You are on page 1of 32

HR SERVICES IN RETAIL MANAGEMENT DEFINITION AND SCOPE OF RETAILING: The word retail is derived from the French word

retailer meaning to cut a piece off or to break bulk. In simple terms, it implies a first-hand transaction with the customer. Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable. Retailing involves a direct interface with the customer and the coordination of business activities from end to end- right from the concept or design stage of a product or offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today. TYPES OF RETAIL OPERATIONS: Retail operations enable a store to function smoothly without any hindrances. The significant types of retail operations consist of: Department store Specialty store Discount/Mass Merchandisers Warehouse/Wholesale clubs Factory outlet

Retail Management System targets small and midsize retailers seeking to automate their stores. The package runs on personal computers to manage a range of store operations and customer marketing tasks, including point of sale; operations; inventory control and tracking; pricing; sales and promotions; customer management and marketing; employee management; customized reports; and information security. THE EMERGING SECTORS IN RETAILING: Retailing, one of the largest sectors in the global economy, is going through a transition phase not only in India but the world over. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar), convenience stores (Convenio, HP Speedmart) and fast-food chains. It is the non-food segment, however that foray has been made into a variety of new sectors. These include lifestyle/fashion segments (Shoppers' Stop, Globus, LifeStyle, Westside), apparel/accessories (Pantaloon, Levis, Reebok), books/music/gifts (Archies, MusicWorld, Crosswords, Landmark), appliances and consumer durables (Viveks, Jainsons, Vasant & Co.), drugs and pharmacy (Health and Glow, Apollo). The emergence of new sectors has been accompanied by changes in existing formats as well as the beginning of new formats: - Hypermarts

-Large supermarkets, typically 3,500-5,000 sq. ft. - Mini supermarkets, typically 1,000-2,000 sq. ft. - Convenience stores, typically 750-1,000sq. ft. - Discount/shopping list grocer The traditional grocers, by introducing self-service formats as well as valueadded services such as credit and home delivery, have tried to redefine themselves. However, the boom in retailing has been confined primarily to the urban markets in the country. Even there, large chunks are yet to feel the impact of organized retailing. There are two primary reasons for this. First, the modern retailer is yet to feel the saturation' effect in the urban market and has, therefore, probably not looked at the other markets as seriously. Second, the modern retailing trend, despite its cost-effectiveness, has come to be identified with lifestyles. In order to appeal to all classes of the society, retail stores would have to identify with different lifestyles. In a sense, this trend is already visible with the emergence of stores with an essentially `value for money' image. The attractiveness of the other stores actually appeals to the existing affluent class as well as those who aspire for to be part of this class. Hence, one can assume that the retailing revolution is emerging along the lines of the economic evolution of society. RETAILING SCENARIO- GLOBAL VIEW: Retailing in more developed countries is a big business and better organized than what in India. According to a report published by McKinsey & Co. along with the Confederation of the Indian Industry the global retail business is a worth a staggering US$ 6.6 trillion. In the developed world, most of it is accounted for by the organized retail sector. The service sector accounts for a large share of GDPin most developed economies. And the retail sector forms a very strong component of the service sector. In short, as long as people need to buy, retail will generate employment.Globally, retailing is a customer-centric with a emphasis on innovation in products, processes and services. With total sales of US$ 6.6 trilloin, retailing is the world is largest private industry, ahead of finance and engineering. Some of the world largest companies are in this sector: over 50 Fortune, 500 companies and around 25 of the Asian Top 200 firms and retailers. Wal-Mart, the world second largest retailer, has a turnover of US$ 260 billion, almost one-third of India GDP.

As many as 10% of the world billionaires are retailers. The industry accounts for over 8% of GDP in western countries, and is one of the largest employers. According to the U.S.Department of Labor, more than 22 million Americans are employed in the retailing industry in over 2 million retail stores. RETAIL INDUSTRY IN INDIA: Retail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around eight percent of employment. Retail in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. That said, the heavy initial investments required make break even hard to achieve and many players have not tasted success to date. However, the future is promising; the market is growing, government

policies are becoming more favourable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way to becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organised retail and growth in the consumption by Indians is going to adopt a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organised retail sector. Big in size and turnover, Indian retailing industry is characterised by certain attributes. The network of retailers reaches every nook and corner of the country. So any product produced anywhere in the country can be easily accessed by the buyers from any location. Thus the spatial convenience of Indian retailers is vary high. Secondly, in India the retailing industry is an unorganised lot consisting of, in most of the cases, small entrepreneurs. And the virtual omnipresence of the Indian retailer can be attributed to these small entrepreneurs only. The second attribute gives rise to the following characteristics - Power of the retailers, as such is very less, and in many cases it is negligible. This weakness has been exploited by the manufacturers and the stronger partners of the marketing channel. The retailers, in general, abide by the terms and conditions set by the manufacturers and other "big brothers" of the channel. - The manufacturers cannot directly reach all retailers in a particular geographical area. Therefore, the manufacturers cannot maintain the desired relationship with the retailers, which in turn, makes management of the channel complicated. This also makes the possibility of a direct feedback loop from the retailers almost remote. - Therefore, the member operating between the manufacturers and retailers become more powerful as they can block the channel of communication between the two. So the dependence of retailers on other channel members increases to a high extent. Thus the participation of retailers in the flows of marketing mix becomes lower than desired. - The financial strength of the Indian retailers, in general, is very low and hence the investment capabilities. This makes the retailers more dependent on the other channel members. - However, these characteristics are peculiar to the small retail outlets and may not be present at every kind of retail level. Retail Shopkeepers: India has sometimes been called a nation of shopkeepers. This epithet has its roots in the huge number of retail enterprises in India, which totalled over 12 million in 2003. About 78% of these are small family businesses utilising only household labour. Even among retail enterprises that employ hired workers, the

bulk of them use less than three workers. India's retail sector appears underdeveloped not only by the standards of industrialised countries but also in comparison with several other emerging markets in Asia and elsewhere. There are only 14 companies that run department stores and two with hypermarkets. While the number of businesses operating supermarkets is higher (385 in 2003), most of these had only one outlet. The number of companies with supermarket chains was less than 10. Retail Sales: Retail sales, which amounted to about Rs7,400 billion in 2002, expanded at an average annual rate of 7% during 1999-2002. With the upturn in economic growth during 2003, retail sales are also expected to expand at a higher pace of nearly 10%. In a developing country like India, a large chunk of consumer expenditure is on basic necessities, especially food related items. Hence, it is not surprising that food, beverages and tobacco accounted for as much as 71% of retail sales in 2002. The remaining 29% of retail sales are non-food items. The share of food related items fell over the review period, down from 73% in 1999. This is to be expected as, with income growth, Indians, like consumers elsewhere, spent more on non-food items compared with food products. Sales through supermarkets and department stores are small compared with overall retail sales. However, their sales grew much more rapidly (about 30% per year). As a result, their sales almost tripled during this time. This high acceleration in sales through modern retail formats is expected to continue during the next few years with the rapid growth in numbers of such outlets in response to consumer demand and business potential.

Government Policy: There has been vigorous opposition to foreign direct investment (FDI) in retailing from small traders who fear that foreign retailing companies would take away their business, lead to the closure of many small trading businesses and result in considerable unemployment. Given the political clout of the small trading community, because of their enormous numbers, the government has barred FDI in retailing since 1997. Hence, at present, foreign retailers can only enter the retailing sector through franchising agreements. Growth of Retailing in India: Indian retailing industry has seen phenomenal growth in the last five years (20012006). Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly to the growth of Indian retail sector. India Retail Sector Analysis (2006-2007) report helps clients to analyze the opportunities and factors critical to the success of retail industry in India. - Organized retail will form 10% of total retailing by the end of this decade (2010). - From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53% per annum. - Cultural and regional differences in India are the biggest challenges in front

of retailers. This factor deters the retailers in India from adopting a single retail format. - Hypermarket is emerging as the most favorable format for the time being in India. - The arrival of multinationals will further push the growth of hypermarket format, as it is the best way to compete with unorganized retailing in India. Technology Impact: The other important aspect of retailing relates to technology. It is widely felt that the key differentiator between the successful and not so successful retailers is primarily in the area of technology. Simultaneously, it will be technology that will help the organised retailer score over the unorganised players, giving both cost and service advantages. Retailing is a `technology-intensive' industry. It is quoted that everyday at least 500 gigabytes of data are transmitted via satellite from the 1,200 point-ofsales counters of JC Penney to its corporate headquarters. Successful retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and thereby, save cost. Wal-Mart pioneered the concept of building a competitive advantage through distribution and information systems in the retailing industry. They introduced two innovative logistics techniques - cross-docking and electronic data interchange. Today, online systems link point-of-sales terminals to the main office where detailed analyses on sales by item, classification, stores or vendor are carried out online. Besides vendors, the focus of the retailing sector is to develop the link with the consumer. `Data Warehousing' is an established concept in the advanced nations. With the help of `database retailing', information on existing and potential customers is tracked. Besides knowing what was purchased and by whom, information on softer issues such as demographics and psychographics is captured. Retailing, as discussed before, is at a nascent stage in our country. Most organised players have managed to put the front ends in place, but these are relatively easy to copy. The relatively complicated information systems and underlying technologies are in the process of being established. Most grocery retailers such as FoodWorld have started tracking consumer purchases through CRM. The lifestyle retailers through their `affinity clubs' and `reward clubs' are establishing their processes. The traditional retailers will always continue to exist but organised retailers are working towards revamping their business to obtain strategic advantages at various levels - market, cost, knowledge and customer. With differentiating strategies - value for money, shopping experience, variety, quality, discounts and advanced systems and technology in the back-end, change in the equilibrium with manufacturers and a thorough understanding of the consumer behaviour, the ground is all set for the organised retailers. It would be important to note, however, that the retailing industry in India is still a `protected industry'. It is one of the few sectors which still has restrictions on FDI. Given the current trend in liberalisation, it will not be long before the retailing sector is also thrown open to international competition. This will see a further segregation of the international retailing brands and the domestic retailers, thereby injecting much greater dynamism into the market. That will be when the real action will begin. Major retailers in India:

- Indias top retailers are largely lifestyle, clothing and apparel stores. - This is followed by grocery stores. - Following the past trends and business models in the west retail giants such as Pantaloon, Shoppers Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores. - These Wal-Mart wannabes have the economy of scale to be low medium cost retailers pocketing narrow margin. RETAILING SCENARIO-INDIA: The retail scenario in India is unique. Much of its is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 96% of these retail outlets are less than 500 sq.ft. in size, the per capita retail space in India being 2 sq.ft. Compared to the US figure of 16 sq.ft. Indias per capita retailing space is thus the lowest in the world. With more than 9 outlets per1,000 people , India has the largest number in the world. Most of them are independent and contribute as much as 96% to total retail sales. Because of the increasing number of nuclear families,working women, greater work pressure and increased commuting time, convenience has become a priority for Indian consumers. They want everything under one roof for easy access and multiplicity of choice. This offers an excellent opportunity for organized retailers in the country who account for just 2% (and modern stores 0.5%) of the estimated US $180 billion worth of goods that are retailed in India every year. The retail business in India in the year 2000 was Rs.400,000 crore and is estimated to go to Rs.800,000 crore by the year 2005, an annual increase of 20%.The contribution of the organized retail industry in the year 2000 was Rs.20,000 crore and is likely to increase to Rs.160,000 crore by 2005.

GROWTH OF RETAIL OUTLETS IN INDIA: India is rapidly evolving into a competitive marketplace with potential target consumers in the niche and middle class segments. The market trends indicate tremendous growth opportunities. Global majors too are showing a keen interest in the Indian retail market. Over the years, international brands like Marks & Spencer, Samsonite, Lacoste, McDonalds, Swarovski, among a host of others have come into India through the franchise route following the relaxation of FDI (foreign direct investment ) restrictions. Large Indian companies among them the Tata, Goenka and the Piramal groups are investing heavily in this industry. Organizations ready to take on this challenge can leverage the opportunities offered by a population of more than a billion. The prospects are very encouraging. Buying behaviour and lifestyles in India too are changing and the concept of Value for Money is fast catching on in Indian retailing. This is evident from the expansion of the pantaloons chain into a large value format, Big Bazaar, and the entry of new discount stores in food retailing in the South, namely, Subhiksha and Margin Free.

According to a report by the Centre for Monitoring Indian Economy (CMIE), investments in organized retailing which include shopping malls, retail chains etc.- doubled from Rs.1,000 crore in January 2000 to Rs. 2,000 crore in January 2001.

TRENDS IN RETAILING: The single most important evolution that took place along with the retailing revolution was the rise and fall of the dotcom companies. A sudden concept of `non-store' shopping emerged, which threatened to take away the potential of the store. More importantly, the very nature of the customer segment being addressed was almost the same. The computer-savvy individual was also a sub-segment of the `store' frequenting traffic. Internationally, the concept of Net shopping is yet to be proven. And the poor financial performance of most of the companies offering virtual shopping has resulted in store-based retailing regaining the upper hand. Other forms of nonstore shopping including various formats such as catalogue/mail order shopping, direct selling, and so on are growing rapidly. However, the size of the direct market industry is too limited to deter the retailers. For all the convenience that it offers, electronic retailing does not suit products where `look and see' attributes are of importance, as in apparel, or where the value is very high, such as jewellery, or where the performance has to be tested, as of consumer durables. The most critical issue in electronic retailing, especially in a country such as ours, relates to payments and the various security issues involved. RECENT TRENDS INCLUDE: - Retailing in India is witnessing a huge revamping exercise. - India is rated the fifth most attractive emerging retail market: a potential goldmine. - Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion. - As per a report by KPMG the annual growth of department stores is estimated at 24%. - Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney.

CHANGING TRENDS IN RETAILING: By the turn of the 20th century, the face of the Indian retailing industry had changed significantly. The retailing industry, which, until the early 1990s, was dominated by the unorganized sector, witnessed a rapid growth in the organized sector with the entry of corporate groups such as Tata, RPG, ITC and Bennett Coleman & Company into the retailing market. With the liberalization and growth of the Indian economy since the early 1990s, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes also had a positive impact, leading to the rapid growth in the retailing industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. Food retailing was a key area that saw some action at the national level, with players like Foodworld and Subhiksha, establishing stores all over India. While supermarket and departmental chains replaced traditional grocery and general store

formats, introduction of fast foods (McDonalds), packaged foods (MTR, Namma MTR), vending machines and specialty beverage parlors (Nescafe, Tata Tea, and Barista) brought about significant changes in the eating habits of Indian consumers. However, it was the non-food sector that saw tremendous action, with the introduction of new product segments. These segments mainly comprised lifestyle/apparel/ fashion/accessories (eg. Shoppers Stop, Westside, Lifestyle, Pantaloons, Reebok), books/music (Landmark and Crosswords), drugs and pharmacy and beauty (Health & Glow, CavinKare and Shahnaz Husain). The emergence of new segments also resulted in new store formats, including hypermarts, large supermarkets (3,500-5,000 sq.ft), mini supermarkets (1,000-2,000 sq.ft), convenience stores (750-1000 sq.ft) and discount/shopping/grocer. According to reports, organized retailing, which accounted for about 6% of the total retail industry in 1999, was expected to increase to about 20% by 2005. In October 2003, the total organized retail market in India was valued at about Rs. 200 bn and was estimated to grow eightfold in the next decade.

SUGGESTIONS: To make Indian retailing world class many a challenges are to be overcome by the industry. Some suggestions to improve the situation are offered below. Establishment of Retailer co-operatives, which will maintain warehouses etc. to work as a distribution centre for the member retailers can help Indian retailer attain a respectable position in the relationship matrix mentioned above. The whole organisation will run at a no-profit, no-loss basis. This would enable the retailers to buy the products they want directly from the original manufacturers in huge quantity This would make the application of the concepts of QR (Quick Response) and ECR (Efficient Consumer Response ) possible to a certain extent.. However, many inherent difficulties may make the functioning or even establishment of such a co-operative difficult. Nevertheless, these problems are inevitable and must be dealt with firmly. Merger and buy-out of weak retailers by a stronger one, specially in metros and big cities may be another step towards this direction. This would give the new retailer the desired leverage to be world class. Use of technology to the greatest extent possible may also help strengthening the retailers position in the marketing channel. First step may be taken with setting up of a network of independent firms believing in use of technology for business excellence. Then a collection of strong retail organisations may pressurise the suppliers and other channel members to use compatible technology. This may open the door for implementation of QR or ECR or other relevant concepts for the retailers. An overall change is to bring about in the mindset of the retailers. They will have to think differently. They must find out and satisfy service outputs of the target customers Unless there is a drastic change in the mindset of at least large and medium retailers and as well as that of the manufacturers, the required change is not going to come by easily. The retailers must learn and understand to lead the chain from the front. Setting up of more and more non-store retailing centers would also ensure a strong retailing organisation. Non-store retailing makes implementation of modern

principles easier and less costlier. Setting up of franchisee organisation may also help in strengthening the position of the retailers. The franchiser can exert a tremendous control over the way retailing is done. Transnational service organisation like McDonald and KFC are being able to offer a centralised control over purchase and operation. Large and medium sized retailers may take up the concept of franchising to reach the market in a more meaningful way. Though the management of franchisee network is difficult than managing a retail chain in view of high level of investment and other obligations, Indian retailers should spread out its wings its in this profitable and efficient way. CONCLUSION: Indian retailing, thus enjoys many unique features, is still done in a primitive way. Barring a few exceptions, Indian retailers, particularly FMCG retailers, are not in a position to implement world-class practices of supply chain management. The concepts of Quick Response or Efficient Consumer Response are unheard of in Indian retailing. The two bases of modern retailing management, the Electronic Data Interface and a mutually respectable partnership among retailers and suppliers (the manufacturers) are missing to a great extent in Indian context. Also, Indian marketing channel members are performing some unnecessary tasks, which makes the channel structure heavy and inefficient. Though these inefficiencies are observed in all retailing irrespective of industry, the symptoms are more evident in Indian FMCG retailing. Inefficiency in retailing leads to lower profitability of the retailers and lower service outputs for the consumers. Ways and means to strengthen the position of the retailing industry, doing away with the causes for the inefficiencies, therefore, are to be taken up in an urgent manner. Such measures may include establishment of retailers co-operatives, merger and buy-out, use of technology to the greatest possible extent, setting up of nonstore retailing centers and increase in franchisee network. The Indian Retail Industry stood at a value of a whooping US $330 billion in 2007 with the likes of Reliance Retail and Wal-mart joining the conglomerates from inside and outside the country. It is estimated that the retail sector will reach around US $600 billion by the turn of this decade. Significantly retail industry contributes about 10% to the GDP of India, and it is the largest source of employment after agriculture in the country. Scope for employment opportunities: It is small wonder then that retail sector has open the floodgates of employment opportunities to the Indian youth. Statistics reveal that the organized retail sector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 lakh over the last couple of years. About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the unorganized retail sector will be thrown open by 2010 what with the likes of key players in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle, Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd. and Reliance Retail Ltd. And the retail sector has abundant opportunities for part time positions as well due to the long working hours. Compensation packages: In general, hefty salary packages with attractive perks and allowances are offered by the employers luring the talent of this country into the retail industry. Surprisingly the average salary of even a fresher could be up to Rs.20,000/- with an assured average salary hike of 16% per annum. In some organizations the growth in salary ranges from Rs.60,000/- to Rs.70,000/- annually.

HR in Indian Retail The Indian Retail Industry stood at a value of a whooping US $330 billion in 2007 with the likes of Reliance Retail and Wal-mart joining the conglomerates from inside and outside the country. It is estimated that the retail sector will reach around US $600 billion by the turn of this decade. Significantly retail industry contributes about 10% to the GDP of India, and it is the largest source of employment after agriculture in the country. Scope for employment opportunities: It is small wonder then that retail sector has open the floodgates of employment opportunities to the Indian youth. Statistics reveal that the organized retail sector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 lakh over the last couple of years. About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the unorganized retail sector will be thrown open by 2010 what with the likes of key players in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle, Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd. and Reliance Retail Ltd. And the retail sector has abundant opportunities for part time positions as well due to the long working hours. Compensation packages: In general, hefty salary packages with attractive perks and allowances are offered by the employers luring the talent of this country into the retail industry. Surprisingly the average salary of even a fresher could be up to Rs.20,000/- with an assured average salary hike of 16% per annum. In some organizations the growth in salary ranges from Rs.60,000/- to Rs.70,000/- annually. HRM / HRD OPPORTUNITIES IN RETAIL SECTOR IN INDIA ________________________________________ As listed by experts in INDIAN ECONOMY, the retail industry is on the threshold of a boom. This boom is driven by -enhanced buying power of -change in the lifestyle -foreign investors in the -government encouragement -relaxation of FDI in the the middle class retail sector for local retailers retail sector.

This is going to impact the retailing industry -about 12% growth in the retail industry -about 2 million addition to the employment STATISTICS in the next 5/6 years. THE RETAIL SECTOR IS A LABOR INTENSE INDUSTRY. WHAT DOES THIS MEAN TO ''HRM/HRD'' ? 1 .JOB OPPORTUNITY. -there will big demand for HR specialists/ generalists for in-house operation. -there will be for outsourced services, like training etc etc 2.RECRUITMENT/ SELECTION OPPORTUNITY The following positions will be in demand. SENIOR MANAGEMENT -CEOs

-CIOs -CFOs -GM operations -national marketing managers -merchandising managers [ buyers] -HR Managers etc etc MIDDLE -category managers -store managers -training managers -departmental managers -sales promotion managers -inventory managers -financial controllers -PR managers -advertising managers etc etc FRONT LINE STAFF -check out staff -counter staff -retail sales assistants -merchandisers -supervisors -customer service staff etc etc SKILLS / KNOWLEDGE IN DEMAND -communication skills -customer servicing skills -retail selling skills -merchandising skills -interpersonal skills -persuasion skills -store management skills -people management skills -problem solving -coaching skills -staff counseling skills etc etc CORE TRAINING AREAS -store management -retail selling -merchandise presentation -customer service -business communication -stock taking -train the trainer for managers -coaching -counseling -product knowledge etc etc

FOR HR PEOPLE who are planning a career in retail -either in-house -or offer HR CONSULTING SERVICES this is a great opportunity for the future

HR factor in retail: Largely ignored The HR factor in retail management is still largely ignored.. The lack of formal retailing education further exacerbates the problem of recruiting. How should retailers build human relations in retail management? The first ingredient is infusing a passion for success in employees. If the staff are the employees of the company, rather than outsourced from agencies, there will be greater commitment. Further, retailers should make every employee a partner through a stock options scheme. A watchman who knows that he has a stake in the final profits, in the form of a bonus or a stock option, will ensure zero levels of shrinkage. Remember, businessmen must share their wealth with those who generate it. Get the basics right Retailing is a hard business. It is rigorous. The floor staff stands on its feet for up to nine hours every day. The job of the salesperson on the floor is physically exacting and emotionally draining. Which is why changing existing mindsets and motivating personnel will also require ensuring basic hygiene factors. It is crucial to provide toilets, restrooms, canteens and dining areas, as well as recreation rooms to the staff. The astute retailer will provide meals to the staff, so that they eat wholesome, nutritious food. He will provide not merely restrooms, but also resting rooms, for women, with a few beds. This provision is law in many countries. Leading global retailer Marks & Spencer outsources manufacture of its merchandise. However, when it appoints a new supplier, its managers first check the staff toilets and dining facilities. Also, in a competent retail organisation, each employee should spend at least 10 working days a year in the classroom. Training of the staff is the best investment in the retail business. Training has to be constant, in the classroom and on the floors, on a daily basis. Business schools should come together to pioneer a new curriculum for master's degree in retail management. Next to training is the vital policy of building careers and promoting people from within the company. Internal progression systems augment loyalty and boosts morale. The staff are strongly motivated by the belief that they will grow when they deliver results. There should be a well-defined succession plan in the company and potential candidates should be groomed with adequate training and exposures. Respect the floors Astute retailers will walk the floors every day. In a customer service-oriented retail outlet, the supervisory staff, managers, directors or the chairman of the company will walk the floors. They will also seek advice and customer responses from the staff. As Sam Walton, the best retailer of our times, once said, "Our best ideas come from the shop floors. Most CEOs are obsessed with the stock prices of their companies, their net worth and how many million retail sq ft they own. They do not focus on organisationbuilding or talking to the floor staff. Looks do matter Retailing is about the staff wearing clean, ironed uniforms. It is about shaving

daily, using the right type and the right amount of deodorant; it is about bright eyes and warm smiles, about polished shoes, no straps showing through the uniform and no hairy armpits. These are fundamental hygiene factors, but they can make or break a sale. It is a smart move to recruit the grooming and communications staff from top five-star hotels to train retail staff. There are also organisational implications. How many sets of uniform should be given to a staff member? One of the largest retailers in West Asia gives only two blouses to the female staff. Should the girl be washing her blouse every night when she reaches home at 11 pm, after having been on her feet for nine hours? If one blouse is torn, should she wear the used one again, and perhaps smell stale? Which is why manuals that define every operation of a store are vital: retailers like Woolworths and Marks & Spencer, for instance, have comprehensive operating manuals. The manual would clarify timings, responsibilities, operating conditions, policy on uniforms, leave, breaks, pilferage, shrinkages and so on. Loyalty works both ways Accept it: talent and skill are scarce. It is sensible to hold quality staff, always. Arrogance proclaims, 'There are a billion Indians; we can always find another salesman'. Sense states: 'You may find another candidate, but not a good salesman'. Andrew Carnegie, the American steel billionaire, asserted, "Take away my factories, but leave my people, and soon we will have a new and better factory." The people who work in the store are the family jewels. It is common to read in the newspapers of many corporations and retail houses boasting of the termination of 5,000 to 15,000 jobs, if the business is going downhill. Such mass separations do not resolve underlying business issues and, in fact, pulverise morale on wholesale scales. When a business performs appallingly, the issues really stem from dim-witted decisions and strategies conceived by the Board/CEO. The top guns survive. But 15,000 employees lose their jobs in loudly-trumpeted announcements across the media, in bizarre attempts to restore share market confidence. Such phony remedies have unforgiving impacts on employee morale and commitment. Family ties Working in any company should be fun and rejuvenating. The staff should look forward to coming to work daily. This is possible when the team spends informal times together. Winning is great fun, becoming rich is glorious, and it is vital to celebrate success together. If the employees of a retail company dance, sing, eat, rejoice together, the company stays together. Remember, the family that eats together, stays together. Retail is no different.

SETTING UP THE HR DEPARTMENT - RETAIL SECTOR

Talking of a small organisation or a start up typically below 50 in size but has expectation to grow fast year on year. - Hire a competent HR Manager. The exposure of the HR manager to various fields of HR should be high. - Hire a consultant to work with the HR Manager or leverage the HR Managers knowledge to define Policies and translate to process maps for the organisation. - Convert process maps to SOPs - 1 pagers easy to understand and communicate. - set up communication process - to employees, to employer, to the business and external parties - set up feedback process from the above four as well - Basic HR Software for Employee and Employment records, entitlement recording etc. - Set up Payroll and HR roles and responsibilities - In the Retail sector Reward management, employee motivation, contingent workforce, staff scheduling, productivity is of key importance.

a. Corporate and operational HR. Corporate HR will be the custodian for Ploicies and HR strategies at a central and organisational level. Operational HR will be deputed to individual Business units/Locations as facilitators to support employees based on structure. b. HR Vision and Strategy. Assuming that this will be driven and owned by the HR Director/Head - this needs to be translated into action through operational HR. The process for this translation needs to be defined. c. Defining roles and responsibilities in HR - Based on size and complexity of the organisation. d. HR Deliverables to the Directors/CEO - Management reports, Ownership of KPIs, Metrics etc e. HR deliverables to Employees - Employee entitlement/Payroll, Services, development, assessment. Processes for these need to be set up f. HR deliverables to the Business - Manpower planning and Talent Acquisition, Succession planning, Retention g. HR Policy Documents translated to Standard Operating Procedures for operational use and clear understanding. Setting up a pristine and replicable process. h. HR Process Maps - Develop these for each HR process. This helps in process review and enhancement. i. Software - Depends on size of the operation. Large scale operations can use a SAP, Adrenalin or Oracle. You must remember that employees in a IT company have a high adoption rate for technologies such as HR Workflow and Self Service. Use this to HRs advantage.

The retail sector has a higher percentage of partime and often contingent

workforce. Corporate/Head office Area offices Retail outlets Call centers Hr strategy needs to revolve around these four based again on size and complexity in business. Normally the store manager is responsible for HR/Admin day to day transactions. Thus HR has to have a strategy to devolve HR tasks to store managers. Training Suppliers Process Outsourcing companies HR Consultants in different areas Staffing partners Others

Lets say you have 1500 employees and qualify as a Medium to Large organisation. You already would have personnel practice in place but you are looking at formalise and restructuring the HR functiona and policies. I would stress on the following Like your suppliers, customer (employee), partners (recruitment consultants etc), employer (management). See what you give them and what you get from them in terms of Tangible and Intangible value. This give and take of Tangibles and Intangibles needs to be balanced for a successful HR department. Make your policies simple, modern and easy to understand by employees and HR. where you can put up your HR Policies/SOPs this should be easily accessible to the employees. Invest in a good reporting tool which helps your team be proactive. Helps you portray the health to the executive management promptly. Especially for a company that large and with a number of offices - HR Workflow Authorisation saves up time for HR to focus on Strategic activities.

HR Services HR Services is an integral part of the Headcount Solutions business.

Our mission is to enable our customers to shape their strategies and optimise the contribution of their people, in order to achieve business goals. We do this by supporting and developing the existing HR function or by introducing bespoke systems into the organisation. How can we add value to your organisation? We offer practical, cost effective, results focused solutions in partnership with our clients. We believe that developing strong relationships with client organisations will help us deliver the most appropriate solutions for the business and will How we operate: With all of our clients we understand that their people are their most valuable asset, and that we need to offer practical and pragmatic solutions to their problems. We therefore operate to ensure that we: Deliver a first class HR service Provide efficient and effective transactional people processes Understand the business drivers Provide expert HR advice and guidance Deliver work according to clear deadlines, milestones and benefits agreed upfront with the business Services 1. HR Processes and Practices HR processes and practices are the cornerstone of a value added HR business. They ensure that companies are legally compliant and provide a clear framework for both staff and managers which allow HR professions focus on more strategic issues. We offer client organisations support in: Outsourced operational HR Managing HR audits Achieving quality award recognition such as ETP Creating T&C of employment Implementing new policies and procedures Keeping abreast of employment legislation Employee relations matters such as Discipline, grievance cases Attendance management We will ensure that our solutions are practical, linked to the organisations goals and as employee/ employer friendly as possible. 2. HR Excellence The role of the Human Resources function is evolving rapidly in many organisations and has become strategic and critical to the organizations success. HR leaders need to be able to serve as key leaders in the organisation. HR policies need to reflect the organisations values and HR Systems must enhance the organisations productivity and performance Through HR an organisation must be able to attract and retain the talent needed to meet the future needs of the organisation Results must be measured and individuals held accountable for them Headcount HR Services supports organisations in supporting and developing their HR function through consultants who have held strategic roles in organisations and have coached HR professionals in client organisations. The individuals are fully qualified: 1. To coach your HR professionals in their personal effectiveness 2. To align the HR function with the organisations business strategies 3. Supply Chain Management Many HR professional find the number of training and development providers to be overwhelming, and struggle to find a provider who will have the right product as well as the right cultural fit. Identifying the right provider will ensure that cost and quality efficiencies are maximised to

ensure a greater return on investment. Headcount HR Services can offer systems and support to help you establish a 'best fit' Preferred Supplier List, for all your Training and development needs. 4. Organisation Development Change is the only constant, they say and this is never truer than for organisation trying to keep one step ahead of the competition. In order to gain and maintain a competitive edge, organisations need to be clear on their direction, strategy, the path they are going to follow, and the goals that will help measure achievement. HRServices can help organisations to: Define the business strategy Articulate the organisations mission, vision and values Create communication plans to engage employees with the message Identify and address issues around employee engagement, including staff opinion surveys and 360 feedback systems Creating or redesigning structures and related role profiles and responsibilities Competency Frameworks to develop behavioural as well as technical excellence Measurement systems to assess performance 6. Change Management & Business Performance Management During periods of organizational change, employees can often feel isolated and unsure of the future. This feeling of uncertainty can have a negative impact on business performance, productivity and can lead to high than usual levels of turnover absence and attrition. Headcount HR Services has experience at helping organisations through: 1. Mergers & Acquisitions, 2. Periods of accelerated growth 3. Restructures 4. Downsizing This experience can be used to help organisations to manage uncertainties and limit any negative impact. Our experience has involved helping organisations manage change from both a reactive (changes in legislation) and a proactive (acquisition) position and we use a number of models, methods, techniques and other tools to help organisations manage change and develop managers within organisations to better manage change. We can assist organisations with: Change management methods, processes and tools Communication strategies to support the change process Provide individual support to individuals affect or implementing the change process Develop HR and key individuals in change management

HR practices in some of the most successful retail verticals in India: Apparels: Pantaloon India: Here is a retail giant which hires at least 250 MBAs for operations and merchandising profiles. The candidates go through an induction period and a short training thereon. Individuals are allotted projects for the next five months under the supervision of project guides. They are placed in suitable positions thereafter, with progressive authority and responsibility. Indian software industry: The challenge for HR professionals in software industry is sheer shortage of high intellectual human capital both in numbers and skills. Recruitment of world class workforce and their retention is a serious challenge

posed in HR industry. The yawning gap between the demand and supply of professionals has increased the cost of delivering the technology. The incentive compensation is based on performance keeping the long term organizational objectives in mind. Optimized compensation packages are offered as a motivator for retention of manpower. Food and grocery: It is estimated that the food and grocery market in India is an astounding $236 billion, and it is the sixth largest grocery market in the world today. No doubt that human resources are an important asset in this food and grocery retail industry. Many top companies have made HR a strategic partner in their operations. One famous example is Nestle, the global giant in consumer packaged goods. Nestle has a strong internally developed employee backing which gives a major push to the company's lead position in the retail industry. Attrition rates and retention of personnel: There seems to be a high level of attrition in the retail sector which is almost 40% according to a recent study. Front end jobs are facing an attrition rate as high as even 80%. Under the present circumstances, retention and motivation of personnel has become the major concern of HR. A congenial working atmosphere, support learning and training facilities, a highly competitive pay structure are some of the effective retention practices followed by the retail sector. While money is the main attraction for freshers and starters, career satisfaction is the main reason with experienced personals. Assigning the "right project to the right person" is the organizational motto these days with companies setting up Manpower Allocation Cells (MAC) to carry out this agenda. Looking at the current scenario, it could be said that there is an acute shortage of middle level management professionals in the Indian Retail Industry. The current trend is to hire from a smaller organization tempting the incumbent with a better pay package. It is imperative that suitable talent be hired in various areas such as technology, supply chain, logistics, product development and marketing in order to stay abreast of the hectic race for success among MNCs. The call is for HR practitioners to play a more proactive and prominent role in order to retain the high tech skilled employees who are constantly looking for greater gains and prospects in their work. This is the real HR challenge to retain the "knowledge workers" and "knowledgeable workers" by introducing new processes and procedures and still ride high in implementing organizational effectiveness. THE DIFFERENT STAGES OF SYSTEMATIC RECRUITMENT PROCESS. Interviews are a crucial part of the recruitment process for most organisations. Usually applicants are interviewed after sending in an application form or CV for a particular position. The purpose of an interview is to give the selector a chance to assess you and for you to demonstrate your abilities and personality. It is also an opportunity for you to assess them and to make sure their organisation and the position are what you want. Not to forget that to have reached the interview stage you have already impressed the recruiters and they believe you have the ability to do the job. All you need to do is show them they are right! The recruitment process for most organisations is designed along the same path; applications are received, either via an online application form, a postal form or a CV. Candidates are short listed and invited for interview. The interview format can vary considerably, as we discuss later, and can include assessment centers. The number of interviews also varies. Some companies are satisfied after just one interview whereas others will want to bring back a further shortlist of candidates for one or more interviews. If you are successful at the interview stage you will receive an official letter offering you the job. This information describes what you can expect at interviews and assessment centers, and takes you through to making a decision about any offers that may result. HR best practice has always been that organisations should not discriminate in their recruitment procedures, and should always strive to recruit and retain the

most qualified staff. Most qualified was never to be interpreted as indicating a preferred race, age or gender for the job. A diverse workforce has always been a key feature of the best practice organisation. As such, those who shudder when they hear reference made to legal recruitment procedures, should actually see this as an opportunity to get their recruitment function in line with HR best practice. General Recruitment policy: (i) A company should recognize its staff as being fundamental to its success. A strategic and professional approach to recruitment processes help enable the organisation to attract and appoint staff with the necessary skills and attributes to fulfill its strategic aims, and support the organisational values. (ii) The organisation must be committed to ensuring that the recruitment and selection of staff is conducted in a manner that is systematic, efficient, and effective and promotes equality of opportunity. (iii) Recruitment should be treated as a key public relations exercise as the way it is managed affects the organisations image, and consequently its ability to attract and appoint high caliber staff. (iv) This policy has been designed to provide a flexible framework which promotes good practice, adopts a proactive approach to equality and diversity issues and supports fully the organisations core business. (v) Guidelines which form the basis for the implementation of this policy are also provided. They have been designed to maximise flexibility to meet the needs of all areas. For these reasons, while still ensuring that the organisation complies with relevant legislation any significant variations in practice must be discussed with the Senior HR Advisers to minimise risk to the organisation Systematic recruitment process flow chart

Steps of Recruitment: Step 1: Vacancy This stage decides what resources are required. Details of requirements will emerge from the compilation and regular revision of HR plan. In practice job vacancy may occur when: 1. An organisation or work unit is set up. 2. An employee resigns from the post. 3. An employee reaches retirement. 4. An organisation takes place through changes in policy. 5. Technology 6. Mergers 7. Acquisitions. Because of the subtle changes that take place within an organisation the existence and nature of job vacancies should be accepted. The first step in any recruitment process is to define the job requirements. A job and person specification should be prepared, bearing in mind the actual requirements of the job, for example required qualifications, skills and experience. It is allowable to include desired qualifications, but be careful to avoid mentioning requirements which are not actually necessary for the job, or which may indirectly exclude a portion of society Step 2: Sources

This stage concerns with the general questions about supply and availability of resources and particular avenues through which these are likely to be obtained. The human resource plan is to provide general information about the types of factor that influence the supply of labour at macro and micro levels. Even when it is feasible to fill job vacancies from within the organisation, transfers and promotions which this usually involves will more often not produce a vacancy at the end of the chain. Nevertheless filling of vacancies internally should always be given careful considerations. Care should always be exercised when using images or photographs as a tool in recruitment advertising. It is important that these do not reflect negative stereotypes, which may indicate an intention to discriminate. On the other hand, correct use of imagery can enhance an organisations perception as an equal opportunities employer. Many employers now include an equal opportunities employer statement in their advertisements, which indicates an acknowledgement of, and compliance with, equality legislation. There are 2 types of recruitment noted while sourcing the resources: 1. Internal recruitment: Existing employees are known to the organisation are generally familiar with the customs and practices. The costs and time that external recruitment, selection and induction procedures consume can be reduced. Internal recruitment to fill vacancies may be used as a means of career development, widening the opportunities and stimulating motivation among existing employees. 2. External employees: When organisation has to use external sources, 2 means of conducting the search is done: Through employment and consultancies and agencies By contacting the public directly through advertisements in newspaper, journals, posters, radio, and television and on the internet. Step 3: Application form/Resume/CV Many organisations use application forms in an effort to ensure an equal footing for all applicants, while at the same time also ensuring that all required information is captured in relation to the position. Again it is essential that the form is prepared in a style which complies with the legislation. Questions which could be seen as discriminatory against potential candidates include those requesting information regarding marital status, family status and nationality. Questions should be carefully worded to avoid any hint of discriminatory practices, and it is often worth including a statement indicating that the organisation is an equal opportunities employer. Design of an appropriate application form will clearly depend on particular situation and needs. Different forms may be necessary for different kinds of work. The items that are normally needed in application forms are: Job title Applicants full name Date of birth Contact address and phone number Nationality Education Academic qualifications Professional qualifications Present employment details Previous employment details in chronological order from latest Main interests Health Certifications Awards and achievements

References Step 4: Processing and assessing application (Pre-selection) Once completed applications have been received, the next step in the process is to screen them in order to identify those most suitable for interview for the post. This process is usually conducted by the hiring manager in conjunction with HR. The screening involves cross-checking the applications against the job description and choosing the most suitable candidates for interview. Another intervention which HR may take in order to ensure equity, would be to reformat CVs, in order that they remove information which could result in discriminatory selection by those screening them. Some organisations have a practice of removing surnames, addresses, marital status, date of birth, and any other details which may lead to discriminatory selection prior to passing them on to the managers selecting interviewees. Step5: Short listing Short listing must be undertaken by at least two individuals who are involved in the interviewing process. Interviews should normally be conducted by at least two people, and all interviews for one post must be conducted by the same people. In order to promote equality of opportunity selection committees should, wherever possible, be of mixed race and gender composition. A further important point has to be made concerns the need of flexibility in making final decisions about acceptance or rejections. Best is not be stubbornly inflexible about length of experience, age etc. when job requirements are established then room must always be left to decide the individual cases on their merits. Finally a word needs to be said about the use of testimonials and referee reports. Referee reports are usually required as supplementary evidence for use in the assessment of candidates during selection procedure. Employees are often more frank on telephone conversations so over-emphasis must note on written reference. Step6: Tests Any skills tests (e.g. presentations, in-tray exercises) must be directly related to the role and measured against objective criteria, and presentations for one post must be assessed by the same persons. Candidates must be notified of the details of any skills test when they are invited for interview and the selection process for lectureships and senior lectureships must include a presentation or short lecture. Step 7: Interviewing/Group selections The interview should always be viewed as a two way process. Not only is it an opportunity for the candidate to present themselves in pursuit of the position, but it is also an opportunity to ensure that the candidate has a positive experience of the organisation. Part of this experience should be that the organisation presents itself as an equal opportunities employer. Studies have shown that an unsuccessful applicant, who feels that they were treated fairly by a company, is more likely to reapply should another position arise in the future. The first step in ensuring that interviews are conducted within the law is in the selection of the interviewer, or interview panel. Where an interview panel is used it is worth trying to form the panel in order that it reflects the diverse make up of the applicant pool, i.e. there should be gender balance. As a minimum, organisations should attempt to have one woman and one man on a panel to ensure that gender discrimination is avoided. The next step is to ensure that the interviewers are trained in interview techniques. This helps avoid them asking questions which could be deemed unnecessary, and potentially discriminatory. A member of HR should always attend interviews, and where an interviewer has not been trained in interviewing techniques, this becomes even more important. Agreeing questions in advance of the meeting avoids any discriminatory questions being asked out of the blue. The whole interview process should be transparent and interview notes should reflect this. Interview questions must relate to the job requirements as exemplified in the

person specification and the candidates suitability for the position. The person specification should be used as the basis for determining the interview questions. Step8: References/Medical The next step in the recruiting process is investigation of those applicants who appear to be potential employees. This may involve contacting the former organisations to confirm the candidates work record and obtain their appraisal of his/her performance, contacting other job related and personal references and verifying the educational accomplishments shown on application. Background investigation has major implications. Last step prior to appointment decision may be the medical examination of the person. For most jobs, this is a screening device in selection process. It is assumed that the applicant can pass the physical examination however it is intended to screen out those individuals who are unable to comply physically with the requirements of the job and the organisation. Step 9: Appointment The individuals who perform successfully on the employment tests, interview and reference/medical examination are chosen to be appointed into the organisation formally through a legally drafted Appointment order. For administrative purposed the draft should be made by the personnel department, but their roles should only be administrative. At the end of the recruitment process all records must be handed to the Human Resources Department who will retain them for six months in case of requests for feedback or the threat of litigation. Offers of employment are conditional upon receipt of satisfactory references, medical assessment and any other appropriate checks. This normally excludes visiting and other casual appointments of less than three months duration. In accordance with employment legislation, appointments will only be offered on a fixed term basis where objective grounds exist for not making the appointment permanent. Step 10: Induction This step involves formal introduction of the employee to the organisation. The employee is given an overview of all the departments within the organisation, his role and designation, Training requirements and other elements which the new comer has to absorb. This also paves way for the employee to understand the rules and regulation of the organisation which he is required to follow. Step 11: Follow up The last step in the recruitment process is the follow up on the employee, who has moved into the organisation successfully after all the above processes. This gives information about the performance of the employee in the organisation, his likes and dislikes, requirements (if any). This completes the process of recruitment, with successfully absorbing an employee with the laid regulations and benefits and perks, etc.

About Red Retail Founded in 2001, Red Retail Recruitment recruits exclusively for the Retail Sector. Specialising in operational retail recruitment, Red Retail offer a unique search and selection process across all levels of retail management, with expert project managers working in partnership with HR departments on assignments including new store openings and nationwide vacancies. As bespoke, search and selection specialists, we spend time with our clients in order to gain an understanding their business and then tailor our selection processes accordingly to ensure that only the correct calibre of candidates are short listed. As a result of our collaborative working and our unique selection processes, we focus on building long-term relationships and becoming an extension of our client so as to try to ensure that the recruitment process from candidate attraction to the successful applicants first day in their new job is seamless. Red Retail Recruitment is a division of Purcon Limited and a part of the Oxinia group of companies. Being part of the Purcon structure allows us to deliver the quality, flexibility and responsiveness of a specialist niche supplier, whilst being supported by the infrastructure, resources and experience of an industry leader.

At Emirates Leisure Retail, we only consider individuals who we know will contribute to the overall success f the Company. We employ a diverse workforce and do not discriminate on the grounds of nationality, race or religion. Our recruitment process aims to highlight the skills and talents of each prospective employee and will typically include aspects of the following key stages: Structured interview Practical exercise Occupational/Ability testing In applying for any position with us, you can expect:-

Timely responses Fair consideration of skills and talents Honest appraisals of experience and expertise Respect, dignity, compassion and encouragement

Training and Development in Retail-FMCG Sector Retail/FMCG Sector is the most booming sector in the Indian economy and is expected to reach US$ 175-200 billion by 2016. With this rapid expansion and coming up of major players in the sector, the need of human resource development has increased. Lack of skilled workers is the major factor that is holding back the retail sector for high growth. The sector is facing the severe shortage of trainers. Also, the current education system is not sufficiently prepared to address the new processes, according the industry majors. Training Programs in Retail/FMCG Sector Some of the training programs that are given in the retail sector are: Sales Training On-the-Job Training Seminars/Workshops Customer Relationship Management Online Course Group Study Computer-Based Training Self-Directed Training Training Institutes for Retail management Some of the institutes for retail management are: Indian Retail School Loyola Institute of Business Administration (LIBA) S P Jain Centre of Management Institute for Integrated Learning in Management (IILM) Welingkar Institute of Management, Centre for Retail Studies K J Somaiya Institute of Management Studies & Research Mudra Institute of Communications Amity Business School

Training Retail Employees "the average retail company spends less than $100 per year per employee on training. There is no wonder so many employees are unhappy at their jobs; they simply do not know how to perform them effectively." Here is the second interesting piece of information; "Research shows well-trained employees can increase a company's overall productivity by 22 percent. By combining a comprehensive training program with continual mentoring, productivity can increase by as much as 80 percent." There are some powerful "nuggets" of information in both of those quotes: 1. Most companies do not invest a lot of money in training their employees. 2. Employees become frustrated when they don't know the correct way to perform their jobs. 3. The employee who is well-trained and highly motivated is more likely to be productive. Develop an ongoing, comprehensive training and make it a priority and there is a higher chance your employees will be more productive and that productivity can lead to more sales. If you have a training department, this job is easily delegated and monitored. But if you are a small business, this task can be overwhelming. How does one fit in training in between vendor phone calls, budget reviews, order placement, scheduling advertising, stocking the floor, interviewing, vacuuming the floor and yes, sleeping? There just aren't enough hours in the day if you are a sole proprietor! Training tips to keep your employees informed and you sane! 1. Develop an employee handbook. This can be as simple as 20 sentences on one piece of paper or it can be a bound document. What is most important is that you have one. In the employee handbook you can address the "image" of the employee. They represent you and your company and your brand. What do you want them to look like, sound like, act like and behave like? It is your company and you can list simple rules you expect them to follow. 2. Once your employee handbook is done you can now develop your training program. the program be divided into two areas, operations and sales knowledge. Start with the Operations section first. Write down all of the procedures that are necessary for your employees to know how to do. Just write the main title. You can be more

specific as you develop the program. Decide how you want to deliver this information. Technology allows us to deliver the information in many formats. If you are developing the information in a text format, you can print it and make it available in binders for new employees to read and complete simple question and answer sections and/or you can copy it to a disk and have them complete it at work or at home. The operations end of the training will probably come easily as it is procedure based. To make it easy, develop your training program in steps. First you do step "a", then step "b" and you get to the goal "c". Make it easy to read and easy to understand. The operations part of the program should deal with the basics of handling sales, returns, inventory control, opening and closing procedures, safety issues and anything else that falls under the operations of the business. The second training area is that of product knowledge and sales techniques. This is more time consuming to develop because it is conceptual teaching vs. procedural teaching. Product knowledge is mandatory in any business. Here are some ways to deliver the information: 1. Develop an instructional manual/CD or video that highlights the major classifications or departments you have in your business. 2. Conduct weekly meetings for 20 minutes before the store opens and give 5 employees 3-4 minutes to do a "show and tell" about a fast seller in their department. Have them discuss the features and benefits of the product, why they think it is selling so well, who is the competition and how are they priced and how are they promoting the item. In twenty minutes, all of the employees will learn something about 5 items in the store that are selling well and they can offer that information to their customers. Have someone "take notes" during the 20 minute meeting and post the information in a break room or in a newsletter for all of the employees to read. 3. Employee newsletters can be another invaluable way of broadcasting information about products as well as fun things about employees. Make your newsletter a "quick read" and something they look forward to reading. You can make it rewarding by adding a puzzle or something they must find within the articles or pictures that they can win a prize for finding. 4. Vendors are wonderful sources of information. Call some of your main vendors and find out when they might be in your area so that you could schedule a "training time" with your employees. This is a win-win for everyone. 5. Digital cameras and video cameras are wonderful ways to capture your training information. You don't have to be Zig Zigler to make a training video. Stay after hours and make the video with the help of a friend or employee right in your business. If you make the video conversational, your employees will want to listen. Before you start filming, write down the areas you will want to cover and how long you think you will need to record. Try scheduling a "filming session" once a week for 5 weeks and you will have a complete set of training videos in a little over a month's time. Let's say the first training is on greeting skills. Talk to the camera and explain the right way and the wrong way to greet customers according to your standards. That way they will learn how AND why they are expected to do what you have asked. Your next sessions could be add on sales, teaching about specific products, dealing with an unhappy customer, as well as phone skills. It is far cheaper and easier to develop your own training program than ever before. 6. Send your employees to classes. There are wonderful programs in every city that have to do with sales and communication skills. Your employees will feel valued if you offer to send them to some off site classes. You can also call local community colleges and ask business instructors if they would like to come to do a special training session in your business. Usually they will come for free or for a nominal fee and offer lots of great information. 7. If you have a number of locations you can get creative by offering teleseminars. There are a number of teleconferencing businesses out there: Simple

sign up and set up a time that everyone calls into a specific phone number, and you can do training over the phone to your employees in other locations. They can be at home, in their car or on a speakerphone in another city. There are so many ways to get creative in developing your own training program. The most important thing is to get started. Don't give up on the idea if you look at the above list and say you don't have time. Most of us don't.

The difference between a happy and horrifying shopping experience is the amount and quality of training that store-based employees, such as sales associates and store managers, have received. But, as every retailer knows, the primary barrier to successful training is the staggering rate of employee turnover in retail jobs that costs sales and cuts profits. At StarCast, we understand the retail industry and have solutions to help. Immediate Results With StarCast, you can get new-hires into training immediately, day-one, and expose them to training that is store-specific, and deep. Before your new-hires begin interacting with customers, they complete training and testing on topics such as meeting & greeting customers, product knowledge, product pricing, taking returns, store policies, and so forth. StarCasts New-Hire Portal can even take your new-hires through an entire OSHA safety series, plus all your HR, benefits and harassment policies, before work ever begins. Train Anytime, Anywhere StarCast lets your retail employees train on any schedule and from any location without tying up valuable store-manager time. StarCast retail training may take place in the back room, out of the way, or up front from a web-based register; or, at home. With standardized retail training delivered through StarCast, you can insure that all your store-based employees deliver the same high level of service across all your locations. * We can advise you on setting up store based training kiosks. Better than Buddy-Training Use StarCast to achieve results that go beyond conventional buddy-training to drive more revenue and make happier customers. Interactive training courses may be custom tailored to your specific products, locations, the particular season, etc. Use video segments to demonstrate and role play the proper method of dealing with customers. Interactive testing insures comprehension and competence with results that are tracked to each individual. No More Training Binders, VCRs, CDs StarCast eliminates the hassle and expense of physical training materials, that are hard to update, difficult to track and expensive to produce. StarCast captures and tracks all your retail training, documents, tests and surveys. On-Going and Continuous Once your employees finish their new-hire series, they are automatically exposed to the wider range of courses and on-the-job training delivered through StarCast. Retail Training becomes an on-going experience for all store-based employees, continually reinforcing the best retail selling and customer service principles. When your people are knowledgeable, theyll feel more confident, and theyll feel better able to help the customer. The best retailers know that a positive "people experience" is key to success. WebCasting For district manager meetings that cover multiple stores, use StarCast WebCasting to cut down on travel by allowing groups of stores to meet live, over the web. With up to seven live video screens, everyone can see and hear everyone else, share information, and review sales results, all without leaving their store. Detailed Reporting

StarCast makes it easy to see what regions or stores are performing, and who is lagging behind. Armed with this data, you can spot problems and implement solutions quickly.

PANTALOON RETAIL (INDIA) LIMITED 68 Human Resource In a business where individuals comprise the principal asset, the structure of the people pyramid influences the quality of knowledge captured, the speed with which decisions are made and the morale of the organization. Human Resource is one of the critical support functions and forms another key element of the corporate backbone. We have 7,379 employees as on September 30, 2005. We are a very young and energetic organization with average employee age being 30 years. We believe that service is our core philosophy and people are our most important resources. Our attempt has always been to create an environment where our employees feel pride of being called Pantaloonians. Our Human Resource philosophy is driven through our The Pantaloon People Management System. The Pantaloon People Management System Pantaloon People management system is built on 5 pillars of people based growth: a. Culture Building b. Performance Management through Balanced ScoreCard

c. People Processes d. Management Processes e. Leadership Excellence Organisation Structure Our organization is headed by our Managing Director. We follow an inverse pyramid structure; as a result decisions are taken closest to the point of customer action. Sales executive are encoureaged to think customer first. They are empowered to run their respective departments like small busines owners. Inverse Pyramid Structure Performance Management: Appraisal, Rewards and Recognition The organisations Compensation philosophy is Pay for Performance, promote for potential and is designed to meet the following key objectives: Attract and Retail Qualified Employees Externally Competitive Performance based pay Internally Equitable Legal Compliance Our compensation policy is performance based and we believe it is competitive with industry standards in India. Our compensation packages are adjusted annually based on industry salary correction, Departmental Managers Board Store Mgr., Buyers, Merchadise Mrg, RM, GM Sales and support staff HR Function Organisation planning Systems building Performance Management Performance Enhancement Competency mapping and building Compensation policy 69 compensation surveys and individual performance. From time to time employees who have met or exceeded performance standards are awarded bonuses. Our employees post retirement benefits include a provident fund and a gratuity. Both the provident fund and the Gratuity have been approved by the relevant statutory authorities. We have set up a Pantaloon Foundation-an employee welfare fund with effect from August 2004. The fund provides financial assistance in all cases wherein the employee seeks the Companys financial support in medical emergency for him/herself or their families. The contribution to the fund is voluntary. Employee Insurance We provide all our employees with group life insurance. We also provide medical insurance coverage

for employees who are not covered under ESIC (Employee State Insurance Corporation) benefit which includes hospitalization benefits. Recruitment and Selection Our recruitment takes place through any of the following option or combination of these option: In-house data bank Walk-in advertisement Internal Referrals NGOs Our selection processes are defined to evaluate the skill sets required for each job and also to evaluate the fitment to our various formats of retailing. Training We place special emphasis on the training of our employees to enable them to develop their skills to meet changing retail technology and to provide efficient and effective customer services. The Company has a well defined Learning & Development (L &D) team that is responsible for training at all the levels across the country. The L & D team focuses on primary and secondary research into various aspects of retail and assessment of training needs across Knowledge, Skills & Attitude areas at all levels. 'Prarambh' for Induction and 'Guru-School' for Trainer Development are a couple of programs created and disseminated by the L & D Team this year. We are also in the process of establishing a training centre at each zone that will be equipped with extensive and up-to-date facilities and which offers relevant training programmes. Retention Strategy We strive to foster a feeling of well-being in our employees through care and respect, we have several structured processes including employee mentoring and grievance management programmes which are intended to facilitate a friendly and cohesive organisation culture. Off-site activities are encouraged to improve inter-personal relationship. We also acknowledge the efforts exerted by our employees by organisation an annual celebration called Pantaloon Day where we recognize employees who have shown exceptional talent, sincerity and dedication. We have implemented an employee suggesstion programme called Prerna wherein the employee can give their suggestions. Every quarter the best suggesstion received per zone per format is awarded prize called Golden Cap. 3. Internal controls and Risk Management The company uses the services of Ernst & Young for process audit and risk management and the scope of their work covers all the companys formats i.e. Pantaloons, Big Bazaar, Food Bazaar and Factory Outlet. The objectives are to: Gain an understanding of the various Business Processes Identify the strengths and weaknesses in the existing systems and procedures Review use of technology in the function Identify key business process risks and review the adequacy of the controls and mitigate them

Test the effectiveness of controls the most significant risks and provide recommendations to improve controls Identify potential areas for improving process efficiency Broadly develop on improvement portfolio and raise the level of awareness of how business is impacted by inadequately controlled risks inherent in the business process. Internal audit of our each store is also undertaken by an independent audit firm on monthly/quarterly basis. 4. Measurement of Customer Satisfaction We have devised a model called CEM- Customer Experience Management Model to measure customer satisfaction in our stores. The Customer Experience Management Model focusses on the customers experience at every touch point in the store ranging from their first impression of the store, to their experience at the trial rooms, toilets, with our staff through various processes such as billing and exchanges. We have hired a research agency called MACRO-Market Analysis and Consumer Research Organisation. This agency sends people who are called Mystery Shoppers to visit the stores and then their experience is documented on a feedback form which is then sent to us . Based on the feedback formed analysis is done and the stores are given scores. This allows us to track performance on customer expectaion at overall, format and store levels, determine critical improvement areas ar all levels and also identify opportunities that we can leverage upon. Besides, we have also started an in-house initiative called Pragati whereby one person from the head office operations team visits the stores and observes the stores with respect to certain pre-parameters like store exteriors, baggage window, customer service, store ambience etc. This activity is done on a quarterly basis and three best stores under each format are announced. This encourages the stores to improve the efficiency of their store operations. Competition We retail a range of branded apparel, footwear, perfumes, cosmetics, jewellery, leather products, accessories, home products, electronics, books, music and toys in our stores. We also retail our own Private Label apparel, footwear, fashion jewellery, leather products, accessories and home products. This is complemented by cafe, food, entertainment, personal care and various beauty related services. We face competition from other retailers of similar products and services. These include stand alone stores in the organized and unorganized sector, as well as other chains of stores including department stores. We focus on offering our customers a vast variety of products and services catering to their diverse requirements and needs. We are the pioneers in launching verious new formats in the country such as Central, aLL etc. It is because of this and the service and ambience that we

offer, that we believe we have been able to create a differentiation in the mind of the customer vis--vis our competitors where similar products and brands are available.