Lecture Retailing management (6/e): Chapter 17 - Levy Weitz

Chapter 17
Managing the Store

McGraw­Hill/Irwin
Retailing Management, 6/e

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


Store Management

Customer Service

Layout, Design and
Visual Merchandising

Managing the Store

172


Store Managers Run a Business

“This is your business. Do your own thing.
Don’t listen to us in Seattle, listen to your
customers. We give you permission to take
care of your customers.”
James Nordstrom, the CEO of Nordstrom’s

173

Strategic Importance of Store Management
Opportunity to Build Strategic Advantage
– Difficult to Have Unique, Compelling
Merchandise
– Customer Loyalty Often Based on Customer
Service

Difficulty of Store Managers Job
– Managing Diverse Set of Unskilled People
– Increasing Empowerment and Responsibility
to Tailor Merchandise and Presentation to
Local Community

174


Store Managers’ Responsibilities
Varies Dramatically By Type of Retailers
– Specialty Store vs. Department Store
Entrepreneur
– P & L Responsibility
– Manage People

© Digital Vision

Responsible for Two Critical Assets
– People Sales/Employees
– Space Sales/Square Foot

175


Responsibilities of Store Managers
Undertaken by Store Managers

176


Steps in Employment
Management Process

177


Recruiting and Selecting Employees
Undertake
Job Analysis

Prepare
Job
Description

Find
Potential
Applicants

Select
Employees

Screen
Candidates

178


Job Analysis

179


Job Description
A guideline for recruiting, selecting,
training and evaluating employees
The activities the
employee needs to
perform
The performance
expectations
expressed in
quantitative terms

Steve Mason/Getty Images

1710


1711

Approaches for Locating Prospective Employees

• Look beyond the retail
industry
• Use your employees as
talent scouts
• Provide incentives for
employee referrals
• Recruit minorities,
immigrants and older workers
• Use your storefront creatively

Jack Star/PhotoLink/Getty Images


Sources of Information for
Screening Applicants
•
•
•
•

Application Forms
References
Testing
Providing a Realistic
Job Preview
The McGraw-Hill Companies,
Inc./Lars A. Niki, photographer

1712

Interviewing Questions

1713


Suggestions for Questioning Applicant
• Avoid asking questions that have multiple parts
• Avoid asking leading questions like “Are you prepared to
provide good customer service?”
• Be an active listener. Evaluate the information being
presented and sort out the important comments from the
unimportant.
repeat or rephrase information
summarize the conversation
tolerate silence

1714


Legal Considerations in Hiring
and Selecting Employees

1715

• Equal Employment Opportunity Commission
(EEOC)
• Age Discrimination and Employment Act
– Disparate Treatment
– Disparate Impact

• Americans with Disabilities Act (ADA)


Socializing and Training Employees

1716

Orientation Program
Training
-Where, when, what
-Structured vs. unstructured
-Classroom vs. on-the-job
(c) image100/PunchStock

-Analyzing Successes and Failures


1717

Motivating and Managing Employees

Setting 
Goals

Providing
Incentives
to Achieve
Goals

Providing 
Feedback

Measuring 
Performance


1718

Leadership
Process by which one person attempts to
influence another to accomplish some goal or
goals
Leader Behaviors
– Task-Oriented
– Group Maintenance

C Squared Studios/Getty Images


1719

Types of Leaders
Autocratic
Democratic
Transformational
© Digital Vision

Which Type of Leader Is the Most Effective?

Setting Goals

How High?
How Easy
to Achieve?

1720

Get Participation of
Employees in
Setting Goals

Royalty-Free/CORBIS


Why Set Goals?

1721

Employee performance improves when
employees feel:
• That their efforts will enable them to
achieve the goals set for them by
their managers
• That they’ll receive rewards they
value if they achieve their goals

Royalty-Free/CORBIS

Individualized Motivation Programs
Impact of Goals Differs Across
People
Different People Seek Differ
Rewards
– A La Carte Reward Programs
– Selection of Compensation
Plans

1722

Steve Cole/Getty Images


Maintaining Morale

1723

Meetings before store opening to talk about new
merchandise and hear employee opinions
Educate, set sales goals and have a pizza party
when goals are met
Divide charity budget and ask employees how
their share should be used
Print stickers - auto detailed by Rob”
Pando Hall / Getty Images

Give every employee a business card with the
company mission statement printed on the back

Sexual Harassment
Sexual harassment is unwelcomed
sexual advances, requests for sexual
favors, and other verbal and physical
contact.
showing obscene photographs
making lewd comments and gestures
staring in a sexual manner
making work environment hostile

1724


Procedure for Sexual
Harassment Allegation

1725