B The union was disbanded by a vote that tried to sue Nordstrom for backpay. This system fosters employee competition, jealousy, and dissention because it will only allow the best service people to survive. Formal training of employees is both costly and time consuming. Develop and roll out a company-wide Standard Operating Procedure handbook using input from outside sources in order to achieve desired results. There was a lot of litigation that transpired because of this system and employees were compensated. They are also encouraged to develop a solid customer base.
Roll out on-the-job training for all employees, ensuring that all employees understand how to perform their job functions. The system works entirely off commission and weeds out those people that just sits around and wants to collect base pay.
They should meet on an on-going basis to discuss employee progress for each performance criteria. Sorry, but copying text is forbidden on this website. Click to learn more https: Nordstrom does not have a formal company-wide evaluation form, therefore there is no consistency in the evaluation process. Goals can then be tailored for each department. Nordstrom should establish formal and consistent Standard Operating Procedures, to which their employees can resort to for guidance.
Employees are given the flexibility to essentially manage themselves and track their own progress with one objective: Employees and managers never collaborate to set individual goals, instead goals were set by departmental managers or store managers, but employees are still expected to achieve goals.
Accessed May 23, Notify me of new comments via email. Dissension in the Ranks? Self-motivation courses are offered to both employees and managers with emphasis on setting daily accomplishments.
Nordstrom Case Analysis Essay
Employees who do not achieve the minimum required SPH are categorized as under-performers. There is no etudy evaluation system in place to measure employee performance. The evaluation technique is different for each manager, making it difficult to compare employee performance across the different functional areas in the company. How about receiving a customized one?
Employees can track how they are performing in relation to their peers on a regular basis, as SPH figures are displayed for all nordstfom see via charts and electronic printouts.
Employees might not have the educational capacity to learn new techniques. Dissension in the Ranks? They are also encouraged to develop a solid customer base.
Outstanding performance was expected from all employees even-though goals were not individually tailored. Develop and roll out a company-wide Standard Operating Procedure handbook using input from outside sources in order to achieve desired results.
Nordstrom Case Analysis by Louis-Victor Jadavji on Prezi
The only evaluation employees receive is from their manager, there is no secondary layer of management to review the employee performance evaluation to ensure fairness.
The time spent training employees lowers SPH as this time would be considered non-selling hours. A The question here is if it is fair to blame Nordstrom for the system they set up — Sales per Hour? If you contact us after hours, we’ll get back to you in 24 hours or less.
Management skills are not required to manage employees, nor is training provided to employees who achieve management positions. They also encourage hard work by promoting from within which motivates employees to work hard as a promotion stidy lead to a higher salary and other incentives.
This system only allows the hard working people that help the company create revenue because the lazy, non productive people are easily picked to be ousted.
HBS: Nordstrom Case Study | Richard’s BADM Blog
The policy of Sales per Hour is norcstrom constant measure of how each sales person is doing relative to one another. Formal training along with on-the-job training would help to alleviate some of the obstacles faced by current or new employees who are promoted to new positions within the organization.
Their only focus was ensuring that Sales per Hour SPH remained high, employee development was not important to managers.