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Retail Organization and Human Resource Management
Chapter 11 Retail Organization and Human Resource Management Dr. Pointer’s Notes
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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
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Setting Up a Retail Organization
Through a retail organization, a firm’s structures and assigns tasks, policies, resources, authority,responsibilities in order to efficiently and effectively satisfy the needs of target market, employees, management and shareholders
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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider
Target market needs Sufficient personnel to provide appropriate customer service Knowledgeable and courteous personnel Well maintained store facilities Ability address changing needs
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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider
Employee Needs Challenging and satisfying positions Participation in decision making Clear channel communications Clear authority-responsibility roles Fair treatment of employees Good performance rewards
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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider
Management Needs Ability to obtain and retain good employees Clear personnel procedures One worker reporting to only one supervisor Adequate staff supports in departments Well integrated organizational plans Motivated employees Low absenteeism System replace employees as needed
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Figure 11.2 The Process of Organizing a Retail Firm
Dividing tasks among channel members Outline specific tasks Classifying jobs Grouping tasks into jobs Developing an Organizational chart to show relationships
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Specifying Tasks 1.Buying/shipping merchandise
2. Receiving and checking in goods 3.Setting prices/marking merchandise 4. Inventory storage and control 5. Facilities maintenance 6. Personnel management 7. Billing customers/credit operations 8. Customer service operations- delivery, gift wrapping,, 9. Sales forecasting and budgeting
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Figure 11.3 Division of Tasks in a Distribution Channel
Retailer- can perform all or some tasks from buying to coordination Manufacturer or wholesaler – few of functions such as shipping and marking, inventory storage, displays and research Specialists – particular tasks: market research, ad agency, credit, computer services
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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
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Figure 11.4 A Job Description for a Store Manager
Job Title: Store manager Position Reports To: Senior Vice-President Positions reporting to store manager: all personnel in store Objectives: to properly staff and operate store Duties: sales forecasting, budgeting, personnel hiring, merchandise display and etc. Committees: Attendance at monthly meetings with V-President Weekly meetings with department managers
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Classifying Jobs Functional- divides jobs by task
Product diversification divides jobs on a goods or service basis Geographic- is useful for chains operating in different areas. Combination – large organizations find it easier to use a combination
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Develop an Organization Chart
It is important to build a good organization which will help build the business Hierarchy of Authority- outlines the job interactions within a company by describing the reporting relationships among employees Flat organization – many workers reporting to one manager Tall organization – has several management levels
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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
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Figure 11.5 Different Forms of Retail Organization
Functional organizational chart Vice President Sales Promotion Manager Merchandising Manager Personnel Manager Store Operations Manager
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Figure 11.5 Different Forms of Retail Organization
Product Organizational Chart Store Manager Men’s outerwear Manager Ladies clothing Manager Lingerie Manager Appliance Manager
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Figure 11.5 Different Forms of Retail Organization
Geographic Organizational Chart Vice President Store Manager A Store Manager B Store Manager C Store Manager D
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Figure 11.6 Different Forms of Retail Organization
Organization Chart for Ladies Boutique Owner Manager Merchandising Personnel Operations personnel
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Organizational Arrangements Used by Diversified Retailers
A diversified retailer is a multiline firm operating under central ownership. Usually involved in different types of retail operations Toys “R” Us, Inc. Toys “R” Us Kids “R” Us Babies “R” Us Imaginarium Toys “R” Us.com
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Toys “R” Us Chairman of Board Executive V-Presidents Other Senior
Officers Company Divisions Toy”R”us USA Toy “R”Us International Kids “R’ Us Babies “R” Us Imaginarium
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Human Resource Management In Retailing
Human resource management involving, recruiting, selecting, training, compensating and supervising personnel in a manner consistent with the retail organization’s structure and strategy mix. 23 million people are employed in retailing
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Human Resource Management in Retailing
Recruiting- need procedures to efficiently generate sufficient applicants Selecting- diverse work force Training- must be short because most workers are inexperience and temporary Compensating- must be perceived as being fair Supervising-must closely monitor workers because many are part-time and unmotivated
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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
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Women in Retailing Women have more career opportunities in retailing as demonstrated in our text 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
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Minorities in Retailing
Again minorities have done well 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
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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
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Human resource management process in Retailing
Human resource management process consist of 5 interrelated personnel activities Recruitment- sources of employees? Selecting Retail Personnel- matching traits of new employees with job requirements. job analysis – information on job functions and requirements and job description contains, position title,relationship, and specific roles and tasks application blank and weighted application blank- tests are done and references are usually needed
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Human resource management process in Retailing
Human resource management process consist of 5 interrelated personnel activities *Training- teach new and existing personnel how to perform their jobs or improve themselves Training should be viewed as an ongoing activity Compensation –direct monetary payments( salary, commissions, and bonuses Supervision- is manner of providing a job environment that encourages employee accomplishments Job motivation – develop the drive within people to attain work related goals.
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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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Figure 11.11 A Checklist of Selected Training Decisions
When should training occur How long should training be What programs for new and existing employees Where should training take place Should audiovisuals be used Use of computerized training How the effectiveness of training be measured
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Compensation Total compensation Salary plus commission Profit-sharing
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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
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Style of Supervising Retail Employees
Management assumes employees must be closely supervised and controlled; only economic inducements motivate employees Management assumes employees can be self-managers and assigned authority; motivation is intrinsic Management applies self-management approach
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