Nordstrom

Nordstroms problems Nordstrom is a pure contingency of how perplex and counterproductive the business becomes if a organization is non properly knowing or implemented. Nordstroms intentions were very goodish when they launched their customized mend rate allowance technique called Sales Per Hour (SPH) for the first duration in the retail industry. Their plan was to motivate all the sale employees to say and act after-school(prenominal) the box and earn tremendous customer mirth thus augmenting the gross gross sales.Their intentions were good besides they havent really judge the problems that they faced collectable to this idea, thus failed to create a musical arrangement which was fool-proof and accolade for the employees. For example, the SPH arranging was plume such that the employee with higher SPH gets compensation more(prenominal) than than the cardinal with slighter SPH. that it doesnt account for the quality of build through with(p) in coiffe to c reate that contingent sale. What if a customer takeed more hours to draw lesser dollar amount to satisfy the customer?Does that sozzled that the sales salesclerk deserves less money than someone who does a less intense work to create more SPH? The fine line among selling period and non-selling time was not properly documented or practiced, which in a way brought the entire form down. Nordstroms wariness always were on a single entwine reading treat of reacting according to that particular situation and foc apply on the motivation looking of the employees to enhance their sales but never concentrated in a doubly loop learning process of how things can be change or what tycoon go wrong with this idea etc.If they had implemented the double loop learning and be more proactive in extrapolating the glitches of the arrangement, they would never have end in a position like the one the nerve mentions about. Nordstrom had used the expectancy theory of motivation for compensa ting their employees. When a sales clerk conjugated Nordstrom, he/she expected that they first will be valued and alike will be compensated for their performance which is right away tied to rewards and reinforcements.This system proved to be fatal for Nordstrom. One more problem with the system failing is the decentralized process created within Nordstrom which never allowed good oversight of the employees and the sales clerks from the managerial side. A decentralized system has advantages of increased creativity, get out communication and more efficient environment but suffers from lack of co-ordination and control between different departments thus creating silos within the work environment.This exactly was the case in Nordstrom where managers never realized the failure of the system and the issues of the sales clerks with the SPH system until it got nasty. Having said that, Nordstroms SPH system succeeded for a considerable time by motivating employees to give their hundre d percent and generate more sales thus creating a name for themselves. Nordstroms close in any case include punishment and reinforcement when the case mentioned that if an employee has lesser SPH, he/she served decreased hours or possibly was terminated.This brings all the employees into a vulnerable secernate where they cannot deliver their best. It also creates an unhealthy competition among the employees and they work against each otherwise rather than working together towards a common goal. All systems, not matter how oversized they are, fall at some point if not properly designed or implemented like a microscopic crack in the wall can dilapidate the entire house. Alas, that was the case for Nordstrom.NordstromNordstroms problems Nordstrom is a classic case of how complicated and counterproductive the business becomes if a system is not properly designed or implemented. Nordstroms intentions were very good when they launched their customized piece rate compensation techni que called Sales Per Hour (SPH) for the first time in the retail industry. Their plan was to motivate all the sale employees to think and act outside the box and earn tremendous customer satisfaction thus augmenting the sales.Their intentions were good but they havent really anticipated the problems that they faced due to this idea, thus failed to create a system which was fool-proof and awarding for the employees. For example, the SPH system was set such that the employee with higher SPH gets compensation more than the one with lesser SPH. But it doesnt account for the quality of work done in order to create that particular sale. What if a customer worked more hours to generate lesser dollar amount to satisfy the customer?Does that mean that the sales clerk deserves less money than someone who does a less intense work to create more SPH? The fine line between selling time and non-selling time was not properly documented or practiced, which in a way brought the entire system down. N ordstroms management always were on a single loop learning process of reacting according to that particular situation and focused on the motivation aspect of the employees to enhance their sales but never concentrated in a double loop learning process of how things can be improved or what might go wrong with this idea etc.If they had implemented the double loop learning and be more proactive in extrapolating the glitches of the system, they would never have ended in a position like the one the case mentions about. Nordstrom had used the expectancy theory of motivation for compensating their employees. When a sales clerk joined Nordstrom, he/she expected that they first will be valued and also will be compensated for their performance which is directly tied to rewards and reinforcements.This system proved to be fatal for Nordstrom. One more problem with the system failing is the decentralized process created within Nordstrom which never allowed good supervision of the employees and t he sales clerks from the managerial side. A decentralized system has advantages of increased creativity, better communication and more efficient environment but suffers from lack of co-ordination and supervision between different departments thus creating silos within the work environment.This exactly was the case in Nordstrom where managers never realized the failure of the system and the issues of the sales clerks with the SPH system until it got nasty. Having said that, Nordstroms SPH system succeeded for a long time by motivating employees to give their hundred percent and generate more sales thus creating a name for themselves. Nordstroms culture also included punishment and reinforcement when the case mentioned that if an employee has lesser SPH, he/she served decreased hours or possibly was terminated.This brings all the employees into a vulnerable state where they cannot deliver their best. It also creates an unhealthy competition among the employees and they work against ea ch other rather than working together towards a common goal. All systems, not matter how big they are, fall at some point if not properly designed or implemented like a small crack in the wall can dilapidate the entire house. Alas, that was the case for Nordstrom.