Nordstrom Organizational Behavior

1603 words 7 pages

“Fashion changes. Shopping changes. Our commitment to happy customers doesn't.”
Nordstrom today is currently operated by a fourth generation of the Nordstrom family, an executive team, and a talented team of innovators and fashion leaders. Nordstrom has grown from a small downtown Seattle shoe store into a nationwide fashion specialty chain. It offers a tremendous selection of shoes, accessories and an extensive range of services to make shopping a fun, efficient and convenient process. In 2011, the company was recorded as achieving an all-time record for total net sales at $10.5 billion.
In 2014, Nordstrom “serves customers in 38 states with 118 full-line stores in the United States and one in Canada, 167 Nordstrom Rack
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Nordstrom only has one rule for their employees, which is to “use your best judgment”. Once they are hired, it is the department manager’s role to further train the employee. Because every Nordstrom store and department is different, behaviors and mannerisms may vary between stores. Each manager may have different expectations on how they perform various tasks, but every department and store at the end of the day has one common goal, which is to ensure customer satisfaction.
One of the factors that has allowed Nordstrom to become so successful is the manner in which they manage their employees. Nordstrom believes in a number of things that are necessary in order to have a high quality work force. These include paying their employees well, selective hiring of their employees and being decentralized. All employees are eligible to receive a 401k Plan, stock options, benefits, and healthcare. Majority of employees are paid on a commission-based salary that allows the ability for each individual to create their own salary. Each department has a different commission break down depending on the profitability of the department, ranging from 3% to 14.5%. It is important to note that the lower end of the spectrum for commission includes salary plus commission pay. This helps balance the pay for employees in less profitable departments of the company. Essentially, the more time and energy they put into their job, they will receive what they earned. Each


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