking in the light of case there was no such process stated through which employees can
challenge incorrect decisions.

Ethicality:

There were no such guidelines given that the performance evaluation will be done on merit, there
maybe a chance that supervisor will may give more favor to one employee and the element of
employee privacy is not there.

The ideal characteristics for which we need additional information are:-

Reliability:

Though the Network Solutions was checking the performance consistently but it is not sure that
the system is going to be error free which may result in incorrect decisions.

Inclusiveness:
There was no such information given in the case regarding that the employee himself gather their
performance data before the appraisal meeting.

Advantages and Outcome:

With the implementation of performance management system it would benefit Network

Solutions in the following ways:

- Organizational goals are made clear- this would help employees to link their goals with
the organizational goals.
- Employees become more competent- because of the development plans this would help
the employees to improve their performance at Network Solutions.
- Self-insight and development are enhanced- the implementation of performance
management system would help the employees to know their strengths and weaknesses
so in short it would help them to understand themselves.
- Organizational change is facilitated- as this tool has already been supported bye Network
Solutions to change its culture by focusing on product quality and customer service,
further this would also align organizational culture with goals and objectives of the
organization. Employees will also get trained and will be given rewards according to their
performance.
- There is a better and efficient differentiation between good and poor performance- the
rating scale would help to identify the good and poor performers and then supervisors
would reward or penalize accordingly.
- Supervisor’s views of performance are communicated more clearly- the two-way
communication is encouraged at Network Solutions, so the supervisors would convey the
performances of the employees to them and the supervisors would expect the employees
to improve their performance.
- Motivation to perform is increases- two-way communication would help the employees
to improve their future performance by knowing their past performances.
- Self-esteem is increased- indentifying good performers at Network Solutions would
definitely be valued at work and by giving rewards would increase employees’ self-
esteem.
- There is a better protection from lawsuits- the rating system would keep away the fear of
lawsuits as it is clearly stated in the case that the lowest rating employee would be given
time to improve performance initially and if the performance does not improve with the
continuous development programs then the employee will be terminated, so all the rules
are communicated to employees to expect a better and an efficient outcome.

Ans3. Use of misleading information- the characteristic ethicality was not identified in the case
so there maybe a chance of fabricating information about an employee’s performance.