OVERVIEW – RETAIL

Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. In the 2000s, an increasing amount of retailing is done using online websites, electronic payment, and then delivered via a courier or via other services.

Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as for the public. Shops may be on residential streets, streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.

Retailing in India

Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population)

While India presents a large market opportunity given the number and increasing purchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, and little use of IT systems, limitations of mass media and existence of counterfeit goods. A number of merger and acquisitions have begun in Indian retail market. PWC estimates the multi-brand retail market to grow to $220 billion by 2020.

INTRODUCTION- HRM PRACTICES IN RETAIL

Human beings are considered as the dynamic elements of management. The success of an organization depends hugely on the efforts of the human resources. Human resource is now recognized and utilized as the most valuable of al organizational assets. The resources of men, money, materials and machinery are collected, coordinated and utilized through people. Human resource management (HRM) practices are most effective when matched with strategic goals of organizations. HRM‟s role in the company’s success is growing rapidly with the growth in many sectors in the present globalized era. HRM is a vital function in organizations and becoming more important than ever. The HRM practices are crucial in designing the structure for man power, staffing, performance appraisal, compensation, and training and development. HRM practices are a primary means for defining, communicating and rewarding desired role behaviors and desired role behaviors are a function of organizational characteristics. Innovative HRM practices can play a crucial role in changing the attitude of the companies and its employees in order to facilitate the entry and growth in the markets. The HRM practices in service sector especially in the area of retailing have found significant importance in the present scenario. The retailing is one of the service sectors where the need of qualitative human resources is highly expected.

Recruitment:

Depending on the size of the number of vacancies or if it’s a new store then campus recruitment is done or recruitment is done through recruiters and consultants. For shop floor sales requirement advertisement is put up in the local newspapers. The recruitment is so far done on the basis of requirements. If the requirement is of junior level, then they go ahead with paper ads for walk-ins, even the same is followed while there is opening of a store as it is required in a mass number. If requirement is less for junior level, then they go ahead with consultants and reference recruitments. If the requirement is of Middle level, then they complete the same with consultants, Job - portals and newspaper ads of walk-ins.The recruitment process starts with an interview taken by department managers followed by store manager and HR. For up to team leaders. For middle Management level, first it is been shortlisted by HR. Then interview is conducted with department head, followed by Store Manager, Zonal Manager and HR.

When a company is looking for new employees, they tend to use different channels in order to find the most suitable personnel. The channels could be educational institution, TV/magazine

advertising, agency or any other channels which is the best way to find the right personnel. For example, in a retail company, when they are looking for an entry level sales personnel, they tend to reply on educational institutions, advertisements and employee recommendations. Moreover, when a retail company is looking for middle-management positions, they are likely to use employment agencies, competitors, advertisements and current employees. The recruitment process can be very costly. It takes a great deal of time to set up an effective recruitment process. Therefore, the company has to carry this job out in a systematic way.

The next job is to select new employees from among those the company has recruited. The main objective in the selection process is to match the character of potential employees with the requirements of the jobs to be filled. The process of selection includes job analysis and description, the application blank, interviewing, testing, references and a physical examination. These processes should be followed in an integrated manner. However, the selection process can be very costly because the company has to pay for the postage of sending out application forms to candidates and they may also have to pay for the travel expenses for candidates' journey to interview.

Training and development:

Retail industry has finally taken shape in India, and is experiencing a rapid growth. Since organized retail is growing tremendously procuring trained human resource for retail is a big challenge. The talent base is limited and with the entry of big retailers in the market there is a huge demand of trained and skilled professionals in this sector. This has led many retailers to introduce Learning and Development department within the organization.

Retention:

The retail industry as a whole struggles with high staff turnover. The increase in competition, as well as the younger generation of employees, can make holding on to staff a challenge for all but the most employee savvy retailers. High employee turnover increases recruitment and training costs, and can significantly affect your bottom line.

Higher employee turnover is a double-edged sword. On one hand, it’s a harbinger of an improving economy, but on the other it’s a significant challenge for retailers who will need to devote more time and resources to retention and recruiting. Retailers are very focused on profitability right now, which is likely leading to an increased demand for part-time workers, who can be scheduled to work at only the highest traffic times. To add to this, employees aren’t seeing the benefits of pay increases and bonuses, yet instead are quite often expected to take on more responsibilities due to cutbacks, which will eventually lead to a decrease in staff loyalty and productivity. If an employee is dissatisfied in their career, they will look elsewhere and the time and effort you have spent embedding your company’s values and culture and investing in nurturing that individual’s talents will be wasted.

Retailers recognise the need to invest in new employees as they start, allowing them to see the benefits in working for their business from the offset and encouraging them to thrive within their role. What they should also consider is the value of maintaining this during the tougher times.

It is important to keep an open line of communication between employees and the management level to enable the employee to feel a valued part of the team. The rumor mill begins when senior team members shut off communication with individual teams and branches and this can encourage the spread of negative feelings throughout the company. By giving staff open, honest and regular updates, they will feel informed and more likely to remain loyal to the business. There should also be a forum for feedback to ensure that individuals’ views are heard.

A comprehensive contract of employment allows an employer to specify an employee's duties and responsibilities - so an employee knows exactly what is expected of them. See below for what should be included.

Written Particulars of Employment

At the start of employment, employers must give workers a document containing the following information…

Employer’s and Worker’s Details

Employer’s full name

Employer’s address

Worker’s name

Worker’s occupation, or a brief description of the work

Employment Details

Place/s of work

Date of employment

Working hours and days of work

Payment Details

Salary or wage, or the rate and method of calculating wages

Rate for overtime

Any other cash payments

Any payments in kind and their value

Frequency of payment

Any deductions

Value and payment for any food or accommodation

Leave Details

Any leave to which the worker is entitled

Notice/Contract Period

Period of notice required

Period of contract

This document must be updated if any details change.

An employer must keep a copy of this document while the worker is employed, and for 3 years thereafter.

If a worker is unable to understand the contract the employer is to explain the information in a way that the farm worker understands.