Leadership in Retail

By: Brian Villwock

Leadership in RetailThere is a big difference between managing and leading…

- “Management consists of controlling a group or a set of entities to accomplish a goal. Leadership refers to an individual’s ability to influence, motivate, and enable others to contribute toward organizational success. Influence and inspiration separate leaders from managers, not power and control.” (Nayar, 2013)

Leadership in Retail- “A leadership style generally results from the way in which a

manager or leader applies his personality and temperament to the people and business decisions he manages.” (Kokemuller)

- “In a retail business, the approach a store manager takes in leading can significantly impact the culture for both employees and customers.” (Kokemuller)

Leadership in Retail - Roles & Responsibilities There are several roles & responsibilities a leader must take on in a retail environment, including…

- Instruction & Training

- Lead by Example

- Communication

- Motivate, Praise, Criticize & Reward

Instruction & Training- In retail, a leader must provide employees with

instructions and training to give them skills & an advantage in the workplace.

- This could include help with company policies, equipment, closing sales, product knowledge, answering questions, problem solving, computer/system guidance, etc.

- Training focuses on properly orienting employees with their job.

Lead by Example- Leaders typically work behind the scenes in retail, but often

must intervene with employee/customer interactions.

- Leaders must provide an example by treating the customer in exactly the same manner in which they want team members to treat the customer.

- Leaders should be helpful, polite & respectful. If a customer becomes irritated or aggressive, leaders must maintain composure and deal with the hostility by following company policy.

Communication- Leaders must complete their responsibilities while remaining in contact with the rest of their employees.

- Leaders must act as a liaison between employees and other management.

Communication- Leaders must field complaints from employees and handle them accordingly, or refer them to the appropriate department (upper management, HR, etc.)

- Leaders must be socially aware and pay attention to nonverbals so that they can read both their employees and customers and be proactive to different situations.

Motivate, Praise, Criticize & Reward - Leaders must motivate employees

to reach goals or requirements, consistently encourage their employees to work smarter & harder.

- It’s good to praise an employee who performs well or reaches a goal. Leaders often use them as an example for other employees, as well.

Motivate, Praise, Criticize & Reward- Leaders often present

rewards such as "employee of the month" or bonuses.

- Offer constructive criticism to employees to help them improve and reach company goals.

Task Direction- Leaders often delegate tasks to employees.

- Leaders must motivate employees to complete specific job functions or tasks effectively and efficiently.

- Task-oriented leaders must have the ability to quickly react and implement decisions related to customer problems and operational dilemmas.

2 types of Leadership: Transactional vs. Transformational- Transactional: Based on traditional forms of management, which

focuses on leader-follower, tasks & group performance.

- Transformational: The leader works with employees to identify needed changes and works together as a team to implement those changes. Maximizes the capacity of employees, inspiring them to give their best.

Both of these types of leaders exist in retail. Both types can affect the workplace.

Culture Risk- Transactional or overly task-oriented

leaders don’t focus on people.

- Can cause employees to feel as though the leader doesn't care about them.

- Leads to employee burnout, lack of team chemistry and low employee morale.

- Can lead to high turnover & an inability to work as a team.

Consideration of People- Transformational leaders

emphasize relationship ability in their style.

- Spend time interacting with employees on a personal level & developing relationships.

Consideration of People- Usually leads to better results

in building a team-oriented, fun culture. Team-centered employees are more likely to fill in for coworkers or pick up the slack when others have an off-day.

- A positive workplace leads to a better environment for customers, as well.

Finding Balance - Effective leaders balance

employee relationships with task-direction.

- Employees work more effectively & efficiently if they feel the manager cares about them, but also communicates & maintains performance expectations.

Finding Balance - Overly relational-oriented

leaders can cause employees to feel little pressure to perform, leading to less motivation to reach goals.

- Effective employees also find balance in serving customers & completing tasks efficiently.

Framing- Effective leaders tap into

the power of language so that they can persuade employees and communicate credibly in the workplace.

- “Leaders often cannot control events, but theycan control the context under which events are seen if they recognize a framing opportunity.”

Framing- There are many ways in which leaders can

using framing in communication in the workplace, including using metaphors, stories, jargon and spinning situations to fit a goal.

- An effective leader in retail can take a situation such as not meeting store budget and frame it to say, “We didn’t hit our budget this quarter, but that means our bonus potential for next quarter is even greater.”

BibliographyKokemuller, Neil. (n.d.) The impact of a leadership style on a retail store. Chron. Retrieved from www.smallbusiness.chron.com/

Mott, Ashley. (n.d.) Role of a team member in retail. Chron. Retrieved from www.smallbusiness.chron.com/

Nayar, Vineet. (2013, August 2) Three differences between managers and leaders. Harvard Business Review. Retrieved from www.hbr.org

THE END!Thank You!