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Setting up a Retail Organization: Organizational Arrangements and Human Resource Management

This chapter explores the procedures involved in setting up a retail organization, including different organizational arrangements utilized in retailing and the special human resource environment. It also describes the principles and practices of human resource management in retailing.

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Setting up a Retail Organization: Organizational Arrangements and Human Resource Management

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  1. Chapter 11 RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition Retail Organization and Human Resource Management BERMAN EVANS

  2. Chapter Objectives • To study the procedures involved in setting up a retail organization • To examine the various organizational arrangements utilized in retailing • To consider the special human resource environment of retailing • To describe the principles and practices involved with the human resource management process in retailing

  3. Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

  4. Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

  5. Figure 11.1 Planning and Assessing a Retail Organization: Factors to Consider

  6. Figure 11.2 The Process of Organizing a Retail Firm

  7. Figure 11.3 Division of Tasks in a Distribution Channel

  8. Grouping Tasks into Jobs

  9. Figure 11.4 A Job Description for a Store Manager

  10. Classifying Jobs • Functional • Product diversification • Geographic • Combination

  11. Table 11.1 Principles for Organizing a Retail Firm • Show interest in employees • Monitor employee turnover, lateness, and absenteeism • Trace line of authority from top to bottom • Limit span of control • Empower employees • Delegate authority while maintaining responsibility • Acknowledge need for coordination and communication • Recognize the power of informal relationships

  12. Figure 11.5 Different Forms of Retail Organization

  13. Figure 11.5 Different Forms of Retail Organization

  14. Figure 11.5 Different Forms of Retail Organization

  15. Figure 11.5 Different Forms of Retail Organization

  16. Figure 11.6 Organization Structures Used by Small Independents

  17. Figure 11.7 The Basic Mazur Organization Plan for Department Stores

  18. Figure 11.8 The Equal-Store Organizational Format Used by Chain Stores

  19. Organizational Arrangements Used by Diversified Retailers • A diversified retailer is a multiline firm operating under central ownership. • Toys “R” Us, Inc. • Toys “R” Us • Kids “R” Us • Babies “R” Us

  20. Figure 11.9 The Organizational Structure of Toys “R” Us

  21. Human Resource Management in Retailing • Recruiting • Selecting • Training • Compensating • Supervising

  22. Table 11.2 True Cost of Employee Turnover • Recruiting and hiring new employees • Training costs – including management time • Full pay and benefits during training, before full productivity is reached • Costs of mistakes made by new, inexperienced employees • Loss of customers loyal to departing employees • Lost or damaged relationships with suppliers • Employee morale and customer perceptions of that morale

  23. Women in Retailing • Issues to address with regard to female workers • Meaningful training programs • Advancement opportunities • Flex time –the ability of employees to adapt their hours • Job sharing among two or more employees who each work less than full time • Child care • Retailing empires • Mary Kay • Avon

  24. Minorities in Retailing • Issues to address with regard to female workers • Clear policy statements from top management as to the value of employee diversity • Active recruitment programs to stimulate minority applications • Meaningful training programs • Advancement opportunities • Zero tolerance for insensitive workplace behavior • See DiversityInc.com

  25. Diversity • Two premises: • That employees be hired and promoted in a fair and open way, without regard to gender, ethnic background, and other related factors • That in a diverse society, the workplace should be representative of such diversity

  26. Labor Law Considerations • Retailers must not • Hire underage workers • Pay workers “off the books” • Require workers to engage in illegal acts • Discriminate in hiring or promoting workers • Violate worker safety regulations • Disobey the Americans with Disabilities Act • Deal with suppliers that disobey labor laws

  27. Figure 11.10A Goal-Oriented Job Description for a Management Trainee

  28. Figure 11.11 A Checklist of Selected Training Decisions

  29. Compensation • Total compensation • Salary plus commission • Profit-sharing

  30. Employee Behavior and Motivation • Several attitudes may affect employee behavior • Sense of accomplishment • Liking of work • Attitude toward physical work conditions • Attitude toward supervisors • Confidence in company • Knowledge of business strategy • Recognition of employee role in achieving corporate objectives

  31. Style of Supervising Retail Employees • Management assumes employees must be closely supervised and controlled; only economic inducements motivate • Management assumes employees can be self-managers and assigned authority; motivation is intrinsic • Management applies self-management approach

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