C H A P T E R 1 An Investment Perspective of Human Resource Management
Human Resources at Nordstrom How can a retailer gain a competitive advantage in a cut-throat marketplace? Middle- and high-end retailers generally locate in close proximity to each other and often carry similarbut not identicalmerchandise. Consequently their sales and profit margins are usually in tandem. Nordstrom, however, has consis- tently produced above-industry-average profits and continues to be profitable when its competitors profits are falling or flat.
The key to Nordstroms success lies with the different way it manages its employees. Sales employees are known as associates and considered the orga- nizations most valuable asset. The companys success is rooted in its strategy of providing superlative customer service. Associates are encouraged to act as entrepreneurs and build strong personal relationships with customers, or clients. In fact, many clients shop only with a particular Nordstrom associate and call in advance to determine the associates schedules or to make appointments.
Nordstroms strategy involves a heavy investment in the organizations sales force. Nordstrom provides associates with extensive training on merchandising and product lines and offers high compensation. Its commitment to its employ- ees is evident from the fact that the companys organization chart is depicted inverse from that of a traditional retailer. Associates are at the highest level on the chart, followed by department and merchandise managers and, finally, executives. This depiction cements the organizations philosophy that the customer is king. All efforts of senior-, middle-, and lower-level managers should support the efforts of the sales force.
L E A R N I N G O B J E C T I V E S
Understand the sources of employee value
Gain an appreciation of the importance of human capital and how it can be measured
Understand how competitive advantage can be achieved through investment in employees
Gain an appreciation of metrics, their measures, and their usefulness
Understand the obstacles that prevent organizations from investing in their employeesUse Attached Document as main Reference to answer Question
Recent Comments