1. Chapter 17
Managing the Store

2. Store Management Customer Service
Layout, Design and Visual Merchandising
Managing the Store

3. Store Managers Run a Business
“This is your business. Do your own thing. Don’t listen to us in Seattle, listen to your customers. We give you permission to take care of your customers.”
James Nordstrom, the CEO of Nordstrom’s

4. Strategic Importance of Store Management
Opportunity to Build Strategic Advantage
Difficult to Have Unique, Compelling Merchandise
Customer Loyalty Often Based on Customer Service
Difficulty of Store Managers Job
Managing Diverse Set of Unskilled People
Increasing Empowerment and Responsibility to Tailor Merchandise and Presentation to Local Community

5. Store Managers’ Responsibilities
Varies Dramatically By Type of Retailers
Specialty Store vs. Department Store
Entrepreneur
P & L Responsibility
Manage People
Responsible for Two Critical Assets
People Sales/Employees
Space Sales/Square Foot
© Digital Vision

6. Responsibilities of Store Managers Undertaken by Store Managers

7. Steps in Employment Management Process

8. Recruiting and Selecting Employees
Prepare Job Description
Find Potential Applicants
Undertake Job Analysis
Select Employees
Screen Candidates

9. Job Analysis

10. Job Description
A guideline for recruiting, selecting, training and evaluating employees
The activities the employee needs to perform
The performance expectations expressed in quantitative terms
Steve Mason/Getty Images

11. Approaches for Locating Prospective Employees
Look beyond the retail industry
Use your employees as talent scouts
Provide incentives for employee referrals
Recruit minorities, immigrants and older workers
Use your storefront creatively
Jack Star/PhotoLink/Getty Images

12. Sources of Information for Screening Applicants
Application Forms
References
Testing
Providing a Realistic Job Preview
The McGraw-Hill Companies, Inc./Lars A. Niki, photographer

13. Interviewing Questions

14. Suggestions for Questioning Applicant
Avoid asking questions that have multiple parts
Avoid asking leading questions like “Are you prepared to provide good customer service?”
Be an active listener. Evaluate the information being presented and sort out the important comments from the unimportant.
repeat or rephrase information
summarize the conversation
tolerate silence

15. Legal Considerations in Hiring and Selecting Employees
Equal Employment Opportunity Commission (EEOC)
Age Discrimination and Employment Act
Disparate Treatment
Disparate Impact
Americans with Disabilities Act (ADA)

16. Socializing and Training Employees
Orientation Program
Training
Where, when, what
Structured vs. unstructured
Classroom vs. on-the-job
Analyzing Successes and Failures
(c) image100/PunchStock

17. Motivating and Managing Employees
Providing Incentives to Achieve Goals
Setting Goals
Measuring Performance
Providing Feedback

18. Leadership
Process by which one person attempts to influence another to accomplish some goal or goals
Leader Behaviors
Task-Oriented
Group Maintenance
C Squared Studios/Getty Images

19. Types of Leaders Autocratic Democratic Transformational
© Digital Vision
Which Type of Leader Is the Most Effective?

20. Setting Goals How High? How Easy to Achieve?
Get Participation of Employees in Setting Goals
Royalty-Free/CORBIS

21. Why Set Goals? Employee performance improves when employees feel:
That their efforts will enable them to achieve the goals set for them by their managers
That they’ll receive rewards they value if they achieve their goals
Royalty-Free/CORBIS

22. Individualized Motivation Programs
Impact of Goals Differs Across People
Different People Seek Differ Rewards
A La Carte Reward Programs
Selection of Compensation Plans
Steve Cole/Getty Images

23. Maintaining Morale
Meetings before store opening to talk about new merchandise and hear employee opinions
Educate, set sales goals and have a pizza party when goals are met
Divide charity budget and ask employees how their share should be used
Print stickers - auto detailed by Rob”
Give every employee a business card with the company mission statement printed on the back
Pando Hall / Getty Images

24. Sexual Harassment Sexual Harassment
Sexual harassment is unwelcomed sexual advances, requests for sexual favors, and other verbal and physical contact.
showing obscene photographs
making lewd comments and gestures
staring in a sexual manner
making work environment hostile

25. Procedure for Sexual Harassment Allegation

26. Evaluating and Providing Feedback to Employees
Evaluation
Who, when, how often?
Feedback
Performance outcome vs. process

27. Jim Taylor’s Six Month Evaluation

28. Common Evaluation Errors
Strickness
Leniency
Haloing
Recency
Contrast
Attributions
Ratings unduly negative
Rating unduly positive
Using the same rating on all aspects of the evaluation
Placing too much weight on recent events rather than evaluating performance over the entire period
Having the evaluation of a salesperson unduly influenced by the evaluation of other salespeople
Making errors in identifying causes of the salesperson’s performance

29. Rewards
Extrinsic Rewards are rewards provided by either the employee’s manager or the firm such as compensation, promotion and recognition.
Intrinsic Rewards are rewards employees get personally from doing their job well like doing their job well because they think it is challenging and fun

30. Compensating Employees
Compensation
Type
Straight salary
Straight commission
Quota bonus
Setting quotas
Individual vs. group incentives
Royalty-Free/CORBIS

31. Advantages and Disadvantages of Straight Salary
Straight Salary Incentive Compensation
Offers flexibility in assigning employees Has high motivating potential
to activities
Builds stronger employee commitment Has more variable cost
Is easy for employees to understand Relates compensation to productivity
Is easy to administer
Allows for better performance of
non-selling activities such as customer
service

32. Designing a Compensation Plan
Use Average Sales Per Employee to Set Incentive Rate
Decide on Percent of Incentives
Determine Appropriate Compensation
Sales/Person - $150 5.33% Commission $4/Hour Salary
1/3 Salary 2/3 Incentive
$12/Hour
$4 = 5.33% x 150 = $12

33. Costs Controlled by Store Managers
Controlling Costs
Energy Heating Lighting
Labor
Costs Controlled by Store Managers
Inventory Shrinkage
Maintenance

34. Labor Scheduling System

35. Calculating Shrinkage
Accounting Record – Actual Inventory
Sales
$1,500, $1,236, = %
$4,225,000

36. Sources of Inventory Shrinkage
Mistakes and Inaccurate Records 17%
Shoplifting 31%
Vendor Errors 6%
Employee Theft 46%

37. Preventing Shoplifting
Store design
Employee training
Good customer service
Security measures
Dye capsules, TV cameras
EAS
Prosecution
PhotoLink/Getty Images

38. Spotting Shoplifters

39. Use of Security Measures by Retailers

40. EAS Tags

41. Employee theft is an HR problem.
Reducing Employee Theft
Trusting, supportive work atmosphere
Employee screening
Honesty, drug testing
Security personnel - mystery shoppers
Policies and procedures
Employee theft is an HR problem.