In 1989, the performance measurement and compensation policy department stores Nordstrom suddenly attacked by the workers, trade unions and government regulators. The case describes the "sales per hour" monitoring and compensation system, which many consider an important role in the phenomenal success of Nordstrom. Demonstration of rapid growth, decentralized management, and unrelenting pressure to perform can distort the measurement system performance and lead to undesirable consequences. "Hide
by Robert L. Simons, Hilary A. Weston Source: HBS Premier Case Collection 24 pages. Publication Date: July 24, 1990. Prod. #: 191002-PDF-ENG
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