PPT 9-1McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Organizational Structure and Human Structure and Human

Resource Resource ManagementManagement

PPT 9-2

Objectives ofHuman 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

• Open Long Hours

• Peak Sales Periods

• Emphasis on Cost Control

Employees

• Unskilled

• Part-Time

• Diverse Backgrounds

High TurnoverHigh Turnover

PPT 9-4

Downward Performance Spiral

PPT 9-5

Special HR Considerations Facing Retailers

Need for Part-Time Employees

Demand on Expense Control

Changing Employee Demographics

Differing Cultural and Legal Requirements

Need for Part-Time Employees

Demand on Expense Control

Changing Employee Demographics

Differing Cultural and Legal Requirements

PPT 9-6

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 9-7

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 9-8

Increasing Employee Productivity

Ability Effort Role Clarity

Selection

Training

Motivation

Goals

Incentives

Rewards

Policies, Rules

Incentives

Org Culture

PPT 9-9

Use of Incentive

Advantages

• Aligns Employee and Company Goals

• Strong Motivating Force

Disadvantages

• Employees Only Focus on Sales

• Less Commitment to Retailer

PPT 9-10

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

PPT 9-11

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 9-12

Regulations

• Equal Employment Opportunity

• Compensation

• Labor Relations

• Employee Safety and Health

• Sexual Harassment

• Employee Privacy