5th Edition

PPT 9-1
 Chapter 9

Organizational Structure and

Human Resource Management

McGraw-Hill/Irwin
PPT 9-2
Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
 Retailing Strategy

Retail Market and Retail and Site

Financial Strategy Locations
Chapter 5, 6 Chapter 7 and 8

Organizational
Structure and
Human Resource
Management
Chapter 9

Information and Customer

Distribution Relationship
Systems Management
Chapter 10 Chapter 11
PPT 9-3
 Objectives of
Human Resource Management

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

PPT 9-4
 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

PPT 9-5
 Downward Performance Spiral

PPT 9-6
 Human Resource Triad

PPT 9-7
Special HR Considerations Facing Retailers

Need for Part-Time Employees

Demand on Expense Control
Changing Employee Demographics
Differing Cultural and Legal Requirements

PPT 9-8
 Organizational Design Considerations

Specialization

Responsibility and Authority

Reporting Relationships

Defined by Organization Structure

PPT 9-9
 Strategic Management Tasks
Performed in a Retail Firm

PPT 9-10
 Merchandise Management Tasks
Performed in a Retail Firm

PPT 9-11
 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

PPT 9-12
 Administrative Management Tasks
Performed in a Retail Firm

Promote the Firm, its Merchandise and

its Services
Manage Human Resources
Distribute Merchandise
Establish Financial Control

PPT 9-13
 Assignment of Responsibility for Tasks

• Strategic – Top Management, Board of

Directors
• Merchandise Management –
Merchandise Division
• Store Management – Stores Division
• Administrative – Corporate Specialists

PPT 9-14
 Organization of a Small Retailer

PPT 9-15
 Organization of a Regional
Department Store: Rich’s

PPT 9-16
 Merchandise Division
Organization: Rich’s

PPT 9-17
 Department Store Organization at
Rich’s/Lazarus/Goldsmith’s

PPT 9-18
 Corporate Organization:
Federated Stores

PPT 9-19
 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

PPT 9-20
 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

PPT 9-21
 Increasing Employee Productivity

Role
Ability Effort
Clarity

Selection Motivation Policies, Rules

Training Goals Incentives
Incentives Org Culture
Rewards
PPT 9-22
 Motivating and Controlling Employees

• Policies and Supervision

– Behavior Enforced by
Managers
• Incentives
– Commission, Bonus
• Organization Culture
– unwritten rules, norms
– behavior enforced by social
pressure
PPT 9-23
 Types of Incentives

Commissions on Sales
Bonus
Stock Options
PPT 9-24
 Use of Incentive

Advantages Disadvantages
• Aligns Employee • Employees Only
and Company Focus on Sales
Goals
• Less Commitment
• Strong Motivating to Retailer
Force

PPT 9-25
 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

PPT 9-26
 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?
PPT 9-27
 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

PPT 9-28
 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
PPT 9-29
 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

PPT 9-30
 Regulations

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

PPT 9-31
 Discriminatory Questions
and Suggested Responses: Sex
(Asked of women) Do you have plans for having children/a family?

“I don’t know at present. I plan on a career and believe my career will be

successful with or without a family.”

(Asked of women) What are your marriage plans?

“If what you are concerned with is my ability to travel or my commitment to my

employer, I can assure you that I am quite aware of the job’s responsibilities
and personal commitments involved.”

(Asked of women) What does your husband do?

“I am interested in working because…what my husband does is not relevant

to my performance for your company.”

“My husband’s career and mine dovetail. He has helped me become more
effective as…and I have helped him become better as…”
PPT 9-32
 Discriminatory Questions
and Suggested Responses: Sex

(Asked of women) What happens if your husband gets transferred or

needs to relocate?
“My husband’s career will not interfere with my career.”
“My husband and I would discuss locational moves at the time they logically
came up. At present, our jobs are where we wish to live.”
(Asked of women) Who will take care of your children while you are at
work?
“I have made arrangements so that my family life will interfere as little as
possible with my work.”
(Asked of men) How would you feel working for a woman?
“This would be no problem. I have effectively worked for men and women
while in school.”

PPT 9-33
 Discriminatory Questions and Suggested
Responses: Age and National Origin

How old are you?

What is your date of birth?

“I wish to be evaluated on my skills, competence, and experience. Age is

irrelevant.”

“I feel my age is an advantage at work in terms of the broad-based

experiences it has afforded me.”

How would you feel working for a person younger than you?

“Age does not interfere with my ability to get along with others. I am
adaptable and respect supervisors who are knowledgeable and competent.”

PPT 9-34
 Discriminatory Questions and Suggested
Responses: Age and National Origin

Where were you born?

Where were your parents born?

Of what country are you a citizen?

“I am a permanent resident of the United States and have legal authority to

work here.”

“Actually, I am American to the core, and America consists of people from

many national origins. I feel like I was born here since it has been my home
for so long.”

“I am quite proud that my background is ___. My heritage has helped me to

deal effectively with people of various ethnic backgrounds.”

PPT 9-35
 Discriminatory Questions and Suggested
Responses: Handicaps, Religion, Race or Color

Do you have any handicaps?

As a handicapped person, what help are you going to need in order to

do your work?

“Any disabilities I may possess would in no way interfere with my ability to

perform all aspects of this position.”

“Actually, I don’t need help doing my work because I have been adequately
trained. What I need might be minor adaptations of the work station and a
supervisor who hires me for what I can do rather than what I cannot do.”

What is your religion? What church do you attend?

My religious preference should have no relationship to my job

performance.”
PPT 9-36
 Discriminatory Questions and Suggested
Responses: Handicaps, Religion, Race or Color

Do you hold any religious beliefs that would prevent you from
working certain days of the week?

“If working weekends or evenings is actually a part of the job’s

requirements, I would prefer to discuss that after we know whether or not I
am the person you most wish to hire for this position.”

Do you fee that your race/color will be a problem in your performing

the job?

“I’ve had extensive experience working with people with a variety of

backgrounds. A person’s race, whatever it may be, should not interfere in
the work environment.”

“I do not feel I should be judged on the basis of race or color.”

PPT 9-37
 What Can and Can’t Be Asked: Name, Address or
Duration of Residence, and Birthplace, and Age

Name

Can “Have you every worked for the company under another name?”
“Have you ever been convicted of a crime under another name?”

Can’t Former name of applicant whose name has been changed by court order
or otherwise.

Address or Duration of Residence

Can Applicant’s place of residence

How long has applicant been a resident of the state or city

Birthplace

Can “Can you, after employment, submit a birth certificate of other proof of
U.S. citizenship or age?”

Can’t Birthplace of applicant

Birthplace of applicant’s parents, spouse or other relatives

PPT 9-38
 What Can and Can’t Be Asked: Name, Address or
Duration of Residence, and Birthplace, and Age

Age

Can “Can you, after employment, submit a work permit if under 18?”
“Are you over 18 years of age?”
“If hired, can you provide proof of age? (Or other statement that hire is
subject to verification that applicant’s age meets legal requirement.)

Can’t Questions which tend to identify applicants 40-64 years of age

PPT 9-39
 What Can and Can’t Be Asked: Religion, Work Days or
Shifts, Race or Color, Photograph

Religion

Can (None)

Can’t Applicant’s religious denomination of affiliation, church, parish, pastor, or

religious holidays observed.
“Do you attend religious services or a house of worship?”
Applicant may not be told “This is a Catholic/Protestant/Jewish/atheist
organization.”

Work Days or Shifts

Can Statement by employer of regular hours or shift to be worked.

Race or Color

Can (None)

Can’t Complexion, color of skin, or other questions directly or indirectly

indicating race or color.

PPT 9-40
 What Can and Can’t Be Asked: Religion, Work Days or
Shifts, Race or Color, Photograph

Photograph

Can Statement that photograph may be required after employment

Can’t Requirement that applicant affix a photo to the application form.

Request applicant, at his/her option, to submit a photograph.
Requirement of photograph after interview but before hiring.

PPT 9-41
 What Can and Can’t Be Asked: Citizenship,
National Origin, and Education

Citizenship

Can “If you are not a US Citizen, have you the legal authority to work in the
United States? Do you intent to remain permanently in the United States?
Statement by employer that if hired, applicant may be required to submit
proof of citizenship.

Can’t “Are you a citizen of the United States?

Whether applicant or parents or spouse are naturalized or native-born
United States citizens.
Date when applicant or parents or spouse acquired US citizenship.
Requirement to produce naturalization papers.

Natural Origin

Can Languages applicant reads, writes, or speaks fluently.

Can’t Applicant’s ancestry, lineage, nationality, national origin, descent, or

parentage. Continued….
PPT 9-42
 What Can and Can’t Be Asked: Citizenship,
National Origin, and Education

Natural Origin, cont.

Can’t Date and arrival in the US or port of entry; how long a resident.
Nationality of applicant’s parents or spouse; maiden name of applicant’s
wife or mother.
“Language commonly used by applicant or what is your mother tongue?”
How applicant acquired the ability to read, write, or speak a foreign
language.

Education

Can Applicant’s academic, vocational, or professional education; schools

attended.

Can’t Date last attended high school.

PPT 9-43
 What Can and Can’t Be Asked: Experience,
Character, Relatives, and Notice in Case of Emergency

Experience

Can Applicant’s work experience.

Applicant’s military experience in armed forces of the US, in a state militia
(US), or in a particular branch of service.

Can’t Applicant’s military experience (general) or type of discharge.

Character

Can “Have you ever been convicted of any crime? If so, when, where, and
disposition of the case?”

Can’t “Have you ever been arrested?”

Relatives

Can Names of relatives already employed by company.

Name and address of parent of legal guardian if applicant is a minor.

Continued...
PPT 9-44
 What Can and Can’t Be Asked: Experience,
Character, Relatives, and Notice in Case of Emergency

Relatives

Can’t Marital status or number of dependents.

Name or address of relative, spouse, or children of adult applicant.
“With whom do you reside?”
“Do you live with you parents?”

Notice in Case of Emergency

Can Name and address of person to be notified in case of accident or

emergency.

Can’t Name and address of relative to be notified in case of accident or

emergency.

PPT 9-45
 What Can and Can’t Be Asked: Organizations,
References, Physical, and Miscellaneous

Organizations

Can Organizations, clubs, professional societies, or other associations of which

applicant is a member excluding any of the names or the character of
which indicates the race, religious creed, color, national origin, or ancestry
of its members.

Can’t “List all organizations, clubs, and lodges to which you belong.”

References

Can “By whom were you referred for a position here?”

Can’t Requirement of submission of a religious reference.

Physical

Can “Do you have any physical condition which may limit your ability to
perform the job for which you are applying?”

Can’t “Do you have any physical disabilities?”

PPT 9-46
 What Can and Can’t 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.

Can’t Any inquiry that is not job-related or necessary for determining the
applicant’s eligibility for employment.

PPT 9-47