Chapter 11 Retail Organization and Human Resource Management

Chapter 11 Retail Organization and Human Resource Management RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9 th Edition BERMAN EVANS

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 11 -2

Figure 11. 1 Planning and Assessing a Retail Organization: Factors to Consider 11 -3

Figure 11. 1 Planning and Assessing a Retail Organization: Factors to Consider 11 -4

Figure 11. 1 Planning and Assessing a Retail Organization: Factors to Consider 11 -5

Figure 11. 2 The Process of Organizing a Retail Firm 11 -6

Figure 11. 3 Division of Tasks in a Distribution Channel 11 -7

Grouping Tasks into Jobs TASKS 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 11 -8

Figure 11. 4 A Job Description for a Store Manager 11 -9

Classifying Jobs ¯ Functional ¯ Product diversification ¯ Geographic ¯ Combination 11 -10

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 11 -11

Figure 11. 5 Different Forms of Retail Organization 11 -12

Figure 11. 5 Different Forms of Retail Organization 11 -13

Figure 11. 5 Different Forms of Retail Organization 11 -14

Figure 11. 5 Different Forms of Retail Organization 11 -15

Figure 11. 6 Organization Structures Used by Small Independents 11 -16

Figure 11. 7 The Basic Mazur Organization Plan for Department Stores 11 -17

Figure 11. 8 The Equal-Store Organizational Format Used by Chain Stores 11 -18

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 11 -19

Figure 11. 9 The Organizational Structure of Toys “R” Us 11 -20

Human Resource Management in Retailing ¯ Recruiting ¯ Selecting ¯ Training ¯ Compensating ¯ Supervising 11 -21

Table 11. 2 True Cost of Employee Turnover 1. Recruiting and hiring new employees 2. Training costs – including management time 3. Full pay and benefits during training, before full productivity is reached 4. Costs of mistakes made by new, inexperienced employees 5. Loss of customers loyal to departing employees 6. Lost or damaged relationships with suppliers 7. Employee morale and customer perceptions of that morale 11 -22

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 11 -23

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 Diversity. Inc. com 11 -24

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 11 -25

Labor Law Considerations 1. Retailers must not 1. Hire underage workers 2. Pay workers “off the books” 3. Require workers to engage in illegal acts 4. Discriminate in hiring or promoting workers 5. Violate worker safety regulations 6. Disobey the Americans with Disabilities Act 7. Deal with suppliers that disobey labor laws 11 -26

Figure 11. 10 A Goal. Oriented Job Description for a Management Trainee 11 -27

Figure 11. 11 A Checklist of Selected Training Decisions 11 -28

Compensation $ Total compensation $ Salary plus commission $ Profit-sharing 11 -29

Employee Behavior and Motivation ¯ Several attitudes may affect employee behavior ¯Sense of accomplishment ¯Liking of work ¯Attitude toward physical work conditions ¯Attitude toward supervisors ¯Confidence in company ¯Knowledge of business strategy ¯Recognition of employee role in achieving corporate objectives 11 -30

Style of Supervising Retail Employees v Management assumes employees must be closely supervised and controlled; only economic inducements motivate v Management assumes employees can be self-managers and assigned authority; motivation is intrinsic v Management applies self-management approach 11 -31