Management Organizational Structure Of America's # 1 Customer Service Company

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Figure 1. Management Organizational Structure adapted from The Nordstrom Way. The Inside Story of America 's #1 Customer-service Company by R. Spector & P. D. McCarthy, 1999, New York, NY: John Wiley & Sons, Inc.

Each employee must have an entrepreneurial attitude in order to survive within the company. Each staff member is responsible for making sure the customer experience is the best experience possible and if something needs to be changed, the employee is empowered to make that happen with the full support from upper management. The customers and sales staff will influence what the buyers will search for when it comes to inventory especially since the buyers are assigned to specific regional stores. This ensures that different
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Nordstrom, Inc. developed the goal setting approach set by the employees themselves; however, they are encouraged to set the goals higher each year and to compete against colleagues. If the metrics are not met, the individual is terminated. The metrics measured during the technology advancement innovation stage are handled by the Nordstrom Innovation Lab with the use of case studies and influence from internal and external avenues.
Incentives and Rewards The reward system is just as important as any business or innovation strategy as it maintains a continuous cycle of creativity based on the idea that individuals and teams are rewarded either monetarily or non-monetarily for their successful ideas and implementation of innovative strategies. According to Birkinshaw, Bouquet, and Barsoux (2011), the social recognition received for successful accomplishments rivals that of the monetary reward. Nordstrom was one of the first retailers to provide a commission to its sales staff which was highly successful, however when other industry leaders began instituting the same commission reward, it failed to accomplish the desired objectives (Pfeffer, Hatano, & Santalainen, 1995). This was primarily due to the fact that the base pay was reduced by competitors where Nordstrom actually increased their base pay. The other piece that Nordstrom implements successfully is the concept that promotion is from within only. This provides for that sense of accomplishment
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