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Chapter 9 Human Resource Management Mc. Graw-Hill/Irwin Retailing Management, 6/e Copyright © 2007 by Chapter 9 Human Resource Management Mc. Graw-Hill/Irwin Retailing Management, 6/e Copyright © 2007 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

2 Retailing Strategy Retail and Site Locations Chapter 7 and 8 Retail Market and 2 Retailing Strategy Retail and Site Locations Chapter 7 and 8 Retail Market and Financial Strategy Chapter 5, 6 Organizational Structure and Human Resource Management Chapter 9 Information and Distribution Systems Chapter 10 Customer Relationship Management Chapter 11

Objectives of Human Resource Management • Short Term – Increasing Employee Productivity – Productivity Objectives of Human Resource Management • Short Term – Increasing Employee Productivity – Productivity = Sales/Number of Employees • Long-Term – Increasing Employee Satisfaction Reducing Turnover 3

Human Resource Management Challenges in Retailing • • Work Environment Open Long Hours Peak Human Resource Management Challenges in Retailing • • Work Environment Open Long Hours Peak Sales Periods Emphasis on Cost Control 4 Employees • Unskilled • Part-Time • Diverse Backgrounds High Turnover

5 Downward Performance Spiral 5 Downward Performance Spiral

6 Human Resource Triad 6 Human Resource Triad

7 Special HR Considerations Facing Retailers Need for Part-Time Employees Demand on Expense Control 7 Special HR Considerations Facing Retailers Need for Part-Time Employees Demand on Expense Control Changing Employee Demographics International Human Resourses Issues Ryan Mc. Vay/Getty Images

8 Increasing Workforce Diversity • Workforce employing more minorities, handicapped people and the elderly 8 Increasing Workforce Diversity • Workforce employing more minorities, handicapped people and the elderly • Older workers are more reliable than younger workers • Cost effective as training and recruitment costs are low Royalty-Free/CORBIS

9 Organizational Design Considerations Specialization Responsibility and Authority Reporting Relationships Defined by Organization Structure 9 Organizational Design Considerations Specialization Responsibility and Authority Reporting Relationships Defined by Organization Structure

10 Tasks Performed in a Retail Firm 10 Tasks Performed in a Retail Firm

Strategic Management Tasks Performed in a Retail Firm 11 Strategic Management Tasks Performed in a Retail Firm 11

Merchandise Management Tasks Performed in a Retail Firm 12 Merchandise Management Tasks Performed in a Retail Firm 12

Store Management Tasks Performed in a Retail Firm Recruit Prevent Shrinkage 13 Motivate Maintain Store Management Tasks Performed in a Retail Firm Recruit Prevent Shrinkage 13 Motivate Maintain Facilities Train Employees Provide Services Take Inventory Plan Schedules Evaluate Performance Royalty-Free/CORBIS Sell Merchandise Hire Personnel Display Merchandise

Administrative Management Tasks Performed in a Retail Firm Promote the firm, its merchandise and Administrative Management Tasks Performed in a Retail Firm Promote the firm, its merchandise and its services Manage human resources Distribute merchandise Establish financial control 14

15 Assignment of Responsibility for Tasks • Strategic – Top Management, Board of Directors 15 Assignment of Responsibility for Tasks • Strategic – Top Management, Board of Directors • Merchandise Management – Merchandise Division • Store Management – Stores Division • Administrative – Corporate Specialists

16 Organization of a Small Retailer 16 Organization of a Small Retailer

17 Organization of JCPenney Corporation 17 Organization of JCPenney Corporation

18 Merchandise Division for JCPenney 18 Merchandise Division for JCPenney

19 What does a Buyer do? A buyer is responsible for procuring merchandise and 19 What does a Buyer do? A buyer is responsible for procuring merchandise and building and maintaining relationships • They attend trade and fashion shows • They negotiate with vendors on price, quantities, assortments, delivery dates and payment terms © Digital Vision

20 Allocator vs. Planner Allocator – responsible for allocating the merchandise and tailoring the 20 Allocator vs. Planner Allocator – responsible for allocating the merchandise and tailoring the assortments in several categories for specific stores in a geographic area. Planner – responsible for the financial planning and analysis of the merchandise category. They develop the budget plan and monitor performance

Buying Organization for Typical Department Store Chain 21 Buying Organization for Typical Department Store Chain 21

22 JCPenney Store Organization 22 JCPenney Store Organization

Advantages of Centralized Decision-Making 23 • Retailers can reduce overhead, i. e. fewer managers Advantages of Centralized Decision-Making 23 • Retailers can reduce overhead, i. e. fewer managers • Coordinating efforts, it can achieve lower prices from suppliers • Opportunity to have the best people making decisions © Digital Vision

24 Disadvantage to Centralization • It is difficult for a retailer to adapt to 24 Disadvantage to Centralization • It is difficult for a retailer to adapt to local market conditions • It may have problems responding to local competition and labor markets • Personnel policies make it hard for local managers to pay competitive wages Royalty-Free/CORBIS

Methods for Coordinating Buying and Store Management • Improving buyer’s appreciation for store environment Methods for Coordinating Buying and Store Management • Improving buyer’s appreciation for store environment • Buyers making store visits Royalty-Free/CORBIS • Assigning employees to coordinating roles 25

26 Motivating and Controlling Employees • Policies and Supervision – Behavior Enforced by Managers 26 Motivating and Controlling Employees • Policies and Supervision – Behavior Enforced by Managers • Incentives – Commission, Bonus • Organization Culture – unwritten rules, norms – behavior enforced by social pressure

27 Types of Incentives Commissions on Sales Bonus Stock Options Photo. Link/Getty Images 27 Types of Incentives Commissions on Sales Bonus Stock Options Photo. Link/Getty Images

28 Use of Incentives Advantages • Aligns Employee and Company Goals • Strong Motivating 28 Use of Incentives Advantages • Aligns Employee and Company Goals • Strong Motivating Force Disadvantages • Employees Only Focus on Sales • Less Commitment to Retailer

29 Developing an Organizational Culture • Stories – Nordstrom – Hero Service Stores – 29 Developing an Organizational Culture • Stories – Nordstrom – Hero Service Stores – Container Store – Man in the Desert – Wal-Mart – Saturday Morning Meeting • Symbols – Container Store – Gumby for Flexibility • CEO Leadership

30 Building Employee Commitment Building Employee Skills – Selective hiring – Extensive training Empowering 30 Building Employee Commitment Building Employee Skills – Selective hiring – Extensive training Empowering Employees Creating Partnering Relationships with Employees – Reducing Status Differences – Promotion From Within – Balancing Careers and Families • Flex Time, job sharing, day care

31 Empowerment is the process of managers sharing power and decision-making authority with employees 31 Empowerment is the process of managers sharing power and decision-making authority with employees • Gives employees confidence • Provides greater opportunity to provide service to customers • Employees are more committed to firm’s success

32 Balancing Career and Family Flextime – job scheduling enabling employees to choose the 32 Balancing Career and Family Flextime – job scheduling enabling employees to choose the time they work. Job Sharing – Two employees are responsible for a job previously held by one. • Childcare assistance • Employee assistance programs Photo. Disc/Getty Images

Trends in Retail Human Resource Management 33 Managing Diversity – Diversity Training – Support Trends in Retail Human Resource Management 33 Managing Diversity – Diversity Training – Support Groups and Mentoring – Career Development for Promotion Legal and Regulatory Issues Use of Technology Keith Brofsky/Getty Images

Legal Issues in Human Resources: Overview 34 Equal opportunity and anti-discrimination laws What can Legal Issues in Human Resources: Overview 34 Equal opportunity and anti-discrimination laws What can (or can’t) be asked Legal rights of a new employee Sexual harassment Photo. Disc/Getty Images

35 Regulations Equal Employment Opportunity Compensation Labor Relations Employee Safety and Health Sexual Harassment 35 Regulations Equal Employment Opportunity Compensation Labor Relations Employee Safety and Health Sexual Harassment Employee Privacy Digital Vision / Getty Images

Discriminatory Questions and Suggested Responses: Sex (Asked of women) Do you have plans for Discriminatory Questions and Suggested Responses: Sex (Asked of women) Do you have plans for having children/a family? “I don’t know at present. I plan on a career and believe my career will be successful with or without a family. ” (Asked of women) What are your marriage plans? “If what you are concerned with is my ability to travel or my commitment to my employer, I can assure you that I am quite aware of the job’s responsibilities and personal commitments involved. ” (Asked of women) What does your husband do? “I am interested in working because…what my husband does is not relevant to my performance for your company. ” “My husband’s career and mine dovetail. He has helped me become more effective as…and I have helped him become better as…” 36

Discriminatory Questions and Suggested Responses: Sex (Asked of women) What happens if your husband Discriminatory Questions and Suggested Responses: Sex (Asked of women) What happens if your husband gets transferred or needs to relocate? “My husband’s career will not interfere with my career. ” “My husband I would discuss locational moves at the time they logically came up. At present, our jobs are where we wish to live. ” (Asked of women) Who will take care of your children while you are at work? “I have made arrangements so that my family life will interfere as little as possible with my work. ” (Asked of men) How would you feel working for a woman? “This would be no problem. I have effectively worked for men and women while in school. ” 37

Discriminatory Questions and Suggested Responses: Age and National Origin How old are you? What Discriminatory Questions and Suggested Responses: Age and National Origin How old are you? What is your date of birth? “I wish to be evaluated on my skills, competence, and experience. Age is irrelevant. ” “I feel my age is an advantage at work in terms of the broad-based experiences it has afforded me. ” How would you feel working for a person younger than you? “Age does not interfere with my ability to get along with others. I am adaptable and respect supervisors who are knowledgeable and competent. ” 38

Discriminatory Questions and Suggested Responses: Age and National Origin Where were you born? Where Discriminatory Questions and Suggested Responses: Age and National Origin Where were you born? Where were your parents born? Of what country are you a citizen? “I am a permanent resident of the United States and have legal authority to work here. ” “Actually, I am American to the core, and America consists of people from many national origins. I feel like I was born here since it has been my home for so long. ” “I am quite proud that my background is ___. My heritage has helped me to deal effectively with people of various ethnic backgrounds. ” 39

40 Discriminatory Questions and Suggested Responses: Handicaps, Religion, Race or Color Do you have 40 Discriminatory Questions and Suggested Responses: Handicaps, Religion, Race or Color Do you have any handicaps? As a handicapped person, what help are you going to need in order to do your work? “Any disabilities I may possess would in no way interfere with my ability to perform all aspects of this position. ” “Actually, I don’t need help doing my work because I have been adequately trained. What I need might be minor adaptations of the work station and a supervisor who hires me for what I can do rather than what I cannot do. ” What is your religion? What church do you attend? My religious preference should have no relationship to my job performance. ”

41 Discriminatory Questions and Suggested Responses: Handicaps, Religion, Race or Color Do you hold 41 Discriminatory Questions and Suggested Responses: Handicaps, Religion, Race or Color Do you hold any religious beliefs that would prevent you from working certain days of the week? “If working weekends or evenings is actually a part of the job’s requirements, I would prefer to discuss that after we know whether or not I am the person you most wish to hire for this position. ” Do you fee that your race/color will be a problem in your performing the job? “I’ve had extensive experience working with people with a variety of backgrounds. A person’s race, whatever it may be, should not interfere in the work environment. ” “I do not feel I should be judged on the basis of race or color. ”

What Can and Can’t Be Asked: Name, Address or Duration of Residence, and Birthplace, What Can and Can’t Be Asked: Name, Address or Duration of Residence, and Birthplace, and Age Name Can “Have you every worked for the company under another name? ” “Have you ever been convicted of a crime under another name? ” Can’t Former name of applicant whose name has been changed by court order or otherwise. Address or Duration of Residence Can Applicant’s place of residence How long has applicant been a resident of the state or city Birthplace Can “Can you, after employment, submit a birth certificate of other proof of U. S. citizenship or age? ” Can’t Birthplace of applicant’s parents, spouse or other relatives 42

43 What Can and Can’t Be Asked: Name, Address or Duration of Residence, and 43 What Can and Can’t Be Asked: Name, Address or Duration of Residence, and Birthplace, and Age Can “Can you, after employment, submit a work permit if under 18? ” “Are you over 18 years of age? ” “If hired, can you provide proof of age? (Or other statement that hire is subject to verification that applicant’s age meets legal requirement. ) Can’t Questions which tend to identify applicants 40 -64 years of age

44 What Can and Can’t Be Asked: Religion, Work Days or Shifts, Race or 44 What Can and Can’t Be Asked: Religion, Work Days or Shifts, Race or Color, Photograph Religion Can (None) Can’t Applicant’s religious denomination of affiliation, church, parish, paster, or religious holidays observed. “Do you attend religious services or a house of worship? ” Applicant may not be told “This is a Catholic/Protestant/Jewish/atheist organization. ” Work Days or Shifts Can Statement by employer of regular hours or shift to be worked. Race or Color Can (None) Can’t Complexion, color of skin, or other questions directly or indirectly indicating race or color.

45 What Can and Can’t Be Asked: Religion, Work Days or Shifts, Race or 45 What Can and Can’t Be Asked: Religion, Work Days or Shifts, Race or Color, Photograph Can Statement that photograph may be required after employment Can’t Requirement that applicant affix a photo to the application form. Request applicant, at his/her option, to submit a photograph. Requirement of photograph after interview but before hiring.

What Can and Can’t Be Asked: Citizenship, National Origin, and Education Citizenship Can “If What Can and Can’t Be Asked: Citizenship, National Origin, and Education Citizenship Can “If you are not a US Citizen, have you the legal authority to work in the United States? Do you intent to remain permanently in the United States? Statement by employer that if hired, applicant may be required to submit proof of citizenship. Can’t “Are you a citizen of the United States? Whether applicant or parents or spouse are naturalized or native-born United States citizens. Date when applicant or parents or spouse acquired US citizenship. Requirement to produce naturalization papers. Natural Origin Can Languages applicant reads, writes, or speaks fluently. Can’t Applicant’s ancestry, lineage, nationality, national origin, descent, or parentage. Continued…. 46

What Can and Can’t Be Asked: Citizenship, National Origin, and Education Natural Origin, cont. What Can and Can’t Be Asked: Citizenship, National Origin, and Education Natural Origin, cont. Can’t Date and arrival in the US or port of entry; how long a resident. Nationality of applicant’s parents or spouse; maiden name of applicant’s wife or mother. “Language commonly used by applicant or what is your mother tongue? ” How applicant acquired the ability to read, write, or speak a foreign language. Education Can Applicant’s academic, vocational, or professional education; schools attended. Can’t Date last attended high school. 47

48 What Can and Can’t Be Asked: Experience, Character, Relatives, and Notice in Case 48 What Can and Can’t Be Asked: Experience, Character, Relatives, and Notice in Case of Emergency Experience Can Applicant’s work experience. Applicant’s military experience in armed forces of the US, in a state militia (US), or in a particular branch of service. Can’t Applicant’s military experience (general) or type of discharge. Character Can “Have you ever been convicted of any crime? If so, when, where, and disposition of the case? ” Can’t “Have you ever been arrested? ” Relatives Can Names of relatives already employed by company. Name and address of parent of legal guardian if applicant is a minor. Continued. . .

49 What Can and Can’t Be Asked: Experience, Character, Relatives, and Notice in Case 49 What Can and Can’t Be Asked: Experience, Character, Relatives, and Notice in Case of Emergency Relatives Can’t Marital status or number of dependents. Name or address of relative, spouse, or children of adult applicant. “With whom do you reside? ” “Do you live with you parents? ” Notice in Case of Emergency Can Name and address of person to be notified in case of accident or emergency. Can’t Name and address of relative to be notified in case of accident or emergency.

What Can and Can’t Be Asked: Organizations, References, Physical, and Miscellaneous Organizations Can Organizations, What Can and Can’t Be Asked: Organizations, References, Physical, and Miscellaneous Organizations Can Organizations, clubs, professional societies, or other associations of which applicant is a member excluding any of the names or the character of which indicates the race, religious creed, color, national origin, or ancestry of its members. Can’t “List all organizations, clubs, and lodges to which you belong. ” References Can “By whom were you referred for a position here? ” Can’t Requirement of submission of a religious reference. Physical Can “Do you have any physical condition which may limit your ability to perform the job for which you are applying? ” Can’t “Do you have any physical disabilities? ” 50

What Can and Can’t Be Asked: Organizations, References, Physical, and Miscellaneous Can Notice to What Can and Can’t Be Asked: Organizations, References, Physical, and Miscellaneous Can Notice to applicant that any misstatements or omissions of material facts in the application may be cause for dismissal. Can’t Any inquiry that is not job-related or necessary for determining the applicant’s eligibility for employment. 51