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Retailhumanresourcemgt
Retailhumanresourcemgt
Human Resource
Management
McGraw-Hill/Irwin
Retailing Management, 7/e © 2008 by The McGraw-Hill Companies, All rights reserved.
Retailing Strategy
Organizational
Structure &
Human Resource
Management
Chapter 9
09-3
A study of Sears’ employees found a 5%
increase in employee satisfaction resulted
in a 1.3% increase in customer
satisfaction. This led to a 0.5% growth in
sales.
09-4
Gaining Competitive Advantage through
Human Resource Management
09-5
Objectives of
Human Resource Management
■ Short Term
Increasing Employee Productivity
Productivity = Sales/ Number of Employees
■ Long-Term
Employee attitude customer satisfaction and loyalty
long-term performance
Increasing Employee Satisfaction Reducing Turnover
Employee turnover
High Turnover
09-7
Downward Performance Spiral
09-8
Human Resource Triad
09-9
Special HR Considerations Facing
Retailers
■ Need for Part-Time Employees
■ Demand on Expense Control
■ Changing Employee Demographics
■ International HR Issues
09-10
Increasing Workforce Diversity
Royalty-Free/CORBIS
09-11
Strategic Issues
Facing Retail HR Professionals
09-12
Designing the Organizational Structure
Organizational structure
Identifies the activities to be performed by
specific employees, and determines the lines of
authority and responsibility in the firm
09-13
Tasks Performed in a Retail Firm
09-14
Strategic Management Tasks
Performed in a Retail Firm
09-15
Merchandise Management Tasks
Performed in a Retail Firm
■ Buy merchandise
Locate vendors
Evaluate vendors
Place orders
Budget plans
Adjust prices
09-16
Store Management Tasks
Performed in a Retail Firm
09-17
Administrative Management Tasks
Performed in a Retail Firm
09-18
Assignment of Responsibility for Tasks
09-19
Organization of a Small Retailer
09-20
Organization of Macy’s Florida
09-21
Merchandise Division Organization:
Macy’s Florida
09-22
What does a Buyer do?
■ procuring merchandise
■ setting prices and markdowns
■ managing inventories
■ building and maintaining relationships
■ attending trade and fashion shows
■ negotiating with vendors on price,
quantities, assortments, delivery dates
and payment terms © Digital Vision
09-23
What does a category manager do?
■ A category manager
Is responsible for a set of products that are viewed as
substitutes by customers (Ex: all pastas – fresh,
frozen, packed, or canned)
Is evaluated on the profitability of category
Is motivated to eliminate “me to” products and keep
essential niche products
Is used primarily by supermarkets, big box retailers
09-24
Allocator vs. Planner
09-25
Stores Division:
Organization of Macy’s Florida Store
09-26
Corporate Organization of Macy’s Inc.
09-27
Activities Performed at the Macy’s Inc.
Corporate Office
09-28
Retail Organization Design Issues
09-29
Centralization vs. Decentralization
Royalty-Free/CORBIS 09-31
Winning the Talent War
09-32
Attracting Talent – Employment Marketing
09-33
Attracting Talent – Employment Marketing
JCPenney
09-34
Developing Talent –
Selection and Training
■ Selective Hiring:
Recruit “the right people”
Simply seeking the best and the brightest may not
always be the most effective approach
■ Training:
Increasing investments in management training
programs and developing leaders
Increasing attention to college graduates - Generation Y
09-35
Motivating Talent – Aligning Goals
■ Incentives
Commission, Bonus, Stock Options
■ Organization Culture
The set of values, traditions, and customs of a
09-36
Use of Incentives
Advantages
■ Aligns Employee and
Company Goals
■ Strong Motivating Force
Disadvantages
■ Employees Only Focus
on Sales
■ Less Commitment to
Retailer
09-37
Developing and Maintaining a Culture
■ Stories
Nordstrom – Hero Service Stores
Ritz-Carlton – “wow story” reading
Whole Foods – working in teams and
using its employees in the hiring
process
Wal-Mart – Saturday Morning Meeting
■ Symbols
■ CEO Leadership
09-38
Keeping Talent –
Building Employee Commitment
■ Empowering Employees
Empowerment is the process of managers sharing power
and decision-making authority with employees
• Gives employees confidence
• Provides greater opportunity to provide service to
customers
• Employees are more committed to firm’s success
■ Creating Partnering Relationships with Employees
Reducing Status Differences
Promotion From Within
Balancing Careers and Families
• Flextime, job sharing
09-39
Issues in Retail Human Resource Management
■ Managing Diversity
Diversity Training
Support Groups and Mentoring
Career Development and Promotions