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Chapter 11. RETAIL MANAGEMENT: A STRATEGIC APPROACH , 10th Edition. Retail Organization and Human Resource Management. BERMAN EVANS. Chapter Objectives. To study the procedures involved in setting up a retail organization
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Chapter 11 RETAIL MANAGEMENT: A STRATEGIC APPROACH, 10th Edition Retail Organization and Human Resource Management BERMAN EVANS
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
Figure 11-1a: Planning and Assessing a Retail Organization – Target Market Needs
Figure 11-1b: Planning and Assessing a Retail Organization – Employee Needs
Figure 11-1c: Planning and Assessing a Retail Organization – Management Needs
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
Figure 11-6: Organization Structures Used by Small Independents
Figure 11-7: The Basic Mazur Organization Plan for Department Stores
Figure 11-8: Equal-Store Organizational Format Used by Chain Stores
Human Resource Management in Retailing • Recruiting • Selecting • Training • Compensating • Supervising
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
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: • 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
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
Figure 11-10:A Goal-Oriented Job Description for a Management Trainee
Components of Compensation • Total compensation • Salary plus commission • Profit-sharing
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
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
