Retail Organization and Human Resource Management

1
Chapter 11

• Retail Organization and Human Resource Management

RETAIL MANAGEMENT A STRATEGIC APPROACH, 9th
Edition
BERMAN EVANS
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

3
Figure 11.1 Planning and Assessing a Retail
Organization Factors to Consider
4
Figure 11.1 Planning and Assessing a Retail
Organization Factors to Consider
5
Figure 11.1 Planning and Assessing a Retail
Organization Factors to Consider
6
Figure 11.2 The Process of Organizing a Retail
Firm
7
Figure 11.3 Division of Tasks in a Distribution
Channel
8
Grouping Tasks into Jobs
9
Figure 11.4 A Job Description for a Store Manager
10
Classifying Jobs

• Functional
• Product diversification
• Geographic
• Combination

11
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

12
Figure 11.5 Different Forms of Retail Organization
13
Figure 11.5 Different Forms of Retail Organization
14
Figure 11.5 Different Forms of Retail Organization
15
Figure 11.5 Different Forms of Retail Organization
16
Figure 11.6 Organization Structures Used by Small
Independents
17
Figure 11.7 The Basic Mazur Organization Plan for
Department Stores
18
Figure 11.8 The Equal-Store Organizational
Format Used by Chain Stores
19
Organizational Arrangements Used by Diversified
Retailers

• A diversified retailer is a multiline firm
  operating under central ownership.
• Toys R Us, Inc.
• Toys R Us
• Kids R Us
• Babies R Us

20
Figure 11.9 The Organizational Structure of Toys
R Us
21
Human Resource Management in Retailing

• Recruiting
• Selecting
• Training
• Compensating
• Supervising

22
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

23
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

24
Minorities 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

25
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

26
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

27
Figure 11.10A Goal-Oriented Job Description for
a Management Trainee
28
Figure 11.11 A Checklist of Selected Training
Decisions
29
Compensation

• Total compensation
• Salary plus commission
• Profit-sharing

30
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

31
Style of Supervising Retail Employees

• Management assumes employees must be closely
  supervised and controlled only economic
  inducements motivate
• Management assumes employees can be self-managers
  and assigned authority motivation is intrinsic
• Management applies self-management approach