Chapter 1111Retail Organization and Human Resource Management

RETAIL MANAGEMENT:

A STRATEGICAPPROACH,

9th Edition

BERMANBERMAN EVANS EVANS

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Chapter Objectives

To study the procedures involved in setting up a retail organization

To examine the various organizational arrangements utilized in retailing

To consider the special human resource environment of retailing

To describe the principles and practices involved with the human resource management process in retailing

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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

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Figure 11.2 The Process of Organizing a Retail Firm

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Figure 11.3 Division of Tasks in a Distribution Channel

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Grouping Tasks into JobsTASKS JOBS

Displaying merchandise, customer contact, gift wrapping, customer follow-up

Sales personnel

Entering transaction data, handling cash and credit purchases, gift wrapping

Cashier

Receiving merchandise, checking incoming shipments, marking merchandise, inventory storage and control, returning merchandise to vendors

Inventory personnel

Window dressing, interior display setups, use of mobile displays Display personnel

Billing customers, credit operations, customer research Credit personnel

Merchandise repairs and alterations, complaint resolution, customer research

Customer service personnel

Cleaning store, replacing old fixtures Janitorial personnel

Personnel management, sales forecasting, budgeting, pricing, coordinating tasks

Management personnel

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Figure 11.4 A Job Description for a Store Manager

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Classifying Jobs

FunctionalProduct diversificationGeographicCombination

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Table 11.1 Principles for Organizing a Retail Firm

Show interest in employees Monitor employee turnover, lateness, and

absenteeism Trace line of authority from top to bottom Limit span of control Empower employees Delegate authority while maintaining

responsibility Acknowledge need for coordination and

communication Recognize the power of informal relationships

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Figure 11.5 Different Forms of Retail Organization

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Figure 11.5 Different Forms of Retail Organization

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Figure 11.5 Different Forms of Retail Organization

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Figure 11.5 Different Forms of Retail Organization

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Figure 11.6 Organization Structures Used by Small Independents

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Figure 11.7 The Basic

Mazur Organization

Plan for Department

Stores

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Figure 11.8 The

Equal-Store Organizational

Format Used by Chain Stores

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Organizational Arrangements Used by Diversified Retailers

A diversified retailer is a multiline firm operating under central ownership.

Toys “R” Us, Inc.– Toys “R” Us– Kids “R” Us– Babies “R” Us

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Figure 11.9 The Organizational Structure of Toys “R” Us

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Human Resource Management in Retailing

RecruitingSelectingTrainingCompensatingSupervising

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Table 11.2 True Cost of Employee Turnover

Recruiting and hiring new employees Training costs – including management time Full pay and benefits during training, before full

productivity is reached Costs of mistakes made by new, inexperienced

employees Loss of customers loyal to departing employees Lost or damaged relationships with suppliers Employee morale and customer perceptions of

that morale

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Women in Retailing

Issues to address with regard to female workers– Meaningful training programs– Advancement opportunities– Flex time –the ability of employees to adapt

their hours– Job sharing among two or more employees

who each work less than full time– Child care

Retailing empires – Mary Kay– Avon

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Minorities in Retailing

Issues to address with regard to female workers– Clear policy statements from top

management as to the value of employee diversity

– Active recruitment programs to stimulate minority applications

– Meaningful training programs– Advancement opportunities– Zero tolerance for insensitive workplace

behavior See DiversityInc.com

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Diversity

Two premises:That employees be hired and promoted

in a fair and open way, without regard to gender, ethnic background, and other related factors

That in a diverse society, the workplace should be representative of such diversity

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Labor Law Considerations

Retailers must not* Hire underage workers* Pay workers “off the books”* Require workers to engage in illegal acts* Discriminate in hiring or promoting workers* Violate worker safety regulations* Disobey the Americans with Disabilities Act* Deal with suppliers that disobey labor laws

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Figure 11.10

A Goal-Oriented

Job Description

for a Management

Trainee

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Figure 11.11 A Checklist of Selected Training Decisions

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Compensation

$ Total compensation$ Salary plus commission$ Profit-sharing

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Employee Behavior and Motivation

Several attitudes may affect employee behaviorSense of accomplishmentLiking of workAttitude toward physical work conditionsAttitude toward supervisorsConfidence in companyKnowledge of business strategyRecognition of employee role in achieving

corporate objectives

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Style of Supervising Retail Employees

Management assumes employees must be closely supervised and controlled; only economic inducements motivate

Management assumes employees can be self-managers and assigned authority; motivation is intrinsic

Management applies self-management approach