'Nordstrom: Dissension in the Ranks? Essay\r'

'Q1) What is the cause of the problems described in the case? How serious argon these problems? The chief(prenominal) problems of Nordstrom are its compensation and incentives policies that are distorted. This political party uses a Sales-per-Hour symmetry as the wind in effect evaluation and become compensation. This performance indicator is not decently balanced by other distinguished factors, such as customer satisfaction, it on the dot focus the gross revenue and the number of hours flowed. The full part of the problem is also the specialty of â€Å"non-sell” and â€Å"selling” hours. The lack of transparent performance banners also spelled trouble for the employees of the familiarity.\r\nThey are endlessly make watering a divide, not universe paid for the extra hours of work and the measure used by the SPH are not the outgo ones. Nordstrom’s employees work forth the clock and those hours are not paid. To cast off the excellent customer satisfaction that the confederation has, employees have to give birth a dowery of attention to their customers. They spent a lot of hours with them with a personalized contact and all in all of these hours are not paid. The employees are who anatomy the image, the strong customer loyalty and their desires are not being valorized.\r\nThe failure of counselling to professionalize the relationship between precaution and employees is another problem. Employees are expected to work beyond the prescribed working hours without pay in order to comply with company requirements. Nordstrom is concentrating only on numbers, they are growing a company culture where it seems that amount mattered more than quality. This compensation and incentive arranging brought some consequences to Nordstrom.\r\nThe lack of a set free distinction between â€Å"selling m” and â€Å"non-sell” leads to a big pressure to the employees since the SPH ratio doesn’t reflect the effort and work made by the salespeople. This leads to employee complaints and lack of pauperism to work in the company. Also, the existence of such fear competition could lead to undesired behavior such as stealing credits for sales from another sales staff. This motivation policy was one of the Nordstrom grand systems hardly became more a financial obligation than an advantage. Employees started to complain and soon this system became the can of law accommodates that damaged Nordstrom reputation and brought controvert media attention to the company.\r\nNordstrom was known has one of the best places to work and with this unhappiness expressed by salespeople that reputation started to drop off and the turn-over deem increased. The focus of the law instances was the pressure amah and lack of compensation for the extra hours worked. Employees were back up to work extra hours but were not compensated for them. Nordstrom was targeted with several law suits and ever so denied the a llegations made by the unions.\r\nLater, the Washington democracy Department of Labor & Industries stated that Nordstrom systematically violated state earnings and hour laws, giving reason to the unions that took good actions against Nordstrom and it had no other choice but to review their record-keeping procedures and compensate the worker’s loss. Later, imputable to the decrease of the company’s financial value as the declivity price went down, another law suit was filled again against Nordstrom.\r\nThis time it came from some stockholders that claimed to have suffered financial losses due to Nordstrom Management’s failure to deplete care of their labor problems and the claims maid. This law suit armed even more Nordstrom reputation.\r\n'