Nordstrom Case

Point of View

I opted to take the point of view of Jack McMillan, the company president since he has the over-all responsibility and authority of the whole Nordstrom Company.

Problem Statement

What course of action should Jack McMillan take to effectively motivate the company's salespeople to achieve organizational objectives with its current reward system design.


?    To identify the underlying reasons on the dissatisfaction of Nordstrom salespeople
?    To identify the management's responsibility on resolving the current problem
?    To identify and implement proper motivation theory that will best resolve the case
?    To successfully formulate and implement plan to resolve the current scenario  

Areas of Consideration

To have a better understanding and analysis of the case in finding the real cause of the problem, the Root Cause Analysis (RCA) will be used. It is a structured step by step technique that focuses on finding the real cause of a problem and dealing with that, rather than continuing to deal with its symptoms. Root cause analysis is a procedure for ascertaining and analyzing the causes of problems in an effort to determine what can be done to solve or prevent them. It is a process to help managers understand problem causes well enough to achieve permanent resolution of those problems.

The goal of RCA is to find out: what happened, why it happened and what can be done to prevent it from happening again.

What happened to Nordstrom that lead to the present problem on motivating its salespeople?

?    Almost 500 complaints of unfair labor practices were filed by Nor ...
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