Thursday, February 11, 2021

Nordstrom: Dissension in the Ranks?

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Question 1 Use the criteria outlined in the Lawler "Expectancy Theory Model" to evaluate the design of Nordstrom's compensation system. How well does Nordstrom's compensation system fit the Expectancy Theory Model?


Jim is looking for a candidate who not only has the skills and capabilities to build a 50-person, $0 million business in -4 years, but also has the personality to work well with the existing leadership team at Bitstream. In addition, he is looking for someone who has experience working with networking products as well as with Value Added Reseller (VAR) and other indirect sales channels.


Formal education is not as important for this requirement as is experience. However, a bachelor's degree has been added as a minimum requirement per the industry norm. While it is possible for a candidate to be successful without a college degree (e.g. Bill Gates and Richard Branson), statistically a college degree is generally correlated with better performance.


Jim is also looking for a candidate with diverse experience who can quickly start to develop the new business. As Jim says, "The job requires someone who is a seasoned professional…we neither have the time nor the experience in-house to teach someone how to run this business ."


A complete list of requirements was compiled, based on the needs Jim expressed, in order to create a job profile for the position. This profile (see Appendix A) highlights the various knowledge, skills and abilities that are necessary for the position.


Question Based on this analysis, would you recommend that the compensation system at Nordstrom be changed? If so why and how would you do this and still maintain superior customer satisfaction and high sales?


Two key components of a candidate's qualification are background and personal factors . The background factors consist of education and experience, two factors that can be determined by reviewing a candidate's resume. It is important however, to validate the contents of the resume by contacting references and by interviewing the candidate.


Personal factors include, intellectual ability, personality, and motivation . As Jim has mentioned that skills alone are not sufficient for this position, the personal factors take on added importance in the selection process. Bitstream desires a quick learner who is not only results oriented, but also a team player. These particular characteristics cannot easily be determined via the resume, and need to be explored through effective interviewing (see question 4).


The requirements for the candidate have been cross-referenced with the background and personal factors to create a scoring matrix (see Appendix B). Each factor has then been given a scoring range (between 1 and ) with an explanation as to the meaning of each score. The score entered by the interviewer is multiplied by a weight, reflecting the importance of that factor or sub-factor, resulting in a total weighted score.


The purpose of this matrix is to attempt to formalize the interview process as well as to try to remove bias that may occur through 'gut-feel' decision-making.


Question Should Nordstrom change any of their other human capital management practices? If yes, how?


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