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

Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

Figure 11.2 The Process of Organizing a Retail Firm

Figure 11.3 Division of Tasks in a Distribution Channel

Grouping Tasks into 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

Figure 11.4 A Job Description for a Store Manager

Classifying Jobs Functional Product diversification Geographic Combination

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

Figure 11.5 Different Forms of Retail Organization

Figure 11.5 Different Forms of Retail Organization

Figure 11.5 Different Forms of Retail Organization

Figure 11.5 Different Forms of Retail Organization

Figure 11.6 Organization Structures Used by Small Independents

Figure 11.7 The Basic Mazur Organization Plan for Department Stores

Figure 11.8 The Equal-Store Organizational Format Used by Chain Stores

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

Figure 11.9 The Organizational Structure of Toys “R” Us

Human Resource Management in Retailing Recruiting Selecting Training Compensating Supervising

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

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

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 DiversityInc.com

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

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

Figure 11.10 A Goal-Oriented Job Description for a Management Trainee

Figure 11.11 A Checklist of Selected Training Decisions

Compensation Total compensation Salary plus commission Profit-sharing

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

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