Nordstrom Inc. is a Seattle-based department store rivaling the likes of Saks Fifth Avenue, Neiman Marcus, and Bloomingdales. Nordstrom is a Hall of Fame member of Fortune magazines 100 Best Companies to Work For list. Nordstrom is known for its quality apparel, upscale environment, and generous employee rewards. However, what Nordstrom is most famous for is its delivery of customer service above and beyond the norms of the retail industry. This service orientation serves as a form of control as it helps employees decide how to behave when they encounter new situations. Stories about Nordstrom service abound. For example, according to one story the company confirms from long ago, in 1975 Nordstrom moved into a new location that had formerly been a tire store. A customer brought a set of tires into the store to return them. Without a word about the mix-up, the tires were accepted, and the customer was fully refunded the purchase price. In a different story, a customer tried on several pairs of shoes but failed to find the right combination of size and color. As she was about to leave, the clerk called other Nordstrom stores but could only locate the right pair at Macys, a nearby competitor. The clerk had Macys ship the shoes to the customers home at Nordstroms expense. In a third story, a customer describes wandering into a Portland, Oregon, Nordstrom looking for an Armani tuxedo for his daughters wedding. The sales associate took his measurements just in case one was found. The next day, the customer got a phone call, informing him that the tux was available. When pressed, the associate revealed that using her connections she found one in New York, had it put on a truck destined to Chicago, and dispatched someone to meet the truck in Chicago at a rest stop. The next day she shipped the tux to the customers address, and the customer found that the tux had already been altered for his measurements and was ready to wear. What is even more impressive about this story is that Nordstrom does not sell Armani tuxedos.

How does Nordstrom persist in creating these stories that serve as a way to control and direct employee behavior? If you guessed that they have a large number of rules and regulations designed to emphasize quality in customer service, youd be wrong. In fact, the company gives employees a 5-inch by 7-inch card as the employee handbook. On one side of the card, the company welcomes employees to Nordstrom and states that their number one goal is to provide outstanding customer service, and for this they have only one rule. On the other side of the card, the single rule is stated: Use good judgment in all situations. By leaving it in the hands of Nordstrom associates, the company seems to have empowered employees who deliver customer service heroics every day.

1. The controlling facet of the P-O-L-C framework introduces you to a variety of controls. What types of controls does Nordstrom seem to effectively incorporate into their operations?

2. Does Nordstrom use behavioral controls? What are some examples?

3. Does Nordstrom use outcome controls? What are some examples?

4. What suggestions would you give Nordstrom for maintaining and evolving the organizational culture that has contributed to its success?

5. What balanced scorecard elements does Nordstrom seem to view as most important?