human resources 9.1 key issues store operation the productivity cycle burnout & rustout ...
TRANSCRIPT
Human Resources 9.1
Key Issues
Store operation The productivity cycle Burnout & rustout Motivating employees Personnel functional areas Compensation plans; benefits &
disadvantages of each
Human Resources 9.2
Personnel Functional Areas
Merchandise Divisiondesign, negotiate, buy
merchandisedetermine inventory levels
Stores Divisionstore operationsstore merchandising
Marketing Divisionadvertising/promotionvisual display, special events
Human Resources Divisionrecruit, select, train,
compensate
Finance Divisionmaintain records, budgetsmanage MIS department
Operations Divisionloss preventiondistribution centers
Human Resources 9.3
Store Operations & HR Tasks
Utilization of personnelUtilization of personnel Store format & sizeStore format & size Space allocationSpace allocation Store maintenanceStore maintenance Energy managementEnergy management Inventory managementInventory management Store securityStore security InsuranceInsurance Credit managementCredit management
Human Resources 9.4
Objectives ofHR Management
Short Term Increasing customer satisfaction Increasing Employee Productivity Productivity = Revenue per employee
Long-Term Increasing Employee Satisfaction
Reducing Turnover
Human Resources 9.5
HR Management Challenges in Retailing
Work Environment Open Long Hours Peak Sales Periods Emphasis on Cost
Control
Employees Unskilled Part-Time Diverse Backgrounds
Human Resources 9.6
Our Burnout StudyWork Week & Income
two-stage cluster sample selection of schools (14 schools)
selection of graduates
graduated within the previous 15 years
mail administration of questionnaire
mail-out sample of 7266 individual graduates
final sample of 1418 (19.5% return rate)
A sample of U.S. business-school graduates
Human Resources 9.7
Our Burnout StudyWork Week & Income
47.2
3.5
50.0
5.7
48.9
5.8
48.3
5.0
0
10
20
30
40
50
60
Mean Work Week Mean Annual Income
Store Retail
Corp. Retail
Bus. Sales
Mktg. Mgmt.
Income category
Mean hours per week
Human Resources 9.8
Our Burnout StudyJob Characteristics on …
2.5
3
3.5
4
4.5
Store Retail
Corp. Retail
Bus. Sales
Mktg. Mgmt.
1 =
Low
… 5
= H
igh
Human Resources 9.9
Our Burnout StudyJob Satisfaction with …
2.5
3
3.5
4
4.5
Store Retail
Corp. Retail
Bus. Sales
Mktg. Mgmt.
1 =
Low
… 5
= H
igh
Human Resources 9.10
Our Burnout StudyJob Stress & Burnout
1 =
Low
… 5
= H
igh
2.5
3
3.5
4
4.5
Store Retail
Corp. Retail
Bus. Sales
Mktg. Mgmt.
Store retailing jobs: not “burnout” but “rust-out”
What do you see here?
Human Resources 9.11
Downward Performance Spiral
Financial Performance ProblemsLow profits
High costs
Retailer’s ResponseLayoffs
Freeze on hiring & promotionReduced training
Salary freezeUse more part-time workers
Human Resources 9.12
Increasing Employee Productivity
Ability Effort Role Clarity
Selection
Training
Motivation
Goals
Incentives
Rewards
Policies, Rules
Incentives
Org Culture
Human Resources 9.13
Motivating and Controlling Employees
Policies and SupervisionBehavior Enforced by
Managers Incentives
Commission, Bonus Organization Culture
unwritten rules, normsbehavior enforced by
social pressure
Human Resources 9.14
Developing an Organizational Culture
Stories Nordstrom – Hero Service Stores Wal-Mart – Saturday Meeting
Symbols McDonald’s – Ronald McDonald
CEO Leadership Wal-Mart – Sam Walton Dell – Michael Dell
Human Resources 9.15
Organizational Design Considerations
Specialization
Responsibility and Authority
Reporting Relationships
Defined by Organization Structure
Human Resources 9.16
Strategic Management Tasks Performed in a Retail Firm
Human Resources 9.17
Merchandise Management Tasks Performed in a Retail Firm
Human Resources 9.18
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
Human Resources 9.19
Administrative Management Tasks Performed in a Retail Firm
Promote the Firm, its Merchandise and
its Services
Manage Human Resources
Distribute Merchandise
Establish Financial Control
Human Resources 9.20
Assignment of Responsibilityfor Tasks
Strategic – Top Management, Board of
Directors
Merchandise Management – Merchandise
Division
Store Management – Stores Division
Administrative – Corporate Specialists
Human Resources 9.21
Department Store Organization
Human Resources 9.22
Corporate Organization: Federated Stores
And now … May Company
Human Resources 9.23
WSJ 2/28/05
Video… and Meier & Frank
Human Resources 9.24
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
Human Resources 9.25
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
Human Resources 9.26
Compensation Plans
PlanPlan
WhenWhen
Office staff,Non-tech.,Staple/low cost items
Office staff,Non-tech.,Staple/low cost items
AdvantagesAdvantages DisadvantagesDisadvantages
ControlSecurity
Low turnover
ControlSecurity
Low turnover
Low incentiveHard to administerCan be equitable
Low incentiveHard to administerCan be equitable
Coats,Shoes,
Jewelry,Major HH
Coats,Shoes,
Jewelry,Major HH
High incentiveEquitable
Good cost controlEasy to understand
High incentiveEquitable
Good cost controlEasy to understand
Little controlNo security
Cherry pickingPoor customer service
Little controlNo security
Cherry pickingPoor customer service