Page 118 - DMGT550_RETAIL_MANAGEMENT

Unit 7: Human Resource Management

10. To provide an opportunity for expression and voice management. Notes
11. To provide fair, acceptable and efficient leadership.
12. To provide facilities and conditions of work and creation of favorable atmosphere for
maintaining stability of employment.
Management has to create conductive environment and provide necessary prerequisites for the
attainment of the personnel management objectives after formulating them.

Did u know? While employee productivity is directly related to retailers' short-term profits,
employee attitudes such as job satisfaction and commitment have important effects on
customer satisfaction and subsequent long-term performance of the retailer.

7.2 Issues in Retail Human Resource

The retail industry is a driving force in the American economy, so much so that news reports
often base at least part of their perception of the economy on how the retail industry is performing.
Aside from the major economic ebb and flow of the buying seasons and how they affect retail
sales, the retail industry as a whole has a number of other major problems that it must often deal
with.
Employee Turnover
Lack of worker continuity, or employee turnover, is one of the major problems faced by the
retail industry. Columbus IT notes that the typical turnover rate in North American retail is
much higher than in European countries and often ranges between 200 and 300 percent. Employees
coming in and out of your business as if it were a revolving door only creates problems for
human resource professionals who must constantly find and train new staff, which can eat up
valuable time and resources.
Auditing
Auditing is another problem that the retail industry faces on a regular basis. Retail businesses
are regularly engaged in competition with one another, and this competition can create price
wars, forcing a need to keep tight control over inventory and other important data. Metric
Stream, Inc. notes that the retail industry is often faced with inefficient and poor auditing plans
that make competing with other companies difficult. The company notes that existing auditing
systems may be outdated and provide inadequate audits needed to stay competitive.
Economic Challenges
Another area of challenge for the retail industry is the economic uncertainty it faces moving
forward. The retail industry as a whole is largely dependent upon the economic well being of
the nation. As the nation prospers and people have more money to spend, the retail industry
generally flourishes. However, in more difficult economic times, the retail industry is often
faced with potential shrinkage. Columbus IT also indicates that the future uncertainty of global
economic markets makes economic planning difficult in the retail world.
Technology
Keeping up with the pace of modern technology is another problem the retail industry faces.
For instance, retail point of sale technology often uses computer systems that are several years
behind the computer industry as a whole. An article in Mobile Commerce Daily by Peter
Finocchiaro points out that the inability of retail industry technology to keep up with initiatives
such as mobile digital coupons is a problem that the industry regularly faces. Given the rate of
turnover and the constantly changing economic environment, constantly upgrading and keeping

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