Saturday, February 28, 2009

Nordstrom (HBS 0-191-002)

Well, Nordstrom’s has raised several generations of sales forces. Just because you have a generation of employees that just don’t know any better, or maybe they know better, but the pay is just too good to risk to saying anything because the gravy train may not come anymore. This is a modern day example of the benefits of Unions, and why they still may be needed in some cases. I am not surprised at all, that the employees ousted the Union. The Union, in trying to protect their rights, was endangering their higher than industry average pay, at least that’s what the employees believed. What is more likely, is that the employees made more because they worked more hours than any other retailers in the country, they just didn’t clock in for the hours. Its companies like Nordstrom that blemish capitalism and make people champion the misguided ideas of socialism. The system that the Nordstrom family has created to increase incentive for their workforce to sale more retail than any other retailer in the country, no long with hold water in the 21st Century. Not only that, but its dangerous for the company to continue to do business like old granddad did in 1901. The system could be easily changed in several small ways to #1 - be more humane, #2 - be more legal, and #3 - less suppressive to their employees.

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