Description
importance of HR in retail
Gaining Competitive Advantage through Human Resource Management Why does human resource management give a sustainable competitive advantage?
? Labor costs account for a significant percentage of a retailer¶s total expenses ? The customer experiences are determined by the activities of employees (selecting merchandise, providing information and assistance, etc.) ? These potential advantages are difficult for competitors to duplicate
Objectives of Human Resource Management
? Short Term ± Increasing Employee Productivity ± Productivity = Sales/ Number of Employees ? Long-Term ± Employee attitude customer satisfaction and loyalty longterm performance ± Increasing Employee Satisfaction Reducing Turnover ± Employee turnover = # of employees leaving their job during the year # of positions
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 Turnover
Downward Performance Spiral
09-5
Special HR Considerations Facing Retailers ? ? ? ? Need for Part-Time Employees Demand on Expense Control Changing Employee Demographics International HR Issues
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
Strategic Issues Facing Retail HR Professionals
? The design of the organization structure for assigning responsibility, and authority for tasks to people and business units.
? The approaches utilized coordinate the activities of the firm¶s department and employees, while motivating employees to work toward achieving company goals.
? The programs used to build employee commitment, and retain valuable human resources
Designing the Organizational Structure Organizational structure Identifies the activities to be performed by specific employees, and determines the lines of authority and responsibility in the firm.
Tasks Performed in a Retail Firm
Strategic Management Tasks Performed in a Retail Firm
? Develop a retail strategy ? Identify the target market ? Determine the retail format ? Design organizational structure ? Select locations
Merchandise Management Tasks Performed in a Retail Firm
? Buy merchandise o Locate vendors o Evaluate vendors o Negotiate with vendors o Place orders ? Control merchandise inventory o Develop merchandise o Budget plans o Allocate merchandise to stores o Review open-to-buy and stock position ? Price merchandise o Set initial prices o Adjust prices
Store Management Tasks Performed in a Retail Firm ? Recruit, hire, and train store personnel
? ? ? ? ? ? ? ? ? ? Plan work schedules Evaluate performance of store personnel Maintain store facilities Locate and display merchandise Sell merchandise to customers Repair and alter merchandise Provide services Handle customer complaints Take physical inventory Prevent inventory shrinkage
Administrative Management Tasks Performed in a Retail Firm
? Promote the firm, its merchandise and its services ? Manage human resources ? Distribute merchandise ? Establish financial control
Organization of a Small Retailer
09-15
Organization Design
09-16
What does a Buyer do?
A buyer is responsible for: ? procuring merchandise ? setting prices ? managing inventories ? building and maintaining relationships ? attending trade and fashion shows ? negotiating with vendors on price, quantities, assortments, delivery dates and payment terms ? specifying private label merchandise
09-17
What does a category manager do?
? A category manager
o Is responsible for a set of products that are viewed as substitutes by customers (Ex: all pastas ± fresh, frozen, packed, or canned) o Is evaluated on the profitability of category o Is motivated to eliminate ³me to´ products and keep essential niche products o Is used primarily by supermarkets, big retailers
09-18
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
09-19
Retail Organization Design Issues
? The degree to which decision making is centralized or decentralized.
? The approaches used to coordinate merchandise and store management
09-20
Centralization vs. Decentralization
Advantages of Centralization Disadvantages of Centralization
Reduce costs (overhead falls ? It is difficult for a retailer to with fewer managers) adapt to local market conditions may have problems Coordinated buying achieve ? It responding to local competition lower prices from suppliers and labor markets Opportunity to have the best people make decisions for ? Personnel policies make it hard the entire corporation for local managers to pay competitive wages Increases efficiency
09-21
Winning the Talent War
? Retailers are engaged in a ³war´ with their competitors for talent ± for effective employees and managers ± who can effectively deal with the incased complexities of retail jobs (the use of new technologies, increased profit & loss responsibilities, increased global competition, a diverse workforce). ? Develop programs to attract, develop, motivate, and keep talent
09-22
Attracting Talent ± Employment Marketing
Employment marketing (branding)
Marketing programs that attract ³best and brightest´ potential employees o Starbucks ± ³Love What You Do´ o Southwest ± ³Free to Actually Enjoy What You Are Doing´
09-23
Attracting Talent ± Employment Marketing
To build its employment brand, use the tagline ³A Perfect Fit´ on all correspondence and advertising directed toward potential employees.
09-24
Developing Talent Selection and Training
? Selective Hiring: o Recruit ³the right people´. o Simply seeking the best and the brightest may not always be the most effective approach. ? Training: o Increasing investments in management training programs and developing leaders. o Increasing attention to college graduates.
09-25
Motivating Talent ± Aligning Goals
? Policies and Supervision
o Indicate what employees should do. o Behavior Enforced by Managers.
? Incentives
o Commission, Bonus, Stock Options.
? Organization Culture
o The set of values, traditions, and customs of a firm that guides employee behavior. o Behavior enforced by social pressure.
09-26
Use of Incentives
Advantages ? Aligns Employee and Company Goals. ? Strong Motivating Force. Disadvantages Employees Only Focus on Sales. Less Commitment to Retailer.
09-27
Keeping Talent Building Employee Commitment
? Empowering Employees
o Empowerment is the process of managers sharing power and decision-making authority with employees
? Gives employees confidence ? Provides greater opportunity to provide service to customers ? Employees are more committed to firm¶s success
? Creating Partnering Relationships with Employees
o Reducing Status Differences o Promotion From Within o Balancing Careers and Families
? Flextime, job sharing
09-28
Issues in Retail Human Resource Management
? Managing Diversity
o Diversity Training o Support Groups and Mentoring o Career Development and Promotions
? Growth in Legal Restrictions on HR Practices
o o o o o o Equal employment opportunity Compensation Labor relations Employee safety and health Sexual harassment Employee privacy
09-29
doc_645637174.pptx
importance of HR in retail
Gaining Competitive Advantage through Human Resource Management Why does human resource management give a sustainable competitive advantage?
? Labor costs account for a significant percentage of a retailer¶s total expenses ? The customer experiences are determined by the activities of employees (selecting merchandise, providing information and assistance, etc.) ? These potential advantages are difficult for competitors to duplicate
Objectives of Human Resource Management
? Short Term ± Increasing Employee Productivity ± Productivity = Sales/ Number of Employees ? Long-Term ± Employee attitude customer satisfaction and loyalty longterm performance ± Increasing Employee Satisfaction Reducing Turnover ± Employee turnover = # of employees leaving their job during the year # of positions
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 Turnover
Downward Performance Spiral
09-5
Special HR Considerations Facing Retailers ? ? ? ? Need for Part-Time Employees Demand on Expense Control Changing Employee Demographics International HR Issues
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
Strategic Issues Facing Retail HR Professionals
? The design of the organization structure for assigning responsibility, and authority for tasks to people and business units.
? The approaches utilized coordinate the activities of the firm¶s department and employees, while motivating employees to work toward achieving company goals.
? The programs used to build employee commitment, and retain valuable human resources
Designing the Organizational Structure Organizational structure Identifies the activities to be performed by specific employees, and determines the lines of authority and responsibility in the firm.
Tasks Performed in a Retail Firm
Strategic Management Tasks Performed in a Retail Firm
? Develop a retail strategy ? Identify the target market ? Determine the retail format ? Design organizational structure ? Select locations
Merchandise Management Tasks Performed in a Retail Firm
? Buy merchandise o Locate vendors o Evaluate vendors o Negotiate with vendors o Place orders ? Control merchandise inventory o Develop merchandise o Budget plans o Allocate merchandise to stores o Review open-to-buy and stock position ? Price merchandise o Set initial prices o Adjust prices
Store Management Tasks Performed in a Retail Firm ? Recruit, hire, and train store personnel
? ? ? ? ? ? ? ? ? ? Plan work schedules Evaluate performance of store personnel Maintain store facilities Locate and display merchandise Sell merchandise to customers Repair and alter merchandise Provide services Handle customer complaints Take physical inventory Prevent inventory shrinkage
Administrative Management Tasks Performed in a Retail Firm
? Promote the firm, its merchandise and its services ? Manage human resources ? Distribute merchandise ? Establish financial control
Organization of a Small Retailer
09-15
Organization Design
09-16
What does a Buyer do?
A buyer is responsible for: ? procuring merchandise ? setting prices ? managing inventories ? building and maintaining relationships ? attending trade and fashion shows ? negotiating with vendors on price, quantities, assortments, delivery dates and payment terms ? specifying private label merchandise
09-17
What does a category manager do?
? A category manager
o Is responsible for a set of products that are viewed as substitutes by customers (Ex: all pastas ± fresh, frozen, packed, or canned) o Is evaluated on the profitability of category o Is motivated to eliminate ³me to´ products and keep essential niche products o Is used primarily by supermarkets, big retailers
09-18
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
09-19
Retail Organization Design Issues
? The degree to which decision making is centralized or decentralized.
? The approaches used to coordinate merchandise and store management
09-20
Centralization vs. Decentralization
Advantages of Centralization Disadvantages of Centralization
Reduce costs (overhead falls ? It is difficult for a retailer to with fewer managers) adapt to local market conditions may have problems Coordinated buying achieve ? It responding to local competition lower prices from suppliers and labor markets Opportunity to have the best people make decisions for ? Personnel policies make it hard the entire corporation for local managers to pay competitive wages Increases efficiency
09-21
Winning the Talent War
? Retailers are engaged in a ³war´ with their competitors for talent ± for effective employees and managers ± who can effectively deal with the incased complexities of retail jobs (the use of new technologies, increased profit & loss responsibilities, increased global competition, a diverse workforce). ? Develop programs to attract, develop, motivate, and keep talent
09-22
Attracting Talent ± Employment Marketing
Employment marketing (branding)
Marketing programs that attract ³best and brightest´ potential employees o Starbucks ± ³Love What You Do´ o Southwest ± ³Free to Actually Enjoy What You Are Doing´
09-23
Attracting Talent ± Employment Marketing
To build its employment brand, use the tagline ³A Perfect Fit´ on all correspondence and advertising directed toward potential employees.
09-24
Developing Talent Selection and Training
? Selective Hiring: o Recruit ³the right people´. o Simply seeking the best and the brightest may not always be the most effective approach. ? Training: o Increasing investments in management training programs and developing leaders. o Increasing attention to college graduates.
09-25
Motivating Talent ± Aligning Goals
? Policies and Supervision
o Indicate what employees should do. o Behavior Enforced by Managers.
? Incentives
o Commission, Bonus, Stock Options.
? Organization Culture
o The set of values, traditions, and customs of a firm that guides employee behavior. o Behavior enforced by social pressure.
09-26
Use of Incentives
Advantages ? Aligns Employee and Company Goals. ? Strong Motivating Force. Disadvantages Employees Only Focus on Sales. Less Commitment to Retailer.
09-27
Keeping Talent Building Employee Commitment
? Empowering Employees
o Empowerment is the process of managers sharing power and decision-making authority with employees
? Gives employees confidence ? Provides greater opportunity to provide service to customers ? Employees are more committed to firm¶s success
? Creating Partnering Relationships with Employees
o Reducing Status Differences o Promotion From Within o Balancing Careers and Families
? Flextime, job sharing
09-28
Issues in Retail Human Resource Management
? Managing Diversity
o Diversity Training o Support Groups and Mentoring o Career Development and Promotions
? Growth in Legal Restrictions on HR Practices
o o o o o o Equal employment opportunity Compensation Labor relations Employee safety and health Sexual harassment Employee privacy
09-29
doc_645637174.pptx