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Chapter 11

Chapter 11. RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS. Retail Organization and Human Resource Management. 1. Chapter Objectives. To study the procedures involved in setting up a retail organization

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Chapter 11

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  1. Chapter 11 RETAIL MANAGEMENT: A STRATEGIC APPROACH 11th Edition BERMAN EVANS Retail Organization and Human Resource Management 1 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  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 2 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  3. Figure 11-1a: Planning and Assessing a Retail Organization 3 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  4. Figure 11-1b: Planning and Assessing a Retail Organization 4 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  5. Figure 11-1c: Planning and Assessing a Retail Organization – Management Needs 5 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  6. Figure 11-2: The Process of Organizing a Retail Firm 6 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  7. Figure 11-3: Division of Tasks in a Distribution Channel 7 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  8. Figure 11-4: A Job Description for a Store Manager 8 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  9. 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 9 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  10. Figure 11-6: Organization Structures Used by Small Independents Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  11. Figure 11-7: The Basic Mazur Organization Plan for Department Stores Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  12. Figure 11-8: Equal-Store Organizational Format Used by Chain Stores Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  13. Figure 11-9: The Organizational Structure of Kroger Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  14. Human Resource Management in Retailing • Recruiting • Selecting • Training • Compensating • Supervising Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  15. Table 11-2: True Cost of Employee Turnover • Costs of using fill-in employees • Severance pay for exiting employees • Costs of hiring new employees • Training costs • Costs of mistakes and lower productivity while new employees gain experience • Customer dissatisfaction due to the loss of prior employees and the use of inexperienced workers. • Lower continuity among co-workers. • Poor employee morale when turnover is high. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  16. 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 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  17. 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 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  18. 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 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  19. 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 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  20. Figure 11-10:A Goal-Oriented Job Description for a Management Trainee Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  21. Figure 11-11: A Checklist of Selected Training Decisions Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  22. Components of Compensation • Total compensation • Salary plus commission • Profit-sharing Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  23. Employee Behavior and Motivation • Several attitudes may affect employee behavior • Sense of accomplishment • Enjoyment 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 Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  24. Style of Supervising Retail Employees • Management assumes employees must be closely supervised and controlled; only economic inducements motivate • Management assumes employees can be assigned authority and be self-managers; motivation is intrinsic • Management applies self-management approach Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

  25. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall

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