Objectives of Human Resource Management

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Objectives ofHuman Resource Management

• Short Term
• Increasing Employee Productivity
• Productivity Sales/Number of Employees
• Long-Term
• Increasing Employee Satisfaction ? Reducing
  Turnover

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Assignment 2

• Choose a site
• Choose a store size (square meters)
• Evaluate your store choice based on the class
  activity. Describe the competition and
  accumulative attraction for your site. Decide to
  stay or move.
• 2-3 pages typed
• Due July 14

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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
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Downward Performance Spiral
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Special HR Considerations Facing Retailers
Need for Part-Time Employees Demand on Expense
Control Changing Employee Demographics Differing
Cultural and Legal Requirements
6
Organizational Design Considerations
Specialization Responsibility and
Authority Reporting Relationships Defined by
Organization Structure
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Strategic Management Tasks Performed in a Retail
Firm
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Merchandise Management Tasks Performed in a
Retail Firm
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Store Management Tasks Performed in a Retail Firm
Recruit
Motivate
Maintain Facilities
Prevent Shrinkage
Sell Merchandise
Train Employees
Take Inventory
Provide Services
Hire Personnel
Plan Schedules
Display Merchandise
Evaluate Performance
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Administrative Management Tasks Performed in a
Retail Firm
Promote the Firm, its Merchandise and its
Services Manage Human Resources Distribute
Merchandise Establish Financial Control
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Assignment of Responsibility for Tasks

• Strategic Top Management, Board of Directors
• Merchandise Management Merchandise Division
• Store Management Stores Division
• Administrative Corporate Specialists

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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

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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

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Increasing Employee Productivity
Role Clarity
Effort
Ability
Selection Training
Motivation Goals Incentives Rewards
Policies, Rules Incentives Org Culture
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Motivating and Controlling Employees

• Policies and Supervision
• Behavior Enforced by Managers
• Incentives
• Commission, Bonus
• Organization Culture
• unwritten rules, norms
• behavior enforced by social pressure

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Types of Incentives
Commissions on Sales Bonus Stock Options
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Use of Incentive

• Advantages
• Aligns Employee and Company Goals
• Strong Motivating Force

• Disadvantages
• Employees Only Focus on Sales
• Less Commitment to Retailer

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Developing an Organizational Culture

• Stories
• Nordstrom Hero Service Stores
• Container Store Man in the Desert
• Wal-Mart Saturday Meeting
• Symbols
• Container Store Gumby for Flexibility
• CEO Leadership

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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
• Flex Time, job sharing, day care

When Do You Want to Spend the Money to Build
Employee Commitment?
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Summary

• Increasing Labor Productivity, Reducing Labor
  Cost Important in Retailing
• Tradeoff -- Increase Cost Vs High Turnover
• Positives and Negatives of Approach for
  Controlling and Motivating Employees

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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

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Legal Issues in Human Resources Overview
Equal opportunity and anti-discrimination
laws What can (or cant) be asked Legal
rights of a new employee Sexual harassment
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What Can and Cant Be Asked Organizations,
References, Physical, and Miscellaneous
Miscellaneous Can Notice to applicant that any
misstatements or omissions of material facts in
the application may be cause for
dismissal. Cant Any inquiry that is not
job-related or necessary for determining the
applicants eligibility for employment.