Nordstrom Dissension In The Ranks A Summary PDFPeace & Conflict Studies (PACS) 3. HBS: Nordstrom: Dissension in the Ranks (A & B)The Nordstrom case demonstrated how a company can create systems that manipulate employee behaviors, in a way that saves the company money. In this case Nordstrom had set up a payment system which rewarded employees who didn’t claim payment for all hours worked. The SPH (sales per hour) system provided employees and their managers with a ratio of how many sales each employee had achieved per hour. The problem with this is it contradicted with other parts of the sales clerk job, such as customer service and being a team player. Indeed, the employees did not spend all their time focused on gaining customer sales on the sales floors, often spending part of their time stocking, in meetings, making window displays, collecting goods from other stores, sending thank you notes, among other tasks. This time contributed to their selling time as it can be seen that these things all help a sales clerk increase sales. While employees who claim for all time worked receive the highest financial compensation short- term, long- term the systems were set up to reward sales clerks with the highest SPH. For example, sales clerks with strong SPH ratios were more likely to be promoted and be given more hours and better schedules than sales clerks with low SPH ratios. In order to maximize their SPH it was in a sales clerk’s interests to claim a lower amount of hours worked. While eventually these systems resulted in law suits, the majority of employees remained loyal to Nordstrom and the lawsuits did not put the company out of business. One has to ask when reading this case why Nordstrom were able to influence their employees to not claim pay for all hours worked? I believe that the reason why the systems were able to operate in this way without many complaints, is directly related to the type of employees they hired. The employees Nordstrom hired appear to be primarily motivated by career progression. Most of the employees were college grads looking for careers in retailing. Nordstrom empowered their employees to view sales as a way to run their own business, the company also only promoted from within, thus sending out the message that if you work hard and become a `citizen’ of the company you can advance. This inspired their career focused employees to look at the long- term picture, even if that meant losing some earnings in order to remain competitive relative to other sales clerks. The Nordstrom case reminded me to a smaller extent of a retailing job I had right after high school to save for college. The retailing job in question, required all sales clerks to spend on average about thirty minutes after our shift tidying the store and ensuring all clothes were equally spaced on racks. Like Nordstrom this extra time was not documented anywhere – we did not punch a clock and the scheduled hours (which did not include the extra thirty minutes or so) were submitted to a national payroll center who had no idea of how our store operated. Sure complaints happened at the local level but like Nordstrom the retailer in question were able to make this system work due to the employees they hired. Almost everyone working in the store was around 1. Nordstrom Dissension In The Ranks Pdf WriterThe employees were a mix of those saving for college and those who wanted to build a career in retailing. Reading the Nordstrom case and thinking back on my experience, made me question just how many companies have systems in place that result in employees working for free for even a small fraction of their time? Related. Tags: BADM 7. Nordstrom Dissension In The Ranks Pdf To JpgHarvard Business School Case Study: Nordstrom: Dissension in the Ranks? Posted by Brett McElhaney under Leadership, Uncategorized. Nordstrom: Dissension in the Ranks (B) case analysis, Nordstrom: Dissension in the Ranks (B) case study solution, Nordstrom: Dissension in the Ranks (B) xls file. Nordstrom: Dissension In The Ranks? This is a response to the case study looking at Nordstrom and how they handled unrest concerning their system of compensation. Nordstrom: Dissension in the Ranks? Published Jul 24, 1990. In this case Nordstrom had set up a payment system. 2 Responses to “HBS: Nordstrom: Dissension in the Ranks. Follow “Marie Wiere's MBA Blog. Nordstrom: Dissension in the Ranks? Save; Share; In Stock. English PDF 5.00; English Hardcopy Black & White 5.00; Spanish PDF 5.00.
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