Nordstrom

Prepared for the Nordstrom Executive Management Team Success: The Nordstrom Way CONTENTS DIAGNOSIS OF THE job3 OPPORTUNITY OVERVIEW4 ANALYSIS5 Management Model……………………………………………………………………….5 Compensation……………………………………………………………………………..5 passport6 Revamp Corporate Culture and Implement Compliance Measures6 give-up the ghost SPH Compensation Policy………….....………………………………………..7 JUSTIFICATIONS9 RISK 10 CONCLUDING REMARKS10 BIBLIOGRAPHY11 EXHIBITS………………………………………………………………………….. .….12 DIAGNOSIS OF THE PROBLEM Nordstroms decentralized social organization, financial controls and compensation policies have served to create i of the most productive workforces in the retail industry. Ironically, the same elements that enabled Nordstroms success are responsible for its current misfortune. The decentralized structure of Nordstrom has compromised top managements ability to control local managers implementation of sales force management systems. This compromise of oversight, in tandem with the corporations employment of a controversial sales per hour (SPH) compensation policy, has had damaging results.

The corporations twenty-year streak of significant earnings growth came to an end in the fiscal year 1989 and the first half of the year 1990 is proving to be a public relations nightmare (Westin, 1999, p.8). While just about of the financial exhalationes can be attributed to a slow down economy, others are directly think to retroactive wage payments ($0.11 EPS loss for 1989) and reputational damage resulting from negative publicity (Nordstrom Annual Report, 1990, p. 4). This paper pass on serve to rectify the latter issues, which are within Nordstroms control. The retroactive wage payments and negative publicity stem from issues related to: lack of intra-corporate regulatory oversight, inconsistent culture/policy talk and employee manipulation of a cumbersome compensation system. The solutions provided are specifically aimed at... If you want to get a full essay, order it on our website: Ordercustompaper.com

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