The Nordstrom Case : Motivational Practice

826 Words Feb 22nd, 2016 4 Pages
The Nordstrom case suggests a controversial motivational practice that the stores implement to empower their salespersons.

Before analyzing those motivational practices, it is essential to understand the core to the Nordstrom’s business - the customer service, known as the Nordstrom Way. As stated in the case, it is “the customer service like no one else offers, service above and beyond the call of duty.” In order to achieve the Nordstrom Way, the stores request their salespersons to be “upbeat, ambitious but, at the same time, selfless.” They keep personal books listing each of their customers and record every activity and correspondence; they send out thank you letters to customers for purchases regardless of how small the transactions are; they personally deliver purchases outside of work time and even on holidays. The approach has proven to be successful, as it cultivates the loyalty within the customers and generates glowing sales records. On the other hand, because the Nordstrom Way is result orientated, extra works are justifiable as long as they lead to the successful sales. Salespersons have to sacrifice their off duty time as these are often considered “extra” and “non-selling” activity.

Given the high demand of sales involvement, Nordstrom implements certain motivational practices to keep their employees going. They first offer generous compensation packages, which are above industrial standards. They structure their compensation as hourly rates, which…
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