Nordstrom Essay

982 Words4 Pages
Case Analysis: Dissension in the Ranks 1. What is the cause of the problems described in the case? How serious are these problems in your opinion? Nordstrom didn't make any distinction between selling and non selling hours, the SPH of the employees accounted to be lower than what it should have been. The fear of having lower SPH forced employees to make the non selling hours off the record and this resulted in losses for the employees, in both, monetary as well as recognition of extra efforts work. The main cause of this problem is the incentive for the sellers. It causes employees to work off the clock in order to increase their SPH. Another important problem that the employees of Nordstrom confront is the peer pressure. Every employee want be in the shifts that had maximum sales to increase their sales-per-hour, so there was a lot of competition. Also, when the sellers did not meet their goals, they are punished with going to work on their days off without any extra compensation or salary for that day. The firm also has a lawsuit from 3 individual shareholders who said that they had suffered financial losses because the company had failed to report their labor problems and early claims for unpaid work. We think that the kind of incentives that the company applies force sales workers to work more time that they could and this could affect the quality of the sales. Workers work under so pressure and it could also affect the environment of working on the company because there is more competition between salespeople and less fellowship. 2. Are Nordstrom employees pressured inappropriately by the sales-per-hour system? Are they inappropriately pressured by Management? Nordstrom employees are pressured inappropriately by the sales-per-hour system. The base salary of the sales clerks is $ 9.00 per hour. Then, we have the SPH target, which is set
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