PPT 17-1 5 th Edition. PPT 17-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright ©...
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Transcript of PPT 17-1 5 th Edition. PPT 17-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright ©...
PPT 17-1
5th Edition5th Edition
PPT 17-2McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Managing the StoreManaging the Store
Chapter 17Chapter 17
PPT 17-3
Store Management
Managing the Store
Layout, Design andVisual MerchandisingCustomer Service
PPT 17-4
Store Managers Run a Business
“This is your business. Do your own thing.
Don’t listen to us in Seattle, listen to your
customers. We give you permission to take
care of your customers.”
James Nordstrom, the CEO of Nordstrom’sJames Nordstrom, the CEO of Nordstrom’s
PPT 17-5
Strategic Importance of Store Management
• Opportunity to Build Strategic Advantage
– Difficult to Have Unique, Compelling Merchandise
– Customer Loyalty Often Based on Customer Service
• Difficulty of Store Managers Job
– Managing Diverse Set of Unskilled People
– Increasing Empowerment and Responsibility to Tailor Merchandise and Presentation to Local Community
PPT 17-6
Store Managers’ Responsibilities
• Varies Dramatically By Type of Retailers
– Specialty Store vs. Department Store
• Entrepreneur
– P & L Responsibility
– Manage People
• Responsible for Two Critical Assets
– People Sales/Employees
– Space Sales/Square Foot
PPT 17-7
Responsibilities of Store ManagersUndertaken by Store Managers
PPT 17-8
Three Levers forIncreasing Employee Productivity
Ability Effort Role Clarity
Selection
Training
Motivation
Goals
Incentives
Rewards
Job Definition
Policies, Rules
Org Culture
PPT 17-9
Steps in Employment Management Process
PPT 17-10
Recruiting and Selecting Employees
Undertake Job Analysis
Prepare Job Description
Find Potential Applicants
Screen Candidates
Select Employees
PPT 17-11
Sources of Information for Screening Applicants
• Application Forms
• References
• Testing
• Providing a Realistic Job Preview
PPT 17-12
Legal Considerations in Hiring and Selecting Employees
Equal Employment Opportunity Commission (EEOC)
Age Discrimination and Employment Act
– Disparate Treatment
– Disparate Impact
Americans with Disabilities Act (ADA)
Equal Employment Opportunity Commission (EEOC)
Age Discrimination and Employment Act
– Disparate Treatment
– Disparate Impact
Americans with Disabilities Act (ADA)
PPT 17-13
Socializing and Training Employees
Orientation Program
Training
Where, when, what
Structured vs. unstructured
Classroom vs. on-the-job
Analyzing Successes and Failures
PPT 17-14
Motivating and Managing Employees
Setting Goals
Measuring Performance
Providing Feedback
ProvidingIncentivesto AchieveGoals
PPT 17-15
Leadership
Process by which one person attempts to influence another to accomplish some goal or goals
Leader Behaviors
– Task-Oriented
– Group Maintenance
PPT 17-16
Types of Leaders
• Autocratic
• Democratic
• Transformational
Which Type of Leader Is the Most Effective?
PPT 17-17
Setting Goals
How High? How Easy to Achieve?
Get Participation ofEmployees inGoal SettingProcess
PPT 17-18
Individualized Motivation Programs
• Impact of Goals Differs Across People
• Different People Seek Differ Rewards
– A La Carte Reward Programs
– Selection of Compensation Plans
PPT 17-19
Factors Used to Evaluate Sales Associates at The Gap
25% Operations 50% Sales/Customer
Relations25% Compliance
PPT 17-20
Evaluating and Providing Feedback to Employees
Evaluation
Who, when, how often?
Feedback
Performance outcome vs. process
PPT 17-21
Jim Taylor’s Six Month Evaluation
PPT 17-22
Common Evaluation Errors
Strictness
Leniency
Haloing
Recency
Contrast
Attributions
Ratings unduly negative
Rating unduly positive
Using the same rating on all aspects of the evaluation
Placing too much weight on recent events rather than evaluating performance over the entire period
Having the evaluation of a salesperson unduly influenced by the evaluation of other salespeople
Making errors in identifying causes of the salesperson’s performance
PPT 17-23
Compensating and Rewarding Employees
• Extrinsic vs. Intrinsic Rewards
• Compensation
Type• Straight salary• Straight commission• Salary plus commission• Quota bonus
Setting quotas
Individual vs. group incentives
PPT 17-24
Advantages and Disadvantages of Straight Salary
Straight Salary Incentive Compensation
Offers flexibility in assigning employees Has high motivating potential
to activities
Builds stronger employee commitment Has more variable cost
Is easy for employees to understand Relates compensation to productivity
Is easy to administer
Allows for better performance of non-selling activities such as customer
service
PPT 17-25
Designing a Compensation Plan
Determine Appropriate Compensation
Decide on Percent of Incentives
Use Average Sales Per Employee to Set Incentive Rate
Use Average Sales Per Employee to Set Incentive Rate
$12/Hour 1/3 Salary2/3 Incentive
Sales/Person - $150 5.33% Commission $4/Hour Salary
$4 = 5.33% x 150 = $12
PPT 17-26
Sexual Harassment
Sexual harassment is unwelcomed sexual advances, requests for sexual favors, and other verbal and physical contact.
showing obscene photographs
making lewd comments and gestures
staring in a sexual manner
making work environment hostile
PPT 17-27
Procedure for Sexual Harassment Allegation
PPT 17-28
Controlling Costs
Costs Controlled by Store
Managers
Labor
Maintenance
Inventory Shrinkage
EnergyHeatingLighting
PPT 17-29
Labor Scheduling System
PPT 17-30
Calculating Shrinkage
Accounting Record – Actual Inventory
Sales
$1,500,000 - $1,236,00 = 6.7%
$4,225,000
PPT 17-31
Sources of Inventory Shrinkage
Employee Theft 46%
Shoplifting 31%
Mistakes and InaccurateRecords 17%
Vendor Errors 6%
PPT 17-32
Preventing Shoplifting
Store design
Employee training
Good customer service
Security measures
Dye capsules, TV cameras
EAS
Prosecution
PPT 17-33
Spotting a Shoplifter
• Customers loitering
• Groups of people
• People wearing loose clothing
• Unusual movements
• People watching out where you are
PPT 17-34
PPT 17-35
EAS Tags
PPT 17-36
Reducing Employee Theft
Trusting, supportive work atmosphere
Employee screening
Honesty, drug testing
Security personnel - mystery shoppers
Policies and procedures
Employee theft is an HR problem.