2.Hrm In Retail


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2.Hrm In Retail

  1. 1. Organization Structure & HRM In Retail By: Prof. Kamiya Khanna
  2. 2. Topics • HRM in Retail i.e. Issues & Concerns • Creating organizational Structures for a retail firm • Retail organization structures in • Single • Departmental • Independent Stores • Retail organization Design Issues
  3. 3. HRM in Retail “In today’s Era it is difficult to gain an edge through unique product offerings, since today’s customers has easy access to a wide selection of goods.” Retailers are striving to create a superior store experience for consumers – To increase sales & Customer Loyalty Two Major Retail Variable Assets are:  Inventory  Labour
  4. 4. Labour • Retailer’s single largest controllable expense • Workforce is Retailer’s Face to the customers • Through Employees Brand’s Deliver: • Customer Service & Experience • Revenue • Brand Differentiation
  5. 5. Organization Structures • Defines the Hierarchy Levels, the reporting relationships and the decision makers • Is the starting point for managing a business • Helps understanding various task to be performed and helps in understanding the roles to be played by people within the organization.
  6. 6. The Process of Organizing a Retail Firm
  7. 7. Identification of Tasks in Retail Organization Management Store Buying & Finance & Legal & HRM Marketing etc Operations Merchandising Accounts Administration
  8. 8. Planning and Assessing a Retail Organization: Factors to Consider
  9. 9. Planning and Assessing a Retail Organization: Factors to Consider
  10. 10. Planning and Assessing a Retail Organization: Factors to Consider
  11. 11. Organization Structure In Retail • Factors Influencing the creation of Organizational Structures: – Scope & Scale of Operation, Viz. Local, Regional, National or International – Types of Products Sold – Types of Departmentalization: Functional, Product Wise or Geographic
  12. 12. Organization Structure for Small/Single/Independent Retailers Owner/Manager Responsibilities Buying, Promotion, Sales, HR, Operational Control & General Management Back Office Staff External Advisors Responsibilities Sales Staff Accounting & Record keeping, Responsibilities Lawyers, CA, Data Entry, Inventory Control, Customer Service, Selling, Bankers, etc Purchase Orders, Time Keeping Stock Control, Display & & Payroll, Facilities Management Housekeeping
  13. 13. Organization Structures Used by Small Independents
  14. 14. Mazur Plan • In 1927, Paul Mazur recommended a functional organizational Structure. • As per Mazur organizational Structure should be built around 4 functions: – Control – Publicity – Operations – Merchandising Various Additions to it as per today’s World are: - Supply Chain Management - Logistics - HRM
  15. 15. Organization Structure for Departmental stores- Mazur plan
  16. 16. Organizational Format Used by Chain Stores
  17. 17. HRM In Retail • Hiring persons with Right Attitude is important in all organizations The HR Function in Retail Involves: 1. Identifying Various roles in organizations 2. Recruiting people with the right attitude to fit the jobs. 3. Training 4. Motivating Employees 5. Evaluating employee performance
  18. 18. Identifying Various roles in organizations • Helps in determining the No. of people involved for various jobs, the skill sets and educational background needed, location • Key Tasks in retail organization Involve  Buying and Merchandising  Store Management & Operations  Technology Support
  19. 19. Training • Need of Training arises at following Times: – Induction – Sales Staff in direct contact with customers – Communication Knowledge – Product Knowledge – Company Policies on Return – Knowledge of the workplace – Market Awareness – Personal Grooming – Skill enhancements
  20. 20. Motivating Employees • Key Factors that help in Motivating People are: – The Organizational Culture – The Rewards & Recognition – The Monetary Benefits – Prospects of Growth and Job Enrichment
  21. 21. Role of HRM in Retail Role of HRM in Retail
  22. 22. Retail Organization Design Issues 1. The Degree to which decision making is centralized or decentralized. 2. Approaches used to co-ordinate merchandise and Store Management.
  23. 23. Centralization Versus Decentralization Centralization is when authority for retailing decisions is delegated to corporate managers rather than to geographically dispersed regional, district, and Store Managers. Decentralization is when authority for retail decisions is assigned to lower levels in the organization.
  24. 24. Advantages of Centralization 1. Reduction in Costs - Overheads Fall as fewer managers are required to make the Merchandise , HR, Marketing and Financial Decisions. - The no. of buyers reduce, Reduction of personnel in administrative functions such as marketing and Human Resource. 2. Coordinating buying achieves lower prices from suppliers. - As large Quantities can be ordered together • Provides an opportunity to have best people make decisions for the entire corporation.
  25. 25. Advantages of Centralization 4. Centralization increases efficiency - Standard operating policies are used for store and personnel management; these policies limit the decisions made by store managers. For e.g.: Corporate merchandisers do considerable research to determine the best method of presenting merchandise.
  26. 26. Disadvantages of Centralization 1. Makes it more difficult for a retailer to adapt to local market conditions. 2. Cannot Tailor merchandise to local needs 3. Cannot respond to local competition and labor markets. 4. Pricing is centrally established, individual stores may not be able to respond quickly to competition in their markets. 5. Centralized personnel policies can make it hard for local managers to pay competitive wages in their area to hire appropriate salespeople.