1. Retail Organization & HRM

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

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

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

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

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

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

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

9. Organizing the firm

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

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

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

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

14. Retail tasks

15. Retail tasks to be performed
Buying merchandise
Shipping merchandise
Receiving merchandise

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

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

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

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

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

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

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

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

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

25. Classifying jobs & the hierarchical charts

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

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

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

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

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

31. Combination chart
See page 332
Figure 11-5

32. Small independent charts

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

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

35. Part 2 – human resources
On another set of slides