HUMAN RESOURCE MANAGEMENT

What you expect when you enter in any shop?

• HRM is extremely important in Retailing. Because a retail store is a combination of merchandise and service. The product and service is delivered through the human interface between the store employees and customer.

Human Resource Management is the effective use of human resource in order to enhance organizational performance.

Human Resource Environment of Retailing

Large number of inexperienced workers - Due to the need of large retail labor force, Low wages paid for positions often means hiring those with little or no prior experience.

Long working hours - Retail shops have longer working hours since most customers want to shop during evenings and weekends.

Part Time Employees - Due to their long working hours, retailer regularly hire part-time employees.

Highly visible employees - Retailing employees are highly visible because they directly interact to the customer thus special care is taken with regard to their manners and appearance.

Variability in the customer demand - Demands of customers varies by per day, time period, or season.

These factors make the hiring , staffing, and supervision of the employees a complex process.

Major Activities Conduct by HR/Function/Process

1. Job analysis 1. Job analysis

4. Training 4. Training

3. Selecting3. Selecting

7..Evaluation 7..Evaluation 8.. Compensation8.. Compensation

6. Motivation 6. Motivation

2. Recruiting 2. Recruiting

5. Direction 5. Direction

Job analysis

Duties and tasksWork environmentTools and equipment'sRelationshipsRequirements

Recruiting

•Process of locating, identifying, and attracting capable candidates.

•Can be for current or future needs.

•What sources do we use for recruitment.

Internal sources

Present employees already working in the organization

Recommendation of the existing retail employees

PromotionsTransfersRe-employment of former employee

External sources

Direct unsolicited applicationsEmployment agenciesCustomerRetail staff of non competing companyEducational institution

Training

•Training tends to be done for current job.

•Aims to improve efficiency.

•Keeps the employee up to date with changes in the field

•Can be external or ‘in-house’.

Methods

Group training method

1. Lecture method

2. Audio visual method

3. Discussion method

4. Role playing method

5. Panel method

6. Round table method

Methods of training

Individual training method

1. On the job

2. Internship training

3. Individual assigments

Motivation

Motivating employees to perform up to their potential is the

key to maintaining a productive, successful business.

Ways in which you can motivate employees -

•Interact - Talk to your employees regularly. •Recognition & Appreciation -  A job well done should be appreciated and encouraged.

•Pay them Right -  Pay employees for what they are worth and they will be happy to work.

•New challenges - Give employees new and interesting challenges to keep them stimulated and learning.

Motivating Employees

How critical is Motivation of employees?

Employees personal goals does vary with the management’s goals

According to a study, 5% increase in employee satisfaction results in a 1.3% increase in customer satisfaction and 0.5% increase in sales

Customer loyalty is directly related to motivation of employees

Motivation

The organisation cultureThe rewards and recognitionThe monetary benefitsProspects for growth and job enrichment

17

Evaluation

•Means to ensure organizational goals are being met.

•Establishing performance standards and reviewing the performance.

•To identify employees who are performing well and those who aren’t.

Evaluation Of Performance

Through goals that have been set

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Compensation

Incentive Compensation can be Commission, Bonus and stock options.

•Commission is a compensation based on fixed formula for sales.

•Bonus is periodical compensation based on the store’s performance during that period.

•Stock options-employees are encouraged to buy shares of their company at discounted prices

Types of compensation plans

Straight salary compensation-25,000Straight commission or incentive

compensationSalary plus compensation-salary 25,000

+ 1% of all ales made by him

HR Challenges Faced by Retailers

Part-time Employees

•Part-time employees are essential apart from the regular full-time employees.

•Part-time employees are less committed to the company and their jobs.

•Part-time employees are more likely to quit the company than the full-time employees.

HR Challenges Faced by Retailers

Expense Control

•Poor attitude, lack of experience and lack of motivation directly reflect on the sales and customer loyalty as Employees get into direct contact with the customer.

•Retailers work on thin margins and must controlexpenses. Thus they are cautious about paying high to their employees who perform low-skill jobs.

HR Challenges Faced by Retailers

Employee Demographics

The changing demographic patterns results in a chronic shortage of sales associates.

Thus managing this growing diversity and changing values in retail workforce especially in tight labor markets creates problems for HR managers.

HR Challenges Faced by Retailers

International HR issues

Managing employees working for a international retailer is challenging because of difference in work values, economic systems and labor laws.

Differs

This implies that HR practices effective in one country might not be effective in another.

Building Employee Commitment

Some approaches that retailers take to build employee commitment.

Selective Hiring and TrainingSelective Hiring and Training

Empowering employees

Creating Partnering RelationshipsCreating Partnering Relationships

Building Employee Commitment

Selective Hiring and TrainingSelective Hiring and Training

•To seek best and the brightest candidate.

•To seek the candidate with the right attitude.

•Investing in developing employee skills is very important as more than 60% employees have direct customer contact. and If you don’t If you don’t care of your customer some one else will do. care of your customer some one else will do.

•Both PRODUCT and ETIQUETTE training must be imparted.

Building Employee Commitment

Empowering employees

Empowerment is the process of managers sharing power and decision-making authority with employees. Ways of empowering employees: •Share Leadership Vision- Help people feel that they are part of something bigger than themselves and their individual job.

•Trust People

•Provide Frequent Feedback -so that people know how they are doing.

•Solve Problems: Don't Pinpoint Problem People

Building Employee Commitment

Creating Partnering RelationshipsCreating Partnering Relationships

Reduce Status Difference: Retailers attempt to reduce status difference among the employees. With limited status difference employees feel they play a important role in the firm’s achievement and their contributions are valued.

Promoting from within: Promotion from within is a staffing policy that involves hiring new employees only for the positions at the lowest level in job hierarchy and then promoting employees for openings at higher levels in the hierarchy.