Kirloskar Institute of Advanced Management Studies, Harihar, Karnataka.

2012-2014

Assignment on Managing the Stores Submitted to Prof. Krishnamoorthy.V

Submitted By:Swapnil Bhosale (12) Vikas Kalani (99)

www.youtube.com/watch?v=xtGTFbm51zs

Store Managers Responsibilities

Varies dramatically By Type of Retailers Specialty Store vs. Department Store

Specialty Store:-Customer Service, Staffing, Merchandising/Visual Display, Planning, Communication

Entrepreneur P & L Responsibility Manage People

Responsible for Two Critical Assets People Sales/Employees Space Sales/Square Foot

Job Analysis:

Job Description: The activities the employee needs to perform The performance expectations expressed in quantitative terms A guideline for recruiting, selecting, training and evaluating employees Steve Mason/Getty Images Approaches for Locating Prospective Employees

Look beyond the retail industry Use your employees as talent scouts Provide incentives for employee referrals Recruit minorities, immigrants and older workers Use your storefront creatively Jack Star/PhotoLink/Getty Images

Selecting Applicants

Application Forms References Testing Providing a Realistic Job Preview

Legal Considerations in Hiring and selecting Employees Equal Employment Opportunity Commission (EEOC) Age Discrimination and Employment Act - Disparate Treatment - Disparate Impact Americans with Disabilities Act (ADA)

Socializing and Training new store employees

Orientation Program Training - Where, when, what - Structured vs. Unstructured - Classroom vs. on-the-job - Analyzing Successes and Failures

Motivating and Managing Store Employees

Leadership Is the process by which one person attempts to influence another to accomplish some goal or goals Leader Behaviours - Task-Oriented - Group Maintenance

Types of Leaders Autocratic Democratic Transformational

Setting Goals How high the goal should be set? How easy it is to achieve?

Employees participation is important for setting up the goals. Why Set Goals Employee performance improves when employees feel: That their efforts will enable them to achieve the goals set for them by their managers That theyll receive rewards they value if they achieve their goals Individualized Motivation Programs Impact of goals differs across people, different People Seek Differ Rewards. -A La Carte Reward Programs - Selection of Compensation Plans should be carried out Maintaining Morale : Meetings before store opening to talk about new merchandise and hear employee opinions. Educate, set sales goals and have a pizza party when goals are met.

Divide charity budget and ask employees how their share should be used .

Print stickers - auto detailed by Rob. Give every employee a business card with the company mission statement printed on the back.

Evaluating and Providing Feedback to Employees

Who, when, how often? Should the evaluation should be done Feedback should be given that should consist of performance outcome vs. process

Format for evaluations:Example of sales person evaluation

Evaluation errors:

Compensating and rewarding store employees:Rewards:

Extrinsic Rewards are rewards provided by either the employees manager or the firm such as compensation, promotion and recognition. Intrinsic Rewards are rewards employees get personally from doing their job well like doing their job well because they think it is challenging and fun Compensation Program; Type of compensation program Straight salary Straight Commission Quota bonus Setting quotas Individual Vs Group incentives

Designing the Compensation Program

Legal Issue in Compensation

Controlling Costs
Labor Scheduling

It is the determination of number of employees assigned to each area of the store. It is difficult because of the multiple shifts and part time workers needed to staff stores. So we can conclude that by efficiently utilizing the labor we can reduce our working capital requirement their by making more profits to the store.

Store Maintenance

Store maintenance entails the activities involved with managing the exterior physical facilities associated with the store. The exterior facilities include the parking lot, entrances to the store, and signs outside of the store. The interior facilities include the walls, flooring, ceiling and displays and signs. Store maintenance affects both the sales generated in the store and the cost of running the store.

Reducing Inventory Shrinkage

Calculating shrinkage
Shrinkage is the difference between the recorded value of inventory (at retail prices) and the value of the actual inventory (at retail prices) in stores and distribution centers divided by retail sales during the period Shrinkage= (Accounting Record Actual Inventory)/Sales

Detecting And Preventing Shoplifting

Security measures Dye capsules, CTV cameras

Electronic Article Surveillance (EAS)

Employee training on following: Dont assume that all shoplifters are poorly dressed Spot loiterers Look for groups Look for people with loose clothing Watch the eyes, hands, and body www.youtube.com/watch?v=ZzMhkeRlWF0

Reducing Employee Theft

Trusting, supportive work atmosphere Employee screening Honesty test, extensive reference checks, drug testing

Security policies and control systems Employee theft is an HR problem and can be solved with good HR practices.

The Indian Retail Scape

Training for operational excellence:- Pragati, Spencers centre for retail excellence.

Pragati-the concept
Pragati is more than the equivalent of an inhouse training department of spencers retail, also geared as a center to promote operational excellence.

Value Proposition/Benifts
Pragati will deliver strategy driven inhouse training solution suiting prevailing requirements for the retail business. The main aim is to provide a positive cost benefit ratio through benefit of standardization an centralization of training within the retail sector across india.

The Pragati Vision

To build spencers as the most professionally managed retail business in the country through: Building excellence in all operating process Nurturing and facilitating a learning and growth culture Building a unique retail experience for customer

The Pragati Mission

To provide relevant knowledge and skills to employees in order to enhance there competencies and potential ensuring total alignment to business goals and growth to both the individual and the organisation.

Summary
Effective store management can have a significant impact on a retail firms financial performance. Store managers increase profits by increasing labour productivity, productivity, decrease costs through labour deployment decisions, and reduce inventory loss by developing a dedicated workforce. Increasing store employees productivity is challenging because of the difficulties in recruiting, selecting and motivating store employees. Employees typically a range of skills and seek a spectrum of rewards. Effective store manager need to motivate their employees to work hard and develop skill so that they improve their productivity. To motivate employees, store managers need to understand what rewards each employee is seeking and then provide opportunity for that employee to realise those rewards. Store manager must establish realistic goal for employees that are consistent with the store goals and motivate each employee to achieve them. Store manager also must control inventory losses due to employee theft, shop lifting and clerical errors. Manager uses a wide variety of methods to develop loss prevention program, including security devices and employee screening during the selection process. However, the critical element of any losses prevention program is building employee loyalty to reduce employee interest in stealing and increased attention to shop lifting.