This cases 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.
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.
Answer the following questions
1. Nordstrom creates an open atmosphere, in which every associate's sales figures are made available to everyone else. While this is intended to foster creative tension, how might it lead to unhealthy destruction?
2. Twice a month, Nordstrom releases sales figures and rewards top-performing employees. Is this the best type of reinforcement schedule, or would you take a different approach?