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Issue Management at Gap Inc.

Low morale and absenteeism of are serious problems of Gap Inc. that cuts across industry. On a distinctive day between 2 and 4% of employees at Gap Inc. fail to show up for work, which does not sound like a high rate of absence, but more time is lost for the reason that of low morale and absenteeism than through strikes and lockouts. The yearly costs of low morale and absenteeism in the United States are estimated to be $29 billion and a change of 4. 99% in the national absence rate changes the gross national product by $10 billion. (London, 2003) A great number of studies are done to identify the determinants of low morale and absenteeism.

Many variables are found to be considerably related to indices of absence, the results appear to be unstable across situations and time. The Way Incentives Work Every incentive program is based on a formula for enhancing motivation that engages four fundamental variables: effort, performance, outcomes, and satisfaction. The logic behind these programs goes something like this: employees at Gap Inc. will put in the accurate quantity of effort to meet performance hopes if these part time employees at Gap Inc. obtain the types of outcomes that include pay raises and promotions which will provide part time employees satisfaction.

In simpler words, Gap Inc. should provide its employees what they want, and employees will work hard to get it. Effort => Performance => Outcomes=> Satisfaction Conversely, the problem with most incentive programs like of Gap Inc. is that they centre exclusively on the submission of outcomes and overlook the three beliefs that are the key to making the motivation solution work: • Can one do it? • Will outcomes be tied to one’s performance? • Will outcomes be satisfying to one? The first conviction compacts with the relationship between employee effort and performance.

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The second compacts with the relationship between performance and outcomes. And the third compacts with the relationship between outcomes and satisfaction. These three beliefs form the basis of the belief system of motivation and performance. Accepting that these beliefs are decisive preconditions for motivation helps to explain why incentive programs generally yield such lacklustre results like in case of Gap Inc. Since employees do not always hold these beliefs to be true, attempts to improve motivation by using incentives cannot make the grade, even when the incentives are highly desirable ones.

Types of Motivation Problems One cannot do it Motivation problem: Lack of confidence Associated feelings: Self-doubt Anxiety Frustration Outcomes are not tied to one’s performance Motivation problem: Lack of trust Associated feelings: Scepticism Disbelief Mistrust Outcomes will not be satisfying to one Motivation problem: Lack of satisfaction Associated feelings: Anger Rebelliousness Low Morale and Absenteeism At Gap Inc. a major transformation attempt only makes difficult the situation. If any of three beliefs are shaky to begin with, organisational change at Gap Inc. can weaken them even further.

The result is often serious motivation and performance problems, at a time when organisations can least afford them, and a resultant surge in the negative emotions associated with change. When an employee believes ‘one cannot do it’ for example, one may develop a lack of self-confidence and begin to experience many of the unpleasant feelings that go along with it: self-doubt, anxiety, and frustration. About a year into the change effort, one manager portrayed the inner turmoil one went through by comparing the restructuring to building a ship at the same time one is trying to sail it. (Mele, 2003)

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