11 chapter 11 retail organization and human resource management
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Chapter 1111
Retail Organization and
Human Resource Management
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Chapter Objectives
To consider the special human resource environment of retailing (Productivity Trap)
To study the procedures involved in setting up a retail organization
To examine the various organizational arrangements utilized in retailing
To describe the principles and practices involved with the human resource management process in retailing
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Low Wages
Insufficiently Qualified/Motivated EmployeesLow Productivity
Productivity Trap
The Problem:
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Analysis:1. Size of Task
2. Level of Efficiency
3. Cost per Unit
Productivity(Task) Function = Size of Task X CostAnalysis Cost Level of Efficiency Unit Input
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Solution - Altering Compensation Levels (Lower Input Cost)
- Part-Time Employees
- Overtime
- Incentive Compensation System
- Reducing Workload (Reduce Size of Task)
- Shift tasks to consumers
- Shift tasks to suppliers
- Shift tasks to outside agencies
- Internal actions (e.g. kiosks)
- Increasing Level of Efficiency
- Employee scheduling systems
- Technology
- Task restructuring (e.g., specialization)
- Training
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Figure 11-1c: Management Needs
Planning and Assessing a Retail Organization
Figure 11-1b: Employee Needs
Figure 11-1a: Target Market Needs
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Figure 11-2: The Process of Organizing a Retail Firm
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
Figure 11-9: The Organizational
Structure of Kroger
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Figure 11-7: The Basic Mazur
Organization Plan for Department Stores
Figure 11-8: Equal-Store
Organizational Format Used by Chain Stores
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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
Annual Turnover = 34.7%
US Monthly Employee Turnover Rates by Industry and by Geographic RegionThrough Aug/06
Data is supplied by the U.S. Department of Labor
Acquisition
-Low level
-Middle level
-High level
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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
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
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
Labor Law Factors 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
Figure 11-11: A Checklist of Selected Training
Decisions
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Components of Compensation$ Total compensation$ Salary plus commission$ Profit-sharing
ICR Compensation Survey-2006
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Employee Behavior and Motivation
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
Several attitudes may affect employee behavior
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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 Chapter 11 Discussion Questions: 5, 12
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Happy Halloween!