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Presentation by,
Dinesh K. C. Roll no. 12, S3, MBA, DCMS
Designing the organizational structure for a Retail firms. Retail Organization Structures Human Resource Management in Retail Trends in Human Resource Management in Retail
HRM refers to the way people are managed in an organization. Human resource is most important resource in management and needs to be used efficiently. This is because success, stability and growth of an organisation depend on its ability in acquiring, utilizing and developing the human resources for the benefit of the organisation.
Organization structure
A formal structure where the various activities to be performed by the specific employees are identified and delegated, indicating their authority and responsibility. is the formal system of task and reporting relationships that controls, coordinates, and motivates employees so that they cooperate to achieve an organization's goals.
Organization structure
A retailer cannot survive unless its organization structure satisfies the need of the target market, regardless of how well employee and management needs are met. Most of the retailers do similar tasks such as buying, pricing etc. but there are many ways of organizing a retail firm.
The tasks which are mentioned in the previous step does not needs to be done by a retailer only. It can be divided among the retailer, manufacturer or wholesaler, specialist etc.
4) Classifying jobs
Here jobs are classified by categorizing them into functional, product, geographic or combination.
Back Office Staff External Advisors Lawyers, CAs, Bankers, etc. Responsibilities Accounting & Record keeping, data entry, inventory control, purchase orders, time keeping, etc.
Sales Staff
Responsibilities Customer service, selling, stock contro, display and housekeeping
Managem ent
Store Operation s
HRM
The Retailers face a special human resource environment characterized by alarge number of inexperienced workers, long working hours, highly visible employees and variability in the customer demand.
These factors make the hiring , staffing, and supervision of the employees a complex process.
Contd..
Because of all these difficulties, the retailers should consider points such as 1) Recruitment and selection procedure must generate sufficient number of applicants. 2) The training programs must be short and should focus on developing the skills of employees. 3) Compensation must be perceived by the employees as FAIR.
Contd..
4) Employee appearance and work habits must be explained. 5) Full and part time workers should not have any conflicts.
Contd..
Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. The purpose on Recruitment process is to make the job applicants available for the specific jobs.
Sources of Recruitment
External sources 1) Educational Institutions 2) Competition 3) Advertisements 4) Employment agency 5) Unsolicited applicants Internal Sources 1) Current and former employees 2) Employee recommendations
2. Selection
Selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. The basic purpose of selection process is to choose the right candidate to fill the various positions in the organization.
Process of Selection
The application blank Interview Testing Reference check Physical exam Job offer
3. Training
Training is an important aspect of human resource management. Typically , in retail, training is needed at the following timesAt the time of induction At regular intervals to sales staff for skill enhancement.
Contd..
Training to the retail sales staff is very important because they are the face of the organization. Training is given to improve their communication skills, product knowledge, company policies on Returns, Market awareness etc.
4. Compensation
Methods of compensation 1) Straight salary Method Advantages - Employee security, Known expenses Disadvantages - Less Motivation 2) Straight commission method Advantage - High Motivation Disadvantages - The risk of low earnings
Contd..
3) Salary plus commission It means to combine the attributes of both salary and commission plans. The employee gets a fixed salary and a commission on achievements of the targets.
5. Supervision
Supervision is the manner of providing a job environment that encourages the employee accomplishment. The goals are to oversee personnel, achieve good performance, maintain employee morale and motivation, control expenses, and communicate policies. Proper supervision is needed to sustain a superior performance of the employees. Supervision is provided by personal contact, meetings and reports.
6. Motivation
In retailing, Motivation is very important because of the long working hours and the immense pressure on performance. The research on human behaviour has shown that most of the people at work are motivated by the following factors- The organization culture - The rewards - The monetary benefits - Growth and job enrichment
7. Performance Evaluation
The basis of the performance evaluation is the goals and targets that have been set for each individual. Through targets, the outstanding as well as the poor performances can be easily identified.
The workplace is changing dramatically and demands for the highest quality of product and service is increasing. To remain competitive in the face of these pressures, employee commitment is crucial. This reality is applicable to all organizations but is of particular importance to small and medium sized businesses
9. Employee Retention
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time.
Training
Staffing
How many?, mix of full or part time?, contingent employees needed?, employment security?
Criteria for new hires, promote from within? Employees involvement in decisions, formal voice in decision making Jobs narrowly or broadly defined, flat or steep hierarchy, workers organise in teams?
Conclusion
In retail, as in any other business, defining the organisation structure is the starting point for managing a business. Define the organisation structure that enables the activities and tasks to be performed. This will help to human resources function in recruiting the right people for the right job and define the responsibilities, authority of positions and reporting relationships that are necessary for smooth functioning of the organisation
References
Pradhan, Swapna., (2007). Retailing Management, New Delhi: Tata McGrawHill. Internet sources.
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