Nordstrom Case Analysis
Case Analysis: Nordstrom
October 6th 2011
Former Nordstrom employees accuse them of using unfair labor and discriminatory practices to intimidate employees and force them to perform tasks like stocking and picking up merchandise during non-working hours . Nordstrom employees receive little formal training when hired or promoted to new positions, but they are expected to perform their duties consistent with the “Nordstrom Way” which is customer service above and beyond the call of duty. Training is informally provided through on-the-job communication, which increases the opportunity for miscommunication. This communication can be deliberate due to peer competition and pressures to succeed from managers, or lack of knowledge by co-workers and managers from whom they are encouraged to seek training.
Management skills are not required to manage employees, nor is training provided to employees who achieve management positions. There is no real evaluation system in place to measure employee performance. There is no goal setting process that requires “manager – employee pair sets benchmarks for measuring progress, particularly when the employee is new in the role” (Harvard Business School Press, 2007). Goals help to define what managers expect from their employees. The only employee metric used that is measurable is Sales per Hours (SPH) even-though there are other performance criteria such as customer service and teamwork which are part of the employee evaluation process. Employees who do not achieve the minimum required SPH are categorized as under-performers. If SPH is consistently below the minimum standard set by the department manager, this can lead to termination or isolation as employees feel uncomfortable and inadequate.
Upon being hired by Nordstrom employees are told that “the three Nordstrom performance criteria: customer service, productivity and teamwork” (Buller, Paul F. and Schuler, Randall S., 2003) are
October 6th 2011
Former Nordstrom employees accuse them of using unfair labor and discriminatory practices to intimidate employees and force them to perform tasks like stocking and picking up merchandise during non-working hours . Nordstrom employees receive little formal training when hired or promoted to new positions, but they are expected to perform their duties consistent with the “Nordstrom Way” which is customer service above and beyond the call of duty. Training is informally provided through on-the-job communication, which increases the opportunity for miscommunication. This communication can be deliberate due to peer competition and pressures to succeed from managers, or lack of knowledge by co-workers and managers from whom they are encouraged to seek training.
Management skills are not required to manage employees, nor is training provided to employees who achieve management positions. There is no real evaluation system in place to measure employee performance. There is no goal setting process that requires “manager – employee pair sets benchmarks for measuring progress, particularly when the employee is new in the role” (Harvard Business School Press, 2007). Goals help to define what managers expect from their employees. The only employee metric used that is measurable is Sales per Hours (SPH) even-though there are other performance criteria such as customer service and teamwork which are part of the employee evaluation process. Employees who do not achieve the minimum required SPH are categorized as under-performers. If SPH is consistently below the minimum standard set by the department manager, this can lead to termination or isolation as employees feel uncomfortable and inadequate.
Upon being hired by Nordstrom employees are told that “the three Nordstrom performance criteria: customer service, productivity and teamwork” (Buller, Paul F. and Schuler, Randall S., 2003) are