Presentation is loading. Please wait.

Presentation is loading. Please wait.

Retail Organization and Human Resource Management

Similar presentations

Presentation on theme: "Retail Organization and Human Resource Management"— Presentation transcript:

1 Retail Organization and Human Resource Management
Chapter 11

2 Chapter Objectives To consider the special human resource environment of retailing (Productivity Trap) To study the procedures involved in setting up a retail organization To examine the various organizational arrangements utilized in retailing To describe the principles and practices involved with the human resource management process in retailing

3 Insufficiently Qualified/
Low Wages The Problem: Productivity Trap Insufficiently Qualified/ Motivated Employees Low Productivity

4 Analysis: Productivity(Task) Function = Size of Task X Cost
Level of Efficiency Cost per Unit Productivity(Task) Function = Size of Task X Cost Analysis Cost Level of Efficiency Unit Input

5 Solution Altering Compensation Levels (Lower Input Cost)
Part-Time Employees Overtime Incentive Compensation System Reducing Workload (Reduce Size of Task) Shift tasks to consumers Shift tasks to suppliers Shift tasks to outside agencies Internal actions (e.g. kiosks) Increasing Level of Efficiency Employee scheduling systems Technology Task restructuring (e.g., specialization) Training

6 Figure 11-1c: Management Needs
Planning and Assessing a Retail Organization Figure 11-1c: Management Needs Figure 11-1a: Target Market Needs Figure 11-1b: Employee Needs

7 Figure 11-2: The Process of Organizing a Retail Firm
Figure 11-3: Division of Tasks in a Distribution Channel

8 Figure 11-4: A Job Description for a Store Manager

9 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

10 Figure 11-6: Organization Structures Used by Small Independents
Figure 11-9: The Organizational Structure of Kroger

11 Figure 11-7: The Basic Mazur Organization Plan for Department Stores
Figure 11-8: Equal-Store Organizational Format Used by Chain Stores

12 Human Resource Management in Retailing
Recruiting Selecting Training Compensating Supervising

13 Table 11-2: True Cost of Employee Turnover
US Monthly Employee Turnover Rates by Industry and by Geographic Region Through Aug/06 Data is supplied by the U.S. Department of Labor Annual Turnover = 34.7% Acquisition -Low level -Middle level -High level 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 Table 11-2: True Cost of Employee Turnover

14 Minorities in Retailing
Women in Retailing Minorities 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 Issues to address with regard to minority 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 Diversity Labor Law Factors 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 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

15 Figure 11-10: A Goal-Oriented Job Description for a Management Trainee
Figure 11-11: A Checklist of Selected Training Decisions

16 Components of Compensation
Total compensation Salary plus commission Profit-sharing ICR Compensation Survey-2006

17 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

18 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 Chapter 11 Discussion Questions: 5, 12

19 Happy Halloween!

Download ppt "Retail Organization and Human Resource Management"

Similar presentations

Ads by Google