Christian SalazarUH ID: 0979809Chapter 8 Case Study 1Case 1: This case is about the company Freeport-McMoRan Copper & Gold and how the company needed to be better organized in the ways all the goals of the company were known to all employees and so all areas of the company especially the mining sectors could work as efficiently as possible. The company adopted a new performance appraisal system in order for the company to have the best performance and management system possible. 1. Why did Freeport-McMoRan need a performance management system? How will it help the company if it has to adjust its strategy in the future?Freeport-McMoRan needed a performance management system because to start off with, the firm’s top managers did not even know how its employees were organized at the organization’s separate mines. If the top of the pyramid has no idea what is even going on at the bottom levels this is a huge red flag. Each mine was run separately and under different standardsmeaning the miners had no clue what specific amount of mining they had to perform at the job or what goals were needed to be performed. The performance management system will help thecompany adjust its strategy in the future by giving it agility to change strategies in the future if the price of copper decreases or increases. The firm will be already prepared to make any necessary changes in the future to make any necessary adjustments. 2. Do you think a pen-and-paper performance management system could have been as effective as the electronic system Freeport-McMoRan adopted? Why or why not?No I do not believe a pen-and-paper performance management system could have been as effective as the electronic system Freeport-McMoRan adopted because the company which is the second largest copper mining company in the world is too huge and geographically widespread to just using a pen-and-paper performance management system. If it would have used that method it would have proved disastrous. With the web based performance system all top executives can have instant access to the progress of the company at every level whichChristian SalazarUH ID: 0979809optimizes everything. Pen-and –paper performance management system would just not have worked with such a huge company like