Retail Mgmt Ch 16

Card Set Information

Retail Mgmt Ch 16
2012-05-18 19:51:26
Managing Store

FIT Retail Management Final
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  1. Strategic importance of store management
    • 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
  2. Store managers' responsibilities
    • 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
  3. Steps in employment management process
    • 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
  4. Recruiting and selecting emloyees
    • Undertake job analysis
    • Prepare job description
    • Locate prospective employees
    • Screen candidates
    • Select employees
  5. Training store employees
    • Structured program
    • On-the-job learning experiences
    • E-training
    • Blended approach
    • Analyzing successes and failures
  6. Leadership
    Process by which one person attempts to influence another to accomplish some goal or goals
  7. Leader behaviors
    • 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
  8. Leader decision making
    • Autocratic leader
    • Democratic leader
  9. Transformational leaders
    Get people to transcend their personal needs for the sake of the group and generate excitement
  10. Autocratic leader
    Makes all decisions on his or her own and then announces them to employees
  11. Democratic leader
    Seeks information and opinions from employees and bases decisions on this information
  12. We set goals because employee performance improves when employees feel....
    • 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
  13. Individualized motivation programs
    • Impact of goals differs across people
    • Difference people seek different rewards and compensation plans
  14. Important for store managers to...
    • Maintain employee morale
    • Evaluate employees
    • Provide feedback to employees
  15. Employee evaluation
    • 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)
  16. Common evaluation errors
    • 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
  17. Extrinsic rewards
    • Provided by either the employee's manager or the firm
    • Includes compensation, promotion, and recognition
  18. Intrinsic rewards
    • Rewards employees get personally from doing their job well
    • When employees do their job well because they think it is challenging and fun
  19. Job enrichment
    The redesign of a job to include a greater range of tasks and responsibilities
  20. Compensation programs
    • Effective for motivating and retaining employees when the employees feel the plan is fair
    • Straigh salary compensation
    • Incentive compensation plans (commision)
    • Group incentives
  21. A la carte plans
    An employee reward program giving employees a choice of rewards and thus tailoring the rewards to the desires of individual employees
  22. Incentive compensation plan
    Rewards employees on the basis of their productivity
  23. Costs controlled by store managers
    • Labor, scheduling
    • Maintenance
    • Inventory shrinkage
    • Energy, heating, lighting
  24. Shrinkage
    (Book inventory - Actual inventory) / Sales
  25. Sources of inventory shrinkage
    • Employee theft - 47%
    • Shoplifting - 32%
    • Mistakes and inaccurate records - 14%
    • Vendor errors - 4%
    • Unaccounted - 3%
  26. Detecing and preventing shoplifting
    • Store design
    • Merchandise policies
    • Security measures
    • Personnel policies
    • Employee training
    • Prosecution
  27. Reducing employee theft
    • Trusting, supportive work atmosphere
    • Employee screening
    • Security policies and control systems
    • Employee theft is an HR problem
  28. Equal Employment Opportunity Commission (EEOC)
    • Legal action against employers that violate Title VII for the Civil Rights Act
    • Title VII prohibits discrimination in company personnel practices
  29. Age Discrimination and Employment Act
    Makes it illegal to discriminate in hiring and termination decisions concerning people between the ages of 40 and 70 years
  30. Disparate impact
    • When an apparently neutral rule has an unjustified discriminatory effect
    • Ex: if a retailer requires high school graduation for all employees
  31. Americans with Disabilities Act (ADA)
    Protects people with disabilities from discrimination in employment, transportation, public accomodations, telecommunications, and the activities of state and local government
  32. Disparate treatment
    • 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