Nordstrom Sustainable Competitive Advantage

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Producing sustainable competitive advantage through the effective management of people Achieving competitive success through people involves altering how we think of the workforce and the employer-employee relationship. It means working with people together and not replace them or limit their scope of activities. The organization should see its workforce as a strategic advantage rather than a cost to be minimized or avoided. Firms that take this perspective are often able to achieve success and outperform their rivals. In order to earn high economic returns, the companies should have some sustainable competitive advantages something that distinguishes them from their competitors, provide positive economic benefit and is not duplicated. The…show more content…
The store compensates its employees so that they are happy and work harder to meet its sales target and earn profit. Many competitors of Nordstrom saw the success rate and they also initiated the compensation benefits for their employees. Thirteen practices to manage people: There are some policies and practices that have emerged from extensive reading and talking to people. They are: 1. Employment security: if employees feel that they are secure in the job that they are doing they perform better and give extra effort towards the organization. The employees have some assurance that their job is secure. 2. Selectivity in recruiting: the organization has to select the right person for the job. There are various methods by which an employee can be selected. Every company has its own ways and methods to conduct these test for selection. 3. High wages: if the organization wants to recruit the best employees and want them to stay in the organization it is very important that they give them right salaries for the right designation. High wages tend to attract more applicants, giving the organization wide berth to select better candidate. Nordstrom pays its people an hourly wage higher than the prevailing…show more content…
Promotion from within: now a days most companies prefer to give promotion from within the organization. The company feels that rather than hiring an employee from outside its better to promote the employee who is familiar with the working of the organization and know the company in and out. Taking the long view The disadvantage of achieving results from workforce is that it takes too much of time. It’s a slow process. To achieve results the employees first need to be trained taught how to work on the project or how to use a particular machinery etc. Whereas if it’s a machinery the work can be done in half the time done manually. The good news is however that once achieved , competitive advantage obtained through employment practice is likely to be substantially more enduring and more difficult to duplicate. But to imply these practices and start seeking results means that a long term perspective is needed. Measurement of the practice Measurement is a critical component of any organization. Measurement serves several functions. First it provides feedback as to how well the organization is implementing various policies. Second , measurement ensures that what is measured will be noticed. “out of sight out of mind” is the principle that applies to organizational goals and practices as well as to

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