1. Retail Organization and Human Resource Management
Chapter 11
Retail Organization and Human Resource Management
RETAIL
MANAGEMENT:
A STRATEGIC
APPROACH
11th Edition
BERMAN EVANS 1
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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 2
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

3. Figure 11-1a: Planning and Assessing a Retail Organization3
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4. Figure 11-1b: Planning and Assessing a Retail Organization4
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5. Figure 11-1c: Planning and Assessing a Retail Organization – Management Needs5
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6. Figure 11-2: The Process of Organizing a Retail Firm6
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7. Figure 11-3: Division of Tasks in a Distribution Channel7
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8. Figure 11-4: A Job Description for a Store Manager8
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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 9
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10. Figure 11-6: Organization Structures Used by Small Independents
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11. Figure 11-7: The Basic Mazur Organization Plan for Department Stores
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12. Figure 11-8: Equal-Store Organizational Format Used by Chain Stores
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13. Figure 11-9: The Organizational Structure of Kroger
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14. Human Resource Management in Retailing
Recruiting
Selecting
Training
Compensating
Supervising
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

15. Table 11-2: True Cost of Employee Turnover
Costs of using fill-in employees
Severance pay for exiting employees
Costs of hiring new employees
Training costs
Costs of mistakes and lower productivity while new employees gain experience
Customer dissatisfaction due to the loss of prior employees and the use of inexperienced workers.
Lower continuity among co-workers.
Poor employee morale when turnover is high.
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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
Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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
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20. Figure 11-10: A Goal-Oriented Job Description for a Management Trainee
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21. Figure 11-11: A Checklist of Selected Training Decisions
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22. Components of Compensation
Total compensation
Salary plus commission
Profit-sharing
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23. Employee Behavior and Motivation
Several attitudes may affect employee behavior
Sense of accomplishment
Enjoyment 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
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24. Style of Supervising Retail Employees
Management assumes employees must be closely supervised and controlled; only economic inducements motivate
Management assumes employees can be assigned authority and be self-managers; motivation is intrinsic
Management applies self-management approach
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