Chapter 1111Retail Organization and Human Resource Management

RETAIL MANAGEMENT:A STRATEGICAPPROACH,

10th Edition

BERMANBERMAN EVANS EVANS

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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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Figure 11-1a: Planning and Assessing a Retail Organization – Target Market Needs

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Figure 11-1b: Planning and Assessing a Retail Organization – Employee Needs

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Figure 11-1c: Planning and Assessing a Retail Organization – Management Needs

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Figure 11-2: The Process of Organizing a Retail Firm

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Figure 11-3: Division of Tasks in a Distribution Channel

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Figure 11-4: A Job Description for a Store Manager

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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 11-6: Organization Structures Used by Small Independents

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Figure 11-7: The Basic

Mazur Organization

Plan for Department

Stores

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Figure 11-8: Equal-Store

Organizational Format Used

by Chain Stores

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Figure 11-9: The Organizational Structure of Kroger

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Human Resource Management in Retailing

Recruiting Selecting Training Compensating Supervising

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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

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

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

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Diversity

Two premises:

1.That employees be hired and promoted in a fair and open way, without regard to gender, ethnic background, and other related factors

2.That in a diverse society, the workplace should be representative of such diversity

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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 11-10:A Goal-

Oriented Job Description

for a Management

Trainee

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Figure 11-11: A Checklist of Selected Training Decisions

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Components of Compensation

$ Total compensation$ Salary plus commission$ Profit-sharing

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Employee Behavior and Motivation

Several attitudes may affect employee behaviorSense of accomplishmentLiking of workAttitude toward physical work conditionsAttitude toward supervisorsConfidence in companyKnowledge of business strategyRecognition 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

Management assumes employees can be self-managers and assigned authority; motivation is intrinsic

Management applies self-management approach