Chapter 11

Retail Organization and Human Resource Management

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 11.1 Planning and Assessing a Retail Organization: Factors to Consider

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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

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Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

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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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Grouping Tasks into Jobs

TASKS Displaying merchandise, customer contact, gift wrapping, customer follow-up Entering transaction data, handling cash and credit purchases, gift wrapping Receiving merchandise, checking incoming shipments, marking merchandise, inventory storage and control, returning merchandise to vendors Window dressing, interior display setups, use of mobile displays Billing customers, credit operations, customer research Merchandise repairs and alterations, complaint resolution, customer research Cleaning store, replacing old fixtures Personnel management, sales forecasting, budgeting, pricing, coordinating tasks JOBS Sales personnel Cashier Inventory personnel

Display personnel Credit personnel Customer service personnel Janitorial personnel Management personnel

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Figure 11.4 A Job Description for a Store Manager

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Classifying Jobs
Functional Product diversification Geographic Combination

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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 11.5 Different Forms of Retail Organization

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Figure 11.5 Different Forms of Retail Organization

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Figure 11.5 Different Forms of Retail Organization

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Figure 11.5 Different Forms of Retail Organization

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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 The Equal-Store Organizational Format Used by Chain Stores

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Organizational Arrangements Used by Diversified Retailers

A diversified retailer is a multiline firm operating under central ownership. Toys R Us, Inc. Toys R Us Kids R Us Babies R Us

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Figure 11.9 The Organizational Structure of Toys R Us

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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 female 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 See DiversityInc.com

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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
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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 GoalOriented Job Description for a Management Trainee

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Figure 11.11 A Checklist of Selected Training Decisions

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Compensation
$ Total compensation $ Salary plus commission $ Profit-sharing

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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
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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

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