Nordstrom Inc. (NYSE: JWN) is a Seattle-based department store rivalling the likes of Saks Fifth Avenue, Neiman Marcus,

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Nordstrom Inc. (NYSE: JWN) is a Seattle-based department storerivalling the likes of Saks Fifth Avenue, Neiman Marcus, andBloomingdale’s. Nordstrom is a Hall of Fame member of Fortunemagazine’s “100 Best Companies to Work For” list, including beingranked 34th in 2008. Nordstrom is known for its quality apparel,upscale environment, and generous employee rewards. However, whatNordstrom is most famous for is its delivery of customer serviceabove and beyond the norms of the retail industry. Stories aboutNordstrom service abound. For example, according to one story thecompany confirms, in 1975 Nordstrom moved into a new location thathad formerly been a tire store. A customer brought a set of tiresinto the store to return them. Without a word about the mix-up, thetires were accepted, and the customer was fully refunded thepurchase price. In a different story, a customer tried on severalpairs of shoes but failed to find the right combination of size andcolor. As she was about to leave, the clerk called other Nordstromstores but could only locate the right pair at Macy’s, a nearbycompetitor. The clerk had Macy’s ship the shoes to the customer’shome at Nordstrom’s expense. In a third story, a customer describeswandering into a Portland, Oregon, Nordstrom looking for an Armanituxedo for his daughter’s wedding. The sales associate took hismeasurements just in case one was found. The next day, the customergot a phone call, informing him that the tux was available. Whenpressed, she revealed that using her connections she found one inNew York, had it put on a truck destined to Chicago, and dispatchedsomeone to meet the truck in Chicago at a rest stop. The next dayshe shipped the tux to the customer’s address, and the customerfound that the tux had already been altered for his measurementsand was ready to wear. What is even more impressive about thisstory is that Nordstrom does not sell Armani tuxedos.
How does Nordstrom persist in creating these stories? If youguessed that they have a large number of rules and regulationsdesigned to emphasize quality in customer service, you’d be wrong.In fact, the company gives employees a 5½-inch by 7½-inch card asthe employee handbook. On one side of the card, the companywelcomes employees to Nordstrom and states that their number onegoal is to provide outstanding customer service, and for this theyhave only one rule. On the other side of the card, the single ruleis stated: “Use good judgment in all situations.” By leaving it inthe hands of Nordstrom associates, the company seems to haveempowered employees who deliver customer service heroics everyday.
Case Study Materials extracted from Berrin Erdogan and TalyaBauer to accompany Bauer, T., & Erdogan, B. (2009).Organizational behaviour (1st ed.). New York: Flat WorldKnowledge.
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a. Describe Likert’s Leadership Systems. Using this way ofcategorising leadership styles, explain what type of leadership youwould expect to see at Nordstrom, and justify your choice usinginformation from the case study.
b. How do you think that the staff at Nordstrom would learnabout what is considered “good judgement”? Explain what this kindof learning process is called and how it typically works. Useevidence from the case study to support your answer.
c. Consider whether the staff at Nordstrom belong to a stronggroup. Discuss what makes this group strong or weak by drawing onexamples from the case study.