Nordstrom Case Study

When Nordstrom saw a year where net income did not increase many people started coming up with reasons as to why this had happened. I feel like a majority of the blame can be placed on the system in which the employees are a part of. Management tried to use a “sales per hour” system to foster competition, but it had an opposite effect on the members of the sales team. People began stealing each others’ sales and led to less teamwork and more individuality and selfishness. Employees began spending much longer hours at work in order to try to attract more customers and increase their sales number; this led to employees becoming overworked and burnt out which led to less productivity. So I feel like Nordstrom’s goal to increase sales through employee competition might have been a good idea but since it wasn’t thought out all the way and administered correctly it backfired on the management team.

I think it’s important for management to begin repairing relationships between the employees and to encourage them that the way they will be most successful is by working as a team. They can still keep some sales goals, but it can be rewarded on the basis of the sales group as a whole striving for a certain level of sales. By giving the entire team something to work for, Nordstrom’s customers will benefit in the long run because employees will be helping each other complete sales rather than hoping a sale doesn’t go through. Employees are being judged and rewarded on behaviors that management shouldn’t be promoting. If everyone would take a new look at what is really going to make the company most successful all stakeholders would see greater, more desirable outcomes.

Nordstrom can start by reorganizing their whole sales structure and convincing the employees that teamwork is what is really expected of them and that the only way the company will truly be successful is if they stop with the negative competition. It isn’t healthy for the company or for the longevity and job satisfaction of the employees. Sooner or later they won’t be able to handle the negativity surrounding them and they will leave.

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Published in: on October 6, 2009 at 8:18 PM  Leave a Comment  

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