Lecture Retailing management (6/e): Chapter 9 - Levy Weitz

Chapter 9
Human Resource
Management
McGraw­Hill/Irwin
Retailing Management, 6/e

Copyright © 2007 by The McGraw­Hill Companies, Inc. All rights reserved.


9-2

Retailing Strategy
Retail and Site
Locations
Chapter 7 and 8

Retail Market and
Financial Strategy
Chapter 5, 6
Organizational
Structure and
Human Resource
Management
Chapter 9
Information and
Distribution
Systems
Chapter 10

Customer
Relationship

Management
Chapter 11


Objectives of
Human Resource Management
• Short Term
– Increasing Employee Productivity
– Productivity = Sales/Number of Employees

• Long-Term
– Increasing Employee Satisfaction  Reducing
Turnover

9-3


Human Resource Management
Challenges in Retailing
•
•
•
•

Work Environment
Open Long Hours
Peak Sales Periods
Emphasis on Cost
Control

9-4

Employees
• Unskilled
• Part-Time
• Diverse Backgrounds

High Turnover


9-5

Downward Performance Spiral


Human Resource Triad

9-6


9-7

Special HR Considerations Facing Retailers

Need for Part-Time Employees
Demand on Expense Control
Changing Employee Demographics
International Human Resourses Issues

Ryan McVay/Getty Images

9-8

Increasing Workforce Diversity
• Workforce employing more
minorities, handicapped
people and the elderly
• Older workers are more
reliable than younger
workers
• Cost effective as training
and recruitment costs are
low

Royalty-Free/CORBIS


9-9

Organizational Design Considerations
Specialization
Responsibility and Authority
Reporting Relationships
Defined by Organization Structure


Tasks Performed in a Retail Firm

910

Strategic Management Tasks
Performed in a Retail Firm

911


Merchandise Management Tasks
Performed in a Retail Firm

912


Store Management Tasks
Performed in a Retail Firm

Recruit
revent Shrinkage

913

Motivate
Maintain Facilities
Train Employees

rovide Services

Take Inventory

Plan Schedules
Evaluate Performance

Royalty-Free/CORBIS

ell Merchandise

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

914


915

Assignment of Responsibility for Tasks
• Strategic – Top Management, Board of
Directors
• Merchandise Management –
Merchandise Division
• Store Management – Stores Division

• Administrative – Corporate Specialists


Organization of a Small Retailer

916


Organization of JCPenney Corporation

917


918

Merchandise Division for JCPenney


What does a Buyer do?

919

A buyer is responsible for procuring
merchandise and building and
maintaining relationships

• They attend trade and fashion
shows
• They negotiate with vendors on
price, quantities, assortments,

delivery dates and payment
terms

© Digital Vision


Allocator vs. Planner
Allocator – responsible for allocating the
merchandise and tailoring the assortments in
several categories for specific stores in a
geographic area.
Planner – responsible for the financial
planning and analysis of the merchandise
category. They develop the budget plan and
monitor performance

920


Buying Organization for Typical Department
Store Chain

921


JCPenney Store Organization

922

Advantages of Centralized
Decision-Making

923

• 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

© Digital Vision


Disadvantage to Centralization
• It is difficult for a retailer to
adapt to local market
conditions
• It may have problems
responding to local
competition and labor
markets
• Personnel policies make it
hard for local managers to
pay competitive wages

924

Royalty-Free/CORBIS


Methods for Coordinating
Buying and Store Management
• Improving buyer’s appreciation for store
environment
• Buyers making store visits

Royalty-Free/CORBIS

• Assigning employees to coordinating roles

925