Consider the following description of a firm-wide strategy pursued by Procter & Gamble:* Procter & Gamble (P&G), the world's largest consumer products company, follows a fairly unique strategy: P&G appeals to the heart and cares about human needs. In other words, P&G attempts to touch and improve the lives of its consumers all over the world. As an example, take the razor- and-blade innovation pioneered by Gillette's Himalaya team, which focuses on India but is a global group based partly in Boston, USA. The team received information about how men in India shave: about half of them use barbershops and barbers usually break double-sided blades in two and used them repeatedly, which crates unsanitary conditions. With the strategic goal of improving the lives of its customers, the team created a razor-and-blade innovation that simplified the essential features of the shaving done in barbershops. The products were a success in terms of improving both the human condition and profitability. As a second example, consider a situation in P&G Brazil, where P&G feared a shutdown due to decreased business volume. Low-income consumers were the fastest growing segment of the population, but P&G's global premium products were too expensive for this market segment. Local P&G teams decided to live with families, scrutinized every P&G process in an attempt to reduce costs, and ended up creating an innovative products line they dubbed "basico" (for "essential" in Portuguese). The team members felt that they were doing good for the world, not just making money for the corporation. Demand immediately outpaced supply when the first "basico" products were launched, which included women's hygiene, diapers, and greener laundry detergent. The company quickly captured market share through small neighborhood shops and premium products were lifted. The business in Brazil became a profitable global growth model, and not just for emerging countries. As a consequence, "Tide Basic" was recently introduced in the United States. In sum, P&G's strategy inspires employees to add their hearts to their heads and aims at finding creative solutions when purpose-inspired opportunities and commercial considerations seem to collide. Questions: 1.1 Imagine you are an HR manager at Procter & Gamble (P&G). Given the company's strategic orientation toward purpose and values, what would you do to help align a new performance management system with the strategic plan? How would you explain this relationship? [20] 1.2 The implementation of a well-designed performance management system can be a game changer for any organization, as employees are mobilized to focus on the work that matters most to execute business strategy. How does the implementation of a well-designed performance management system at Procter & Gamble (P&G) tie/translate into a high-performance company? [10] QUESTION 2 There are many advantages associated with the implementation of a performance management system. 2.1 Explain the advantages and make a business case for implementing a well-designed performance management system. [10] Poorly implemented performance management systems, for an organization, not only do not make positive contributions but also can be very dangerous and lead to several negative outcomes. 2.2 What are some of the negative consequences associated with low-quality and poorly implemented performance management systems? [10] QUESTION 3 One of the purposes organisations, use performance management system for, is to make decisions about employees' rewards. For many employees, this is perhaps one of the most meaningful consequences of a performance management system. 3.1 Discuss how a performance management system is used to allocate rewards. [10]