A problem came along with the introduction of accounts of personal grievances and skills by two former sales clerks from the company. The two sales clerks had different emphasis on how to go along with sales jobs but, both had a reference to common problem. One of the clerks was focused on the issue of working off clock while the other stressed that employees were facing harsh treatment from the management. The main problem as elaborated from the case involved the implementation of the performance evaluation mechanism referred to sales per hour, by the management. In addition, the problem also focused on lack of difference between hours of sales and off hours. Claims were that some sales clerks performed extra duties such as preparation of sales merchandise, writing appreciation notes, attending mandatory meetings and many others during their extra times. Clerks had to perform these duties because the existing performance evaluation system demanded them to maintain a higher “sales per hour” ratio (Faludi, 1990).
Alternative solutions
In order to avoid such problem occurring time and again, Nordstrom management should chose another performance evaluation system that fits the needs of employees. For example, a solution could be reached through developing a performance evaluation application that evaluates performance on basis of Sales Volume. The following evaluation places the sales clerks in a better position to time their activities within the provided business hours and avoid attending to overtime schedules. Secondly, the management could introduce the Sales on per Hour system that was used in 1960s. The following performance evaluation system made the company become the best retailer irrespective of the method of measurement used. Thirdly, employees suffered a lot because the compensation practice used never considered business hours and non-business hours. “Non-sell” hours were treated like “sale” hours leading to a reduction in sales per hour ratio that greatly affected their total compensation. Employees came with a solution whereby nobody was to punch the clock during mandatory meetings in order for the management not to record their working hours.
Best solution
Out of the three solutions provided, the best solution would be adoption of sales per hour system. The following solution would ensure sales clerks get compensated for ‘non-sell” hours as long as an individual has not left the premises. In addition, the system would ensure proper maintenance of each sales clerk records on the entry and departure time in order to determine the number of hours worked per day. Moreover, the system will recognize extra hours spent in office and compensate employees accordingly. This system will eradicate the above mentioned problems and make the company a leading retailer shop once again.
Action plan
Because the company management penalizes employees due to failure of reaching the performance points, a system that promotes employees morale should be set up. The action plan would involve developing a system that makes hours of work slower for better commission rate than in busy hours. The following system will ensure even distribution of working hours regardless of the nature of work. In addition, another plan would involve setting up a more centralized management that ensures all managers are ever busy. The following plan would place mid-managers report to a senior manager to minimize their freedom that prompts them to carry out personal businesses. Moreover, the organization needs to improve on its productivity calling for a good team work in the workforce and effective cooperation between employees and the management.
Reference
Faludi, S. (1990). “At Nordstrom Stores, Service Comes First-But at a big Price,” Wall Street
