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Retail Organization and Human Resource Management

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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

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