EXERCISE 3-2 BUILDING SUPPORT FOR A PERFORMANCE MANAGEMENT SYSTEM AT ThE GAP, INC.

You have just been appointed the Chief Human Resource Office (CHRO) for The Gap, Inc., a large retail clothing company with more than US$1 billion in sales, 3,000 retail stores in the United States, and over 130,000 employees. The mission of the company is to create emotional connections with customers through our brands, unique designs, and enjoyable store experiences. The current performance management system is not delivering results in terms of business performance, with the company posting a 10% decline in sales during the previous month, the 12th monthly decrease in a row. The Chief Execu-tive Officer (CEO) believes that this is because of a lack of strategic alignment between the companys overall mission and its retail stores. Imagine the class instructor is the CEO of the company, and the other students are members of the top management team. Your task is to devise a new strategic plan that achieves the CEOs goal of greater alignment between organizational-and store-level strategies. Based on the mission statement of the company and other information provided:

Please read it carefully and answer the following questions.

1.What role does the mission and vision statements of an organization play in the performance management system?

2. How would you propose to increase sales, using a performance system, to the CEO?

3. How would you obtain support of other senior managers that a performance management system will be a valuable tool?

4. Find an article in SHRM.org related to performance management and bring in relevant information to help you ensure reviews are done on time and how a strategic system will help increase revenues. Or why it will not meet these objectives.