1. Amber Pharmaceuticals was losing market share to rivals assisted by foreign collaborators. The VP of Marketing, Mr. Shah, pushed employees to their limits by setting aggressive targets without a formal performance appraisal or reward system. 2. As a result, many employees, especially high performers, left the company because they felt ignored and unwanted. Mr. Shah believed he could replace them with new hires but failed to address the underlying issues. 3. The document recommends improving the appraisal system to identify and reward hardworking employees. It also suggests jointly setting targets, providing timely feedback, and linking performance to promotions or pay increases to address employee turnover problems at Amber Pharmaceuticals.

1. AMBER PHARMACEUTICALS Sourabh , 10HM30 , Group 3

2. THE CASE Amber Pharma makes and markets effective drugs But now , rival firms assisted by foreign collaborators are eating into the market share of Amber So Mr Shah , VP Marketing pushed his marketing employees to their limits i.e. by setting aggressive targets

3. THE CASE But owing to absence of a formal performance appraisal / rewarding system , most employees , especially the good ones left the firm Mr Shah , however believed that he could replace them with freshers , and ignored this turnover So employees continued feeling ignored and unwanted and thus left the firm

4. 1. BASIC PROBLEM AT AMBER No formal Appraisal / Reward System Setting of unrealistic targets thus making it difficult for even the best workers to be appraised positively Indifferent attitude of the Marketing Manager towards this problem

5. 2. CORRECTIVE MEASURES Improve the appraisal system to identify hard working employees Joint setting of targets with subordinates Give these employees recognition Link high performance to promotions or pay increases Give timely and unbiased feedback to the employees

6. 3A. DECIDING ON A SYSTEM OF APPRAISAL Since there is problem in setting achievable targets , MBO may help . Superior setting objectives / targets along with the subordinates . 360 degree appraisal to help employees assess themselves .

7. 3B. MERIT , REWARDS , PROMOTIONS Based on the 360 degree appraisal report for an employee , he could be promoted or given a raise in salary . Competent employees could be given recognition , say , ‘Employee of the month ‘

8. 4. PRE - LAUNCH TRAINING Employees may be given training on ‘ goal setting ‘ and SMART analysis . Training employees on writing performance reviews of their peers/subordinates/superiors as it is necessitated by 360 degree appraisal .