1. Retail Organization and Human Resource Management
Chapter 11
Retail Organization and Human Resource Management
RETAIL
MANAGEMENT:
A STRATEGIC
APPROACH,
10th Edition
BERMAN EVANS

2. 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

3. Figure 11-1a: Planning and Assessing a Retail Organization – Target Market Needs

4. Figure 11-1b: Planning and Assessing a Retail Organization – Employee Needs

5. Figure 11-1c: Planning and Assessing a Retail Organization – Management Needs

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

7. 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

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

12. Figure 11-8: Equal-Store Organizational Format Used by Chain Stores

13. Figure 11-9: The Organizational Structure of Kroger

14. Human Resource Management in Retailing
Recruiting
Selecting
Training
Compensating
Supervising

15. 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

16. 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

17. Minorities in Retailing
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

18. 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

19. 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

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

21. Figure 11-11: A Checklist of Selected Training Decisions

22. Components of Compensation
Total compensation
Salary plus commission
Profit-sharing

23. 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

24. 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