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HUMAN RESOURCE MANAGEMENT

What you expect when you enter in any shop?

HRM is extremely important in Retailing.


Because a retail store is a combination of
merchandise and service. The product and
service is delivered through the human
interface between the store employees
and customer.
Human Resource Management is the
effective use of human resource in order to
enhance organizational performance.

Human Resource Environment of


Retailing
Large

number of inexperienced workers Due to the need of large retail labor force,
Low wages paid for positions often means
hiring those with little or no prior
experience.
Long working hours - Retail shops have
longer working hours since most
customers want to shop during evenings
and weekends.

Part Time Employees - Due to their long


working hours, retailer regularly hire
part-time employees.
Highly visible employees - Retailing
employees are highly visible because
they directly interact to the customer
thus special care is taken with regard to
their manners and appearance.

Variability

in the customer demand Demands of customers varies by per


day, time period, or season.

These

factors make the hiring , staffing,


and supervision of the employees a
complex process.

Major Activities Conduct by

HR/Function/Process
2.
2. Recruiting
Recruiting

1.
1. Job
Job analysis
analysis

3.
3. Selecting
Selecting
4.
4. Training
Training
5.
5. Direction
Direction
6.
6. Motivation
Motivation
8..
8.. Compensation
Compensation

7..Evaluation
7..Evaluation

Job analysis
Duties

and tasks
Work environment
Tools and equipment's
Relationships
Requirements

Recruiting

Process of locating, identifying, and


attracting capable candidates.
Can be for current or future needs.
What sources do we use for
recruitment.

Internal sources
Present

employees already working in


the organization
Recommendation of the existing retail
employees
Promotions
Transfers
Re-employment of former employee

External sources
Direct

unsolicited applications
Employment agencies
Customer
Retail staff of non competing company
Educational institution

Training
Training tends to be done for
current job.
Aims to improve efficiency.
Keeps the employee up to date
with changes in the field
Can be external or in-house.

Methods
Group

training method
1. Lecture method
2. Audio visual method
3. Discussion method
4. Role playing method
5. Panel method
6. Round table method

Methods of training
Individual

training method
1. On the job
2. Internship training
3. Individual assigments

Motivation
Motivating employees to perform up to their potential is the
key to maintaining a productive, successful business.
Ways in which you can motivate employees

Interact - Talk to your employees regularly.


Recognition & Appreciation - A job well done should be
appreciated and encouraged.
Pay them Right - Pay employees for what they are worth and
they will be happy to work.
New challenges - Give employees new and interesting challenges
to keep them stimulated and learning.

Motivating Employees
How critical is Motivation of employees?
Employees personal goals does
vary with the managements
goals
According to a study, 5%
increase in employee
satisfaction results in a 1.3%
increase in customer satisfaction
and 0.5% increase in sales
Customer loyalty is directly
related to motivation of
employees

Motivation
The

organisation culture
The rewards and recognition
The monetary benefits
Prospects for growth and job enrichment

17

Evaluation
Establishing performance
standards and reviewing
the performance.

Means to ensure organizational


goals are being met.

To identify employees who are


performing well and those who
arent.

Evaluation Of Performance
Through

goals that have been set

19

Compensation
Incentive Compensation can
be Commission, Bonus and
stock options.
Commission is a compensation
based on fixed formula for sales.
Bonus is periodical compensation
based on the stores performance
during that period.
Stock options-employees are
encouraged to buy shares of their
company at discounted prices

Types of compensation plans


Straight

salary compensation-25,000
Straight commission or incentive
compensation
Salary plus compensation-salary 25,000
+ 1% of all ales made by him

HR Challenges Faced by Retailers


Part-time Employees

Part-time employees are essential apart from the


regular full-time employees.
Part-time employees are less committed to the
company and their jobs.
Part-time employees are more likely to quit the
company than the full-time employees.

HR Challenges Faced by Retailers


Expense Control

Retailers work on thin margins and must control


expenses. Thus they are cautious about paying high to
their employees who perform low-skill jobs.
Poor attitude, lack of experience and lack of motivation
directly reflect on the sales and customer loyalty as
Employees get into direct contact with the customer.

HR Challenges Faced by Retailers


Employee Demographics

The changing demographic patterns results in a


chronic shortage of sales associates.

Thus managing this growing diversity and changing


values in retail workforce especially in tight labor
markets creates problems for HR managers.

HR Challenges Faced by Retailers


International HR issues

Managing employees working for a international


retailer is challenging because of difference in work
values, economic systems and labor laws.
Differs
This implies that HR practices effective in one country
might not be effective in another.

Building Employee Commitment


Some approaches that retailers take to build employee
commitment.
Selective
Selective Hiring
Hiring and
and Training
Training

Empowering employees

Creating
Creating Partnering
Partnering Relationships
Relationships

Building Employee Commitment


Selective
Selective Hiring
Hiring and
and Training
Training

To seek best and the brightest candidate.


To seek the candidate with the right attitude.
Investing in developing employee skills is very important as more
than 60% employees have direct customer contact. and If you dont

care of your customer some one else will do.


Both PRODUCT and ETIQUETTE training must be imparted.

Building Employee Commitment


Empowering employees
Empowerment is the process of managers sharing power and
decision-making authority with employees.
Ways of empowering employees:
Share Leadership Vision- Help people feel that they are part of
something bigger than themselves and their individual job.
Trust People
Provide Frequent Feedback -so that people know how they are
doing.
Solve Problems: Don't Pinpoint Problem People

Building Employee Commitment


Creating
Creating Partnering
Partnering Relationships
Relationships

Reduce Status Difference:


Retailers attempt to reduce status difference among the employees.
With limited status difference employees feel they play a important
role in the firms achievement and their contributions are valued.

Promoting from within:


Promotion from within is a staffing policy that involves hiring new
employees only for the positions at the lowest level in job hierarchy
and then promoting employees for openings at higher levels in the
hierarchy.