1. What symptom(s) in this case suggest that something has gone wrong?

2. What are the main causes of these symptoms?

3. What actions should Vêtements executives take to correct these problems?

Vêtements Ltée is a chain of men’s retail clothing stores located throughout the province of Quebec, Canada. Two years ago, the company introduced new incentive systems for both store managers and sales employees. Store managers in each store receive a salary with annual merit increases based on sales above targeted goals, store appearance, store inventory management, customer complaints, and several other performance measures. Some of this information (e.g., store appearance) is gathered during visits by senior management, while other information is based on company records (e.g., sales volume).