Nordstrom creates an open atmosphere, in which every associate’s sales figures are made available to everyone else. Explain the positive impacts. Nordstrom’s Performance Goals

Nordstrom creates an open atmosphere, in which every associate’s sales figures are made available to everyone else. Explain the positive impacts.
Nordstrom’s Performance Goals

This case focuses on the issue of performance. As discussed in the text, clear and effective goals help improve employee performance, reduce role stress conflict and ambiguity, and improve the evaluation of employees’ performance. The text also discusses the various elements that are involved in managing performance. These include defining performance, measuring it, providing feedback, rewarding poor performance, and correcting poor performance.

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At Nordstrom, employee performance is directed towards a single goal – extraordinary service that produces extraordinary sales volumes. Every measure by which an employee is evaluated and rewarded is based on this goal. This is evident in Nordstrom’s training programs and its reward and incentive structure. A central way in which Nordstrom tries to improve employees’ performance is by fostering an open, competitive environment in which employees are a part of teams, but also pursue individual achievements. The company encourages creative tension among associates by making the performance information of every employee available to every other employee.

Case Study: Nordstrom: Performance Goals

The sales staff at Nordstrom is motivated to give extraordinary service, because extraordinary service produces extraordinary sales volumes and extraordinary profits. Like competitive athletes, these employees are highly focused, eye-on-the-prize individuals who pay full and careful attention to the individual customer.

Nordstrom regularly distributes videotaped interviews with top salespeople who share advice to fellow employees. Staff meetings become workshops in which associates compare, examine, and discuss sales techniques. Nordstrom also employs STEP (Sales Training Education Program), developed by the Washington region’s personnel department which enables associates to share information with other salespeople and department managers.

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