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Chapter 9

Organizational Structure and


Human Resource Management

McGraw-Hill/Irwin
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Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Objectives of
Human Resource Management

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

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Human Resource Management


Challenges in Retailing
Work Environment Employees
• Open Long Hours • Unskilled
• Peak Sales Periods • Part-Time
• Emphasis on Cost • Diverse Backgrounds
Control

High Turnover

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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

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Organizational Design Considerations

Specialization

Responsibility and Authority

Reporting Relationships

Defined by Organization Structure

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Store Management Tasks


Performed in a Retail Firm

Recruit Motivate
Prevent Shrinkage Maintain Facilities

Sell Merchandise Train Employees

Provide Services Take Inventory

Plan Schedules Hire Personnel

Evaluate Performance Display Merchandise

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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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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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Increasing Employee Productivity

Role
Ability Effort
Clarity

Selection Motivation Policies, Rules


Training Goals Incentives
Incentives Org Culture
Rewards
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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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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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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 can’t) be asked
Legal rights of a new employee
Sexual harassment

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Regulations

• Equal Employment
Opportunity
• Compensation
• Labor Relations
• Employee Safety and Health
• Sexual Harassment
• Employee Privacy

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