Nordstrom -- Performance Goals Nordstrom: Performance Goals

Because of the performance goals at Nordstrom, and the way in which the company promotes such an open atmosphere, there are both positive and negative impacts. The openness of the atmosphere includes the sales figures of every associate, which are posted twice each month for all associates to see. This encourages competition, but yet the company also wants the employees to work together as a team (Chance, 2003). On the surface, the idea of both competition and working together seem like they would be counterintuitive, and that they would not make a good match (Chance, 2003). Nordstrom is working to change that. However, it does not seem that this is the best type of reinforcement schedule for everyone. The top-performing employees are rewarded, while those who do not perform well can experience guilt, shame, jealousy, anger, and other emotions that go along with being, essentially, publicly called out as not performing as well as some of their counterparts.

As such, a different approach should be taken by Nordstrom, in order to foster a better sense of community between all of their employees. All Nordstrom...

While there is nothing wrong with showing employees that they are not performing in a way in which is acceptable, comparing them to others for all to see does not necessarily make them want to work harder (Dinsmoor, 2004). Instead, it can make them feel uncomfortable, and can lower their self-esteem to the point that they do not see why they should continue trying -- especially if they were really trying hard to do well (Dinsmoor, 2004). This can have the opposite effect from what Nordstrom intended.
Reinforcement schedules that have been seen at other companies focus on making sure employees get rewarded if they do well, but it does not pit them against one another in a competition, and then tell them they should all work as a team. That may sound like a great idea, but it is not one that can actually be handled correctly in the long run, because people do not like being told that…