Organizational Behaviour and

Managing People - Assignment

NADYA ANDHANY – 29322028
Gap Inc.: Refashioning Performance Management
The case tells about the challenges faced by Gap Inc., in managing its employees'
performance effectively. It follows Rob Ollander-Krane, a senior director of organization
performance effectiveness in his task to devise and implement a new performance management
process. The old performance management system was deemed ineffective and employees
found it bureaucratic, confusing, and unproductive. The “traditional” process involved an annual
employee rating and ranking process, and the results will determine the amount of bonus. This
process also includes one-on-one time between managers and the employee to discuss the
result, however, this one-on-one was perceived negatively by both parties and was not effective
in communicating the performance appraisal results. All things considered; the “traditional”
process was not driving performance. The company wanted a new performance management
system that would foster creativity, innovation, and design thinking among employees.
Rob Ollander-Krane was then tasked to develop a new performance management
process that suits Gap Inc. Rob worked with Peter Pawlick, senior director of global
compensation, as performance management and reward are heavily linked. He dived into
research, benchmarking, and brainstorming to then develop a process called GPS (Grow,
Perform, Succeed). The new system is designed to be agile, collaborative, and aligned with the
company's culture and strategy, promoting innovation, growth, and success for both employees
and the company as a whole. The 4 major components of GPS are:
1. Performance standard – Company-wide performance standard to adhere to.
2. Goals – Let employees set their own goals.
3. Touch base – A more frequent and regular touch base meeting between employees and
their managers to discuss performance.
4. Rewards – Revised its reward system.

The implementation process of GPS in early 2014 was turbulent with several challenges.
However, the 1st year result of GPS implementation was more than satisfactory. A new
challenge of implementing GPS company-wise now arises because, despite the promising
results, GPS has some flaws, it was designed for employees working in the headquarters and
has yet to be tested on employees working on the retail floor. Rob now faced the question of
whether to apply GPS to the rest of the company or not.
Organizational Behaviour and
Managing People - Assignment
NADYA ANDHANY – 29322028
Organizational Behaviour and
Managing People - Assignment
NADYA ANDHANY – 29322028
Traditional not effective: