5th Edition

PPT 9-1

Chapter 9
Organizational
Structure and Human
Resource
Management
McGraw-Hill/Irwin
PPT
9-2
Levy/Weitz:
Retailing Management, 5/e

Copyright 2004 by The McGraw-Hill Companies, Inc. All rights

Objectives of
Human Resource Management
Short Term
Increasing Employee Productivity
Productivity = Sales/Number of Employees
Long-Term
Increasing Employee Satisfaction Reducing
Turnover

PPT 9-3

Human Resource Management

Challenges in Retailing
Work Environment

Employees

Open Long Hours

Unskilled

Peak Sales Periods

Part-Time

Emphasis on Cost
Control

Diverse Backgrounds

High Turnover
PPT 9-4

Downward Performance Spiral

PPT 9-5

Special HR Considerations Facing Retailers

Need
Need for
for Part-Time
Part-Time Employees
Employees
Demand
Demand on
on Expense
Expense Control
Control
Changing
Changing Employee
Employee Demographics
Demographics
Differing
Differing Cultural
Cultural and
and Legal
Legal Requirements
Requirements

PPT 9-6

Organizational Design Considerations

Specialization
Responsibility and Authority
Reporting Relationships
Defined by Organization Structure

PPT 9-7

Strategic Management Tasks

Performed in a Retail Firm

Strategic Management
Devolp a retail strategy
Identify the target market
Determine the retail format
Desing the organizational structure
Select locations
PPT 9-8

Merchandise Management Tasks

Performed in a Retail Firm

PPT 9-9

Store Management Tasks

Performed in a Retail Firm
Recruit
Prevent Shrinkage

Motivate
Maintain Facilities

Sell Merchandise

Train Employees

Provide Services

Take Inventory

Plan Schedules
Evaluate Performance
PPT 9-10

Hire Personnel
Display Merchandise

Administrative Management Tasks

Performed in a Retail Firm
Promote the Firm, its Merchandise and
its Services
Manage Human Resources
Distribute Merchandise
Establish Financial Control

PPT 9-11

Assignment of Responsibility for Tasks

Strategic Top Management, Board of
Directors
Merchandise Management Merchandise
Division
Store Management Stores Division
Administrative Corporate Specialists
PPT 9-12

Advantages of Centralized
Decision-Making
Retailers can reduce overhead, i.e. fewer
managers
Coordinating efforts, it can achieve lower
prices from suppliers
Opportunity to have the best people making
decisions

PPT 9-13

Methods for Coordinating

Buying and Store Management
Better Appreciation for Store Environment
Making Store visits
Employees performing coordinating roles
Involving Store Management in Buying
Decisions

PPT 9-14

Increasing Employee Productivity

Ability

Effort

Role
Clarity

Selection

Motivation

Policies, Rules

Training

Goals

Incentives

Incentives

Org Culture

Rewards
PPT 9-15

Motivating and Controlling Employees

Policies and Supervision
Behavior Enforced by Managers
Incentives
Commission, Bonus
Organization Culture
unwritten rules, norms
behavior enforced by social
pressure

PPT 9-16

Types of Incentives

Commissions
Commissions on
on Sales
Sales
Bonus
Bonus
Stock
Stock Options
Options

PPT 9-17

Use of Incentive
Advantages

Disadvantages

Aligns Employee and

Company Goals

Employees Only Focus

on Sales

Strong Motivating Force

Less Commitment to
Retailer

PPT 9-18

Developing an Organizational Culture

Stories
Nordstrom Hero Service Stores
Container Store Man in the Desert
Wal-Mart Saturday Meeting

Symbols
Container Store Gumby for Flexibility

CEO Leadership

PPT 9-19

Building Employee Commitment

Building Employee Skills
Selective hiring
Extensive training

Empowering Employees
Creating Partnering Relationships
Reducing Status Differences
Promotion From Within
Balancing Careers and Families
Flex Time, job sharing, day care

When Do You Want to Spend the Money to

Build Employee Commitment?
PPT 9-20

Summary
Increasing Labor Productivity, Reducing Labor
Cost Important in Retailing
Tradeoff -- Increase Cost Vs High Turnover
Positives and Negatives of Approach for
Controlling and Motivating Employees

PPT 9-21

Trends in Retail Human Resource

Management
Managing Diversity
Diversity Training
Support Groups and
Mentoring
Career Development for
Promotion
Legal and Regulatory Issues
Use of Technology
PPT 9-22

Legal Issues in
Human Resources: Overview

Equal
Equal opportunity
opportunity and
and
anti-discrimination
anti-discrimination laws
laws
What
What can
can (or
(or cant)
cant) be
be asked
asked
Legal
Legal rights
rights of
of aa new
new employee
employee
Sexual
Sexual harassment
harassment

PPT 9-23

Regulations
Equal Employment
Opportunity
Compensation
Labor Relations
Employee Safety and Health
Sexual Harassment
Employee Privacy
PPT 9-24

Discriminatory Questions
and Suggested Responses: Sex
(Asked of women) Do you have plans for having children/a family?
I dont know at present. I plan on a career and believe my career will be
successful with or without a family.
(Asked of women) What are your marriage plans?
If what you are concerned with is my ability to travel or my commitment to my
employer, I can assure you that I am quite aware of the jobs responsibilities
and personal commitments involved.
(Asked of women) What does your husband do?
I am interested in working becausewhat my husband does is not relevant
to my performance for your company.
My husbands career and mine dovetail. He has helped me become more
effective asand I have helped him become better as
PPT 9-25

Discriminatory Questions
and Suggested Responses: Sex
(Asked of women) What happens if your husband gets transferred or
needs to relocate?
My husbands career will not interfere with my career.
My husband and I would discuss locational moves at the time they logically
came up. At present, our jobs are where we wish to live.
(Asked of women) Who will take care of your children while you are at
work?
I have made arrangements so that my family life will interfere as little as
possible with my work.
(Asked of men) How would you feel working for a woman?
This would be no problem. I have effectively worked for men and women
while in school.
PPT 9-26

Discriminatory Questions and Suggested

Responses: Age and National Origin
How old are you?
What is your date of birth?
I wish to be evaluated on my skills, competence, and experience. Age is
irrelevant.
I feel my age is an advantage at work in terms of the broad-based
experiences it has afforded me.
How would you feel working for a person younger than you?
Age does not interfere with my ability to get along with others. I am
adaptable and respect supervisors who are knowledgeable and competent.

PPT 9-27

Discriminatory Questions and Suggested

Responses: Age and National Origin
Where were you born?
Where were your parents born?
Of what country are you a citizen?
I am a permanent resident of the United States and have legal authority to
work here.
Actually, I am American to the core, and America consists of people from
many national origins. I feel like I was born here since it has been my home
for so long.
I am quite proud that my background is ___. My heritage has helped me to
deal effectively with people of various ethnic backgrounds.

PPT 9-28

Discriminatory Questions and Suggested

Responses: Handicaps, Religion, Race or Color
Do you have any handicaps?
As a handicapped person, what help are you going to need in order to
do your work?
Any disabilities I may possess would in no way interfere with my ability to
perform all aspects of this position.
Actually, I dont need help doing my work because I have been adequately
trained. What I need might be minor adaptations of the work station and a
supervisor who hires me for what I can do rather than what I cannot do.
What is your religion? What church do you attend?
My religious preference should have no relationship to my job
performance.
PPT 9-29

Discriminatory Questions and Suggested

Responses: Handicaps, Religion, Race or Color
Do you hold any religious beliefs that would prevent you from
working certain days of the week?
If working weekends or evenings is actually a part of the jobs
requirements, I would prefer to discuss that after we know whether or not I
am the person you most wish to hire for this position.
Do you fee that your race/color will be a problem in your performing
the job?
Ive had extensive experience working with people with a variety of
backgrounds. A persons race, whatever it may be, should not interfere in
the work environment.
I do not feel I should be judged on the basis of race or color.
PPT 9-30

What Can and Cant Be Asked: Name, Address or

Duration of Residence, and Birthplace, and Age
Name
Can

Have you every worked for the company under another name?
Have you ever been convicted of a crime under another name?

Cant

Former name of applicant whose name has been changed by court order
or otherwise.

Address or Duration of Residence

Can

Applicants place of residence

How long has applicant been a resident of the state or city

Birthplace
Can

Can you, after employment, submit a birth certificate of other proof of

U.S. citizenship or age?

Cant

Birthplace of applicant
Birthplace of applicants parents, spouse or other relatives

PPT 9-31

What Can and Cant Be Asked: Name, Address or

Duration of Residence, and Birthplace, and Age
Age

PPT 9-32

Can

Can you, after employment, submit a work permit if under 18?

Are you over 18 years of age?
If hired, can you provide proof of age? (Or other statement that hire is
subject to verification that applicants age meets legal requirement.)

Cant

Questions which tend to identify applicants 40-64 years of age

What Can and Cant Be Asked: Religion, Work Days or

Shifts, Race or Color, Photograph
Religion
Can

(None)

Cant

Applicants religious denomination of affiliation, church, parish, pastor, or

religious holidays observed.
Do you attend religious services or a house of worship?
Applicant may not be told This is a Catholic/Protestant/Jewish/atheist
organization.

Work Days or Shifts

Can

Statement by employer of regular hours or shift to be worked.

Race or Color

PPT 9-33

Can

(None)

Cant

Complexion, color of skin, or other questions directly or indirectly

indicating race or color.

What Can and Cant Be Asked: Religion, Work Days or

Shifts, Race or Color, Photograph
Photograph

PPT 9-34

Can

Statement that photograph may be required after employment

Cant

Requirement that applicant affix a photo to the application form.

Request applicant, at his/her option, to submit a photograph.
Requirement of photograph after interview but before hiring.

What Can and Cant Be Asked: Citizenship,

National Origin, and Education
Citizenship
Can

If you are not a US Citizen, have you the legal authority to work in the
United States? Do you intent to remain permanently in the United States?
Statement by employer that if hired, applicant may be required to submit
proof of citizenship.

Cant

Are you a citizen of the United States?

Whether applicant or parents or spouse are naturalized or native-born
United States citizens.
Date when applicant or parents or spouse acquired US citizenship.
Requirement to produce naturalization papers.

Natural Origin

PPT 9-35

Can

Languages applicant reads, writes, or speaks fluently.

Cant

Applicants ancestry, lineage, nationality, national origin, descent, or

parentage.
Continued.

What Can and Cant Be Asked: Citizenship,

National Origin, and Education
Natural Origin, cont.
Cant

Date and arrival in the US or port of entry; how long a resident.

Nationality of applicants parents or spouse; maiden name of applicants
wife or mother.
Language commonly used by applicant or what is your mother tongue?
How applicant acquired the ability to read, write, or speak a foreign
language.

Education
Can

Applicants academic, vocational, or professional education; schools

attended.

Cant

Date last attended high school.

PPT 9-36

What Can and Cant Be Asked: Experience,

Character, Relatives, and Notice in Case of Emergency
Experience
Can

Applicants work experience.

Applicants military experience in armed forces of the US, in a state militia
(US), or in a particular branch of service.

Cant

Applicants military experience (general) or type of discharge.

Character
Can

Have you ever been convicted of any crime? If so, when, where, and
disposition of the case?

Cant

Have you ever been arrested?

Relatives
Can

Names of relatives already employed by company.

Name and address of parent of legal guardian if applicant is a minor.
Continued...

PPT 9-37

What Can and Cant Be Asked: Experience,

Character, Relatives, and Notice in Case of Emergency
Relatives
Cant

Marital status or number of dependents.

Name or address of relative, spouse, or children of adult applicant.
With whom do you reside?
Do you live with you parents?

Notice in Case of Emergency

Can

Name and address of person to be notified in case of accident or

emergency.

Cant

Name and address of relative to be notified in case of accident or

emergency.

PPT 9-38

What Can and Cant Be Asked: Organizations,

References, Physical, and Miscellaneous
Organizations
Can

Organizations, clubs, professional societies, or other associations of which

applicant is a member excluding any of the names or the character of
which indicates the race, religious creed, color, national origin, or ancestry
of its members.

Cant

List all organizations, clubs, and lodges to which you belong.

References
Can

By whom were you referred for a position here?

Cant

Requirement of submission of a religious reference.

Physical

PPT 9-39

Can

Do you have any physical condition which may limit your ability to
perform the job for which you are applying?

Cant

Do you have any physical disabilities?

What Can and Cant Be Asked: Organizations,

References, Physical, and Miscellaneous

Miscellaneous
Can

Notice to applicant that any misstatements or omissions of material facts

in the application may be cause for dismissal.

Cant

Any inquiry that is not job-related or necessary for determining the

applicants eligibility for employment.

PPT 9-40