An Introduction to Retail Management & Marketing

Managing Retail Stores Book 2 Managing Retail Stores

Introduction to Book 2 Session 2: Aspects of a retail manager's role Session 3: Managing the workforce Session 4: Managing customers Session 5: Managing a retail store

Session 2: Aspects of a retail manager's role Outline What are we managing? Some skills of the store manager Job design Conclusions

What are we managing? For decades retailers have focused on managing P Thus, importance of buying, logistics (getting G to store) & merchandising (store layout) As retail industries began to expand, more competition Retailers became strategic in how they manage operations Differentiating retail offering by improving a customer's experience in the store Shift in focus from P to customers: Modern retail stores

Book 2: Actual management implications & how retailers not only manage P but also workforce Providing additional services associated with P sales & creates unique customer experiences Mgt strategy for staff should ensure a good customer experience, retaining customers

What do you think are the most important skills to manage the store Organize the staff, the stock & the store Make decisions Communicate with staff Motivate staff Be self motivated Be a good leader Whatever size of retail operation, mgt, P, workforce what counts is to succeed by delivering right customer experience

Some skills of the store manager Managers role: organizing HR (staff) & physical aspects of the store (such as stock) in effective ways to meet strategic & tactical objectives. For this, managers need skills such ability to make decisions, build teams, communicate & take an overview of wider impact of changes on store. Considering impact of changes at local level & respond to any reactions to the changes.

Types of skills (retail) managers need Administrative Decisional (problem-solving) Communication Motivation

Administrative skills Planning & organizing events in advance Having sufficient & appropriate merchandise Plan stock requirements & frequent replenishment Manage workforce & able to delegate specific tasks Monitor compliance, check that instructions have been understood & implemented correctly. Administrative elements are in most parts of a retail manager's role.

Decisional (problem-solving) skills 5 key problem-solving skills in retail management: Judgment: take appropriate decisions & conclusions using available information resources. Problem analysis - Identify source of problems & assess their nature & scope.

Decision making - Select most appropriate option from a range of choices. Innovation - Think outside the box & identify new ways to solve old problems. Creativity - Being aware of what is happening in store & in sector, watching for changes, respond & formulate general management principles.

Communication skills Communication: sending & receiving messages To be effective, understanding has to occur between sender & receiver of the message. In retailing, internal communications can take place on ≠ levels. For ex; down & up communication

Four key skills a manager needs to communicate effectively: Actively listening & interpreting messages Participate in a dialogue when communicating with small groups of staff & customers Present ideas in a clear & appropriate manner. Effective writing skills

Four main types of communication verbal and oral - face-to-face, live online discussions, tutor group discussions written - handouts, lecture notes, books Visual - videos, posters, PowerPoint Non-verbal - body language

Various barriers to communication Poor communication - messages should be clear, understandable. Vague messages lead to confusion. Information processing - we process, interpret messages & store them in memory for later use. Filter & block things that are not meaningful to us Selective distortion - when shaping info to fit our existing experiences &beliefs Selective retention - Only remembering messages that fit our existing experiences and beliefs Communication structures - as organizations grow, gaps can occur in lines of communication.

Motivational skills Motivational skills are important when managing a retail operation It encourages & guide workforce towards achievement of common goals Matching the right person to right job & making that job as interesting as possible. Clear link between effective staff management, high levels of job satisfaction & loyalty

Maslow linked needs of humans to way they behave Maslow linked needs of humans to way they behave. Five categories of needs Physiological needs - if we are hungry or thirsty we will actively seek food  Security needs - feeling safe, job security Social needs - friendship and to feel we belong Esteem or Status needs - make valuable contribution to a group & being recognized as having done so. Self-fulfilment needs - develop our fullest potential. Physical & social needs met, we are then motivated by 'higher level' factors such as creativity or autonomy in job

Maslow presented his ideas about motivation as pyramid or hierarchy as shown in figure 2.1. Low-level needs have to be satisfied before then individual will be motivated to pursue next level need. Fig 2.1 Maslow's hierarchy of needs shows a progression of motivating factors

Frederick Herzberg motivation theory Work connected to job environment 'hygiene factors' These factors include pay, working conditions, company policies & physical work environment If hygiene factors are poor, workers are dissatisfied with their jobs & suffer from demotivation. Improving hygiene factors (increasing pay) reduce demotivation but would not succeed in motivating Motivators were aspects of job itself, ex: increased responsibility, interesting & challenging work

Hygiene factors are most likely to act as dissatisfiers Fig 2.2 links together Maslow's needs theory & Herzberg's motivational theory Hygiene factors are most likely to act as dissatisfiers If pay & working conditions are not to a level employee expects, outcome will be dissatisfaction Figure 2.2 Needs, motivations and hygiene factors

Following these theories, managers focus on how to align motivators with higher-level needs Setting objectives appropriate to the skill level of the individual should allow achievement of goals. Increased responsibility Creating interesting & challenging work

McGregor: 's Theories X and Y Theory X: individuals avoid work & without intervention by management, workforce resist. Managers persuade staff, reward, even punished Management style: authoritarian. Theory Y: Individuals take responsibly. Managers seek organizational conditions & methods so people can best achieve their goals by directing their efforts towards organizational objectives.

Job design Socio-technical approach to job design: equal attention to design of tasks as to needs of people. Hackman & Oldham: a job characteristics model To enhance feelings of responsibility, employee's job needs to involve freedom, autonomy & choice on how it is carried out. When all 3 of these are present employee feel outcomes are result of own efforts & thus personal responsibility

Psychological contract Between retail manager & staff: contract From a formal point of view: written job contract setting out terms and conditions In addition, implicit, unwritten understanding both parties have of each other: psychological contract. Ex, a retail manager might expect that people come to work on time and are appropriately dressed Employees expect a safe working env with no discrimination in terms of recruitment & promotion

If psychological contract is broken by either party there is likely to be a negative impact on job satisfaction & on commitment of employee to the organization.

Conclusions Management Approaches of workforce are evolving with ever-changing environment. In retail sector there is high staff turnover low wages, long working hours & poor working conditions Not in all retail organizations, ex: Marks and Spencer Retailer has to make decisions under HRM umbrella Working patterns changes ex; opening hrs & Sundays. Thus, part-timer; less job security; technology is changing nature of the work & organizational structures