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Retail Organization

& HRMCHAPTER 11

PART ONE

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Chapter topics

The organizational structure

Process of organizing

Retail tasks

Classifying jobs

Hierarchical chartsHuman resource environment

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Setting up a retail organization

Identify needs of

Target marketEmployee needs

Management needs

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Target Market Needs

Sufficient personnel

Personnel knowledgeable & courteous

Facilities well maintained

Branch store customers needs met?

Are changing needs promptly met?

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Employee needs

Offer challenging & satisfying

positions

Orderly promotion program

Participative decision making

Channels of communication

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Employee needs

Authority/responsibility

relationship clear

Fair treatment of employees

Reward performance

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Management needs

Easy to obtain & retail competent

personnel

Personnel procedures

Line of authority

Span of authority

Support staff

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Management needs

Levels of organization developed

well

Organizations plans well

integrated

Motivated employees

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Management needs

Low absenteeism

Policies on replacing personnelFlexibility &adaptive nature of

organization

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Organizing the firm

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Process of organizing firm

Outlining the specific tasks

to be performed in a retail distribution

channel

Divide tasks among channel

members & customers

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Process of organizing firm

Group retailing tasks into jobs

Classify jobs

Integrate positions in an org. chart

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Principles for organizing

Employee interest, training, &

promotions

Employee turnover & absenteeism

Line of authority

Reporting levels

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Principles for organizing

Span of control

Mgmt & delegation power

Supervisory responsibility

Communication speed & levels

Informal vs. formal relationships &

authority

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Retail tasks

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Retail tasks to be performed

Buying merchandise

Shipping merchandiseReceiving merchandise

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Retail tasks to be performed

Check incoming shipments

Setting pricesMarking merchandise

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Retail tasks

Inventory storage & control

Displays (window & instore)Facilities maintenance

Customer research

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Retail tasks

Customer contact

Customer follow-upCustomer complaint handling

Personnel management

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Retail tasks

Repairs & alterations

Billing customers

Handling receipts & financial

records

Credit operations

Gift wrapping

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Retail tasks

Delivery to customers

Return to Vendors

unsold/damaged mdse

Sales forecasting

Budgeting

coordination

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Division of tasks: retailer

Can perform all or some of tasks

in distribution channel

From buying mdse to coordination

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Division of tasks: wholesale/MFG

Takes care of few or many

functions

Shipping

Marking mdse

Inventory storage

Display

research

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Division of tasks: specialists

Buying office

Delivery firms

Warehouse

Marketing

research

Ad agency

Accountant

Credit bureau

Computer

service

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Division of tasks: customer

Responsible for:

Delivery

Credit

Sales effort (self service)

Satisfaction (DI)

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Classifying jobs

&the hierarchical

charts

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Classifying jobs4 ways

Functional

Sales, buying, store operations

Product

Hires personnel for different products

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Classifying jobs4 ways

Geographic

Where store is located & local

issues

Combinations

HQ vs. branch hires

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Organizational charts: Functional

Hierarchy of authority

Vice President of operations

Sales promotion mgrMdse mgr

Personnel mgr

Store operations controller

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PRODUCT org chart

Store mgr

Mens outerwear mgr.

Ladies outerwear mgr.

Lingerie mgr

Appliance mgr.

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Geographic chart

Vice President of stores

Location A store manager

Location B store manager

Location C store manager

Location D store manager

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Combination chart

See page 332

Figure 11-5

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Small independent charts

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Mazur Plan(see fig 11-7p. 334)

Divides retail activities into 4 functions

Merchandising

Publicity

Store management

Accounting & control

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Equal store vs. Separate store org.

Equal Store

Used by chains

Centralized buying Branches = sales

units

Most popular

Separate store

Each branch has

own buyingresponsibilities

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Part 2human resources

On another set of slides