Retail Mgmt ch 9

  1. Why does HRM give a sustainable competitive advantage?
    • Labor costs are a high for retailers
    • Employees shape customer experiences
    • Difficult for competition to duplicate
  2. Short term objectives of HRM
    Increasing employee productivity (sales / # of employees)
  3. Long term objectives of HRM
    • Employee attitude -> customer satisfaction & loyalty -> long-term performance
    • Increasing employee satisfaction reduces turnover
  4. Factors leading to high employee turnover
    • Long hours
    • Peak sales periods
    • Emphasis on cost control
    • Unskilled employees
    • Part-time employees
  5. Downward performance spiral
    • When profits are low and costs are high, retailers start implementing layoffs or salary freezes, which lead to employees with decreased motivation and poor customer service.
  6. Issues in HRM: expense control
    • Retailers often hire people with little or no experience
    • Investing in hiring more staff may result in a significant increase in sales
  7. Issues in HRM: part-time exmployees
    • To minimize costs, retailers should complement FT employees with PT
    • PT employees are less expensive
  8. Issues in HRM: utilizing diverse employee groups
    • Recruit mature, minority, and handicapped workers
    • Younger & older employees must be managed differently
  9. Issues in HRM: international HR
    • Differences in work values, economic systems, and labor laws = different HR practices
    • A country's legal/political system often dictates the HRM practices
  10. Organizational structure
    • Identifies the activities to be performed by specific employees
    • Determines the lines of authority and responsibility in the firm
  11. Disdvantages of centralization
    • Difficult to adapt to local market conditions
    • May have problems responding to local competition and labor markets
    • Personnel policies make it hard for local managers to pay competitive wages
  12. Advantages of decentralization
    • Reduce costs (fewer managers = lower overhead)
    • Coordinated buying achieves lower prices from suppliers
    • Opportunity to have the best people make decisions for the entire corporation
    • Increases efficiency
  13. Employee talent war
    • Retailers compete for effective employees and managers
    • Develop programs to attract, develop, motivate, and keep talent
  14. Attracting talent
    • Employment marketing (branding) programs that attract the "best and brightest" potential employees
    • ex: Starbucks - "Love What You Do"
  15. Developing talent: selective hiring
    Recruit the "right" people
  16. Developing talent: training
    • Increasing investments in management training programs and developing leaders
    • Increasing attention to college grads
  17. Motivating talent
    • Policies & supervision: indicate what employees should do (enforced by managers)
    • Incentives (commission, bonus, stock options)
    • Organization culture: the set of values, traditions, and customs of a firm that guides employee behavior (enforced by social pressure)
  18. Use of incentives
    • Advantages: strong motivating force that aligns employee company goals
    • Disadvantages: employees only focus on sales and have less commitment to the retailer
  19. Keeping talent
    • Managers empower employees by sharing their power and decision-making authority
    • Create partnering relationships with employees by reducing status differences and promoting from within
  20. Intrinsic motivation
    Motivated by own self-worth
  21. Extrinsiic motivation
    Outward motivation from incentives and benefits
  22. Legal issues in HRM
    • (1) Equal employment opportunity (discrimination)
    • (2) Compensation (minimum wage, overtime)
    • (3) Labor relations (unions)
    • (4) Employee safety and health
    • (5) Sexual harassment
    • (6) Employee privacy
Card Set
Retail Mgmt ch 9
ch 9