Chapter 17
Managing the Store
McGraw-Hill/Irwin
PPT
17-1
Levy/Weitz: Retailing Management, 5/e
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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’s
PPT 17-2
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 17-3
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 17-4
Three Levers for
Increasing Employee Productivity
Effort
Role Clarity
Selection
Motivation
Job Definition
Training
Goals
Policies, Rules
Incentives
Org Culture
Ability
Rewards
PPT 17-5
Steps in Employment
Management Process
PPT 17-6
Recruiting and Selecting Employees
Undertake
Job
Analysis
Prepare
Job
Description
Find
Potential
Applicants
Select
Employees
Screen
Candidates
PPT 17-7
Motivating and Managing Employees
Providing
Incentives
to Achieve
Goals
Setting
Goals
Measuring
Performance
Providing
Feedback
PPT 17-8
Leadership
Process by which one person attempts to
influence another to accomplish some goal
or goals
Leader Behaviors
– Task-Oriented
– Group Maintenance
PPT 17-9
Types of Leaders
• Autocratic
• Democratic
• Transformational
Which Type of Leader
Is the Most Effective?
PPT 17-10
Evaluating and Providing
Feedback to Employees
Evaluation
- Who, when, how often?
Feedback
- Performance outcome vs. process
PPT 17-11
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 17-12
Designing a Compensation Plan
Use Average
Sales Per
Employee to
Set Incentive
Rate
Decide on
Percent of
Incentives
Determine
Appropriate
Compensation
1/3 Salary
2/3 Incentive
$12/Hour
Sales/Person - $150
Î5.33% Commission
$4/Hour Salary
$4 = 5.33% x 150 = $12
PPT 17-13
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 17-14
Controlling Costs
Energy
Heating
Lighting
Labor
Costs Controlled by
Store Managers
Maintenance
PPT 17-15
Inventory
Shrinkage
Calculating Shrinkage
Accounting Record – Actual Inventory
Sales
$1,500,000 - $1,236,00
=
6.7%
$4,225,000
PPT 17-16
Preventing Shoplifting
Store design
Employee training
Good customer service
- Security measures
- Dye capsules, TV cameras
- EAS
Prosecution
PPT 17-17
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.
PPT 17-18