BusinessWeek TV’s Destination CEOName: NordstromCEO ofCompany: Blake Nordstrom Themes: Employee Empowerment, Strategy Short paragraph about the video. When people think of legendary customer service, Nordstrom typically comes to mind. One of the nation’s largest upscale apparel and shoe retailers, Nordstrom was founded in Seattle in 1901 by John Nordstrom. Since that time, Nordstrom has created a customer service culture that has set the standard for companies around the world. Robert Spector, author of The Nordstrom Way, discusses in his book how Nordstrom focuses on customer needs, follows up, and ensures customer satisfaction. Nordstrom emphasizes the inverted pyramid, which focuses on placing customers first, employees second, and shareholders third. Today, Blake Nordstrom, great grandson of the founder, runs Nordstrom. Blake worked in the shoe department at Nordstrom when his father was president. From its early days, Nordstrom’s culture has empowered its employees by allowing them to find extraordinarily ways to please customers. In 1971, Nordstrom went public. Today it trades under the symbol of JWN on the NYSE. 3-4 multiple choice questions with answers regarding video topics Where is Nordstrom headquartered?New YorkSeattleChicagoHoustonNordstrom is most known for which of the following management principles?Management by objectivesPromotions from withinEmployee EmpowermentCentralized decision makingWhich of the following business-level strategies does Nordstrom utilize?Low costDifferentiationConglomerate diversificationVertical integration2-3 essay or discussion questions with suggested answers regarding video topics Cite examples of how Nordstrom provides job satisfaction to its employees. Students’ responses will vary. Nordstrom utilizes empowerment, which sets a culture of employees taking more initiative and perceiving meaning in their work. Employees feel capable of performing their jobs, and they also possess a sense of having choice over the operating decisions of the company. Have you ever felt empowered, only to discover that you had no influence on a decision?Students’ responses will vary. Many people have experienced a time when they were asked their opinion and made to feel that it would be used to have an input. Later, when finding out their ideas were discarded, most employees become disenchanted. Have you ever shopped at a Nordstrom store? If so, were you impressed with its customer service? Why or why not?Students’ responses will vary. Some students will have shopped at Nordstrom, either in a bricks-and-mortar store, online, or both. Most Nordstrom customers state that their customer experience is better at Nordstrom than at many other retail establishments. From its piano-playing to its complimentary gift wrapping, Nordstrom seems to be the model for customer service.
THROUGH THE HISTORY…….
pioneer to introduce division of labor and specialization.
later introduced a new set of management principles based on primacy of administration.
He laid stress on doing job in a scientific way.
introduced scientific management
he emphasized that the work design must take into consideration specialization,
standardization and simplification to ensure optimum productivity.
He emphasized that the job is divided into basic components and that one of the
components of job be assigned to a worker thereby achieving specialization.
stated that restrictive work rules “forbid workers moving from one job to
another, thus restricting them to narrow repetitive tasks.”
proposed a behavioral approach to management that established
production and managerial efficiency through understanding of human
identify the need hierarchy and formulated a motivational model based on
satisfaction of human needs in a systematic manner.
(This did not solve the problem and basic nature of the job remained static.)
Herzberg introduced a concept of
He concluded that workers were
happier on their jobs based on
intrinsic value of the job
itself(personal growth, higher
responsibility ,sense of achievement
work motivation and higher
productivity can be achieved if
appropriate changes are incorporated
in the job design.
FREDERICK IRVING HERZBERG
properly defined job.
given higher responsibility
for the accomplishment of
This would bring
sense of commitment
a sense of achievement
•autonomy to the employees in
Workers should be permitted
to manage their own time.
Greater freedom in adopting
methods and procedures
Job content Job analysis
•The purpose of job analysis is to
provide description of the job
•The result of job analysis is a job
•A Job analysis gathers and identifies
information about three aspects of all
Refers to the activities required of the job
factors that define the general nature of a job
Functional Job Analysis (FJA) describes job content
in terms of:
1. What the worker does in relation to data, people, and jobs?
2. What methods and techniques the worker uses?
3. What machines, tools, and equipment the worker uses?
4. What materials, products, subject matter, or services the
Job Requirements (1 of 2)
Refer to education, experience, licenses,
and other personal characteristics an
individual needs to perform the job content
Position analysis questionnaire
(PAQ), takes into account human
characteristics as well as task and
technological factors of jobs and job classes
The PAQ identifies and analyzes the following
critical to job
processing and critical
decision making related
to job performance
related to the job
relationships required for
5. Reactions of
Job context refers to factors such as the:
Physical demands and working conditions of the job
Degree of accountability and responsibility
Extent of supervision required or exercised
Consequences of error
Job context describes the environment
within which the job is to be performed
Job Analysis in Different Settings
Jobs in the Factory
Motion and time study
Jobs in the New
Broadly stated job
Number of tasks a person is
expected to perform while
doing a job
The more tasks required, the
greater the job range
Degree of influence or
discretion that an individual
possesses to choose how a job
will be performed
Job Designs: The Results of Job Analysis
Mechanism of Job Design
Variety of task of
Variety of tasks of
Few tasks of similar
Few tasks of different
jobs are broken down into very small parts where a fragment called “task”
is repeatedly done over and over again by the same individual.
•Employee therefore is paid
•the productivity is high.
•Training cost to the
organization is practically
• a worker is likely to get bored and
remain absent frequently.
•Quality and quantity may suffer in
the long run due to frustration.
•Organization may have to attract
workers by offering higher wages
Job Enlargement means where two or more simple tasks are
combined and allotted to an employee
Eg: As in the case of vehicle driver, apart from driving he can undertake
the job of maintenance of the vehicle.
Increases job range, but not depth
more variety in a job
acquiring additional proficiency.
Dissatisfaction of employees can not be avoided after a long period due
The concept of job enrichment was
developed by Fredrik Herzberg in the
Job enrichment involves providing an
employee with more responsibility for a
job and challenges the individual‟s
skills at work.
Enrichment involves increasing the
decision-making authority and
encouraging the employee with their
FEATURES OF JOB ENRICHMENT
The characteristics or features of job enrichment
Nature of Job : Job enrichment is a vertical
expansion of the job.
Objective : The objective of Job enrichment is to
make the job more lively and challenging.
Positive Results : Job enrichment gives positive
results if the workers are highly skilled.
Direction and Control : Job enrichment
The importance or merits or advantages of job enrichment are:-
Job enrichment is useful to both the workers and the organization.
The worker gets achievement, recognition and self-actualization.
The worker gets a sense of belonging to the organization.
The worker finds the job meaningful.
Job enrichment reduces absenteeism, labour-turnover and grievances.
It motivates the workers to give best performance.
The shortcomings or demerits or limitations of job enrichment are:-
In many cases, job enrichment does not give the expected results.
It makes many changes in the job. So many workers oppose it.
It has limited use for highly skilled managers and professionals.
The consent of workers is not taken before implementing job enrichment.
Managers force the workers to accept job enrichment, which is not good.
JOB ENRICHMENT OPTIONS
• Give people the opportunity to use a variety of
skills, and perform different kinds of work
• Combine work activities to provide a more
challenging and complex work assignment.
• Break your typical functional lines and form
Focused Work Units
• This is job enrichment at the group level.Create Autonomous
• Allow team members to participate in decision
making and get involved in strategic planning.
Job Enrichment Job Enrichment + Job
Routine Job Job Enlargement
No. of Task
Job rotation refers to a
technique where the
employee is periodically
rotated from one job to
another within the work
It involves moving
employees among different
jobs over a period of time
1) Meaningfulness of work:
Using an appropriate variety of your skills and talents:
Being able to identify with the work at hand as more whole and
Being able to identify the task as contributing to something
wider, to society or a group over and beyond the self.
Characteristic of Job Rotation
1.Variety of skills:
o improve and increase the skills of the employee due to
organization as well as the individual benefit.
2.Improves earning capacity:
o Due to job enlargement the person learns many new activities.
o such people apply for jobs to other companies and can bargain
for more salary.
3.Wide range of activities:
o Since a single employee handles multiple activities the
company can try and reduce the number of employee‟s.
Advantages of Job Rotation
1. Frequent interruption:
o A person who is doing a particular job and get it comfortable
suddenly finds himself shifted to another job or department
this interrupts the work in both the departments
2. Reduces uniformity in quality:
o when a new worker I shifted or rotated in the department, he
takes time to learn the new job, makes mistakes in the process
and affects the quality of the job.
Disadvantages of Job Rotation
Job design model
Hackman and Oldham (1976)1 developed the Job
Diagnostic Survey (JDS) which provides
measures for some job related variables. The study
provides certain guidelines and analysis
of independent variables like core job
Characteristics, intervening factors based on
psychological states of people and consideration of
dependant variable in terms of outcome
that provides high intrinsic value to the worker. The
The Hackman and Oldham Model of Job Design
different job activities involving several skills and talents.
the completion of a whole, identifiable piece of work
an important, positive impact on the lives of others
independence and discretion in making decisions.
information about job performance
Experienced Psychological States:
1. Experienced Meaningfulness
It is the extent to which the individual experiences and
perceives his work as meaningful ,valuable and worthwhile
2. Experience Responsibility
It is degree to which an individual feels fully responsible for
the job he is doing.
3. Experience, Knowledge and Results of the Work
In this psychological experience, individual perceives as to
how well he is working?.
MOTIVATION POTENTIAL SCORE
This formula is used to measure the propensity of
each job to be motivating. It can be assessed by using
the following formula.
Managerial Implications for Job Design
Based on core dimensions of the job and MPS score, it is
necessary to redesign each job so that workers are
intrinsically motivated to undertake the same
Forming natural work
Expand job vertically
1.Forming natural work units:
Though specialization involves division of work, yet formation of
„whole‟ job is important because it gives performer an identity and
association with completed work.
The job must be identifiable and individual made responsible and
accountable with the job with appropriate authority.
For example :an accountant in an office should be given an
independent job instead of flittering his energy on various trivial
This contributes towards the principle of task identity and task
2. Combine tasks:
Managers must view division of labour and specialization
Attention must be paid to combine small jobs or part of job in
a whole job so that workers performing it, feel proud of
producing item and thus achieve task identity.
Workers in automobile industry for example should be
assigned a job as a group so that they develop a sense of group
identity and achieve skill variety.
3.Establish client identity:
While producing product or creating services, worker does not
have direct contact with the user of product or services. If the
managers can achieve this contact, the workers will be able to
get a first hand feedback from the client regarding customer
He may also be able to modify product or services as per the
requirement of the ultimate user and achieve autonomy and
develop skill variety while producing.
This principle is very important and needs vision on the part of
4.Expand job vertically:
Taylor in his scientific management has suggested separation
of planning and doing a job. This has led to workers doing a particular job which
has been planned by the managers with very little or no involvement of workers.
Planning, execution and control therefore, need to be unified and gap between
doing and controlling needs to be reduced. This phenomenon is called “vertical
loading”. In typical fractionalized organizations, responsibilities and control that
formerly was reserved for higher level of management are now added to the job
itself. This increases workers autonomy in performance of job. Expansion of the job
can be achieved by workers by scheduling, work methods, quality controls,
prioritizing the work, exercising financial controls and making appropriate
within the parameter of work schedule. This will provide the worker the sense of
„self worth‟ and intrinsic motivation that will lead to higher productivity.
Feedback: Feedback is an important aspect of
employee performance assessment.
Feedback about on-going work should be given to
the worker on line as he proceeds
with the job. Negative feedback should be avoided
and given in the form of suggestion
and be corrective in nature. Positive feedback is like
re-enforcement which builds
up morale, positive attitude and propels individual to
OPTIONS FOR JOB DESIGN
1. Job Sharing
two persons sharing one full time job with sharing rewards and
responsibility for its completion.
This method is suitable for working mothers, doctors, and other
professionals who can gainfully utilize their available time.
Use of computer in jobs.
Eg: Jobs having financial implications like billing, accounting,
telemarketing, e-commerce, graphics, media can be done at home
for global organizations.
This method is also known as flexi place.
It isolates employee from team work and personal physical
Managers need attitude change to incorporate such system in
4. Compressed Work Week
work hours can be compressed into five or even four days a week with long hours of daily work
with two or three days free at the week end.
This system gives worker more leisure and higher productivity. Five days a week is a popular
concept in India. This system ensures less absenteeism, more time available for maintenance of
machines & equipment.
It suffers from a disadvantage of high fatigue and boredom due to extended work days.
5. Quality Circles
Quality circles is one of the recent concepts of group job design.
It consists of a group of 7 – 10 employees from a unit or across units who have volunteered to
meet together regularly and analyse, make proposals about product quality, investigate causes
and suggest corrective actions. The recommendations of quality circles are later forwarded
tocoordinating or steering committee. Meetings of quality circles are held once in a week or
when need arises and are chaired by supervisors or any of the group members. Leaders are
encouraged for a high degree participation within the group. Group members are trained in
group communication skills, product quality and proble promotes a sense of belonging, boosts
employee morale, accords job security and develops„we‟ feeling among group members and
enrich organizational culture. m solving techniques. This concept
This method allows workers more
freedom to select work schedule
within the general guidelines laid
down by the organization.
Flextime stipulates that all
workers must be present during
the core time so that interpersonal
and inter departmental activities
can take place smoothly
From the above figure it will be
seen that employees can choose
timings of work which are
convenient to them.
Flexitime method is beneficial to
both as individual has freedom to
select own time of work and the
organization can attract talented
Quality of worklife
Quality of work life refers to
high level of satisfaction an
employee enjoys by virtue of
Quality of work life is
measured by factors
Job satisfaction indicates the positive and affective
responses of employees to their job environment.
More specifically, job satisfaction indicates employees
1. Nature of work they do.
2. Quality of supervision they receive.
4. Pay and
5. Promotional opportunities. Job satisfaction is correlated to job
characteristics (skill, variety, autonomy etc) and to job involvement
Competence involves knowledge, skill and ability.
When an individual attains competence he is more
involved in his job because he is intrinsically
motivated. By greater involvement the individual
achieves higher degree of competence. Hence greater
the involvement greater is competence. Thus
competence and involvement re-enforces each other.
A theory stating that people assess how fairly they have been
treated according to two key factors: outcomes and inputs.
refer to the various things
the person receives on the
job: recognition, pay,
security, job assignments,
refer to the contributions
the person makes to the
organization: effort, time,
talent, performance, extra
commitment, and good
Using fair process in decision making and making sure others
know that the process was as fair as possible.
Quality of Work Life
Quality of work life (QWL) programs
Programs designed to create a workplace that enhances
1. Adequate and fair compensation
2. A safe and healthy environment
3. Jobs that develop human capacities
4. A chance for personal growth and security
5. A social environment that fosters personal identity,
freedom from prejudice, a sense of community, and
6. Constitutionalism, or the rights of personal privacy,
dissent, and due process
7. A work role that minimized infringement on personal
leisure and family needs
8. Socially responsible organizational actions
A set of perceptions of
what employees owe their
employers, and what their
employers owe them.
Destination CEO: Nordstrom
Cite examples of how
Nordstrom provides job
satisfaction to its
Have you ever felt
empowered, only to
discover that you had no
influence on a decision?