Retail Mgmt Ch 16

• Build strategic advantage - unique merchandise, customer service
• Difficulty of store manager's job - manage diverse set of unskilled people, tailor merchandise & presentation to local community

• Varies dramatically by type of retailers: specialty vs. department
• Responsible for two critical assets: people (sales/employees) and real estate (sales/sq foot)
• Manage store employees
• Control costs
• Manage merchandise
• Provide customer service

• 1) Recruit and select employees
• 2) Socialize and train new employees
• 3) Motivate and manage employees to achieve store performance goals
• 4) Evaluate employee performance and provide feedback
• 5) Compensate and reward employees

• Undertake job analysis
• Prepare job description
• Locate prospective employees
• Screen candidates
• Select employees

• Structured program
• On-the-job learning experiences
• E-training
• Blended approach
• Analyzing successes and failures

Process by which one person attempts to influence another to accomplish some goal or goals

• Task performance behaviors: planning, organizing, motivating, evaluating, coordinate store employees' activities
• Group maintenance: activities undertaken to make sure that employees are satisfied and work well together

• Autocratic leader
• Democratic leader

Get people to transcend their personal needs for the sake of the group and generate excitement

Makes all decisions on his or her own and then announces them to employees

Seeks information and opinions from employees and bases decisions on this information

• That their afforts will enable them to achieve the goals set for them by their managers
• That they'll receive rewards they value if they achieve their goals

• Impact of goals differs across people
• Difference people seek different rewards and compensation plans

• Maintain employee morale
• Evaluate employees
• Provide feedback to employees

• Designed by HR and done by immediate supervisors
• Done annually or semi-annually
• Feedback from evaluations is most effective method for improving employee skills
• Objective measures (sales, margin, shrinkage)
• Subjective measures (supervisors' evaluations)

• Strictness: too negative
• Leniency: too positive
• Haloing: same rating on all aspects of evaluation
• Recency: too much weight on recent events rather than entire period
• Contrast: evaluation influenced by evaluation of peers
• Attributions: errors in identifying causes of the salesperson's performance

• Provided by either the employee's manager or the firm
• Includes compensation, promotion, and recognition

• Rewards employees get personally from doing their job well
• When employees do their job well because they think it is challenging and fun

The redesign of a job to include a greater range of tasks and responsibilities

• Effective for motivating and retaining employees when the employees feel the plan is fair
• Straigh salary compensation
• Incentive compensation plans (commision)
• Group incentives

An employee reward program giving employees a choice of rewards and thus tailoring the rewards to the desires of individual employees

Rewards employees on the basis of their productivity

• Labor, scheduling
• Maintenance
• Inventory shrinkage
• Energy, heating, lighting

(Book inventory - Actual inventory) / Sales

• Employee theft - 47%
• Shoplifting - 32%
• Mistakes and inaccurate records - 14%
• Vendor errors - 4%
• Unaccounted - 3%

• Store design
• Merchandise policies
• Security measures
• Personnel policies
• Employee training
• Prosecution

• Trusting, supportive work atmosphere
• Employee screening
• Security policies and control systems
• Employee theft is an HR problem

• Legal action against employers that violate Title VII for the Civil Rights Act
• Title VII prohibits discrimination in company personnel practices

Makes it illegal to discriminate in hiring and termination decisions concerning people between the ages of 40 and 70 years

• When an apparently neutral rule has an unjustified discriminatory effect
• Ex: if a retailer requires high school graduation for all employees

Protects people with disabilities from discrimination in employment, transportation, public accomodations, telecommunications, and the activities of state and local government

• When members of a protected class are treated differently from nonmembers of that class
• Ex: If a qualified woman does not receive a promotion given to a lesser-qualified man