RETAIL EMPLOYEE

PRODUCTIVITY
 Productivity in manufacturing
sector
• Productivity is the ratio of output to the
input
Example of productivity
• Production per labor
• Production per hour
• Production per unit of investment
• We can say that productivity is a ratio to
measure how well an organization (or
individual, industry, country) converts input
resources (labor, materials, machines,
capital etc.) into goods and services.
 Retail Industry
Inputs: Capital, Space, Labour
• Merchandise selection,
• Assortment planning,
• Ambience of store,
• Customer service representative’s-
decision-making, judgment, patience,
professionalism, and friendliness etc.
 Productivity in Retail sector
• Output: Sales, Gross Margins, Value
additions
• Customer experience,
• Reductions in lost sales, inventory
shrinkage, waste, cash loss, achievement of
performance objectives, etc.)
• Harder to measure and are subject to
variation from employee to employee.
 Productivity in Retail sector
• Productivity requires that salespeople
deliver a high level of service to potential
clients.
• The degree to which the employee meets
the goal shows his or her level of business
development productivity.
Three Levels of Decision-Making
The decisions are taken at three levels:
• Strategic,
• Tactical and
• Operational.
Three Levels of Decision-Making
• The differences among them are related
with the time scale that every decision
demands and with the nature of them as
well.
• Obviously, performers at each level need
different kind of information.
• People at the different levels of organization
have different productivity measurements
 Strategic level

• The top most people controlling the overall

company, specific country operations are
strategic people like CEO’s, M.D, V.P,
country heads etc
• They are responsible for controlling the
entire company or region.
• The top management is responsible for the
strategic planning of their organizations,
 Strategic people productivity
Measured By
• Increase in revenues
• Increase in profits
• Mergers and Acquisitions
• Take over
• Expansion
• Increasing retail selling space, facilities
• Analyzing market potentials
• Adding more brands
• Increasing the brand image
• Hiring more efficient people
• International tie-ups
 Middle management level
• People like Zonal managers, Senior
buyers, merchandisers etc
• Middle level managers make tactical
decisions following the plans of top
management
 Middle managers productivity

Increased square foot retail space

Increased sales per square foot
Increased profitability of the zone
Efficiently managing the zonal operations
 Operational level people
Operational managers are responsible for the
daily activity of the organization.
• Ware house managers
• Supply chain managers
• Store manager
 Ware house & SC manager
• Providing more space to products
• Increasing per sq foot products
• Managing demand and supply
• Fulfilling retail outlets requirements
• Timely scheduling and dispatching
 Retail operation and Store
manager
• Overall profitability of the store
• Increased sales per sq foot.
• Increased sales per person
• Sales and profitability per products
• Decreasing costs
 Sales staff
• Increasing sales per day,hour basis
• Attending customers per hour
• Better conversions
• Customer service levels
• Support facilities
Decision makers, independently of level,
should have the right information on the
right time in order to serve efficiently and
effectively the customer-centric processes in
which they participate.
 Top management
• Top management wants to see the “big
picture” of the company situation.
• They usually prefer dashboards, consisting
of Key Performance Indicators (KPIs),
which show the trends of the organization.
 Middle management

• Middle managers want to have access in

advanced, dynamic reports.
• They prefer aggregated instead of raw data,
thus OLAP(online analytical processing )
cubes and patterns extracted from data
mining models look very useful for them.
 Operational managers
• Operational managers need more real-time
information.
• Inventory On Hand, stock reports, Product
Performance Report, Sales Summary, Sales
Report Per Product and Product Type
• In fact, traditional BI can not serve them because
it focuses on historical business data and thus it
fits in better with strategic and tactical decision
making.
• https://www.mckinsey.com/~/media/McKin
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