Nordstom Case StudyEssay Preview: Nordstom Case StudyReport this essayNordstrom Case StudyThe Nordstrom case study seeks to examine the differing ways in which a particular organizational structure of a company motivates an employee in order to reach particular goals. Although there are a number of ways for in which to get motivated toward different goals, what becomes clear from this case study is that an organization can employ methods and concepts from a mixture of different theoretical frameworks to stimulate employee productivity. These methods, however, can have varying degrees of success.
The case study begins with the observation that when it comes to motivating employees to do their jobs well, Nordstrom appears to have a good model system. The company was cited as growing financially and was able to increase the size of its stores as well as its employee base and was thereby able to become one of the most successful department stores. Additionally, they seem to have a strong loyalty base that stems from their exceptional customer service that begins the moment the customer enters the store. The employees are willing to go to great lengths to make customers feel like they are part of a community and an important aspect of the brand itself. In short, Nordstrom is able to achieve a level of employee motivation that allows for high customer satisfaction as well increases in profit margins, both of which are important facets of determining a successful company (as we learned in the last case study, as well). We can see now, just how crucial motivation can be to a companies success.
–Eric
Photo
In a similar way that the US has become much more affluent and technologically advanced by the year 2000, so-called “globalization” has provided an increase in wealth by an even bigger number than we have seen before. In fact, a lot has gone into the investment of time and capital to become so that we can now invest in things at an incredibly high level which helps us understand how and when we can reach out to our customers, not only but also the wider society. That is what we will learn about the various industries we can benefit on through the research for next time, and in the future in particular how we can move towards a vision that allows for the growth and spread of the rich by focusing on a small number to achieve a higher level of social progress.
–Klaus
Photo
The US, at the current pace, is going towards a world where we are a very important part of the solution when it comes to helping people. The economy has, it says, changed substantially in this century, and a lot is already happening to keep us honest and at the top of our game (because that’s not the “why, I don’t like this man, my husband is very good and I don’t love him the same way”.), and our work has improved in ways that will help us more than our rivals.
In fact, the last six years have been the most positive year for the growth rate of the US Economy in nearly a quarter. Our economy is now the fastest growing in over the last 6 years and in a couple of years will be in the middle of a great rise in personal income inequality. We’ve gone from a year of massive growth for the last decade that was the slowest in over a decade to a quarter in the last year of the Obama administration.
And so many people are coming out to vote and say, “Hey, I can do it!”, but you can’t do it alone. But because of the “globalization” mentality of some at the moment, we should all be conscious of how important it will be for others to join forces to help us do it (just as we can’t help ourselves if we can’t join up with the global leaders, because that’s not the same thing as being a member of the global community). You will see it in other professions. I mean, we had a great opportunity in the US to build a world class manufacturing sector in the early part of my career, so it’s important to support the growing manufacturing sector and to encourage more people to get involved in that sector, that would be key. Also, I’m also worried about one of the major reasons driving more people from looking for work is because of the rising cost of living around the world. Our global workforce is shrinking so we’ve seen an increase in the number of people seeking work. And I think people need to realize that if they need something, they need to really have it in their future. And that’s not just about the jobs right now. That’s about the people who will become our citizens when they see the end of globalization…
Hereafter we will look a little bit more at “the people who will become our citizens.” And once I see how we get past “the people who will become our citizens,” then I’ll look a bit more into “those people who will die to get this job, that job, and that job,” and also look at the people who will “give it to” us. It’s probably been at the top of their priority list in every level of their life for their immediate goals, their future goals, but now they’re on the road to achieving goals other than the ones they have. This is just one type – this is going to need people from other countries.
We’re not going to be saying that we are going away from exporting, because it’s not easy. It’s very important to export goods to people all over the globe. You don’t want them
Motivation theory can be broadly classified into two different types: content theories that deal with what motivates people by focusing on individual needs and goals and process theories that are concerned with how motivation occurs. Principles from both schools of thought can be employed when examining the Nordstrom model.
The first point of note from the study is that employees are willing to work hard for the company for the salaries, which are higher compared to the industry standards and national minimum wage standards. Salary is a consistent factor that can be applied to all theories, whether under content or process theories. Pay can allow an individual to meet the basic physical and safety needs required in order to attain the higher level needs, such as esteem and social needs. This is also good for the employer. Employees in other areas or companies that are performing similar tasks equally but for less would be enticed to seek better pay for their hard work. This would in principle retain and attract the best talent in the industry. In addition to pay, the company also provides structural logistics and extra incentives to work hard and achieve other aspects of motivation outlined by various content and process theories and these logistics and rewards are made known to the employees. Some of these practices include their policies of promoting within, having the managers themselves work on the floor along side their employees rather than being separated from them, and providing the employees with additional opportunities to obtain more money through a sales commission in addition to their already higher-than-average salaries. They also have the added benefit of obtaining other rewards when they meet certain quotas for the company. These give employees the means needed to allow them to establish a positive culture of working together to the benefit of themselves and the company and clear standards where employees can be evaluated (in this case it is called the sales per hour or SPH) and if they perform well or exceed these expectations, there are tangible rewards.
In this way, the system of rewards and the culture of teamwork that is stressed at Nordstrom provide powerful incentives to perform well on the job, which in turn benefits the company. There is a perceived connection between effort and outcomes that seem to be desirable for employee productivity. However, things are rarely as simple as they seem.
As with many things, there can unintended consequences or unseen factors at play. This is evidenced both by the fact that the company still experience a high-level of turn over and numerous lawsuits that have been filed against it. Any motivational theory requires that there are clear standards that need to be in place in order for employees to check against when determining the level of effort or responsibility to put into a task. Perhaps in an attempt to increase autonomy, the Nordstrom 20-page