Professional Documents
Culture Documents
2) Retail Organization Structures 3) Human Resource Management in Retail 4) Trends in Human Resource Management in Retail
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.
Organization structure
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.
4) Classifying jobs
Here jobs are classified by categorizing them into functional, product, geographic or combination.
Organizational design
is the process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can achieve its goals.
Focus on Specialization
The tasks should be assigned and allocated to the employees on the basis of the expertise that they possess. This will help in improving the quality of the work as well as increase the job satisfaction amongst the employees.
For eg. An employee who is an expert in promotions and marketing should be assigned with the responsibility of promoting the retail store.
But many times providing the authority and responsibility may also lead to serious conflicts between the employees. For eg. Conflict between the store manager and the merchandise department regarding the purchase of stock.
Independent Retailer
An independent retailer owns one unit. Less capital requirement. Word of mouth communication is very necessary.
Advantages
Flexibility Independence Consistency Quick decision making
Disadvantages
Less bargaining power No economy of scale Less technology No long run planning
Chain Retailer
A chain retailer operates multiple outlets under a common ownership.
Advantages
Bargaining power Cost efficiencies Use of technology Long term planning
Disadvantages
Less flexibility High investment Delay in decision making Limited independence
Franchising
A contractual arrangement between the franchisor and franchisee which allows the franchisee to conduct business under an establish name and according to the given pattern of business.
Advantages
Small capital investment. Brand name Standard operating policies Marketing efforts are facilitated.
Disadvantages
Over saturation may occur if too many franchisee are located in the same area. They may be locked into contracts.
Leased Department
They are also termed as shop in shops. When a section in a retail store is leased or rented to the outside party, it is termed as a leased department. It is used by the retailers to broaden their offerings into product category.
Department Stores
1) 2) 3) 4) It divides the entire organization into four main parts:Merchandising Publicity Store Management Accounting and Control.
Chain Retailers
Many functional divisions Merchandising, sales promotions, distribution, real estate, personnel, IT etc. Centralization of authority.
Benefits of Centralization
1) Reduction in cost Overhead costs are reduced because lesser managers are required to make decisions. 2) Improves efficiency With the help of standard policies and guidelines. 3) Allows experts to take decision The best people makes decision.
Limitations
The major limitation is that the person sitting in the corporate office does not know about the conditions in the local market and hence he can not take any relevant steps to fight the local competitors.
On the other hand, a large retail firm having a lot of retail chains faces this problem as both the store and the merchandise department are dependent on each other for fulfilling the customer demands and requirement.
Approaches to coordinate
1) Increasing the contact with the customer. 2) Regular visits to the store. 3) Involving the manager in coordinating the buying and selling process.
These factors make the hiring , staffing, and supervision of the employees a complex process.
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. 4) Employee appearance and work habits must be explained. 5) Full and part time workers should not have any conflicts.
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
Sources of Recruitment
Internal Sources 1) Current and former employees 2) Employee recommendations
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
Training is an important aspect of human resource management. Typically , in retail, training is needed at the following times- At the time of induction - At regular intervals to sales staff for skill enhancement.
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.
Methods of compensation
1) Straight salary Method Advantages Employee security, Known expenses Disadvantages Less Motivation
Methods of compensation
2) Straight commission method Advantages High Motivation Disadvantages The risk of low earnings
Methods Of compensation
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.
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.
1) Management assumes that the employees must be closely supervised and controlled. 2) Management believes that the employees can be self managers and assigned authority.
3) Management applies a self management approach and also advocates more employee involvement in decision making.
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
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.
In a retail organization, The goal set for a merchandiser will be different from the goal of a sales person.
Employee Retention
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time.