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    Buku Ritel 1

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    Matematika 21

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    Retail Organization and Human Resource Management aga sana ec tenn ont ee n {rain good employees but the fim must ako keep them motivated, With the high employee siesomiiol 1umover rate in retaling, this is mot an easy task. One estimate is that the cost of replacing ocedures involved @ 810.per hour retail employee averages more than $3,360. since the twinover rate among insettng vpavetal some relaiers can cosily exceed 70 percent per year, costs related to employee turnover can ogetinion amount to a very large expenditure, Hei ceiniac tie Strategies a retaler can use to reduce tumover among fow-wage employees include: ‘rious orgaoizational Promote from within. This rewiatds long-time empleyees i adiition, it ets shorttexm arrangements uilized in employees dnectly observe role movies who have advanced to managerial positions. ‘etaiing Be understanding. Grant exceptions to occasional lateness or absenteeism if there is good. al ak cause (sickness, family esis, te.) Special human resource MaKe the jab relevant to-company goals. Show employees the value of short waiting cevteament of etaling eS, lean facilites, and customer-senvice-centiic employees ‘To desc the brinciptes and practices ‘evolved withthe human resource managernent process ia retaling Sour 50 epoca by 232 FIGURE 11-1 Selected Factors That Must Be Considered in Planning and Assessing a Retail Organization www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 293, Minimize boredom by rotating jobs. Stackroom persons could york the cash registers at ‘busy times oF assist elderly er infirm custamers with their packages. Invest in taining. Make sure the trainee respectfully instructs and corrects the new “employee. Overview Managing etal business comprises three steps: seting up an organization structure, hiring and managing personnel, and managing operations —financially and nowfinanetally. The first two steps of this procedure are caver in this chapter. Chapters 12and 13 seal with operations rmunagement. SETTING UP A RETAIL ORGANIZATION ‘Through. retail organization, a firm structures:and assigns tacks (Functions), policies. resources, ‘authority, esponsibiltes, and rewards i effiieatly and effectively salisty the neds of is target market, employees. and management, Figure 11-1 shows various needs that should be taken into account when planning aril assessing an organization's structure, ‘As tule, a firm cannot survive unless its wrzanization strectare satisfies the tarzct market, ho matter hoy well employee and management needs are met, A structure that reduces costs ‘ht relanely any to odtan and ratan competent personnel? ‘Are personnel procedtres teary defined [Does each worker report to only one supervisor? ‘Can each manager property supervise al the workers reporting chim or her? (Do operating departmenis have adoquate sta support (eg. marketing research? ‘Ars the hed of erpaiztin properly developed? ‘Are the organiention plans well meepraced? ‘Are employees mesiated? ‘eabsancectm lowe Is chere a sytem to replace parsonnélin aa Grderty manner? ethers enough Reubliy to sap to changes a eattomer othe environment? www.downloadslide.com 254 PARTS « MANAGING ARETAN BUSINESS FIGURE 11-2 The Process of Organizing a Retail Firm ‘Syscoke aotesater serving 428.00 restau, totes, chooks, ana other Ioealee Hofer the 8 perneven daisy services (wwnsysea.con” sustomr-sohutions hum). ‘via centralized buying but leads to a firm's insensitivity to geographic differences in customer erences will lose market stare. Although many relailers perform similar tasks ¢buying, pris ing, displaying. and wrapping merchandise), there are many ways of organizing to-conduct these functions. The process of setting up arctal organization, shown in Figure 11-2, is described next, ‘Specifying Tasks to Be Performed ‘The tasks imi distribution channel mist be enumerated uhilthen keyedlto the chase stritegy mi, for effective retailing to occur, [ah lta weal om » ing merchandise to the retuiler = Rens cde sl dct tg nid > ‘Sciting prices and marking merchandise = Lnventory storage and contro} Preparing merchandise and window displays > Fixiltios maintenance (sg, hesping the store clean) © Customer research and exchanging information © Customer sintiact (6g, Web site, personal sling) »» Facilitating shopping (@.g., convenient facation, short checkout fies) = Customer follow-up and complaint handling Personnel management 1 Repais aid alteration of merchandise Billing customers and credit operations | Handling receipts and financial records » Gift wrapping Delivery © custiers (e.g. multichaiinel or ominichannel retailing) » Retuming unsold of damages! merehandise to vendors Sales forecasting and budgeting » Coordination Dividing Tasks among Channel Members and Customers Although the preceding tasks arc typically performed in a distribution channel, they do not all Ihune to be done by a retailer. Some can be completed by the manufacturer, wholesaler, specialist, ‘or consumer. Figure 11-3 shows the types of activities that eowkd be carried out hy each party. Following are some criteria to consider in allocating the functions related to consumer credit > A task should be done by the person who is mest competent, amd it should be carried out only if desired by the target market + Forsome retailer, bral coi polcies may provide significant advanages over competitor. For rhers, a cashoonly policy may reduce their ove nd lead to fower pices. + Credit collection may require a legal staff and detailed digitized records—snost affordable by medium or large retailers, Smaller retailers are likey to rely cn bunk creditcard www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 295, FIGURE 11-3 ‘The Division of Tasks in a Distribution Channel * 1 is Weeyated A credit collection ageney. pressing for pastadue payments, may antagoniac eustorners + The retailers institutional Framework cam aect tuck allocation: Franchisees ane reality able 4 getiogether to have their own private-label brands. Independents cannex do this as easily. Tak allocation dependson te savings gained by sharing or siting tasks, The credit function is betier performed by un ouiside credit burcau if it has expert personnel and ongoing access. 1 financial data, vse tailored computer software, pays lower rent (due tom outethe-wvay site), and s0 on, Many retailers cannot attain these savings themscl ves, Grouping Tasks into Jobs “Thi se (re After the retailer decides which tasks t perform, they are erouped into jobs, The jobs must be ‘hebalaes.comiciitjo clearly structured. Hi es oF grouping tasks into jobs: lessee clearly srwtie: Mere are examples of grouping taksim jobs: the range of jobs avila in rctaling, ae pate ‘Displaying merchundive, cniomer conc. git wrapring. ‘Sales personnel cusmer followup Enering vansaction daa, handling cash and cre pues, Cashiens) sill rapping Receiving meiehandiss, checking inoing pines, sentry pees smarking merchandise, invenory storage and cininol, ‘eturing merchandise to yeedors ‘Winkow dressing imerir usply setups ws af woe Display persconct sisplays Biting cusiorers. rei operations. customer rescue (Cred poset Merchandise repairs and alterations resohtion of complains, Cusomer sevice stomer meat ermine Cleaning stow replacing old ixtures Janse personne Employee management. sles forecasting ting pricing Management personne! ‘oordlnaiag eka While grouping task into jobs, specialization should be comsidered So each eimphiyer fs responsible fora liited range of functions (as opposed to performing many diverse tasks), Sp alization has the advantages of clearly defined tasks, greater expertise, reduced! training, and www.downloadslide.com 296 PARTS « MANAGING ARETAN BUSINESS Ce fe See Hennes ‘According to the UK Office of National Statistics, the cumber of UK workers on zero-haur contracts increased by 20 percent in 2016 to just over 800,000. This represents neatly 3 per cent of the employed UK workforce. The zere-hour contract vrotkers are not offered quarantced haws or sck pay. Reta 73. are amongst those mast likely {0 afer their employees ZerOchOUr contracts. On aecrage, the retaler Workers work or aroun 25 hours por wae, Heinover, over 30 percent of them would like to work longer and more predictable hours if they were gren the option, The Brtish Retall Consortium ‘lalms that 2ero-hours contracts are riot widely used inthe retail sectoe but that certain chains and brands only use thes ‘01m of employment. Why might a retailer opt for zerorhour, contracts? What FIGURE 11-4 Alob fora Store Manager ‘ddvamages does offer them? Oo} ing people with narrow education and experience, Problems can resull duc to extreme special zation: poor morale (boredom). people mot being aware of thet jot" importance, and the need for mce eniployess. Specialization means assigning explicit dies to indivedals so job position encompasses homogeneous cluster of tasks. (Ones asks are grouped, job deseriptions are constructed. These cutline the job ties, objec tives, duties, and responsibities for every position. They are used as a hiring, supervision, and vulation tool Figure 11-4 contains a job Wescriptin for a store manager Classifying Jobs Jobs are en brvadly prouped into functional, product. geographic. or combination classifications. Functional classification divides jobs by task—such as sales promotion, buying. Web design, and Store operations. Expert knowledge is wed, Pru closification divides Jobson & poods or set= vies basis. A department store hires different personnel fr clothing. furniture, appliances, and so fort, This elassifietion recognizes differences in personnel requirements for different products. Geographic elusifcotion i= wsekal for chains operating in diferent areas. Employees are adapted to local conditions. and they are supervised by branch managers, Soene firms, especially farpor dpe, 0e0 a aeneblaction claistoattim Wid branth und ot nbain hipes He-vel ing tall; bat buying personnel for each product ine are hired by headquarters the funetional. prodit. and aeobraphie formats are combined, Developing an Organization Chart “The format ofa reat enganization must he clesgned in an integrated, coordina way. Planing leaders in the organization need tw clearly articulate accountability and secision-making author Tor each position or role on the organizational chart, span af coral (numberof subordinates www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 297, tundra manager's direct control) for each position, snd lateral refaionships bebyeen positions Aligning individual employee goals with organizatienal goals and communicating to empboyees hwy the organizational structure will meet strategic vhjestives and zouls and create svstained cccomamic value is key. Managers ane! their direct reports must jointly identify common goals, define each individual's cesponsibilties and expectations, and understand how they will he evalu ‘ted. Joint goal seiting and shared responsibility towant achieving them wil increase employee rotivation and perceived empowerment, and provide a conimvan direction tewvard achievement ‘of organizational goals. ‘The hierarchy of authority outlines the job interactions within company by deseriing the reporting refaionships among eraployees (from lowest kevel to highest level). Coordination and ‘control are provided by this hierarchy. A firm with many workers reporting to one manager has af arganization. Is benefits are goo. communication. quicker problem handling, and better “employes idenifcatica with a job, The major problem tendsto be the mumber of people reporting tw one manager A tall organization hax several maniagernent levels. resulting in clove supervision and fewer workers reporting to each munager, Problems include a long communication chan- tel. the impersonal impression given to workers rezardiny access to upperlevel personnel. and inflexibte rules. With these factors in mind, a retailer devises an organization chart, whith eraphically dis- plays its hierarchical relationships. Table 11-1 lists the principles to consider in establishing an ‘organization chan, Figure 11-5 shows exampley of basic organization charts, ORGANIZATIONAL PATTERNS IN RETAILING An independent etaler has a simple organization, opens only one store, the ewnermanager usually supervises all employees. and workers have acces othe ownerfmanager if there are pide lenis, In contrast, a chain must specify how tasks ate delegated coordinate multiple stor, and set-cammon polices for employees. As examples, he organizational arrangements used by inde> pele! retailers department stores chain relailers, and diversified retailers are diseussod next Organizational Arrangements Used by Small independent Retailers Small independents use uncomplicated arrangements with only ro oF Ukee levels of personel (ownerimanager and éniployees), and the owner/manager personally runs the firm dnd oversees: workers. There are few employees litle specialization, and no branch unis, This does not mean fower activities must be performed byl that many tasks are performed relative to the number of worker. Each employee must allot pat of his oF her time wo several dues Figure 11-6 shows the organizations of two small firms, In A, a boutique is organized by fanc- tion. Merchandising personnel buy and ell goods und services, plan acsortments et up displays, TABLE 11-1 Principles for Grganizing a Retail ‘Ai eeganatin should sbow interest in in cinployoes. This cin be de ttogh job kati, [promtion from within, participatory management, recognition, job enrichment, als eth, Employes turmover, Inteness, and abweniceism should be manitered, Because they say idicate [personnel problems. “The line of authority should be traces foam the highest wo the lowest positions fn his way, employees know vo whom they report aad iho repos to hem (chal af cova |Asubaninate shook report to only one direct sper sar (ani comma. "This aves the problem of workers mselving ssefieting oners. ‘Theres a tmit tothe number of employees a manager can diretly supervise Kapa of cunt) ‘A petvon responsible fora given objective needs the poser to achieve i “Alibi a sipeevisoe en datopaue Suthodly, or steal repute Pe ieaites. The greater the numberof organizations! levels, the longer the tne far communication 1 travel fn the greater the coordiation prublets Am enganization bas an informal stnactune aide sro 4 rma organiaion cha. teal relationships exesise power in the fim ars! wnay Bypacs formal rlaionships and peosedates, www.downloadslide.com 298 PARTS.» MANAGING A RETAIL BUSINESS Verpeldoe tant | "ene | inase “SREAMEATION CHART aes = aE mall ve a = Sub Sh ft FIGURE 11-5 Different Forms of Retail Organization nd prepare ads, Operations personnel are invdlved With store maintenance and operations, In B 2 furniture store is organized ora prosduct-oriented basis. with personne! in each category respon sible for selected activities, All produets get proper attention, anu some expertise is develope ‘This is important because differen skills arc necessary co buy and sell each type of furniture. Organizational Arrangements Used by Department Stores “Many department stores continue (o ose an organization arrangement thal is an alaptatonof the ‘Maur plan. which divides all retail activities into four functional ateas.* fo twentyfirs century terms, these are store management, communications, merchandising, and financial accounting. Figure 11-7 shows the modem version of the Mazur plan, ay devised by the authors of this book: 1. Store management: Operations, eustomer service, human resourses, inventory, “backroom” ‘activities, and store maintenance 2, Communications: Public relations, advertising, window and intesior displays, promotions, ‘nl online efforts www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 298, FIGURE 11-6 nization Stuctures Used by Smal tnaepernlents 3. Merchandising: Buying, sélling, stock planning and forecasting, and produst-positioning {imagesrelated) with regard to the mix of yoous and services offered by the retiter 4. Financial accounting (overseen by conivaller); Axsbninting, inventory control, ered, abd ‘auditing Acie authority andl responsibilty) and staff advisory Figure 11-7, the ciinicannel manaer reports directly to the ‘These areas are organized ‘and support} compunets. Thus, FIGURE 11-7 A Moder Version of the Mazur Organizational Plan for Department Stores ‘See Chat sleepy hes www.downloadslide.com 300 PARTS.» MANAGING A RETAIN BUSINESS ‘To tissover mone abou roger, 20 to tis section of its Web ste (wm general manager and! is. staf pervon: and a somirolfer and a communications managet offen staff services lor merchandisers: but in theie disciplines, personnel are exganized 0 tine bass, ‘The merchandising division is responsible for buying and selling, Nt is headed by a ‘merehandising manager, who is ten viewed as the most important of the area executives. She or hie supervises buyers, devises financiil goals for cach gepurtinent, soordinates merchandise plans (so there is a consistent image among departments) and interprets the effects of economic data. In some cases, divisional merchandise managers are utilized, so the number of buyers reporting, toa single manager does not become unwiclly. Inthe basic Maur pl, the buyer has complete accountability for expenses ina profit xoals ina department. Duties include preparing preliminary budgets, studying trends, negotiate ing with vendors aver price, planning the numer of salespeopte, and informing sales personnel bout the merchandise purchased. Grouping buying und selling activities into one job (huyes? may present a problems. Because buyers are not constantly on the selling floor, training, scheduling, 'nl supervising personnel may suet Branch store growth has led to three Mazur plan derivatives: await stare conrrod, by which bheadquuttery executives oversee and operate branches: sepanase stone organization. by which cach ‘branch has baying responsibilities: ane equal store organization, by which buying is centralized and branches become sales ints with equal operational satus. The laters the nist popular ama, Inthe main sore contr format, mast sahority remains at headquarters. Merchandise planning and buying. advertising, financial controls. store hours, and! other tasks ans centrally managed 19 standandize the performance. Branch store managers hire gn supervise employees. but daily opens tions conform to company policies. This works well there are few branches an the preferences of customers ave similar tothose atthe main store, As branch stores inerease, buyers. the advertising. ‘manager. and others may he overworked and give ith attention to branches. Because heaxlquariers [personnel ae not ar the iaiches differences in customer preferences my be overlooked. ‘The separais store formal places merchandine managers in branches, which have autonomy {oc merchandising and operations. Customer needs ane quickly noted, bu task duplication is pos sible. Coonlination can alsobe a problem. Transferring goods between branches is mors comple and cosy, This format is best if stores are large. branches are dispersed, andlor local customer tastes vary wily, Inthe equal store format the benefits of both centralization and decentralization are sought. Buying—forecasting, planning, purchasing, prising, distribution Yo branches, and proiotion—is eceniralized, Selling —presenting merchandise selling, customer services, snd operations—is mae aged lovally, All sores, nctading beadwarters, arc trealed alike, Buyers ae frst ftom minding s0 many workers. Data gnthering is crtieal since buyers have les customer contac ‘Organizational Arrangements Used by Chain Retailers Various. chain retailers use a version of the equal store organisation, as depicted in Figure 11-8. Although chains’ organizations muy differ, they generally have these attributes: » There are many functional divisions, such ay merchandise management, dstibuion, ‘omnicharel, operations. real-estate, personnel, information systems. and sales promotion, » Overall authority is centralized. Store managers have selling responsibility. | Many operations are standardized (fixtures, store liyout, building design, merchandise Hines, credit poly, and store servic An elaborate control system keeps management informe. +» Some decenraleaion lets branches apt to locales and increase store manager esponsiili- ties. Although large chains standardize most items thei outlets ear, stare managers often Fine-tune the est ofthe strategy mix for the foal harket. This emponters the some manager. Organizational Arrangements Used by Diversified Retailors A diversified retailers moins firm operating under cenral ownership, Like other chains, 8 diversified retailer operates mutple stores; unlike typical chins, diversfc! Gm is involved ‘with different yes of retail apertions Here are ta examples > ‘Kroger Co, (uww.krogercom) operates supermarkets, warehouse Hoes, stiperceniters, con= venience stores, nd jewelry stores; it alse hasa mantfaciuring grup. The firm owns multiple ‘toro chaine in each of its retail categories. See Figure | www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 307 FIGURE 11-8 The Equal Store Organizational Format Used by Many Chain Stores Retail Managsoens Asso tellers several epi yes sevelepmeat tips ne thera adsisorsonn! creasing employee Performance i » Japan's Aeon Co. (www.eon jaliven) comprises superstores. supermarkets, discount stores, ‘home centers, specialty stores, convenience stores financial serviges stores. restaurants. an inore, Besides Japan, Aeon has facilities in numeiots other couniries. cis alsu a shopping ‘center developer. uc to tuliipte strategy: mixes, diversified retailers face complex cnganizaaional consider- ations, Intesdivision control is needed, with operating procedures and goals clearly communicated, For cxample. (1) interdivision competition rust be evordinated, (2) resourees must be divided! among divisions, 3) potential image ana advertising conflicts must be avoided, aid (4) manage- ‘ment skills must adapt to different operations. HUMAN RESOURCE MANAGEMENT IN RETAILING Hunan resource management involves recruiting, selecting raining, compensating, and super ising personne! in a manner consistent withthe ctailer'sorpaniation structure and strategy mix Personnel practices depend onthe line of business muber of empléyecs, slr ovalion, and other factors. Because good personne ane needed (o develop and carry out seaiepies, and Labor costs ‘anamiount to SOpervent dr more of expenses the value of huaman resourss management is clear Reusing in the United States cmploys 25 rnillion people. Thus, there is a constant ze to autract new employees—and telan existing ones. For example, as many 1s 2 million fast-fond workers are aged 16 10 20, and they stay in their fobs For short periods. In genera, retailers need ws reduce the trmover rate: when workors quickly exit «fier, the results cam he disastrous, See ‘Table H1-2. Tamover in retail averages around 66 percent for part-time hourly, whereas it drops 1627 pacom! For Fullsime employes with henefils such 4s health insurance.” ‘Consider the approaches of Target, Zappos, and Wegmans Food Market > Tiget is committed to cruployes development and retention, Target challenges employees 1o innowate, collaborate, and e'fictenily and intelligently provide the best possible shopping www.downloadslide.com 302 PARTS. « MANAGING ARETAN BUSINESS sett FIGURE 11-9 ‘The Organizational Structure of Kroger Co. (Selected Store Chains and Positions) Note: Most Reoger supermarkets ane foad-based combination siores, ‘Siw Csi developed th suber edo intial he Reger Ce 2015 Annual Reporte 2S Kewpe 2013 Fc Bok experience to customers. Itbelieves empowering and training employees and providing them ‘with opportunities For professional growth will help is business stay competitive. Every entry level employee. whether hourly or fulltime. is mentored by the store team leader. Campus TABLE 11-2 The Tue Costs of Employee Tumover Using fil.in ermployees until permanent replacements are found. Severance pay for evting employees. Hiring new employees: advetisng, imerviewing time, travel expenses testing Sereenins ‘Training costs: walters, mining materiss andl techlogy, lnce-covipensaion,sopervinr tin femthe job ping ‘Mistakes and tower productivity while rw employees gain expesience (Customer disstistiction duet the departure of peevions employees and the nse ‘of inexperience workers Lossof comtinaity arvang comworkers Pooremployce morale when tumaver is highs Lower employes lily to etal en ims bi www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 303 ‘eeriits are engouraged fo join the summer internship program in Minneapolis Where they sane rained in leadership xkille x well asthe Funetional aca (planing, software traning, +f.) tobe a successful member of w Target store/listibulion center, corporate, or technology ‘leadership team. Company benefits include health coverage, a pension, 2.401¢K) plan, tuition scimbursément, ifs insurance, a paid vacation, and an annual bonws.* » Zappos, an online retailer af shoes, apparel, and accessories (owned by Amazon.com tne ‘singe 2009) says its geil isthe te online service leader. Employees call themeslves “Zap -ponians” and claim they “Live to Dekiver SYOIN” in supporto the first core value of the firm. Emplayees get benefits such as vacation ind sick days, retirement plan, bie and disability insurance. medica anlsemal coverage, maternity and paterity leave, tuition reimbursement, scouts (40%) on Zanes merchandise, and ee ehipping. Zappos helpw-emplayes stay ft ‘by having an onsite fitness center. youa studio. weight management programs, za fitness -hallenges, "To help employees achieve a work-life balance, Zappos pays for dry cleaning, ‘ar washes, and oil changes; it even hasan onsite library and life couch, health screening, sand a nap room! Company happy haus, fun events, and Realthy on-site catering build team, snd Family spi’ + Wegmans Food Markets isthe only retailer on the Fares “100 Best Companies to Work For istevery year since 1998.1 offers health losuranee to part-timers, telecommute, job sharing and compressed work weeks, tuition reimbursement, paid vacations, and substantial ‘raining, Full-time employee turnover i low. Wegmans has roultiple paths caresr success via Lateral Rearing, eross-training, internships, and management training. Wegmans cares about the well-being of employces and empowers them to make decisions thal customers And he company.” The Special Human Resource Environment of Retailing Retailers face a human resource environment characterized by a lunge number of inexperienced workers, long hours, highly visible employees, a diverse work force, many part-time workers, and variable customer demands, These factors complicate employee hiring, staffing, and supervision. ‘The need fora large retail labor force afin means hiring those with lirtk: or ne print experi- cee, Sometimes, position in reiling represents person's Hirst Yel joh” People are atiracted to retailing because they find jobs near to home, and retail positions (such as cashiers, stock clerks, and some gpes af ses personnel) may require ined edeation, tren, ask. Aso the Sow wages paid for some positions result in the hiring of inexperienced people, Thus, high employee lumoxer and cases of por perfarenance, aeness, i absentecisn may resol ‘The long working hours in retailing, which may include weekends, turn off certain prospec- tive employees. Many feailors now have longer fours because mare shoppers want ta shop during evenings and weekends, Accordingly, some retailers require at least two shifts of full-time ‘employees. Retailing cmployees are highly visible to the customer. Thus, when personnel are selected and trune, special care us be taken as (other manners aed appearance. Some smal retains do net place enough emphasis on employee appearance éneal grooming and appropriate altire). Ea Recruiting Retail Executives. “The Boreas of Labor Statics Compiles curiae ‘perviors id manners (ue le gonfooon WR Group (ww jotinmcaldwel.comfwvoraun) HGA thitp it biga-graup.com), and Carter Murray (enewcartermurray.com) specalize in the global racuitrnent of retal executes. Why? Demand factors nclate the need for pultinational executives to effectively manage ofabal tai operations. The supply stems ‘ram retal enecuoes seeking foreign experience to better pre- pte for highJevel positions, as. vel as ineaduate wanting the excitement of ving in a feign county. Sane execuve search firma such a5 HGA Group specialize in afield of retaling others such as RVR Group are involved in executive placement na wide ware of rota feds. Alte these companies ave officesn ajar ives Droughout the would. Carter Murray, as aa example, Nas offices in London, Singapore, Hong Kong, New York, Germany, aed Austra, ‘Discuss the adontages to bath acommpany ane 3 prospective employer of using a olobal ecutive recruitment im, www.downloadslide.com 304 PARTS.» MANAGING A RETAIL BUSINESS See baw Avon ers inpiriog woth and is “erponening women” wvewanoncopany com sateen) Aspaotteriegey. ‘Mary Kay Aah et hein 1 charfubie foundation (auseuah coe Its common for teailers fo have addiverse labor force, with regard fo age, work experience. fender, race, and other factors, This means that fins must trim and supervise tbetr workers s0 they inisract well with enc anethe—and are sensitive inthe pempoctives und needs mf each eer. ‘Home Depor's recruitment strategy icludes partnerships with several national nonprofit, zovern= ‘meni, nl educational organizations in reach out Io the commutes itscrves and to atiact a broad range of qualified candidates with diverse backgrounds, including AARP. NAACP, National Urban ‘League, National Society of Hispanie MBAs, National Black MBA Associntion ine., and several USS. military groups, In aditnn, Home Depor provides resources ta help recruits sueceed through ‘Associate Resource groups nd online tools such as "Military Skills Translator” to help veterans identify positions and jot descriptions that leveraue skills acquired in the military:® ‘Due to long operating hours, retailers regularly hie parttime workers. trimany supermarkets, sore than half the workers are part-time, and problems may arise. Some parttime employees are moee lackadaisical, late, absent, of likely to quit than fulltime employees. They must be closely monitored. Like other fins, retailers hire a large number of Millennials. Although this group is generally technologically advanced, Millennials often have different work values than ‘older employees. A recent Gallup Poll found chat Millenniéals ate the least engaged group-in the ‘work force Here are a number of ways to better motivate Millennials: ™ 1» Show the firm's commitment to society and respected charties by supporting voluntecrism, Train managers to comnuunicate frequently and openly with Millennials, » Get Millennials actively involved in solving impettant problems. = Provide Millennials with mentors, » Accommodate Millennials’ needs with flexible hours. ‘ariations in eustomer demand by day. time perios, or scason may cause dilficulies, A number oF US. shoppers make major supermarket tnps on Saturday of Sunday. So, how many employees. should there be Monday through Friday and how many on Saturday and Sunway’ Differences by time of day (morning, afternoon, evening), season, and heidays also affect planning. When stores are very busy, even administrative and clerical employers may be needed! on the sales floor. ‘As anule, etulers should consider these points: Recruitment and selection procedures must efficiently generate sufficient applicants Some training must be short because sharkers are inexperienced and temporary. Compensation must he perceived as “fat” by employees. Advancement opportunities must be available to employees whw view retailing asa career Employee appearance and work halts must he explained and reviewed. Diverse workers mustibe taught to work tagether well and annicably. ‘Morale problems may result from high tumover ane! the many puir-tie workers FFull-and part-time workers may conflict, especialy if sorve fll-timers are replaced ‘Various retail earcer opportunities are available to wornen and minorities, There is sil some oom for improvement, however, WORMEN IN RETALUNG Retailers have made lot of progress in career didvancemant Tor women. According to the “2020 Women on Boards,” Ann Inc., Avon, Chico's, Children’s Place. Estee Lauder, HISN (Home Shopping Network), Macy's, Ulta, and Willianns-Sonoma Ine, are aman the U.S, public firms with 40 percent or more of corporate officers who ase women." The “2013 Catalyst Census: Fortune 500 Women’s Representation by NAICS Industry” report notes that retailing has the highest pereemtage of women as corporate officers among the 18 industry groups. ‘Wiomen have more career options in retailing than ever hofore, as the following examples show, Mary Kay Ash (Mary Kay cosmetics), Debi Fields (Ms. Fields’ Cookies), and Lillian Memon (the direct marketer) have founded retailing empires, AS of 2016, women were chief cexccutive officers in 20 of Fortune 500 companies overall and/or chairpersons of the board of such U,S.-hased retailers as Enterprise, Home Shopping Network. Ross Stores, Sam's Club, and ‘Victoria's Secret." Let's look ai a brief profile of two of these, Rosalind Brewer is president and CEO of Sam's Club, She started her career with Walrmart {in 2006 as regional yice-presiden! of operations. She then was promoted to division president of ‘Walmart Souithesst, and then president of Walmart East, In 2012, Brewer was named president and CEQ of Sam's Club, She camed her bachelor’s degree in chemisiry from Spelman College. 12015, Korhex referred to Rasalind Brewer as one ofthe “World's 100 Most Powerful Wome Forme asaya the best emlayens among bli firms (hp Trmune omnes colpaakesh Meats (ae str neki omnlt ‘onpornc caecrs actively scwrages diversity and ‘undertdng, www.downloadslide.com ‘CHAPTER 11.» RETA ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 305, tncen presen and CEO singe 2013, She isthe highest-ranking wornan armong the work!’s largest travel companies and ta been named to Forte's Bist of “America’s 30 Most Powerful Women in Business” every year since 2007. Nicholson graduated from the University of Missour with a bachelor of ans depree and began her careet with Enterprise Rent-A-Car in 1981 a6 3 managemte trainee. She has growe the U.S. and intemational husinesses and hues been working om deal wi Nissan for a car-sharing businesses for students at 90 college campuses." Despite recent progress, waren still uccount for a small percentage of cdporate officers at licly owned retailers. These initiatives can help to inerease the number of Feinale executives: Mesniig tial raining programs “Advancement opportunities ‘Telecommuting and fle time—ie ability of employees to adapt thr wok hours Job sharing among two or more eenployees who each work less than fulltime “Onsite sbild care AMINORIES AND DIWERSITY IN REELING Fostune's 20K6~100 Best Companies to Work Far” Stuy lise the top sompanies”sinorityslatistics, Among retailers with ahigh percent sf minor ties are thea (52 percent minorities), Nondsiromt (50 percent). Whole Foes (43 percent). CarMax (41 peevent), Nngest Market (40 peril), Buikl-A-Basur (25 pease), Container Store (30 percent, ‘Wegmans Food Markets C21 percent) and REI (17 percent). ‘As With woe, retailers have done many good thir bathe area of tt tere is still moze o be aecrmplisied. Consider these positive examples: nority eaxplayment, » CarMax strongly belicves in having a diverse work foree—and not just because it wants 0 ‘be a good corporate citizen. CarMax knows that employee diversity contributes to its alteakly ‘strong competitive advantages, Through such diversity, CarMax has a broader view of the marketplace and attracts. a greater range of customers. I'comtinuoesly strives to teat every job sipplican, cmplloyes, cusiomte, ana supplicr with respect an! fairness —tegandless of gendet, ‘ace, Senval orientation, ape an! various other factors, * + Walmart is commitied to embracing diversity on all aspects of its Organization: froma its associates to its supplier partners. Through its Supplier Diversity Program,” Walnnart works ‘with aver 3,000 suppliers awned and operated by minorities, women, veterans, and disabled people. {n fiscal 20116, Walmart purchased $14.7 billion from women tnd minerity-ownetl ‘businesses, > Walgreens shows its commitinent to diversity as puirt of a multipranged effort Ik includes sdealing with a minimum of § petsent eextified minority business firs and 2 percent other ‘certified diversified businesses; and it encourages prime suppliers ta use diverse stipliers." ‘The following Hist supgests some ways for retailers to even beter address the needs of rity warkers: Have clear policy statements from top management as tothe value of employee diversity. ngage in active recruitment programs to stimulate minority applications, ‘Ofler meaningful training programs. Provide alvanceinent oppertunities. Haye zero tolerance for inscnsitive workplace behavior, ‘The Human Resource Management Pracess in Retailing ‘The human resource munagement process consists of these inwereated personnel setvitis: recruitment, election, traning, compensation, and supervision. The goals are w obtain. develop, and retain employees. When applying the process. diversity, labor laws. and privacy should be reflocted. Diversity involves two premises: (1}ermployees must he hired and promoted in a fairand open way, without regard to gender, ethnic backgfound, and other related factors: and (2) in a diverse sacioty, the workplace should be representative of such diversity. “There are several aspects of labor laws for retilers wo sity: » Donot hire underage workers. » Donot pay workers “off the books" (under the table"). www.downloadslide.com BOG PARTS « MANAGING A RETAIL BUSINESS ‘Do ro require workers to emgage in illegal acts (stich as Do tot discriminate in hiring or promoting workers Do not violate worksr safety regulations. ‘Do not disibey the Americans with Disabilities Act ‘Do ot dcal with supplirs that disobey labor lars. Retailers must ea be careful not to violate employees" privacy rights. Only necessary data about ‘workers should he gathered und stored, and such information should net be freely disseminated, ‘Wenow discuss each humun resource management activity for sales and middle-maanagement jobs, For further insights, go 10 our blog (www. bermanevanssetail.com). RECRUITING RETAIL PERSONEEL Recruitment is the activity whereby a retailer generates a lst of job applicants. Table | 1-3 indicates the features of several Key recruitment sources. [a addition to these sources, the Web now plays.a higger role in recruitment. Many rotifers have a-sareer oF {Job section it their Web site, and some sections are a elaborate as the overall sites, Wisit Target's |Web sie (wwinargei.com), for example, Sevoll down io the bottom of the home pags and click fon “more” and then “careers* ‘Wits entry-level sales jobs, retailers rely am educational institutions, as, walk-ins (oF ws ). Web ites (including social media}. and employee referrals, With miskllesmanagement posi Jions, retailers rely on employment agencies, competitors, as, anel employes referrals, A retailer's ‘usual goal isto generate a list of potential employees, which is reduced during selection, Firms that accept applications only from those meeting minimurn standards save a lotof time ane money. SELECTING RETAIL PERSONNEL ‘The company neu selects new employees by matching the traits ‘of potential employees with specific job requirements. Joh analysis and description, the applica ‘lank, interviewing, testing (optional), references, and a physical exam (optional) are tools the proces: they should he imtegrated {mn job analysis, information is amusced on each job's functions and requirements: duties, responsibilities, ode, interest, education, experience, and physical tasks. It s-usedl to select and switch selling), TABLE 11-3 Recruitment Sources and Their Characteristics Sources Characteristics Outside the Company iducationalinstittions Other charmel members ‘competitors Advertisements Employment agencies Unsaid appears ‘Within the Company (Cuonemt and Forricr employces 4 High schools basiness school, esrmuitysllegss smiveses graduate shoals bs Gacid for taining positions: ensure minimum elseaional requirements are ret expecially ‘efi when kong-erm sonasts with insrucens are develops 4. Employees of wholesalers, mannfacturers, a agencies, campsites: leas from each ofthese 'b Restoe exten of tains: can evaluate perorrnance with pri ins); must martin Ccampany policy: same negative morale if curtent emptoyees fel bypassed for promations «Newspapers, ak piblicatnns, professional jornats, Web sites bs Large quantity of anplsanis average applicant quality hay net Bs hia oan iors akltionalresponsitviny place on screening: cnn reduce unacceptable aplication hy nating jo quaitiations in ads 1 Private organizations, professional organizations, government, evecitive search ims bs Musi be erefullyseteied: tnt be determined who pays ce; gov for applica serecniig, specatnsin personne! 2 Wali wins th Wide variance in quality: must be carefully sereene ile shaw be hep for Future pits: a Pro employees by Koowledge of company polisies and personnel good ar morale honest appraisal ftom inshoue supervisur or transfer of existing full-ime employees, part-time employees: rehiting of laid-olt Employce recommendations a. Friends, acquaintances, relatives 1, Vole wf rctmimendations depend homenty aid jilgment of erent employers FIGURE 11-10 AGoal-Oriented Job Description for a Management Trainee www.downloadslide.com ‘CHAPTER 11. © RETAIL ORGANIZATION AND HUMANESOURCE MANAGEMENT 307 personnel, set performance siandans, and ussign salaries. Thus, department managers offen act a the main sales associites for their areas, oversee other sles associates, have some adninistrar live duties, report to the store manager, are cligisle For bonuses, and reseive $25,008 ko $45,000 ually Joh analysis shold lead to writen job descriptions. A traditional job description contains a oxition’ tite relationships superior and subordinate) and specific roles and tasks, Figure showed a stare manager description, Yet, using & traditional description alone has heen critisized, {may limit ajob's scope, as well as its authority and responsibility: not le a pervon gio: limit sctivities to those listed andl not describe haw jobs re coordinated, To complement a tidltional description, « goaboriented job description cach job to overall goals, the imerdepenclence of positions, and information flaws, See Figure 11-10, 1 sistema seones Real executives are problem solvers. a ot Kaley a undersancing lpst orm the busi fr tetion and planaing. Reta executives are dea people. Successhl INITIATIVE: stay to oxginate Seton Recil exeeutves are doers. Sales walumes, rather than wait (© be cold what to do, ere naeena eat And ably co a bed on conviction. septinal aan. for action LEADERS ty ere ote Recal excites are managers Rening» aneerpect your japmont ably to | bunest means depending on others ‘ee a and porta {et he work done One person cannot ORGANIZATION. ably to establh Feral executives are japrers. A variety of pete eels er esa issues. fenccions and projects are constancy r others sll in phoning and ‘in motion. To reach your goal. priorities 1p w achiowe eset. ‘mlse be set anid work must be delegated 10 ‘others. ; = fect executes ae courage. Sucess [ciated tom preataory in retain fen comes fom aking nals and sound judgments and 0 accept scan see a ee te nee ‘responatbiliy forthe results. re aiereineeniorene js som ‘STRESS TOLERANCE: ability to perform ec exes we a AS the _cenaistently under pressure, 16 thrive on above dedeription should suggest, retailing, ‘constant change and! challenge. 1s fast-paced arid demanding. www.downloadslide.com BOB PARTS « MANAGING ARETAN BUSINESS ‘An application blank is usually the first (ool used to seroen applicants: it provides data ina, experience, health, reasnns for leaving prior jobs, cutsido activities, hobbies, and references. [tis usually short requires litle interpsciaion, andivan be used as the basis for prob- ‘in an interview: With a weighted application blank, factors having high relationship with jah success ure given more weight than others. Retailers using sich a form analyze current and ‘ast ermployee performance and determine the criteria (education, experience, ete.) best correlated ‘with job suocess (as measured hy longer tenure, beter performance, ete.) After weighted sores are awarded to all job applicants chased on data they provide), « mininui total score becomes | eu point for hiring. An effective application blank: aids retailers in lessening turnover and sclecting high achievers. ‘An application blank should be ised slong with a jo description, Those meeting minimum {job requiterents are processed further: others are iramedintely rejected. fn this way. the applica tion blank provides a quick and inexpensive method of sercening. ‘The interview seeks information that cin be amassed only by personal questioning an abser= ‘ation, Itletsan employer determine a candidate's verbal ability, nate his or her appearance, ask ‘questions keyed to the application, and probe career goals. Interviewing decisidns must be made out the level of formality, the number and length of interviews, the location the person(s) to do the inierviewing, and the interview structure. These decisions often depend on the interviewer's lity and the job's requirements Sul fimis tend! t hire applicanis basedlon thelr peeformance during interviews. Large iis may have multiple stages: candidates who excel a the interview stage may then be required 10 take psychological tests (1 measure personality, intelligence, Interest, and leadership). and/or achievement tests (es meastre eared knowledge)” ‘Tests ust bo administered by qualified people, Standardized exams should not be used unless proven effective in predicting job perfarmunce. Achievement tests deal with specitie skills oF information (such as the ability to make a sales presentation} are easier to ineepret than paycho- logical texts, and show direet relationships between knowledge and ability. In administering tests, firras rust not violas federal, stats, and Local laws. The fedoral Employes Polygraph Protection ‘Act hars firms from using lie detector tests in mot hiring situations (drugstowes are exempt). ‘To save te inl operate more efficiently, soine setailers—lange and saitall —use soinputer= ‘ned application blanks and testing. Advance Auto Parts, Babies" R” Us. Beat Buy, CVS, Family ‘Tioe, Lowe's, and PetSinir are aniong hase With i-store kiosks that allow people to apply’ for jobs, complete applications. and answer questions. This speeds the poocess and attracts applicants Many retailers get references from applicants thal wan be ebecked either before of after an inerview. References are contacted to sce how enthusiastically they recommend an applicant check the applicant's honesty, and ask why an applicant ffl a prior job, Mail and phone checks tre inexpensive. fist, and easy. Some firms require a physival eXam because of the ptysial activity, long hours and tensions Snyoived in many retailing positions. clean bill of heath sean the candidate is fered a jo. ‘Again, federal, state, and local Laws must be Fllonved, Each step in the selection process complements the othets; together they tive the retailer a good information package for choosing personnel, As.arule retiilers shoubd use job scriptions, CVS (nape cust com) encourages potential employees app alin. ‘A umber joiristing sites exist such as erww.workinretail ‘com, hitpretal jobs careercast.com, wave findtherightab com, ‘unaw job-applcation. com, and wurwsnagajob cam. Although ‘each Ste has unique foatuies, together they genial offer jnb-cescriptions, lncations, ard meee. Job seekers cam print ‘ut this information: view available positions at ruitiple retails 2s; andl look up minumum age requiremems, hours of opera tion, anc compensation. Same sites provide fm alerts about ‘avaiicbie pastions in thei geoorarhic ateas, Others let job soek= «ers selectely look for job in specific fe. Stil athers alow ja applicants to post their résumés. For retalers, these sites also ‘ht advantages, including acces to a eget applicant pool, the ity fo compile and screen appicaets ona database. and berter ‘matching candidate qualifications witha retaler needs, Discuss the pres and cans of job applicant using 3 jobsing (Web site to post sums, cH FIGURE 11-11 A Checklist of Selected Training Decisions www.downloadslide.com ‘CHAPTER 11.» RETAIL ORGANIZATION AND HUMAN RESOURCE MANAGEMENT 308, ‘appligation blanks, interviews, and reference checks, Follow-up interviews, psychologival and. achievement tests nl piiysical exams depend on the retailer and the position, Inexpensive tools (ouch as application blanks) are used in the early screening stages; more cvsily, in-epil tools (such as interviews) are used after reducing the appticant poo!, Equal opportunity, nondisen mina tory practices must be followed. ‘TRAINING RETAIL PERSONNEL Every new employes should receive pre-tratning, an indoctrina- tion on dhe Firm's history, culture. and policies, job orienttbon on hours. compensation dhe chain ‘of command, and job duties, The term onbourding describes the process of integrating new ‘emplayees into an organization and its culture. and understanding the expectations their new job New employes should he introduced to co-workers; encouraged to build relationships with 3 diverse network of colleapues: abd peovided with toils, resources, and kriowledge to become successful and productive. A well-designed onboarding process muy evolve over entre year— from new emplyyce orientation w continuous impeanement H should be mexied for speifi job rolesand locations and make the employee feel welcome.” ‘Tralning programs teach new (and existing) personne bow best io perform their jobs or how {os improve themselves. Training can range fom’ |~ay sessions on operating a computerized cast register, perswmal selling techniques, or compliance With affirmative aetion programs to 2-year programs for executive trainees on all aspects of the real and its operations: » For cach new employee. Container Store provides extensive formal training, which includes ‘understaeuing its "Enyployee Figst Culture,” systems traning, and classes on how to perfor multiple jobs. Each firstycar. fulltime employee receives about 260 hours of training. ‘The ‘New Store Trainer program has three phases: pre-training (3 weeks prior to opening), post, ‘support (week of and after grand opening), and post-training (a few weeks alter pestesupport. “The training ensures that employees are knowledgeable and ensposvered to-ffer the customer service the retailer is known for in the industry = Hest Buy uses an ontine "Lesming Lounge” «wwwibesthuyleaminglounge-com) to facilitate ‘employee training for new anid continuing workers, to keep employees current wn the firm's ‘est practices. and to let employees easily communicate with one another. The password jprotected portal is under the auspices of Best Buy's Retail Training & Development gmp, ‘whose slogan is "gro. perform, sueseed” ‘Training sould be an emgoing activity, New equipment, legal ehanges, new product tines, nb promotions, low employee morale, and employe tumover necessitate aot only training Ia also retraining. Macy"s has program called “Clieneting.” which tutors sales associates on hone te have better long-lemselaions with specific repeat customers, Cove vendors of Macy's teagh ‘ales asenciates about the features andl benefits of new merchandise wien itis introduced. ‘There of several tring decisions, at showin it Figure 11-11 They salt Be lv ded inthe categories: identifying needs. devising appropriate training methods, and evaluation. www.downloadslide:com BID. PARTS. « MANAGING ARETAK QUSINESS TABLE 14-4 The Characteristics of Retail Training Methods Methed Characteristics Lectures Pemonsirations Videos Programmed iosrsction Coenen Seasitviy tining ‘Case tudes Role-playing lichavior modeling Factual, unimterupard presentations of matcrial can ase professional educator or expert in the ek; ‘active participation hy trance ‘Goo for showing how so use equipment or dow ses presenta: pies elevance of raining: ative ‘aricipation by trainees Highly visi. good or Geinoesaritin can esd ian times: wo actve patiipation by tances essen information in a structured maine; reyines response frm tress provides performance Feedback; mbjustable 1 raitces! pace; high iia investi Useful for suporsisony taining: conference Ides mils éacobrags participation; serene thang Estensivejmersction; good foe supervisors as 1 Wool for understunding employes ‘Actual oc hypothetical peoblers presented. including circumstances, petinen! informatio, and ‘jaestions; learning hy doing: exposure t6 4 wide varity of problems “Trainees placed into reali situations apd act out roles ‘Trainees tnght i imitate models slow in videos or bn wle-playing sessions petency-tased inctmtion’ —Thabices iden alist of asks or exereses that are presente im a se pace! fot ‘Te aT a eae Traniag or, ‘rss selions (a ssiailsinng.com), Shon-term iraiming needs can be identified by measuring the gap between the skills that ‘workers areal have and te hs desir bythe tr (For each job). This wining shoul prxpare employees far possible job rotation, promotions, and changes in the company; A longer traimiag pla lets aFiem identify future needs nd train workers appropriately: ‘There are imaay raining methods for retailers: lectures demonstrations, videos, programmed insimution, conferences, sensitivity traning, eae cuties, role-playing, behavior modeling. and ‘competcncy-based instruction, Some techniques may be computerized, as evidenced by more and more firms. The atributes ofthe vious training methods ane note! in Table |. Retailers “often use more than one technique to reduce ettiployes boredom and te cover the matertll better, Compatershaced taining snitkare i valable roma variety of Venton. For example. TERT Performance Solutions has numerous modules thiil bine been ised to trait etail employees in such areas a poin-ofsrales systems, abor scheduling, customer service. manager taining, sine opetations, merchandise management, and more, Among its many clients are CDW, Kroger, ‘Mney’s. MeDomal's, Petco, and Wendy's Por training to succeed, a conducive environment is nedded, based on several principles: All people can fearw if tamght well; there should be sense of achievement. ‘A persin learns hetier when motivated: intelligence akine is tot sufficient. Learning should be suaoricnted Atraines leas more when he or she participates und is not a passive listenee, ‘The teacher must provide guidance, as well as adipt to the leamerand tthe situation. Learaing should be approoched as a series of steps rather than a one-time occurrence, Learning should be spread out over a reasonable period of time rather than be compressed ‘The learner should be eneouraged io da homenesk o otherwise practice Differeit methouls of learning should be combined. Performance siandads should be set and gow performance recogniced, A training program must be reguilarly evaluated, Comparisons cam be mais heoween the performance of those who receive training and those who do not. as well as among employees ‘eociving different types of training for he same jot, Evaluations should always be made in rel tion (o sted training goals. [n addition, training effects should be measured over different time {Imtervals (such as immediately, 30 days later. and 6 months Inter). and proper records maintained COMPENSATING RETAIL PERSONNEL Tel compensation—

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