Ch.09

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 and Site Locations Chapter 7 and 8

Retail Market and Financial Strategy Chapter 5, 6 Organizational Structure and Human Resource Management Chapter 9 Information and Distribution Systems Chapter 10 PPT 9-3

Customer Relationship Management Chapter 11

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 Control

• Diverse Backgrounds

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 Prevent Shrinkage

Motivate Maintain Facilities

Sell Merchandise

Train Employees

Provide Services

Take Inventory

Plan Schedules Evaluate Performance PPT 9-12

Hire Personnel Display Merchandise

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

Ability

Effort

Role 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 and Company Goals

• Employees Only Focus on Sales

• Strong Motivating Force

PPT 9-25

• Less Commitment to Retailer

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

PPT 9-39

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

(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

PPT 9-40

Can

(None)

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

PPT 9-41

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

PPT 9-42

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.

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

PPT 9-46

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.

PPT 9-47