1. PPT 17-1 5 th Edition

2. PPT 17-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Managing the Store Chapter 17

3. PPT 17-3 Store Management Managing the Store Layout, Design and Visual Merchandising Customer Service

4. PPT 17-4 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

5. PPT 17-5 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

6. PPT 17-6 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

7. PPT 17-7 Responsibilities of Store Managers Undertaken by Store Managers

8. PPT 17-8 Three Levers for Increasing Employee Productivity Ability Effort Role Clarity Selection Training Motivation Goals Incentives Rewards Job Definition Policies, Rules Org Culture

9. PPT 17-9 Steps in Employment Management Process

10. PPT 17-10 Recruiting and Selecting Employees Undertake Job Analysis Prepare Job Description Find Potential Applicants Screen Candidates Select Employees

11. PPT 17-11 Sources of Information for Screening Applicants Application Forms References Testing Providing a Realistic Job Preview

12. PPT 17-12 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) Equal Employment Opportunity Commission (EEOC) Age Discrimination and Employment Act –Disparate Treatment –Disparate Impact Americans with Disabilities Act (ADA)

13. PPT 17-13 Socializing and Training Employees Orientation Program Training ­Where, when, what ­Structured vs. unstructured ­Classroom vs. on-the-job ­Analyzing Successes and Failures

14. PPT 17-14 Motivating and Managing Employees Setting Goals Measuring Performance Providing Feedback Providing Incentives to Achieve Goals

15. PPT 17-15 Leadership Process by which one person attempts to influence another to accomplish some goal or goals Leader Behaviors –Task-Oriented –Group Maintenance

16. PPT 17-16 Types of Leaders Autocratic Democratic Transformational Which Type of Leader Is the Most Effective?

17. PPT 17-17 Setting Goals How High? How Easy to Achieve? Get Participation of Employees in Goal Setting Process

18. PPT 17-18 Individualized Motivation Programs Impact of Goals Differs Across People Different People Seek Differ Rewards –A La Carte Reward Programs –Selection of Compensation Plans

19. PPT 17-19 Factors Used to Evaluate Sales Associates at The Gap 25% Operations 50% Sales/Customer Relations 25% Compliance

20. PPT 17-20 Evaluating and Providing Feedback to Employees Evaluation ­ Who, when, how often? Feedback ­ Performance outcome vs. process

21. PPT 17-21 Jim Taylor’s Six Month Evaluation

22. PPT 17-22 Common Evaluation Errors Strictness 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

23. PPT 17-23 Compensating and Rewarding Employees Extrinsic vs. Intrinsic Rewards Compensation ­ Type Straight salary Straight commission Salary plus commission Quota bonus ­ Setting quotas ­ Individual vs. group incentives

24. PPT 17-24 Advantages and Disadvantages of Straight Salary Straight SalaryIncentive Compensation Offers flexibility in assigning employeesHas high motivating potential to activities Builds stronger employee commitmentHas more variable cost Is easy for employees to understandRelates compensation to productivity Is easy to administer Allows for better performance of non-selling activities such as customer service

25. PPT 17-25 Designing a Compensation Plan Determine Appropriate Compensation Decide on Percent of Incentives Use Average Sales Per Employee to Set Incentive Rate $12/Hour 1/3 Salary 2/3 Incentive Sales/Person - $150  5.33% Commission $4/Hour Salary $4 = 5.33% x 150 = $12

26. PPT 17-26 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

27. PPT 17-27 Procedure for Sexual Harassment Allegation

28. PPT 17-28 Controlling Costs Costs Controlled by Store Managers Labor Maintenance Inventory Shrinkage Energy Heating Lighting

29. PPT 17-29 Labor Scheduling System

30. PPT 17-30 Calculating Shrinkage Accounting Record – Actual Inventory Sales $1,500,000 - $1,236,00 = 6.7% $4,225,000

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

32. PPT 17-32 Preventing Shoplifting Store design Employee training Good customer service ­ Security measures ­ Dye capsules, TV cameras ­ EAS Prosecution

33. PPT 17-33 Spotting a Shoplifter Customers loitering Groups of people People wearing loose clothing Unusual movements People watching out where you are

34. PPT 17-34

35. PPT 17-35 EAS Tags

36. PPT 17-36 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.