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 is headed 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 not the 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.

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