Retail Organization & HRM

Setting up a retail organization Identify needs of Target market Employee needs Management needs

Target Market Needs Sufficient personnel Personnel knowledgeable & courteous Facilities well maintained Branch store customers needs met? Are changing needs promptly met?

Employee needs Offer challenging & satisfying positions Orderly promotion program Participative decision making Channels of communication

Employee needs Authority/responsibility relationship clear Fair treatment of employees Reward performance

Management needs Easy to obtain & retail competent personnel Personnel procedures Line of authority Span of authority Support staff

Management needs Levels of organization developed well Organizations plans well integrated Motivated employees

Management needs Low absenteeism Policies on replacing personnel Flexibility & adaptive nature of organization

Organizing the firm

Process of organizing firm Outlining the specific tasks to be performed in a retail distribution channel Divide tasks among channel members & customers

Process of organizing firm Group retailing tasks into jobs Classify jobs Integrate positions in an org. chart

Principles for organizing Employee interest, training, & promotions Employee turnover & absenteeism Line of authority Reporting levels

Principles for organizing Span of control Mgmt & delegation power Supervisory responsibility Communication speed & levels Informal vs. formal relationships & authority

Retail tasks

Retail tasks to be performed Buying merchandise Shipping merchandise Receiving merchandise

Retail tasks to be performed Check incoming shipments Setting prices Marking merchandise

Retail tasks Inventory storage & control Displays (window & instore) Facilities maintenance Customer research

Retail tasks Customer contact Customer follow-up Customer complaint handling Personnel management

Retail tasks Repairs & alterations Billing customers Handling receipts & financial records Credit operations Gift wrapping

Retail tasks Delivery to customers Return to Vendors Sales forecasting unsold/damaged mdse Sales forecasting Budgeting coordination

Division of tasks: retailer Can perform all or some of tasks in distribution channel From buying mdse to coordination

Division of tasks: wholesale/MFG Takes care of few or many functions Shipping Marking mdse Inventory storage Display research

Division of tasks: specialists Buying office Delivery firms Warehouse Marketing research Ad agency Accountant Credit bureau Computer service

Division of tasks: customer Responsible for: Delivery Credit Sales effort (self service) Satisfaction (DI)

Classifying jobs & the hierarchical charts

Classifying jobs –4 ways Functional Sales, buying, store operations Product Hires personnel for different products

Classifying jobs – 4 ways Geographic Where store is located & local issues Combinations HQ vs. branch hires

Organizational charts: Functional Hierarchy of authority Vice President of “operations” Sales promotion mgr Mdse mgr Personnel mgr Store operations controller

PRODUCT org chart Store mgr Men’s outerwear mgr. Ladie’s outerwear mgr. Lingerie mgr Appliance mgr.

Geographic chart Vice President of “stores” Location A store manager Location B store manager Location C store manager Location D store manager

Combination chart See page 332 Figure 11-5

Small independent charts

Mazur Plan (see fig 11-7 – p. 334) Divides retail activities into 4 functions Merchandising Publicity Store management Accounting & control

Equal store vs. Separate store org. Used by chains Centralized buying Branches = sales units Most popular Separate store Each branch has own buying responsibilities

Part 2 – human resources On another set of slides