Lecture Retailing management (6e) Chapter 9 Levy Weitz

Chapter 9 looks at the firm’s organization and human resource strategy. This chapter presents the following content: objectives of human resource management, human resource management challenges in retailing, increasing workforce diversity, organizational design considerations,...

Management

Retailing Strategy

Retail and Site Locations Chapter 7 and 8

Organizational Structure and Human Resource Management Chapter 9

Retail Market and

Financial Strategy

Chapter 5, 6

Objectives of Human Resource Management

• Short Term

– Increasing Employee Productivity

– Productivity = Sales/Number of Employees

• Long-Term

– Increasing Employee Satisfaction  Reducing Turnover

Human Resource Management

Challenges in Retailing

• Work Environment

• Open Long Hours

• Peak Sales Periods

Downward Performance Spiral

Human Resource Triad

Special HR Considerations Facing Retailers

Need for Part-Time Employees Demand on Expense Control Changing Employee Demographics International Human Resourses Issues

Ryan McVay/Getty Images

Increasing Workforce Diversity

• Workforce employing more

minorities, handicapped

people and the elderly

• Older workers are more

reliable than younger

workers

• Cost effective as training

and recruitment costs are

Organizational Design Considerations

Tasks Performed in a Retail Firm

Strategic Management Tasks

Performed in a Retail Firm

Merchandise Management Tasks

Performed in a Retail Firm

Store Management Tasks Performed in a Retail Firm

Maintain Facilities Take Inventory

Administrative Management Tasks

Performed in a Retail Firm

Promote the firm, its merchandise and

Assignment of Responsibility for Tasks

• Strategic – Top Management, Board of Directors

• Merchandise Management – Merchandise Division

• Store Management – Stores Division

• Administrative – Corporate Specialists

Organization of a Small Retailer

Organization of JCPenney Corporation

Merchandise Division for JCPenney

What does a Buyer do?

A buyer is responsible for procuring

merchandise and building and

maintaining relationships

• They attend trade and fashion

shows

• They negotiate with vendors on

price, quantities, assortments,

delivery dates and payment

Allocator vs Planner

Allocator – responsible for allocating the

merchandise and tailoring the assortments in

several categories for specific stores in a

geographic area.

Planner – responsible for the financial

planning and analysis of the merchandise

category They develop the budget plan and

monitor performance

Buying Organization for Typical Department

Store Chain

JCPenney Store Organization

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 © Digital Vision

Disadvantage to Centralization

• It is difficult for a retailer to

adapt to local market

• Personnel policies make it

hard for local managers to

pay competitive wages Royalty-Free/CORBIS

Methods for Coordinating Buying and Store Management

• Improving buyer’s appreciation for store

environment

• Buyers making store visits

• Assigning employees to coordinating roles

Motivating and Controlling Employees

• Policies and Supervision

– Behavior Enforced by Managers

• Less Commitment to Retailer

Developing an Organizational Culture

• Stories

– Nordstrom – Hero Service Stores – Container Store – Man in the Desert – Wal-Mart – Saturday Morning Meeting

• Symbols

– Container Store – Gumby for Flexibility

• CEO Leadership

Building Employee Commitment

Building Employee Skills

– Selective hiring

– Extensive training

Empowering Employees

Creating Partnering Relationships with Employees

– Reducing Status Differences

– Promotion From Within

– Balancing Careers and Families

• Flex Time, job sharing, day care

Empowerment is the process of managers

sharing power and decision-making authority

with employees

• Gives employees confidence

• Provides greater opportunity to provide service

to customers

• Employees are more committed to firm’s

success

Balancing Career and Family

Trends in Retail Human Resource

Management

Managing Diversity

– Diversity Training

– Support Groups and Mentoring

– Career Development for

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

PhotoDisc/Getty Images

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…”

(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.”

Discriminatory Questions and Suggested Responses: Sex

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.”

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.”

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.”

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.”

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

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

What Can and Can’t Be Asked: Religion, Work Days or

Shifts, Race or Color, Photograph

Religion

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

Race or Color

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

indicating race or color

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

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…

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

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

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

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?”

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