Retail Organization and Human

Resource Management
 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
Planning and Assessing a Retail Organization: Factors to
Consider
Planning and Assessing a Retail Organization: Factors to
Consider
Planning and Assessing a Retail Organization: Factors to
Consider
The Process of Organizing a Retail Firm
Division of Tasks in a Distribution Channel
 Grouping Tasks into Jobs
TASKS JOBS
Displaying merchandise, customer contact, gift wrapping, Sales personnel
customer follow-up
Entering transaction data, handling cash and credit purchases, gift Cashier
wrapping
Receiving merchandise, checking incoming shipments, marking Inventory personnel
merchandise, inventory storage and control, returning merchandise
to vendors
Window dressing, interior display setups, use of mobile displays Display personnel

Billing customers, credit operations, customer research Credit personnel

Merchandise repairs and alterations, complaint resolution, Customer service

customer research personnel
Cleaning store, replacing old fixtures Janitorial personnel
Personnel management, sales forecasting, budgeting, pricing, Management personnel
coordinating tasks
A Job Description for a
Store Manager
 Classifying Jobs
Functional
Product diversification
Geographic
Combination
 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
Different Forms of Retail Organization
Different Forms of Retail Organization
Different Forms of Retail Organization
Different Forms of Retail Organization
Organization Structures Used by Small
Independents
 The Basic
Mazur
Organization
Plan for
Department
Stores
 The
Equal-Store
Organizational
Format Used by
Chain Stores
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
F The Organizational Structure of Toys “R” Us
Human Resource Management in Retailing

Recruiting
Selecting
Training
Compensating
Supervising
 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
 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
 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
 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
 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
 A Goal-
Oriented Job
Description for
a
Management
Trainee
A Checklist of Selected Training Decisions
 Compensation
Total compensation
Salary plus commission
Profit-sharing
 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
 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