14278623 Hr Services in Retail

8/6/2019 14278623 Hr Services in Retail

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HR SERVICES IN RETAIL MANAGEMENT

DEFINITION AND SCOPE OF RETAILING:

The word retail is derived from the French word retailer meaning to cut a pieceoff or to break bulk. In simple terms, it implies a first-hand transaction withthe customer.

Retailing can be defined as the buying and selling of goods and services. It canalso be defined as the timely delivery of goods and services demanded by consumersat prices that are competitive and affordable.

Retailing involves a direct interface with the customer and the coordination ofbusiness activities from end to end- right from the concept or design stage of aproduct or offering, to its delivery and post-delivery service to the customer.The industry has contributed to the economic growth of many countries and isundoubtedly one of the fastest changing and dynamic industries in the world today.

TYPES OF RETAIL OPERATIONS:

Retail operations enable a store to function smoothly without any hindrances. Thesignificant types of retail operations consist of:

- Department store- Specialty store- Discount/Mass Merchandisers- Warehouse/Wholesale clubs- Factory outlet

Retail Management System targets small and midsize retailers seeking to automatetheir stores. The package runs on personal computers to manage a range of storeoperations and customer marketing tasks, including point of sale; operations;

inventory control and tracking; pricing; sales and promotions; customer managementand marketing; employee management; customized reports; and information security.

THE EMERGING SECTORS IN RETAILING:

Retailing, one of the largest sectors in the global economy, is going through atransition phase not only in India but the world over. For a long time, the cornergrocery store was the only choice available to the consumer, especially in theurban areas. This is slowly giving way to international formats of retailing. Thetraditional food and grocery segment has seen the emergence ofsupermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar), conveniencestores (Convenio, HP Speedmart) and fast-food chains.It is the non-food segment, however that foray has been made into a variety of new

sectors. These include lifestyle/fashion segments (Shoppers' Stop, Globus,LifeStyle, Westside), apparel/accessories (Pantaloon, Levis, Reebok),books/music/gifts (Archies, MusicWorld, Crosswords, Landmark), appliances andconsumer durables (Viveks, Jainsons, Vasant & Co.), drugs and pharmacy (Health andGlow, Apollo).

The emergence of new sectors has been accompanied by changes in existing formatsas well as the beginning of new formats:

- Hypermarts



-Large supermarkets, typically 3,500-5,000 sq. ft.- Mini supermarkets, typically 1,000-2,000 sq. ft.- Convenience stores, typically 750-1,000sq. ft.- Discount/shopping list grocerThe traditional grocers, by introducing self-service formats as well as value-added services such as credit and home delivery, have tried to redefinethemselves. However, the boom in retailing has been confined primarily to theurban markets in the country. Even there, large chunks are yet to feel the impact

of organized retailing. There are two primary reasons for this. First, the modernretailer is yet to feel the saturation' effect in the urban market and has,therefore, probably not looked at the other markets as seriously. Second, themodern retailing trend, despite its cost-effectiveness, has come to be identifiedwith lifestyles.

In order to appeal to all classes of the society, retail stores would have toidentify with different lifestyles. In a sense, this trend is already visible withthe emergence of stores with an essentially `value for money' image. Theattractiveness of the other stores actually appeals to the existing affluent classas well as those who aspire for to be part of this class. Hence, one can assumethat the retailing revolution is emerging along the lines of the economicevolution of society.

RETAILING SCENARIO- GLOBAL VIEW:

Retailing in more developed countries is a big business and better organized thanwhat in India. According to a report published by McKinsey & Co. along with theConfederation of the Indian Industry the global retail business is a worth astaggering US$ 6.6 trillion. In the developed world, most of it is accounted forby the organized retail sector.

The service sector accounts for a large share of GDPin most developed economies.And the retail sector forms a very strong component of the service sector. Inshort, as long as people need to buy, retail will generate employment.Globally,retailing is a customer-centric with a emphasis on innovation in products,

processes and services.

With total sales of US$ 6.6 trilloin, retailing is the world is largest privateindustry, ahead of finance and engineering. Some of the world largest companiesare in this sector: over 50 Fortune, 500 companies and around 25 of the Asian Top200 firms and retailers. Wal-Mart, the world second largest retailer, has aturnover of US$ 260 billion, almost one-third of India GDP.

As many as 10% of the world billionaires are retailers. The industry accounts forover 8% of GDP in western countries, and is one of the largest employers.According to the U.S.Department of Labor, more than 22 million Americans are

employed in the retailing industry in over 2 million retail stores.

RETAIL INDUSTRY IN INDIA:

Retail is India’s largest industry, accounting for over 10 percent of thecountry’s GDP and around eight percent of employment. Retail in India is at thecrossroads. It has emerged as one of the most dynamic and fast paced industrieswith several players entering the market. That said, the heavy initial investmentsrequired make break even hard to achieve and many players have not tasted successto date. However, the future is promising; the market is growing, government



policies are becoming more favourable and emerging technologies are facilitatingoperations.Retailing in India is gradually inching its way to becoming the next boomindustry. The whole concept of shopping has altered in terms of format andconsumer buying behavior, ushering in a revolution in shopping. Modern retail hasentered India as seen in sprawling shopping centres, multi-storeyed malls and hugecomplexes offer shopping, entertainment and food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of organisedretail and growth in the consumption by Indians is going to adopt a higher growthtrajectory. The Indian population is witnessing a significant change in itsdemographics. A large young working population with median age of 24 years,nuclear families in urban areas, along with increasing working-women populationand emerging opportunities in the services sector are going to be the key growthdrivers of the organised retail sector.

Big in size and turnover, Indian retailing industry is characterised by certainattributes.

The network of retailers reaches every nook and corner of the country. So anyproduct produced anywhere in the country can be easily accessed by the buyers from

any location. Thus the spatial convenience of Indian retailers is vary high.

Secondly, in India the retailing industry is an unorganised lot consisting of, inmost of the cases, small entrepreneurs. And the virtual omnipresence of the Indianretailer can be attributed to these small entrepreneurs only.

The second attribute gives rise to the following characteristics- Power of the retailers, as such is very less, and in many cases it isnegligible. This weakness has been exploited by the manufacturers and the strongerpartners of the marketing channel. The retailers, in general, abide by the termsand conditions set by the manufacturers and other "big brothers" of the channel.

- The manufacturers cannot directly reach all retailers in a particular

geographical area. Therefore, the manufacturers cannot maintain the desiredrelationship with the retailers, which in turn, makes management of the channelcomplicated. This also makes the possibility of a direct feedback loop from theretailers almost remote.

- Therefore, the member operating between the manufacturers and retailers becomemore powerful as they can block the channel of communication between the two. Sothe dependence of retailers on other channel members increases to a high extent.Thus the participation of retailers in the flows of marketing mix becomes lowerthan desired.

- The financial strength of the Indian retailers, in general, is very low andhence the investment capabilities. This makes the retailers more dependent on the

other channel members.

- However, these characteristics are peculiar to the small retail outlets and maynot be present at every kind of retail level.

Retail Shopkeepers:

India has sometimes been called a nation of shopkeepers. This epithet has itsroots in the huge number of retail enterprises in India, which totalled over 12million in 2003. About 78% of these are small family businesses utilising onlyhousehold labour. Even among retail enterprises that employ hired workers, the



bulk of them use less than three workers.India's retail sector appears underdeveloped not only by the standards ofindustrialised countries but also in comparison with several other emergingmarkets in Asia and elsewhere. There are only 14 companies that run departmentstores and two with hypermarkets. While the number of businesses operatingsupermarkets is higher (385 in 2003), most of these had only one outlet. Thenumber of companies with supermarket chains was less than 10.

Retail Sales:

Retail sales, which amounted to about Rs7,400 billion in 2002, expanded at anaverage annual rate of 7% during 1999-2002. With the upturn in economic growthduring 2003, retail sales are also expected to expand at a higher pace of nearly10%.

In a developing country like India, a large chunk of consumer expenditure is onbasic necessities, especially food related items. Hence, it is not surprising thatfood, beverages and tobacco accounted for as much as 71% of retail sales in 2002.The remaining 29% of retail sales are non-food items. The share of food relateditems fell over the review period, down from 73% in 1999. This is to be expectedas, with income growth, Indians, like consumers elsewhere, spent more on non-food

items compared with food products.

Sales through supermarkets and department stores are small compared with overallretail sales. However, their sales grew much more rapidly (about 30% per year). Asa result, their sales almost tripled during this time. This high acceleration insales through modern retail formats is expected to continue during the next fewyears with the rapid growth in numbers of such outlets in response to consumerdemand and business potential.

Government Policy:

There has been vigorous opposition to foreign direct investment (FDI) in retailingfrom small traders who fear that foreign retailing companies would take away theirbusiness, lead to the closure of many small trading businesses and result inconsiderable unemployment. Given the political clout of the small tradingcommunity, because of their enormous numbers, the government has barred FDI inretailing since 1997. Hence, at present, foreign retailers can only enter theretailing sector through franchising agreements.

Growth of Retailing in India:

Indian retailing industry has seen phenomenal growth in the last five years (2001-2006). Organized retailing has finally emerged from the shadows of unorganized

retailing and is contributing significantly to the growth of Indian retail sector.

India Retail Sector Analysis (2006-2007) report helps clients to analyze theopportunities and factors critical to the success of retail industry in India.

- Organized retail will form 10% of total retailing by the end of this decade(2010).- From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53%per annum.- Cultural and regional differences in India are the biggest challenges in front



of retailers. This factor deters the retailers in India from adopting a singleretail format.- Hypermarket is emerging as the most favorable format for the time being inIndia.- The arrival of multinationals will further push the growth of hypermarketformat, as it is the best way to compete with unorganized retailing in India.

Technology Impact:

The other important aspect of retailing relates to technology. It is widely feltthat the key differentiator between the successful and not so successful retailersis primarily in the area of technology. Simultaneously, it will be technology thatwill help the organised retailer score over the unorganised players, giving bothcost and service advantages.Retailing is a `technology-intensive' industry. It is quoted that everyday atleast 500 gigabytes of data are transmitted via satellite from the 1,200 point-of-sales counters of JC Penney to its corporate headquarters. Successful retailerstoday work closely with their vendors to predict consumer demand, shorten leadtimes, reduce inventory holding and thereby, save cost. Wal-Mart pioneered theconcept of building a competitive advantage through distribution and informationsystems in the retailing industry. They introduced two innovative logistics

techniques - cross-docking and electronic data interchange.

Today, online systems link point-of-sales terminals to the main office wheredetailed analyses on sales by item, classification, stores or vendor are carriedout online. Besides vendors, the focus of the retailing sector is to develop thelink with the consumer. `Data Warehousing' is an established concept in theadvanced nations. With the help of `database retailing', information on existingand potential customers is tracked. Besides knowing what was purchased and bywhom, information on softer issues such as demographics and psychographics iscaptured.

Retailing, as discussed before, is at a nascent stage in our country. Mostorganised players have managed to put the front ends in place, but these are

relatively easy to copy. The relatively complicated information systems andunderlying technologies are in the process of being established. Most groceryretailers such as FoodWorld have started tracking consumer purchases through CRM.The lifestyle retailers through their `affinity clubs' and `reward clubs' areestablishing their processes. The traditional retailers will always continue toexist but organised retailers are working towards revamping their business toobtain strategic advantages at various levels - market, cost, knowledge andcustomer.

With differentiating strategies - value for money, shopping experience, variety,quality, discounts and advanced systems and technology in the back-end, change inthe equilibrium with manufacturers and a thorough understanding of the consumerbehaviour, the ground is all set for the organised retailers.

It would be important to note, however, that the retailing industry in India isstill a `protected industry'. It is one of the few sectors which still hasrestrictions on FDI. Given the current trend in liberalisation, it will not belong before the retailing sector is also thrown open to international competition.This will see a further segregation of the international retailing brands and thedomestic retailers, thereby injecting much greater dynamism into the market. Thatwill be when the real action will begin.

Major retailers in India:



- India’s top retailers are largely lifestyle, clothing and apparel stores.- This is followed by grocery stores.- Following the past trends and business models in the west retail giants such asPantaloon, Shoppers Stop and Lifestyle are likely to target metros and smallcities almost doubling their current number of stores.- These Wal-Mart wannabes have the economy of scale to be low medium costretailers pocketing narrow margin.

RETAILING SCENARIO-INDIA:

The retail scenario in India is unique. Much of its is in the unorganized sector,with over 12 million retail outlets of various sizes and formats. Almost 96% ofthese retail outlets are less than 500 sq.ft. in size, the per capita retail spacein India being 2 sq.ft. Compared to the US figure of 16 sq.ft. India’s per capitaretailing space is thus the lowest in the world. With more than 9 outlets per1,000people , India has the largest number in the world. Most of them are independentand contribute as much as 96% to total retail sales.

Because of the increasing number of nuclear families,working women, greater workpressure and increased commuting time, convenience has become a priority for

Indian consumers. They want everything under one roof for easy access andmultiplicity of choice. This offers an excellent opportunity for organizedretailers in the country who account for just 2% (and modern stores 0.5%) of theestimated US $180 billion worth of goods that are retailed in India every year.

The retail business in India in the year 2000 was Rs.400,000 crore and isestimated to go to Rs.800,000 crore by the year 2005, an annual increase of20%.The contribution of the organized retail industry in the year 2000 wasRs.20,000 crore and is likely to increase to Rs.160,000 crore by 2005.

GROWTH OF RETAIL OUTLETS IN INDIA:

India is rapidly evolving into a competitive marketplace with potential targetconsumers in the niche and middle class segments. The market trends indicatetremendous growth opportunities. Global majors too are showing a keen interest inthe Indian retail market. Over the years, international brands like Marks &Spencer, Samsonite, Lacoste, McDonald’s, Swarovski, among a host of others havecome into India through the franchise route following the relaxation of FDI(foreign direct investment ) restrictions. Large Indian companies among them theTata, Goenka and the Piramal groups are investing heavily in this industry.

Organizations ready to take on this challenge can leverage the opportunitiesoffered by a population of more than a billion. The prospects are veryencouraging. Buying behaviour and lifestyles in India too are changing and the

concept of ï¿½Value for Moneyï¿½ is fast catching on in Indian retailing. This isevident from the expansion of the pantaloons chain into a large value format, BigBazaar, and the entry of new discount stores in food retailing in the South,namely, Subhiksha and Margin Free.

According to a report by the Centre for Monitoring Indian Economy (CMIE),investments in organized retailing which include shopping malls, retail chainsetc.- doubled from Rs.1,000 crore in January 2000 to Rs. 2,000 crore in January2001.



TRENDS IN RETAILING:

The single most important evolution that took place along with the retailingrevolution was the rise and fall of the dotcom companies. A sudden concept of`non-store' shopping emerged, which threatened to take away the potential of thestore. More importantly, the very nature of the customer segment being addressedwas almost the same. The computer-savvy individual was also a sub-segment of the

`store' frequenting traffic.

Internationally, the concept of Net shopping is yet to be proven. And the poorfinancial performance of most of the companies offering virtual shopping hasresulted in store-based retailing regaining the upper hand. Other forms of non-store shopping including various formats such as catalogue/mail order shopping,direct selling, and so on are growing rapidly. However, the size of the directmarket industry is too limited to deter the retailers. For all the conveniencethat it offers, electronic retailing does not suit products where `look and see'attributes are of importance, as in apparel, or where the value is very high, suchas jewellery, or where the performance has to be tested, as of consumer durables.The most critical issue in electronic retailing, especially in a country such asours, relates to payments and the various security issues involved.

RECENT TRENDS INCLUDE:

- Retailing in India is witnessing a huge revamping exercise.- India is rated the fifth most attractive emerging retail market: a potentialgoldmine.- Estimated to be US$ 200 billion, of which organized retailing (i.e. moderntrade) makes up 3 percent or US$ 6.4 billion.- As per a report by KPMG the annual growth of department stores is estimated at24%.- Ranked second in a Global Retail Development Index of 30 developing countriesdrawn up by AT Kearney.

CHANGING TRENDS IN RETAILING:

By the turn of the 20th century, the face of the Indian retailing industry hadchanged significantly. The retailing industry, which, until the early 1990s, wasdominated by the unorganized sector, witnessed a rapid growth in the organizedsector with the entry of corporate groups such as Tata, RPG, ITC and BennettColeman & Company into the retailing market.

With the liberalization and growth of the Indian economy since the early 1990s,the Indian customer witnessed an increasing exposure to new domestic and foreignproducts through different media, such as television and the Internet. Apart fromthis, social changes also had a positive impact, leading to the rapid growth inthe retailing industry. Increased availability of retail space, rapidurbanization, and qualified manpower also boosted the growth of the organizedretailing sector.

Food retailing was a key area that saw some action at the national level, withplayers like Foodworld and Subhiksha, establishing stores all over India. Whilesupermarket and departmental chains replaced traditional grocery and general store



formats, introduction of fast foods (McDonalds), packaged foods (MTR, Namma MTR),vending machines and specialty beverage parlors (Nescafe, Tata Tea, and Barista)brought about significant changes in the eating habits of Indian consumers.

However, it was the non-food sector that saw tremendous action, with theintroduction of new product segments. These segments mainly comprisedlifestyle/apparel/ fashion/accessories (eg. Shoppers Stop, Westside, Lifestyle,Pantaloons, Reebok), books/music (Landmark and Crosswords), drugs and pharmacy and

beauty (Health & Glow, CavinKare and Shahnaz Husain). The emergence of newsegments also resulted in new store formats, including hypermarts, largesupermarkets (3,500-5,000 sq.ft), mini supermarkets (1,000-2,000 sq.ft),convenience stores (750-1000 sq.ft) and discount/shopping/grocer.

According to reports, organized retailing, which accounted for about 6% of thetotal retail industry in 1999, was expected to increase to about 20% by 2005. InOctober 2003, the total organized retail market in India was valued at about Rs.200 bn and was estimated to grow eightfold in the next decade.

SUGGESTIONS:

To make Indian retailing world class many a challenges are to be overcome by theindustry. Some suggestions to improve the situation are offered below.

Establishment of Retailer co-operatives, which will maintain warehouses etc. towork as a distribution centre for the member retailers can help Indian retailerattain a respectable position in the relationship matrix mentioned above. Thewhole organisation will run at a no-profit, no-loss basis. This would enable theretailers to buy the products they want directly from the original manufacturersin huge quantity This would make the application of the concepts of QR (QuickResponse) and ECR (Efficient Consumer Response ) possible to a certain extent..However, many inherent difficulties may make the functioning or even establishment

of such a co-operative difficult. Nevertheless, these problems are inevitable andmust be dealt with firmly.

Merger and buy-out of weak retailers by a stronger one, specially in metros andbig cities may be another step towards this direction. This would give the newretailer the desired leverage to be world class.

Use of technology to the greatest extent possible may also help strengthening theretailerï¿½s position in the marketing channel. First step may be taken withsetting up of a network of independent firms believing in use of technology forbusiness excellence. Then a collection of strong retail organisations maypressurise the suppliers and other channel members to use compatible technology.This may open the door for implementation of QR or ECR or other relevant concepts

for the retailers.

An overall change is to bring about in the mindset of the retailers. They willhave to think differently. They must find out and satisfy service outputs of thetarget customers Unless there is a drastic change in the mindset of at least largeand medium retailers and as well as that of the manufacturers, the required changeis not going to come by easily. The retailers must learn and understand to leadthe chain from the front.

Setting up of more and more non-store retailing centers would also ensure a strongretailing organisation. Non-store retailing makes implementation of modern



principles easier and less costlier.

Setting up of franchisee organisation may also help in strengthening the positionof the retailers. The franchiser can exert a tremendous control over the wayretailing is done. Transnational service organisation like McDonald and KFC arebeing able to offer a centralised control over purchase and operation. Large andmedium sized retailers may take up the concept of franchising to reach the marketin a more meaningful way. Though the management of franchisee network is difficult

than managing a retail chain in view of high level of investment and otherobligations, Indian retailers should spread out its wings its in this profitableand efficient way.

CONCLUSION:

Indian retailing, thus enjoys many unique features, is still done in a primitiveway. Barring a few exceptions, Indian retailers, particularly FMCG retailers, arenot in a position to implement world-class practices of supply chain management.The concepts of Quick Response or Efficient Consumer Response are unheard of inIndian retailing. The two bases of modern retailing management, the ElectronicData Interface and a mutually respectable partnership among retailers and

suppliers (the manufacturers) are missing to a great extent in Indian context.Also, Indian marketing channel members are performing some unnecessary tasks,which makes the channel structure heavy and inefficient. Though theseinefficiencies are observed in all retailing irrespective of industry, thesymptoms are more evident in Indian FMCG retailing. Inefficiency in retailingleads to lower profitability of the retailers and lower service outputs for theconsumers.

Ways and means to strengthen the position of the retailing industry, doing awaywith the causes for the inefficiencies, therefore, are to be taken up in an urgentmanner. Such measures may include establishment of retailers co-operatives, mergerand buy-out, use of technology to the greatest possible extent, setting up ofnonstore retailing centers and increase in franchisee network.

The Indian Retail Industry stood at a value of a whooping US $330 billion in 2007with the likes of Reliance Retail and Wal-mart joining the conglomerates frominside and outside the country. It is estimated that the retail sector will reacharound US $600 billion by the turn of this decade. Significantly retail industrycontributes about 10% to the GDP of India, and it is the largest source ofemployment after agriculture in the country.Scope for employment opportunities:It is small wonder then that retail sector has open the floodgates of employmentopportunities to the Indian youth. Statistics reveal that the organized retailsector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 lakhover the last couple of years.About 11.5 lakh jobs in the organized retail sector and 2 million jobs in theunorganized retail sector will be thrown open by 2010 what with the likes of key

players in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle,Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd. andReliance Retail Ltd. And the retail sector has abundant opportunities for parttime positions as well due to the long working hours.Compensation packages:In general, hefty salary packages with attractive perks and allowances are offeredby the employers luring the talent of this country into the retail industry.Surprisingly the average salary of even a fresher could be up to Rs.20,000/- withan assured average salary hike of 16% per annum. In some organizations the growthin salary ranges from Rs.60,000/- to Rs.70,000/- annually.



HR in Indian RetailThe Indian Retail Industry stood at a value of a whooping US $330 billion in 2007with the likes of Reliance Retail and Wal-mart joining the conglomerates from

inside and outside the country. It is estimated that the retail sector will reacharound US $600 billion by the turn of this decade. Significantly retail industrycontributes about 10% to the GDP of India, and it is the largest source ofemployment after agriculture in the country.Scope for employment opportunities:It is small wonder then that retail sector has open the floodgates of employmentopportunities to the Indian youth. Statistics reveal that the organized retailsector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 lakhover the last couple of years.About 11.5 lakh jobs in the organized retail sector and 2 million jobs in theunorganized retail sector will be thrown open by 2010 what with the likes of keyplayers in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle,Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd. and

Reliance Retail Ltd. And the retail sector has abundant opportunities for parttime positions as well due to the long working hours.Compensation packages:In general, hefty salary packages with attractive perks and allowances are offeredby the employers luring the talent of this country into the retail industry.Surprisingly the average salary of even a fresher could be up to Rs.20,000/- withan assured average salary hike of 16% per annum. In some organizations the growthin salary ranges from Rs.60,000/- to Rs.70,000/- annually.HRM / HRD OPPORTUNITIES IN RETAIL SECTOR IN INDIA________________________________________As listed by experts in INDIAN ECONOMY, the retail industry is on the threshold ofa boom.

This boom is driven by-enhanced buying power of the middle class-change in the lifestyle-foreign investors in the retail sector-government encouragement for local retailers-relaxation of FDI in the retail sector.

This is going to impact the retailing industry-about 12% growth in the retail industry-about 2 million addition to the employment STATISTICS in the next 5/6 years.

THE RETAIL SECTOR IS A LABOR INTENSE INDUSTRY.

WHAT DOES THIS MEAN TO ''HRM/HRD'' ?

1 .JOB OPPORTUNITY.-there will big demand for HR specialists/ generalists for in-house operation.-there will be for outsourced services, like training etc etc

2.RECRUITMENT/ SELECTION OPPORTUNITYThe following positions will be in demand.SENIOR MANAGEMENT-CEOs



-CIOs-CFOs-GM operations-national marketing managers-merchandising managers [ buyers]-HR Managers etc etc

MIDDLE

-category managers-store managers-training managers-departmental managers-sales promotion managers-inventory managers-financial controllers-PR managers-advertising managersetc etc

FRONT LINE STAFF

-check out staff-counter staff-retail sales assistants-merchandisers-supervisors-customer service staff etc etc

SKILLS / KNOWLEDGE IN DEMAND

-communication skills-customer servicing skills

-retail selling skills-merchandising skills-interpersonal skills-persuasion skills-store management skills-people management skills-problem solving-coaching skills-staff counseling skills etc etc

CORE TRAINING AREAS

-store management-retail selling-merchandise presentation-customer service-business communication-stock taking-train the trainer for managers-coaching-counseling-product knowledge etc etc



FOR HR PEOPLE who are planning a career in retail-either in-house-or offer HR CONSULTING SERVICES

this is a great opportunity for the future

HR factor in retail: Largely ignoredThe HR factor in retail management is still largely ignored..The lack of formal retailing education further exacerbates the problem ofrecruiting. How should retailers build human relations in retail management?The first ingredient is infusing a passion for success in employees. If the staffare the employees of the company, rather than outsourced from agencies, there willbe greater commitment.Further, retailers should make every employee a partner through a stock optionsscheme. A watchman who knows that he has a stake in the final profits, in the formof a bonus or a stock option, will ensure zero levels of shrinkage. Remember,businessmen must share their wealth with those who generate it.Get the basics right

Retailing is a hard business. It is rigorous. The floor staff stands on its feetfor up to nine hours every day. The job of the salesperson on the floor isphysically exacting and emotionally draining.Which is why changing existing mindsets and motivating personnel will also requireensuring basic hygiene factors. It is crucial to provide toilets, restrooms,canteens and dining areas, aswell as recreation rooms to the staff.The astute retailer will provide meals to the staff, so that they eat wholesome,nutritious food. He will provide not merely restrooms, but also resting rooms, forwomen, with a few beds.This provision is law in many countries. Leading global retailer Marks & Spenceroutsources manufacture of its merchandise. However, when it appoints a newsupplier, its managers first check the staff toilets and dining facilities.

Also, in a competent retail organisation, each employee should spend at least 10working days a year in the classroom. Training of the staff is the best investmentin the retail business.Training has to be constant, in the classroom and on the floors, on a daily basis.Business schools should come together to pioneer a new curriculum for master'sdegree in retail management.Next to training is the vital policy of building careers and promoting people fromwithin the company. Internal progression systems augment loyalty and boostsmorale.The staff are strongly motivated by the belief that they will grow when theydeliver results. There should be a well-defined succession plan in the company andpotential candidates should be groomed with adequate training and exposures.Respect the floors

Astute retailers will walk the floors every day. In a customer service-orientedretail outlet, the supervisory staff, managers, directors or the chairman of thecompany will walk the floors.They will also seek advice and customer responses from the staff. As Sam Walton,the best retailer of our times, once said, "Our best ideas come from the shopfloors.Most CEOs are obsessed with the stock prices of their companies, their net worthand how many million retail sq ft they own. They do not focus on organisation-building or talking to the floor staff.Looks do matterRetailing is about the staff wearing clean, ironed uniforms. It is about shaving



daily, using the right type and the right amount of deodorant; it is about brighteyes and warm smiles, about polished shoes, no straps showing through the uniformand no hairy armpits.These are fundamental hygiene factors, but they can make or break a sale. It is asmart move to recruit the grooming and communications staff from top five-starhotels to train retail staff.There are also organisational implications. How many sets of uniform should begiven to a staff member? One of the largest retailers in West Asia gives only two

blouses to the female staff.Should the girl be washing her blouse every night when she reaches home at 11 pm,after having been on her feet for nine hours? If one blouse is torn, should shewear the used one again, and perhaps smell stale?Which is why manuals that define every operation of a store are vital: retailerslike Woolworths and Marks & Spencer, for instance, have comprehensive operatingmanuals. The manual would clarify timings, responsibilities, operating conditions,policy on uniforms, leave, breaks, pilferage, shrinkages and so on.Loyalty works both waysAccept it: talent and skill are scarce. It is sensible to hold quality staff,always. Arrogance proclaims, 'There are a billion Indians; we can always findanother salesman'. Sense states: 'You may find another candidate, but not a goodsalesman'.

Andrew Carnegie, the American steel billionaire, asserted, "Take away myfactories, but leave my people, and soon we will have a new and better factory."The people who work in the store are the family jewels. It is common to read inthe newspapers of many corporations and retail houses boasting of the terminationof 5,000 to 15,000 jobs, if the business is going downhill.Such mass separations do not resolve underlying business issues and, in fact,pulverise morale on wholesale scales.When a business performs appallingly, the issues really stem from dim-witteddecisions and strategies conceived by the Board/CEO. The top guns survive. But15,000 employees lose their jobs in loudly-trumpeted announcements across themedia, in bizarre attempts to restore share market confidence. Such phony remedieshave unforgiving impacts on employee morale and commitment.Family ties

Working in any company should be fun and rejuvenating. The staff should lookforward to coming to work daily. This is possible when the team spends informaltimes together.Winning is great fun, becoming rich is glorious, and it is vital to celebratesuccess together. If the employees of a retail company dance, sing, eat, rejoicetogether, the company stays together. Remember, the family that eats together,stays together. Retail is no different.

SETTING UP THE HR DEPARTMENT - RETAIL SECTOR



Talking of a small organisation or a start up typically below 50 in size but hasexpectation to grow fast year on year.

- Hire a competent HR Manager. The exposure of the HR manager to various fieldsof HR should be high.- Hire a consultant to work with the HR Manager or leverage the HR Managersknowledge to define Policies and translate to process maps for the organisation.- Convert process maps to SOPs - 1 pagers easy to understand and communicate.

- set up communication process - to employees, to employer, to the business andexternal parties- set up feedback process from the above four as well- Basic HR Software for Employee and Employment records, entitlement recordingetc.- Set up Payroll and HR roles and responsibilities

- In the Retail sector Reward management, employee motivation, contingentworkforce, staff scheduling, productivity is of key importance.

a. Corporate and operational HR. Corporate HR will be the custodian for Ploiciesand HR strategies at a central and organisational level.Operational HR will be deputed to individual Business units/Locations asfacilitators to support employees based on structure.

b. HR Vision and Strategy. Assuming that this will be driven and owned by the HRDirector/Head - this needs to be translated into action throughoperational HR. The process for this translation needs to be defined.

c. Defining roles and responsibilities in HR - Based on size and complexity of theorganisation.

d. HR Deliverables to the Directors/CEO - Management reports, Ownership of KPIs,Metrics etc

e. HR deliverables to Employees - Employee entitlement/Payroll, Services,development, assessment. Processes for these need to be set up

f. HR deliverables to the Business - Manpower planning and Talent Acquisition,Succession planning, Retention

g. HR Policy Documents translated to Standard Operating Procedures for operationaluse and clear understanding. Setting up a pristine andreplicable process.

h. HR Process Maps - Develop these for each HR process. This helps in processreview and enhancement.

i. Software - Depends on size of the operation. Large scale operations can use aSAP, Adrenalin or Oracle. You must remember that employees in a ITcompany have a high adoption rate for technologies such as HR Workflow and SelfService. Use this to HRs advantage.

The retail sector has a higher percentage of partime and often contingent



workforce.Corporate/Head officeArea officesRetail outletsCall centers

Hr strategy needs to revolve around these four based again on size and complexityin business.

Normally the store manager is responsible for HR/Admin day to day transactions.Thus HR has to have a strategy to devolve HR tasks to store managers.

- Training Suppliers- Process Outsourcing companies- HR Consultants in different areas- Staffing partners- Others

Lets say you have 1500 employees and qualify as a Medium to Large organisation.

You already would have personnel practice in place but you are looking atformalise and restructuring the HR functiona and policies.

I would stress on the following -

Like your suppliers, customer (employee), partners (recruitment consultants etc),employer (management). See what you give them and what you get from them in termsof Tangible and Intangible value. This give and take of Tangibles and Intangiblesneeds to be balanced for a successful HR department.

Make your policies simple, modern and easy to understand by employees and HR.

where you can put up your HR Policies/SOPs this should be easily accessible to theemployees.

Invest in a good reporting tool which helps your team be proactive. Helps youportray the health to the executive management promptly.

Especially for a companythat large and with a number of offices - HR Workflow Authorisation saves up timefor HR to focus on Strategic activities.

HR Services

HR Services is an integral part of the Headcount Solutions business.



Our mission is to enable our customers to shape their strategies and optimise thecontribution of their people, in order to achieve business goals. We do this bysupporting and developing the existing HR function or by introducing bespokesystems into the organisation.

How can we add value to your organisation?We offer practical, cost effective, results focused solutions inpartnership with our clients. We believe that developing strong relationships with

client organisations will help us deliver the most appropriate solutions for thebusiness and willHow we operate:With all of our clients we understand that their people are their most valuableasset, and that we need to offer practical and pragmatic solutions to theirproblems. We therefore operate to ensure that we:

Deliver a first class HR serviceProvide efficient and effective transactional people processesUnderstand the business driversProvide expert HR advice and guidanceDeliver work according to clear deadlines, milestones and benefits agreed

upfront with the business

Services1. HR Processes and PracticesHR processes and practices are the cornerstone of a value added HR business.They ensure that companies are legally compliant and provide a clear framework forboth staff and managers which allow HR professions focus on more strategic issues.We offer client organisations support in:

Outsourced operational HRManaging HR auditsAchieving quality award recognition such as ETPCreating T&C of employmentImplementing new policies and proceduresKeeping abreast of employment legislationEmployee relations matters such as Discipline, grievance cases

Attendance managementWe will ensure that our solutions are practical, linked to the organisations goalsand as employee/ employer friendly as possible.

2. HR ExcellenceThe role of the Human Resources function is evolving rapidly in many organisationsand has become strategic and critical to the organization’s success.

HR leaders need to be able to serve as key leaders in the organisation.HR policies need to reflect the organisations values and HR Systems must

enhance the organisations productivity and performanceThrough HR an organisation must be able to attract and retain the talent

needed to meet the future needs of the organisationResults must be measured and individuals held accountable for them

Headcount HR Services supports organisations in supporting and developing their HRfunction through consultants who have held strategic roles in organisations andhave coached HR professionals in client organisations. The individuals are fullyqualified:1. To coach your HR professionals in their personal effectiveness2. To align the HR function with the organisation’s business strategies3. Supply Chain ManagementMany HR professional find the number of training and development providers to beoverwhelming, and struggle to find a provider who will have the right product aswell as the right cultural fit. Identifying theright provider will ensure that cost and quality efficiencies are maximised to



ensure a greater return on investment.Headcount HR Services can offer systems and support to help you establish a 'bestfit' Preferred Supplier List, for all your Training and development needs.

4. Organisation DevelopmentChange is the only constant, they say and this is never truer than fororganisation trying to keep one step ahead of the competition.In order to gain and maintain a competitive edge, organisations need to be clear

on their direction, strategy, the path they are going to follow, and the goalsthat will help measure achievement.HRServices can help organisations to:

Define the business strategyArticulate the organisations mission, vision and valuesCreate communication plans to engage employees with the messageIdentify and address issues around employee engagement, including staff

opinion surveys and 360 feedback systemsCreating or –redesigning structures and related role profiles and

responsibilitiesCompetency Frameworks to develop behavioural as well as technical excellence

Measurement systems to assess performance

6. Change Management & Business Performance ManagementDuring periods of organizational change, employees can often feel isolated andunsure of the future. This feeling of uncertainty can have a negative impact onbusiness performance, productivity and can lead to high than usual levels ofturnover absence and attrition.Headcount HR Services has experience at helping organisations through:1. Mergers & Acquisitions,2. Periods of accelerated growth3. Restructures4. DownsizingThis experience can be used to help organisations to manage uncertainties andlimit any negative impact.

Our experience has involved helping organisations manage change from both areactive (changes in legislation) and a proactive (acquisition) position and weuse a number of models, methods, techniques and other tools to help organisationsmanage change and develop managers within organisations to better manage change.We can assist organisations with:• Change management methods, processes and tools• Communication strategies to support the change process• Provide individual support to individuals affect or implementing the changeprocessDevelop HR and key individuals in change management

HR practices in some of the most successful retail verticals in India:Apparels: Pantaloon India: Here is a retail giant which hires at least 250 MBAsfor operations and merchandising profiles. The candidates go through an inductionperiod and a short training thereon. Individuals are allotted projects for thenext five months under the supervision of project guides. They are placed insuitable positions thereafter, with progressive authority and responsibility.Indian software industry: The challenge for HR professionals in software industryis sheer shortage of high intellectual human capital both in numbers and skills.Recruitment of world class workforce and their retention is a serious challenge



posed in HR industry. The yawning gap between the demand and supply ofprofessionals has increased the cost of delivering the technology. The incentivecompensation is based on performance keeping the long term organizationalobjectives in mind. Optimized compensation packages are offered as a motivator forretention of manpower.Food and grocery: It is estimated that the food and grocery market in India is anastounding $236 billion, and it is the sixth largest grocery market in the worldtoday. No doubt that human resources are an important asset in this food and

grocery retail industry. Many top companies have made HR a strategic partner intheir operations. One famous example is Nestle, the global giant in consumerpackaged goods. Nestle has a strong internally developed employee backing whichgives a major push to the company's lead position in the retail industry.

Attrition rates and retention of personnel:There seems to be a high level of attrition in the retail sector which is almost40% according to a recent study. Front end jobs are facing an attrition rate ashigh as even 80%.Under the present circumstances, retention and motivation of personnel has becomethe major concern of HR. A congenial working atmosphere, support learning andtraining facilities, a highly competitive pay structure are some of the effective

retention practices followed by the retail sector.While money is the main attraction for freshers and starters, career satisfactionis the main reason with experienced personals. Assigning the "right project to theright person" is the organizational motto these days with companies setting upManpower Allocation Cells (MAC) to carry out this agenda.Looking at the current scenario, it could be said that there is an acute shortageof middle level management professionals in the Indian Retail Industry. Thecurrent trend is to hire from a smaller organization tempting the incumbent with abetter pay package. It is imperative that suitable talent be hired in variousareas such as technology, supply chain, logistics, product development andmarketing in order to stay abreast of the hectic race for success among MNCs.The call is for HR practitioners to play a more proactive and prominent role inorder to retain the high tech skilled employees who are constantly looking for

greater gains and prospects in their work. This is the real HR challenge to retainthe "knowledge workers" and "knowledgeable workers" by introducing new processesand procedures and still ride high in implementing organizational effectiveness.THE DIFFERENT STAGES OF SYSTEMATIC RECRUITMENT PROCESS.Interviews are a crucial part of the recruitment process for most organisations.Usually applicants are interviewed after sending in an application form or CV fora particular position. The purpose of an interview is to give the selector achance to assess you and for you to demonstrate your abilities and personality. Itis also an opportunity for you to assess them and to make sure their organisationand the position are what you want. Not to forget that to have reached theinterview stage you have already impressed the recruiters and they believe youhave the ability to do the job. All you need to do is show them they are right!The recruitment process for most organisations is designed along the same path;

applications are received, either via an online application form, a postal form ora CV. Candidates are short listed and invited for interview. The interview formatcan vary considerably, as we discuss later, and can include assessment centers.The number of interviews also varies. Some companies are satisfied after just oneinterview whereas others will want to bring back a further shortlist of candidatesfor one or more interviews. If you are successful at the interview stage you willreceive an official letter offering you the job. This information describes whatyou can expect at interviews and assessment centers, and takes you through tomaking a decision about any offers that may result.HR best practice has always been that organisations should not discriminate intheir recruitment procedures, and should always strive to recruit and retain the



most qualified staff. Most qualified was never to be interpreted as indicating apreferred race, age or gender for the job. A diverse workforce has always been akey feature of the best practice organisation.As such, those who shudder when they hear reference made to legal recruitmentprocedures, should actually see this as an opportunity to get their recruitmentfunction in line with HR best practice.General Recruitment policy:(i) A company should recognize its staff as being fundamental to its success. A

strategic and professional approach to recruitment processes help enable theorganisation to attract and appoint staff with the necessary skills and attributesto fulfill its strategic aims, and support the organisational values.(ii) The organisation must be committed to ensuring that the recruitment andselection of staff is conducted in a manner that is systematic, efficient, andeffective and promotes equality of opportunity.(iii) Recruitment should be treated as a key public relations exercise as the wayit is managed affects the organisation’s image, and consequently its ability toattract and appoint high caliber staff.(iv) This policy has been designed to provide a flexible framework which promotesgood practice, adopts a proactive approach to equality and diversity issues andsupports fully the organisation’s core business.(v) Guidelines which form the basis for the implementation of this policy are

also provided. They have been designed to maximise flexibility to meet the needsof all areas. For these reasons, while still ensuring that the organisationcomplies with relevant legislation any significant variations in practice must bediscussed with the Senior HR Advisers to minimise risk to the organisation

Systematic recruitment process flow chart

Steps of Recruitment:Step 1: VacancyThis stage decides what resources are required. Details of requirements willemerge from the compilation and regular revision of HR plan. In practice jobvacancy may occur when:1. An organisation or work unit is set up.2. An employee resigns from the post.3. An employee reaches retirement.4. An organisation takes place through changes in policy.5. Technology6. Mergers7. Acquisitions.

Because of the subtle changes that take place within an organisation the existenceand nature of job vacancies should be accepted.

The first step in any recruitment process is to define the job requirements. A joband person specification should be prepared, bearing in mind the actualrequirements of the job, for example required qualifications, skills andexperience. It is allowable to include desired qualifications, but be careful toavoid mentioning “requirements” which are not actually necessary for the job, orwhich may indirectly exclude a portion of societyStep 2: Sources



This stage concerns with the general questions about supply and availability ofresources and particular avenues through which these are likely to be obtained.The human resource plan is to provide general information about the types offactor that influence the supply of labour at macro and micro levels. Even when itis feasible to fill job vacancies from within the organisation, transfers andpromotions which this usually involves will more often not produce a vacancy atthe end of the chain. Nevertheless filling of vacancies internally should alwaysbe given careful considerations.

Care should always be exercised when using images or photographs as a tool inrecruitment advertising. It is important that these do not reflect negativestereotypes, which may indicate an intention to discriminate. On the other hand,correct use of imagery can enhance an organisations perception as an equalopportunities employer. Many employers now include an “equal opportunitiesemployer” statement in their advertisements, which indicates an acknowledgementof, and compliance with, equality legislation.There are 2 types of recruitment noted while sourcing the resources:1. Internal recruitment:

Existing employees are known to the organisation are generally familiar withthe customs and practices.

The costs and time that external recruitment, selection and inductionprocedures consume can be reduced.

Internal recruitment to fill vacancies may be used as a means of careerdevelopment, widening the opportunities and stimulating motivation among existingemployees.2. External employees:When organisation has to use external sources, 2 means of conducting the search isdone:

Through employment and consultancies and agenciesBy contacting the public directly through advertisements in newspaper,

journals, posters, radio, and television and on the internet.

Step 3: Application form/Resume/CVMany organisations use application forms in an effort to ensure an equal footingfor all applicants, while at the same time also ensuring that all required

information is captured in relation to the position. Again it is essential thatthe form is prepared in a style which complies with the legislation. Questionswhich could be seen as discriminatory against potential candidates include thoserequesting information regarding marital status, family status and nationality.Questions should be carefully worded to avoid any hint of discriminatorypractices, and it is often worth including a statement indicating that theorganisation is an equal opportunities employer.Design of an appropriate application form will clearly depend on particularsituation and needs. Different forms may be necessary for different kinds of work.The items that are normally needed in application forms are:

Job titleApplicant’s full nameDate of birth

Contact address and phone numberNationalityEducationAcademic qualificationsProfessional qualificationsPresent employment – detailsPrevious employment – details in chronological order from latestMain interestsHealthCertificationsAwards and achievements



ReferencesStep 4: Processing and assessing application (Pre-selection)Once completed applications have been received, the next step in the process is toscreen them in order to identify those most suitable for interview for the post.This process is usually conducted by the hiring manager in conjunction with HR.The screening involves cross-checking the applications against the job descriptionand choosing the most suitable candidates for interview.Another intervention which HR may take in order to ensure equity, would be to

reformat CV’s, in order that they remove information which could result indiscriminatory selection by those screening them. Some organisations have apractice of removing surnames, addresses, marital status, date of birth, and anyother details which may lead to discriminatory selection prior to passing them onto the managers selecting interviewees.Step5: Short listingShort listing must be undertaken by at least two individuals who are involved inthe interviewing process. Interviews should normally be conducted by at least twopeople, and all interviews for one post must be conducted by the same people. Inorder to promote equality of opportunity selection committees should, whereverpossible, be of mixed race and gender composition.A further important point has to be made concerns the need of flexibility inmaking final decisions about acceptance or rejections. Best is not be stubbornly

inflexible about length of experience, age etc. when job requirements areestablished then room must always be left to decide the individual cases on theirmerits.

Finally a word needs to be said about the use of testimonials and referee reports.Referee reports are usually required as supplementary evidence for use in theassessment of candidates during selection procedure. Employees are often morefrank on telephone conversations so over-emphasis must note on written reference.Step6: TestsAny skills tests (e.g. presentations, in-tray exercises) must be directly relatedto the role and measured against objective criteria, and presentations for onepost must be assessed by the same persons. Candidates must be notified of thedetails of any skills test when they are invited for interview and the selection

process for lectureships and senior lectureships must include a presentation orshort lecture.Step 7: Interviewing/Group selectionsThe interview should always be viewed as a two way process. Not only is it anopportunity for the candidate to present themselves in pursuit of the position,but it is also an opportunity to ensure that the candidate has a positiveexperience of the organisation. Part of this experience should be that theorganisation presents itself as an equal opportunities employer. Studies haveshown that an unsuccessful applicant, who feels that they were treated fairly by acompany, is more likely to reapply should another position arise in the future.The first step in ensuring that interviews are conducted within the law is in theselection of the interviewer, or interview panel. Where an interview panel is usedit is worth trying to form the panel in order that it reflects the diverse make up

of the applicant pool, i.e. there should be gender balance. As a minimum,organisations should attempt to have one woman and one man on a panel to ensurethat gender discrimination is avoided.The next step is to ensure that the interviewers are trained in interviewtechniques. This helps avoid them asking questions which could be deemedunnecessary, and potentially discriminatory. A member of HR should always attendinterviews, and where an interviewer has not been trained in interviewingtechniques, this becomes even more important. Agreeing questions in advance of themeeting avoids any discriminatory questions being asked out of the blue. The wholeinterview process should be transparent and interview notes should reflect this.Interview questions must relate to the job requirements as exemplified in the



person specification and the candidate’s suitability for the position. The personspecification should be used as the basis for determining the interview questions.Step8: References/MedicalThe next step in the recruiting process is investigation of those applicants whoappear to be potential employees. This may involve contacting the formerorganisations to confirm the candidate’s work record and obtain their appraisal ofhis/her performance, contacting other job related and personal references andverifying the educational accomplishments shown on application. Background

investigation has major implications.

Last step prior to appointment decision may be the medical examination of theperson. For most jobs, this is a screening device in selection process. It isassumed that the applicant can pass the physical examination however it isintended to screen out those individuals who are unable to comply physically withthe requirements of the job and the organisation.Step 9: AppointmentThe individuals who perform successfully on the employment tests, interview andreference/medical examination are chosen to be appointed into the organisationformally through a legally drafted Appointment order. For administrative purposedthe draft should be made by the personnel department, but their roles should onlybe administrative.

At the end of the recruitment process all records must be handed to the HumanResources Department who will retain them for six months in case of requests forfeedback or the threat of litigation.

Offers of employment are conditional upon receipt of satisfactory references,medical assessment and any other appropriate checks. This normally excludesvisiting and other casual appointments of less than three months duration. Inaccordance with employment legislation, appointments will only be offered on afixed term basis where objective grounds exist for not making the appointmentpermanent.Step 10: InductionThis step involves formal introduction of the employee to the organisation. Theemployee is given an overview of all the departments within the organisation, his

role and designation, Training requirements and other elements which the new comerhas to absorb. This also paves way for the employee to understand the rules andregulation of the organisation which he is required to follow.Step 11: Follow upThe last step in the recruitment process is the follow up on the employee, who hasmoved into the organisation successfully after all the above processes. This givesinformation about the performance of the employee in the organisation, his likesand dislikes, requirements (if any). This completes the process of recruitment,with successfully absorbing an employee with the laid regulations and benefits andperks, etc.



About Red RetailFounded in 2001, Red Retail Recruitment recruits exclusively for the Retail

Sector. Specialising in operational retail recruitment, Red Retail offer a uniquesearch and selection process across all levels of retail management, with expertproject managers working in partnership with HR departments on assignmentsincluding new store openings and nationwide vacancies.As bespoke, search and selection specialists, we spend time with our clients inorder to gain an understanding their business and then tailor our selectionprocesses accordingly to ensure that only the correct calibre of candidates areshort listed.As a result of our collaborative working and our unique selection processes, wefocus on building long-term relationships and becoming an extension of our clientso as to try to ensure that the recruitment process from candidate attraction tothe successful applicants first day in their new job is seamless.Red Retail Recruitment is a division of Purcon Limited and a part of the Oxinia

group of companies. Being part of the Purcon structure allows us to deliver thequality, flexibility and responsiveness of a specialist niche supplier, whilstbeing supported by the infrastructure, resources and experience of an industryleader.

At Emirates Leisure Retail, we only consider individuals who we know willcontribute to the overall success f the Company. We employ a diverse workforce anddo not discriminate on the grounds of nationality, race or religion. Ourrecruitment process aims to highlight the skills and talents of each prospectiveemployee and will typically include aspects of the following key stages:-• Structured interview• Practical exercise• Occupational/Ability testingIn applying for any position with us, you can expect:-



• Timely responses• Fair consideration of skills and talents• Honest appraisals of experience and expertise• Respect, dignity, compassion and encouragement

Training and Development in Retail-FMCG Sector

Retail/FMCG Sector is the most booming sector in the Indian economy and is

expected to reach US$ 175-200 billion by 2016. With this rapid expansion andcoming up of major players in the sector, the need of human resource developmenthas increased. Lack of skilled workers is the major factor that is holding backthe retail sector for high growth. The sector is facing the severe shortage oftrainers. Also, the current education system is not sufficiently prepared toaddress the new processes, according the industry majors.

Training Programs in Retail/FMCG Sector

Some of the training programs that are given in the retail sector are:• Sales Training• On-the-Job Training

• Seminars/Workshops• Customer Relationship Management• Online Course• Group Study• Computer-Based Training• Self-Directed Training

Training Institutes for Retail management

Some of the institutes for retail management are:• Indian Retail School• Loyola Institute of Business Administration (LIBA)

• S P Jain Centre of Management• Institute for Integrated Learning in Management (IILM)• Welingkar Institute of Management, Centre for Retail Studies• K J Somaiya Institute of Management Studies & Research• Mudra Institute of Communications• Amity Business School



Training Retail Employees

"the average retail company spends less than $100 per year per employee ontraining. There is no wonder so many employees are unhappy at their jobs; theysimply do not know how to perform them effectively." Here is the secondinteresting piece of information; "Research shows well-trained employees canincrease a company's overall productivity by 22 percent. By combining acomprehensive training program with continual mentoring, productivity can increaseby as much as 80 percent."There are some powerful "nuggets" of information in both of those quotes:1. Most companies do not invest a lot of money in training their employees.2. Employees become frustrated when they don't know the correct way to performtheir jobs.3. The employee who is well-trained and highly motivated is more likely to beproductive.

Develop an ongoing, comprehensive training and make it a priority and there is ahigher chance your employees will be more productive and that productivity canlead to more sales.If you have a training department, this job is easily delegated and monitored.But if you are a small business, this task can be overwhelming. How does one fitin training in between vendor phone calls, budget reviews, order placement,scheduling advertising, stocking the floor, interviewing, vacuuming the floor andyes, sleeping? There just aren't enough hours in the day if you are a soleproprietor!Training tips to keep your employees informed and you sane!

1. Develop an employee handbook.This can be as simple as 20 sentences on one piece of paper or it can be a bound

document. What is most important is that you have one. In the employee handbookyou can address the "image" of the employee. They represent you and your companyand your brand. What do you want them to look like, sound like, act like andbehave like? It is your company and you can list simple rules you expect them tofollow.

2. Once your employee handbook is done you can now develop your trainingprogram.the program be divided into two areas, operations and sales knowledge. Start withthe Operations section first. Write down all of the procedures that are necessaryfor your employees to know how to do. Just write the main title. You can be more



specific as you develop the program.Decide how you want to deliver this information. Technology allows us to deliverthe information in many formats. If you are developing the information in a textformat, you can print it and make it available in binders for new employees toread and complete simple question and answer sections and/or you can copy it to adisk and have them complete it at work or at home. The operations end of thetraining will probably come easily as it is procedure based. To make it easy,develop your training program in steps. First you do step "a", then step "b" and

you get to the goal "c". Make it easy to read and easy to understand. Theoperations part of the program should deal with the basics of handling sales,returns, inventory control, opening and closing procedures, safety issues andanything else that falls under the operations of the business.The second training area is that of product knowledge and sales techniques. Thisis more time consuming to develop because it is conceptual teaching vs. proceduralteaching. Product knowledge is mandatory in any business. Here are some ways todeliver the information:1. Develop an instructional manual/CD or video that highlights the majorclassifications or departments you have in your business.2. Conduct weekly meetings for 20 minutes before the store opens and give 5employees 3-4 minutes to do a "show and tell" about a fast seller in theirdepartment. Have them discuss the features and benefits of the product, why they

think it is selling so well, who is the competition and how are they priced andhow are they promoting the item. In twenty minutes, all of the employees willlearn something about 5 items in the store that are selling well and they canoffer that information to their customers. Have someone "take notes" during the20 minute meeting and post the information in a break room or in a newsletter forall of the employees to read.

3. Employee newsletters can be another invaluable way of broadcastinginformation about products as well as fun things about employees. Make yournewsletter a "quick read" and something they look forward to reading. You canmake it rewarding by adding a puzzle or something they must find within thearticles or pictures that they can win a prize for finding.4. Vendors are wonderful sources of information. Call some of your main

vendors and find out when they might be in your area so that you could schedule a"training time" with your employees. This is a win-win for everyone.5. Digital cameras and video cameras are wonderful ways to capture yourtraining information. You don't have to be Zig Zigler to make a training video.Stay after hours and make the video with the help of a friend or employee right inyour business. If you make the video conversational, your employees will want tolisten. Before you start filming, write down the areas you will want to cover andhow long you think you will need to record. Try scheduling a "filming session"once a week for 5 weeks and you will have a complete set of training videos in alittle over a month's time. Let's say the first training is on greeting skills.Talk to the camera and explain the right way and the wrong way to greet customersaccording to your standards. That way they will learn how AND why they areexpected to do what you have asked. Your next sessions could be add on sales,

teaching about specific products, dealing with an unhappy customer, as well asphone skills. It is far cheaper and easier to develop your own training programthan ever before.6. Send your employees to classes. There are wonderful programs in every citythat have to do with sales and communication skills. Your employees will feelvalued if you offer to send them to some off site classes. You can also calllocal community colleges and ask business instructors if they would like to cometo do a special training session in your business. Usually they will come forfree or for a nominal fee and offer lots of great information.7. If you have a number of locations you can get creative by offeringteleseminars. There are a number of teleconferencing businesses out there: Simple



StarCast makes it easy to see what regions or stores are performing, and who islagging behind. Armed with this data, you can spot problems and implementsolutions quickly.

PANTALOON RETAIL (INDIA) LIMITED68Human ResourceIn a business where individuals comprise the principal asset, the structure of thepeople pyramidinfluences the quality of knowledge captured, the speed with which decisions aremade and the moraleof the organization. Human Resource is one of the critical support functions andforms another keyelement of the corporate backbone. We have 7,379 employees as on September 30,2005. We are avery young and energetic organization with average employee age being 30 years.

We believe that service is our core philosophy and people are our most importantresources. Ourattempt has always been to create an environment where our employees feel pride ofbeing called‘Pantaloonians’.Our Human Resource philosophy is driven through our ‘The Pantaloon PeopleManagement System’.The Pantaloon People Management SystemPantaloon People management system is built on 5 pillars of people based growth:a. Culture Buildingb. Performance Management through Balanced ScoreCard



c. People Processesd. Management Processese. Leadership ExcellenceOrganisation StructureOur organization is headed by our Managing Director. We follow an inverse pyramidstructure; as aresult decisions are taken closest to the point of customer action. Salesexecutive are encoureaged to

think customer first. They are empowered to run their respective departments like‘small businesowners’.Inverse Pyramid StructurePerformance Management: Appraisal, Rewards and RecognitionThe organisation’s Compensation philosophy is ‘Pay for Performance, promote forpotential’ and isdesigned to meet the following key objectives:Attract and Retail Qualified EmployeesExternally CompetitivePerformance based payInternally EquitableLegal Compliance

Our compensation policy is performance based and we believe it is competitive withindustry standardsin India. Our compensation packages are adjusted annually based on industry salarycorrection,Departmental ManagersBoardStore Mgr., Buyers,Merchadise Mrg,RM, GMSales and support staffHR FunctionOrganisation planningSystems building

PerformanceManagementPerformance

EnhancementCompetency mapping

and buildingCompensation policy

69compensation surveys and individual performance. From time to time employees whohave met orexceeded performance standards are awarded bonuses.Our employees post retirement benefits include a provident fund and a gratuity.Both the provident

fund and the Gratuity have been approved by the relevant statutory authorities. Wehave set up a“Pantaloon Foundation”-an employee welfare fund with effect from August 2004. Thefund providesfinancial assistance in all cases wherein the employee seeks the Company’sfinancial support inmedical emergency for him/herself or their families. The contribution to the fundis voluntary.Employee InsuranceWe provide all our employees with group life insurance. We also provide medicalinsurance coverage



for employees who are not covered under ESIC (Employee State InsuranceCorporation) benefit whichincludes hospitalization benefits.Recruitment and SelectionOur recruitment takes place through any of the following option or combination ofthese option:• In-house data bank• Walk-in advertisement

• Internal Referrals• NGO’sOur selection processes are defined to evaluate the skill sets required for eachjob and also to evaluatethe fitment to our various formats of retailing.TrainingWe place special emphasis on the training of our employees to enable them todevelop their skills tomeet changing retail technology and to provide efficient and effective customerservices.The Company has a well defined Learning & Development (L &D) team that isresponsible for trainingat all the levels across the country. The L & D team focuses on primary and

secondary research intovarious aspects of retail and assessment of training needs across Knowledge,Skills & Attitude areas atall levels.'Prarambh' for Induction and 'Guru-School' for Trainer Development are a couple ofprograms createdand disseminated by the L & D Team this year.We are also in the process of establishing a training centre at each zone thatwill be equipped withextensive and up-to-date facilities and which offers relevant training programmes.Retention StrategyWe strive to foster a feeling of well-being in our employees through care andrespect, we have several

structured processes including employee mentoring and grievance managementprogrammes which areintended to facilitate a friendly and cohesive organisation culture. Off-siteactivities are encouraged toimprove inter-personal relationship. We also acknowledge the efforts exerted byour employees byorganisation an annual celebration called ‘Pantaloon Day’ where we recognizeemployees who haveshown exceptional talent, sincerity and dedication. We have implemented anemployee suggesstionprogramme called ‘Prerna’ wherein the employee can give their suggestions. Everyquarter the bestsuggesstion received per zone per format is awarded prize called “Golden Cap”.

3. Internal controls and Risk ManagementThe company uses the services of Ernst & Young for process audit and riskmanagement and the scopeof their work covers all the company’s formats i.e. Pantaloons, Big Bazaar, FoodBazaar and FactoryOutlet. The objectives are to:• Gain an understanding of the various Business Processes• Identify the strengths and weaknesses in the existing systems and procedures• Review use of technology in the function• Identify key business process risks and review the adequacy of the controls andmitigate them



• Test the effectiveness of controls the most significant risks and providerecommendations toimprove controls• Identify potential areas for improving process efficiency• Broadly develop on improvement portfolio and raise the level of awareness of howbusiness isimpacted by inadequately controlled risks inherent in the business process.Internal audit of our each store is also undertaken by an independent audit firm

on monthly/quarterlybasis.4. Measurement of Customer SatisfactionWe have devised a model called CEM- Customer Experience Management Model tomeasure customersatisfaction in our stores. The Customer Experience Management Model focusses onthe customer’sexperience at every touch point in the store ranging from their first impressionof the store, to theirexperience at the trial rooms, toilets, with our staff through various processessuch as billing andexchanges. We have hired a research agency called MACRO-Market Analysis andConsumer Research

Organisation. This agency sends people who are called ‘Mystery Shoppers’ to visitthe stores and thentheir experience is documented on a feedback form which is then sent to us . Basedon the feedbackformed analysis is done and the stores are given scores. This allows us to trackperformance oncustomer expectaion at overall, format and store levels, determine criticalimprovement areas ar alllevels and also identify opportunities that we can leverage upon.Besides, we have also started an in-house initiative called ‘Pragati’ whereby oneperson from the headoffice operations team visits the stores and observes the stores with respect tocertain pre-parameters

like store exteriors, baggage window, customer service, store ambience etc. Thisactivity is done on aquarterly basis and three best stores under each format are announced. Thisencourages the stores toimprove the efficiency of their store operations.CompetitionWe retail a range of branded apparel, footwear, perfumes, cosmetics, jewellery,leather products,accessories, home products, electronics, books, music and toys in our stores. Wealso retail our ownPrivate Label apparel, footwear, fashion jewellery, leather products, accessoriesand home products.This is complemented by cafe, food, entertainment, personal care and various

beauty related services.We face competition from other retailers of similar products and services. Theseinclude stand alonestores in the organized and unorganized sector, as well as other chains of storesincluding departmentstores.We focus on offering our customers a vast variety of products and servicescatering to their diverserequirements and needs. We are the pioneers in launching verious new formats inthe country such asCentral, aLL etc. It is because of this and the service and ambience that we



offer, that we believe wehave been able to create a differentiation in the mind of the customer vis-à-visour competitors wheresimilar products and brands are available.

14278623 Hr Services in Retail

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