Human Resource Management in Retail Organization

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Human Resource Management

in Retail Organization

Presentation by,

Dinesh K. C.Roll no. 12,

S3, MBA, DCMS


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RETAIL ORGANIZATION ANDHUMAN RESOURCE MANAGEMENT

1) Designing the organizational structurefor a Retail firms.

2) Retail Organization Structures

3) Human Resource Management in Retail

4) Trends in Human Resource Management

in Retail


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Human ResourceManagement

HRM refers to the way people are managed inan organization.

Human resource is most important resource inmanagement and needs to be used efficiently.This is because success, stability and growth ofan organisation depend on its ability inacquiring, utilizing and developing the humanresources for the benefit of the organisation.


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Organization structure

A formal structure where the various activitiesto be performed by the specific employees areidentified and delegated, indicating their

authority and responsibility.

is the formal system of task and reportingrelationships that controls, coordinates, andmotivates employees so that they cooperate toachieve an organization's goals.


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Organization structureshould:

Encourage employees to work hard and todevelop supportive work attitudes

Allow people and groups to cooperate andwork together effectively


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Organization structure

A retailer cannot survive unless itsorganization structure satisfies the need ofthe target market, regardless of how well

employee and management needs aremet.

Most of the retailers do similar tasks suchas buying, pricing etc. but there are manyways of organizing a retail firm.


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The process of organizing a

Retail firm1) Outlining the specific task to be performed in

retail distribution channel.

2) Dividing the task among channel members.

3) Grouping the retailers task into jobs.

4) Classifying the jobs.

5) Integrating positions through an organization

chart.


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1) Specifying the tasks to beperformed

Buying merchandise

Setting price

Inventory storage

Customer research

Customer contact

Facilitate shopping

Customer follow up and handlingcomplaints


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2) Dividing the tasks amongchannel members

The tasks which are mentioned in theprevious step does not needs to be doneby a retailer only. It can be divided among

the retailer, manufacturer or wholesaler,specialist etc.


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3) Grouping tasks in jobs

The tasks can be grouped into jobs. Foreg.

- Displaying merchandise and customerdealings can be the job of sales personnel.

- Entering data and managing cash can bethe job of the cashier.


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4) Classifying jobs

Here jobs are classified by categorizing theminto functional, product, geographic orcombination.

5) Developing an organizationchart

The format of the retail organization should be

designed in a coordinated and integrated way.

With these things in mind , a retailer devises anorganization chart which graphically displays

the hierarchal relationships.


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Organisation Structure for Small Stores

Owner/Manager

Responsibilities:

Buying, Promotion, Sales,HR, Operational

External Advisors Lawyers,CAs, Bankers, etc.

Back Office Staff

Responsibilities

Accounting & Recordkeeping, data entry,

inventory control, purchaseorders, time keeping, etc.

Sales Staff

ResponsibilitiesCustomer service, selling,stock contro, display and

housekeeping


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Tasks to be performed in a Retail Orgn

Management

Buying &Merchand

ising

StoreOperation

s

Administration &Legal

HRMFinance

&Accounts

Branding,Marketing

,Advertisin

g & PR


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The Human resourceenvironment of Retailing

The Retailers face a special human resourceenvironment characterized by a-

- large number of inexperienced workers,

- long working hours,- highly visible employees and- variability in the customer demand.

These factors make the hiring , staffing, andsupervision of the employees a complexprocess.


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Contd..

Because of all these difficulties, the retailersshould consider points such as

1) Recruitment and selection procedure must

generate sufficient number of applicants.2) The training programs must be short and

should focus on developing the skills of

employees.3) Compensation must be perceived by the

employees as FAIR.


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Contd..

4) Employee appearance and work habitsmust be explained.

5) Full and part time workers should nothave any conflicts.


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Human resource managementprocess in Retailing


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Contd..

Recruitment is the process of searchingthe candidates for employment andstimulating them to apply for jobs in the

organization.

The purpose on Recruitment process is tomake the job applicants available for the

specific jobs.


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Sources of Recruitment

External sources

1) Educational Institutions

2) Competition

3) Advertisements4) Employment agency

5) Unsolicited applicants

Internal Sources1) Current and former employees

2) Employee recommendations


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2. Selection Selection involves the series of steps by

which the candidates are screened forchoosing the most suitable persons for

vacant posts.

The basic purpose of selection process is

to choose the right candidate to fill thevarious positions in the organization.


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Process of Selection

The application blank

Interview

Testing Reference check

Physical exam

Job offer


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3. Training

Training is an important aspect of humanresource management. Typically , in retail,training is needed at the following times-

- At the time of induction

-At regular intervals to sales staff for skillenhancement.


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Contd..

Training to the retail sales staff is veryimportant because they are the face of theorganization. Training is given to improve

their communication skills, productknowledge, company policies on Returns,Market awareness etc.


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4. Compensation

Methods of compensation1) Straight salary Method

Advantages - Employee security, Known

expensesDisadvantages - Less Motivation

2) Straight commission method

Advantage - High Motivation

Disadvantages - The risk of low earnings


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Contd..

3) Salary plus commission

It means to combine the attributes of bothsalary and commission plans. Theemployee gets a fixed salary and acommission on achievements of thetargets.


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5. Supervision

Supervision is the manner of providing a jobenvironment that encourages the employeeaccomplishment. The goals are to overseepersonnel, achieve good performance, maintainemployee morale and motivation, controlexpenses, and communicate policies.

Proper supervision is needed to sustain asuperior performance of the employees.Supervision is provided by personal contact,meetings and reports.


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3 basic styles of supervision

1) Management assumes that the employeesmust be closely supervised and controlled.

2) Management believes that the employees canbe self managers and assigned authority.

3) Management applies a self managementapproach and also advocates more employeeinvolvement in decision making.


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6. Motivation

In retailing, Motivation is very importantbecause of the long working hours and theimmense pressure on performance.

The research on human behaviour has shown

that most of the people at work are motivatedby the following factors-

- The organization culture

- The rewards

- The monetary benefits

-Growth and job enrichment


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7. Performance Evaluation

The basis of the performance evaluation isthe goals and targets that have been setfor each individual.

Through targets, the outstanding as wellas the poor performances can be easilyidentified.


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8. Building Employeecommitment

The workplace is changing dramatically anddemands for the highest quality of product andservice is increasing. To remain competitive in

the face of these pressures, employeecommitment is crucial. This reality is applicableto all organizations but is of particular

importance to small and medium sizedbusinesses


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9. Employee Retention

Employee Retention involves takingmeasures to encourage employees toremain in the organization for the

maximum period of time.

Role of Human Resource Management in Retail:


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Area of Practice Some Choices Available

Compensation Lead, Match or lag the market, Basis ofraises, long term tenure rewarded? Largedifferentials b/w employees

Training Who?, how much?, what sorts of training?

Staffing How many?, mix of full or part time?,contingent employees needed?,employment security?

Hiring and Selection Criteria for new hires, promote fromwithin?

Workplace Governance Employees involvement in decisions, formalvoice in decision making

Work Organization Jobs narrowly or broadly defined, flat orsteep hierarchy, workers organise in

teams?

Role of Human Resource Management in Retail:a Menu of Practices


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Conclusion

In retail, as in any other business, defining theorganisation structure is the starting point formanaging a business.

Define the organisation structure that enablesthe activities and tasks to be performed.

This will help to human resources function inrecruiting the right people for the right job anddefine the responsibilities, authority of positionsand reporting relationships that are necessaryfor smooth functioning of the organisation


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References

Pradhan, Swapna., (2007). RetailingManagement, New Delhi: Tata McGraw-Hill.

Internet sources.


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Thank You!

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Human Resource Management in Retail Organization