Retail Organization & HRM

CHAPTER 11 PART ONE

Chapter topics
The

organizational structure Process of organizing Retail tasks Classifying jobs Hierarchical charts Human resource environment

Setting up a retail organization

Identify
Target

needs of

market Employee needs Management needs

Target Market Needs

Sufficient

personnel Personnel knowledgeable & courteous Facilities well maintained Branch store customers needs met? Are changing needs promptly met?

Employee needs
Offer

challenging & satisfying positions Orderly promotion program Participative decision making Channels of communication

Employee needs
Authority/responsibility

relationship clear Fair treatment of employees Reward performance

Management needs
Easy

to obtain & retail competent personnel Personnel procedures Line of authority Span of authority Support staff

Management needs
Levels

of organization developed

well Organizations plans well integrated Motivated employees

Management needs
Low

absenteeism Policies on replacing personnel

Flexibility

& adaptive nature of organization

Organizing the firm

Process of organizing firm

Outlining
to

the specific tasks

be performed in a retail distribution channel

Divide

tasks among channel members & customers

Process of organizing firm

Group

retailing tasks into jobs Classify jobs Integrate positions in an org. chart

Principles for organizing

Employee

interest, training, & promotions Employee turnover & absenteeism Line of authority Reporting levels

Principles for organizing

Span

of control Mgmt & delegation power Supervisory responsibility Communication speed & levels Informal vs. formal relationships & authority

Retail tasks

Retail tasks to be performed

Buying

merchandise Shipping merchandise Receiving merchandise

Retail tasks to be performed

Check

incoming shipments Setting prices Marking merchandise

Retail tasks
Inventory

storage & control Displays (window & instore) Facilities maintenance Customer research

Retail tasks
Customer

contact Customer follow-up Customer complaint handling Personnel management

Retail tasks
Repairs

& alterations Billing customers Handling receipts & financial records Credit operations Gift wrapping

Retail tasks
Delivery

to customers Return to Vendors

unsold/damaged

mdse

Sales

forecasting Budgeting coordination

Division of tasks: retailer

Can

perform all or some of tasks in distribution channel From buying mdse to coordination

Division of tasks:
Takes

wholesale/MFG

care of few or many functions Shipping Marking mdse Inventory storage Display research

Division of tasks:
Buying

specialists
Ad

office Delivery firms Warehouse Marketing research

agency Accountant Credit bureau Computer service

Division of tasks:
Responsible
Delivery Credit Sales

customer

for:

effort (self service) Satisfaction (DI)

Classifying jobs & the hierarchical charts

Classifying jobs 4 ways

Functional
Sales,

buying, store operations

Product
Hires

personnel for different products

Classifying jobs 4 ways

Geographic
Where

store is located & local

issues
Combinations
HQ

vs. branch hires

Organizational charts: Functional

Hierarchy of authority Vice President of operations

Sales

promotion mgr Mdse mgr Personnel mgr Store operations controller

PRODUCT org chart

Store

mgr Mens outerwear mgr. Ladies outerwear mgr. Lingerie mgr Appliance mgr.

Geographic chart
Vice

President of stores

Location

A store manager Location B store manager Location C store manager Location D store manager

Combination chart
See

page 332 Figure 11-5

Small independent charts

Mazur Plan (see fig 11-7 p. 334)

Divides retail activities into 4 functions

Merchandising Publicity Store

management Accounting & control

Equal store vs. Separate store org.

Equal Store Used by chains Centralized buying Branches = sales units Most popular

Separate store Each branch has own buying responsibilities

Part 2 human resources

On another set of slides