CTE 3806 Study Guide Chapter 9 Human Resource Management Competitive advantage Labor costs account for a signi cant percentage of a retailer s total expenses The customer experiences are determined by the activities of employees selecting merchandise providing information and assistance etc These potential advantages are dif cult for competitors to duplicate Objectives Short term increasing employee productivity Productivity sales employees Long term employee attitude leads to customer satisfaction and loyalty Increasing employee satisfaction reducing turnover Employee turnover employees leaving job during year positions Problem employee turnover 60 rst timers quit within a year full time even higher for part time Maintaining employees is important part of human resources Employee Productivity how hard they work how much they produce reward people who do high sales Employee engagement an emotional commitment by an employee to the organization and its goals Challenges open long hours peak sales periods cost control employees unskilled part time high turnover Issues Expense Control Control expenses to be pro table Retailers often hire people with little or no experience A modest investment in hiring more staff may result in a signi cant increase in sales Utilizing Diverse Employee Groups Increased efforts to recruit train manage and retain mature minority and handicapped workers Different approaches need to be used to manage younger and older employees International Human Resource Issues Differences in work values economic systems and labor laws mean that HR practices must differ The legal political system in countries often dictates the human resource management practices Organizational structure Identi es the activities to be performed by speci c employees and determines the lines of authority and responsibility in the rm The design of the organization structure needs to match the rm s retail strategy Top management board of directors develop retail strategy identify target market retail format private label merchandise organizational structure internet catalog strategy global strategy Merchandise division buy merchandise place orders control inventory budget allocate to stores price merchandise recruit hire and train evaluate performance display sell repair and alter handle customer physical inventory Stores division Corporate marketing manage human resources manage supply chain nancial visual merchandise info systems general counsel CEO responsible for overseeing entire organization Senior VP of merchandise works with buyers and planners to develop and coordinate the management of the retailer s merchandise offering and ensure that it is consistent with the rm s strategy Senior vice president SVP of stores supervises all activities related to stores including working with the regional managers who supervise district managers who supervise the individual store managers Chief operations of cer COO oversees managers in charge of management information systems MISs supply chain human resources and visual merchandising Chief marketing of cer CMO works with staff to develop advertising and promotion programs Chief nancial of cer CFO works with the CEO on nancial issues such as equity debt structure and credit card operations Centralization Advantages dif cult to adapt local market conditions problems responding to local competition hard to pay competitive wages Disadvantages reduce costs lower prices from suppliers best people making decisions increase ef ciency Employment marketing branding marketing programs that attract best and brightest potential employees Make employees happy parking spaces free vouchers free uniforms dry cleaning pro t sharing company does well they get a bonus gives incentive Selective Hiring Recruit the right people Training Simply seeking the best and the brightest may not always be the most effective approach Increasing investments in management training programs and developing leaders Increasing attention to college graduates Generation Y Policies and Supervision Indicate what employees should do Behavior enforced by managers Incentives Commission Bonus Stock Options Organization Culture Behavior enforced by social pressure The set of values traditions and customs of a rm that guides employee behavior Empowering Employees empowerment is the process of managers sharing power and decision making authority with employees Gives employees con dence Provides greater opportunity to provide service to customers Employees are more committed to rm s success Creating Partnering Relationships with Employees Reducing Status Differences Promotion From Within Balancing Careers and Families Managing Diversity Human resource management activity designed to realize the bene ts of a diverse workforce which includes but is not limited to skin color nationality gender sexual orientation and people with disabilities Support Groups and Mentoring Groups of minority employees that exchange information and provide emotional and career support Legal issues equal employment compensation overtime labor relations unions safety sexual harassment privacy Chapter 10 Info systems supply chain management Ef cient and effectively manage the ow of merchandise from the vendors to the retailer s customers Integration of suppliers manufacturers warehouses stores and transportation intermediaries into a seamless value chain Merchandise is produced and distributed in the right quantities to the right locations Minimization of system wide costs while satisfying the service levels their customers and at the right time require Strategic Importance increase sales by making sure right product right place at right time greater assortment less inventory reduce costs improved ROA Zara s strategic advantage communication from stores to corporate fast shorter time from design to production to delivery shorter lead time no discounts necessary Bene ts of supply chain management to customers reduced stockouts merch available when customer wants it tailoring assortments right merch available at right store Ef cient Supply Chain Management leads to Increased Sales from more attractive assortments in stock Improved Net Pro t Margins from increased gross margin and lowered expenses Lowered inventory from less backup inventory in stock and higher asset inventory turnover Information Flows ex Flow 1 When a customer purchases a toaster oven sales associate scans UPC universal product code code on merchandise and