HRM IN RETAILING

Objective of HRM
◻ The primary objective of HRM is to build
sustainable competitive advantage.
◻ Labor cost accounts for significant expenses
◻ Positive experience to customers via good
employees
◻ Employees help create differentiation in retailer
offerings.
Issues in HRM
◻ Balancing in human resource triad: Effective
policies that can satisfy employees need.
◻ Expense control: Hiring less experienced sales
personnel to control expenses
◻ Part-time employees: They are less expensive than
full time due to lack of perks
◻ Utilizing diverse employees group: Changing
demographic pattern will result in shortage of
qualified sales personnels
◻ International strategic Issue: The design of the
organizational structure for assigning responsibility
and authority
◻ The approach used to coordinate the activities of
the firms department and motivate employees
towards achieving goals
◻ The program used to built employee commitment
and retain valuable resource
Centralization v/s Decentralization

◻ Centralization: When the authority for retailing

decisions is delegated to corporate managers rather
then to geographically dispersed manager.
◻ Decentralization: When the authority for decisions
are assigned to lower level people.
Centralization reduce cost
◻ Overhead falls because fewer managers are
required.
◻ Coordinating buying across geographically
dispersed stores, company can achieve lower
prices.
◻ Opportunity to have best people make decision
Developing Talent
◻ Develop knowledge, skills and abilities selection
and training.
◻ Selective hiring
◻ Training
Motivating Talent
◻ Written policies and supervision
◻ Compensation based incentive
◻ Organizational culture