Brian Conrad, the practice manager of Meadow Hills Veterinary Center, makes a claim that sounds a lot like statements you often hear in management and HR circles: "The staff is my number one asset in this hospital." Sometimes statements like that are puffery, but in Conrad's case, he puts the claim into action in the way he handles performance management at his two Washington State facilities. Because the organization is small, appraisal interviews are handled at the highest level: each employee being evaluated meets with Conrad and the owners of the practice. Conrad wants them to be full participants in the process, not nervous subjects under a microscope, so he tries to put them at ease by giving employees a few months to look over evaluation forms ahead of time, so they can see what measures will be evaluated. He also keeps the meetings regular and predictable by scheduling a meeting with each employee twice a year. Conrad also tries to dial down the tension by separating compensation discussions from performance evaluations. In his experience, employees don't listen well to feedback if they're busy calculating whether the review will qualify them for a raise. Instead, Conrad meets twice a year with the owners to go over the budget and all the employees' contributions. Raises and bonuses are determined in those meetings and awarded to employees in meetings separate from the appraisal interviews. This keeps the appraisals focused on what is getting in the way of top performance and how employees can improve. Conrad also tries to keep appraisal interviews positive by not waiting for appraisal time to address performance problems. His understanding of his position is that he is responsible for addressing performance problems as they arise. When a situation can't be resolved by a few words from a supervisor, Conrad invites the employee and his or her supervisor to join him for lunch away from the workplace. There they discuss the issue and look for a solution. Conrad doesn't limit communication and feedback to problems. He tries to know employees and their work situations better by looking for informal opportunities for two-way communication. If he needs to run an errand or attend a community event, he invites one of the employees to accompany him and uses that time to ask about their career goals and how they feel about their work. Often, he uncovers opportunities for employees to develop and use untapped skills. In one case, a part-time administrative employee indicated she was interested in full-time work. Over lunch, Conrad and the employee mapped out possible career paths, and she decided to get involved in treatment of the animals. She continued to apply her administrative skills by coordinating surgeries and dentistry, and she enrolled in continuing-education classes so she could assist in the treatment area. This approach to performance management is part of a larger objective at Meadow Hills. Conrad says he promised employees, "No team member will leave the practice feeling unchallenged, concede to a lack of direction, or have professional growth hindered." Keeping that promise requires a combination of careful hiring, ongoing training, and honest review of any mistakes that are made. When employees don't perform up to expectations, managers evaluate whether changes are needed in training or hiring. Conrad expects that employees will keep their part of the bargain by showing a willingness to try new opportunities and participate in problem solving. If employees aren't willing to buy into this culture, Conrad won't keep them on board. But apparently not many want to leave. While the rate of employee turnover for the veterinary industry is about 30%, turnover of Meadow Hills has fallen from 25% several years ago to just 10% soon after Conrad made his promise to employees.

Question: Apply maslow's hierarchy and explain.