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, Mr. Vasques 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 Makati 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 this sitting down. She believes performance evaluation is important as it would serve as the 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 based on fair measures of performance. Questions: 1. Is there really an urgency to install a performance appraisal system in the 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 performance appraisal system?