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PPT 9-1
5th Edition5th Edition
PPT 9-2
Chapter 9
Organizational Structure and Organizational Structure and Human Resource Management Human Resource Management
McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
PPT 9-3
Retailing Strategy
Retail and Site Locations
Chapter 7 and 8
Organizational Structure and
Human Resource Management
Chapter 9
Information and Distribution Systems Chapter 10
Customer Relationship Management Chapter 11
Retail Market and Financial Strategy
Chapter 5, 6
PPT 9-4
Objectives ofHuman Resource Management
• Short Term
– Increasing Employee Productivity
– Productivity = Sales/Number of Employees
• Long-Term
– Increasing Employee Satisfaction Reducing Turnover
PPT 9-5
Human Resource Management Challenges in Retailing
Work Environment
• Open Long Hours
• Peak Sales Periods
• Emphasis on Cost Control
Employees
• Unskilled
• Part-Time
• Diverse Backgrounds
High TurnoverHigh Turnover
PPT 9-6
Downward Performance Spiral
PPT 9-7
Human Resource Triad
PPT 9-8
Special HR Considerations Facing Retailers
Need for Part-Time Employees
Demand on Expense Control
Changing Employee Demographics
Differing Cultural and Legal Requirements
Need for Part-Time Employees
Demand on Expense Control
Changing Employee Demographics
Differing Cultural and Legal Requirements
PPT 9-9
Organizational Design Considerations
Specialization
Responsibility and Authority
Reporting Relationships
Defined by Organization Structure
PPT 9-10
Strategic Management Tasks Performed in a Retail Firm
PPT 9-11
Merchandise Management Tasks Performed in a Retail Firm
PPT 9-12
Store Management Tasks Performed in a Retail Firm
Maintain Facilities
Take Inventory
Sell Merchandise
Provide Services
Display Merchandise
Prevent Shrinkage
Recruit
Hire Personnel
Train Employees
Plan Schedules
Evaluate Performance
Motivate
PPT 9-13
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 9-14
Assignment of Responsibility for Tasks
• Strategic – Top Management, Board of Directors
• Merchandise Management – Merchandise Division
• Store Management – Stores Division
• Administrative – Corporate Specialists
PPT 9-15
Organization of a Small Retailer
PPT 9-16
Organization of a Regional Department Store: Rich’s
PPT 9-17
Merchandise Division Organization: Rich’s
PPT 9-18
Department Store Organization at Rich’s/Lazarus/Goldsmith’s
PPT 9-19
Corporate Organization: Federated Stores
PPT 9-20
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 9-21
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 9-22
Increasing Employee Productivity
Ability Effort Role Clarity
Selection
Training
Motivation
Goals
Incentives
Rewards
Policies, Rules
Incentives
Org Culture
PPT 9-23
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 9-24
Types of Incentives
Commissions on Sales
Bonus
Stock Options
Commissions on Sales
Bonus
Stock Options
PPT 9-25
Use of Incentive
Advantages
• Aligns Employee and Company Goals
• Strong Motivating Force
Disadvantages
• Employees Only Focus on Sales
• Less Commitment to Retailer
PPT 9-26
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 9-27
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 9-28
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 9-29
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 9-30
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
Equal opportunity and anti-discrimination laws
What can (or can’t) be asked
Legal rights of a new employee
Sexual harassment
PPT 9-31
Regulations
• Equal Employment Opportunity
• Compensation
• Labor Relations
• Employee Safety and Health
• Sexual Harassment
• Employee Privacy
PPT 9-32
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 9-33
(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
PPT 9-34
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 9-35
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 9-36
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 9-37
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 9-38
What Can and Can’t Be Asked: Name, Address or Duration of Residence, and Birthplace, and Age
Name
CanCan “Have you every worked for the company under another name?”
“Have you ever been convicted of a crime under another name?”
Can’tCan’t Former name of applicant whose name has been changed by court order
or otherwise.
Address or Duration of Residence
CanCan Applicant’s place of residence
How long has applicant been a resident of the state or city
Birthplace
CanCan “Can you, after employment, submit a birth certificate of other proof of
U.S. citizenship or age?”
Can’tCan’t Birthplace of applicant
Birthplace of applicant’s parents, spouse or other relatives
PPT 9-39
What Can and Can’t Be Asked: Name, Address or Duration of Residence, and Birthplace, and Age
Age
CanCan “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’tCan’t Questions which tend to identify applicants 40-64 years of age
PPT 9-40
What Can and Can’t Be Asked: Religion, Work Days or Shifts, Race or Color, Photograph
Religion
CanCan (None)
Can’tCan’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
CanCan Statement by employer of regular hours or shift to be worked.
Race or Color
CanCan (None)
Can’tCan’t Complexion, color of skin, or other questions directly or indirectly
indicating race or color.
PPT 9-41
What Can and Can’t Be Asked: Religion, Work Days or Shifts, Race or Color, Photograph
Photograph
CanCan Statement that photograph may be required after employment
Can’tCan’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 9-42
What Can and Can’t Be Asked: Citizenship, National Origin, and Education
Citizenship
CanCan “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’tCan’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
CanCan Languages applicant reads, writes, or speaks fluently.
Can’tCan’t Applicant’s ancestry, lineage, nationality, national origin, descent, or
parentage. Continued….
PPT 9-43
What Can and Can’t Be Asked: Citizenship, National Origin, and Education
Natural Origin, cont.
Can’tCan’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
CanCan Applicant’s academic, vocational, or professional education; schools
attended.
Can’tCan’t Date last attended high school.
PPT 9-44
What Can and Can’t Be Asked: Experience, Character, Relatives, and Notice in Case of Emergency
Experience
CanCan 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’tCan’t Applicant’s military experience (general) or type of discharge.
Character
CanCan “Have you ever been convicted of any crime? If so, when, where, and
disposition of the case?”
Can’tCan’t “Have you ever been arrested?”
Relatives
CanCan Names of relatives already employed by company.
Name and address of parent of legal guardian if applicant is a minor.
Continued...
PPT 9-45
What Can and Can’t Be Asked: Experience, Character, Relatives, and Notice in Case of Emergency
Relatives
Can’tCan’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
CanCan Name and address of person to be notified in case of accident or
emergency.
Can’tCan’t Name and address of relative to be notified in case of accident or
emergency.
PPT 9-46
What Can and Can’t Be Asked: Organizations, References, Physical, and Miscellaneous
Organizations
CanCan 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’tCan’t “List all organizations, clubs, and lodges to which you belong.”
References
CanCan “By whom were you referred for a position here?”
Can’tCan’t Requirement of submission of a religious reference.
Physical
CanCan “Do you have any physical condition which may limit your ability to
perform the job for which you are applying?”
Can’tCan’t “Do you have any physical disabilities?”
PPT 9-47
What Can and Can’t Be Asked: Organizations, References, Physical, and Miscellaneous
Miscellaneous
CanCan Notice to applicant that any misstatements or omissions of material facts
in the application may be cause for dismissal.
Can’tCan’t Any inquiry that is not job-related or necessary for determining the
applicant’s eligibility for employment.