Page 120 - DMGT550_RETAIL_MANAGEMENT

Unit 7: Human Resource Management

Notes
Example: The small specialty shop may have all of its employees under one category
called Store Operations. A large department store may have a complete staff consisting of a
manager, assistant manager and sales associates for its Sporting Goods department, Home and
Garden, Bed and Bath, and each additional department.
In order to define the store’s organization, start by specifying all tasks that need to be performed.
Then divide those responsibilities among various individuals or channels. Group and classify
each task into a job with a title and description. The final step is to develop an organizational
chart.

Task Describe about Considerations for Organization Design.

Retailing Structure
The following is a brief outline of some of the divisions in a retail organization.
Owner/CEO or President

Store Operations: Management, Cashier, Sales, Receiving, Loss Prevention
Marketing: Visual Displays, Public Relations, Promotions
Merchandising: Planning, Buying, Inventory Control
Human Relations: Personnel, Training

Finance: Accounting, Credit
Technology: Information Technology
As the store grows and the retail business evolves, the dynamics of the organization’s structure
will change too. Therefore it is paramount to redesign the store’s organizational chart to support
the decision-making, collaboration and leadership capabilities that are essential during and
after a growth period.
An organizational structure is a principally hierarchical perception of subordination of entities
that work together and add to serve one universal aim. Organizations are a variation of clustered
entities. An organization can be prearranged in numerous diverse ways and styles, depending
on their objectives and aim. The Organizational structure identifies the activities to be performed
by specific employees and determined the line of authority and responsibility in the firm. An
efficient organizational structure shall smooth the progress of working relationships between a
variety of entities in the organization and may progress the working competence within the
organizational units.
In the present scenario organizational structure had a paradigm shift from Vertical structure to
horizontal one. There are certain steps which can facilitate an organizational structure. We will
take into consideration gradually.

Steps in Developing Organizational Structure

The first step in developing organizational structure is to establish the task that must be
performed in a retail firm.
These tasks performed at the retail firm are divided into four broad categories:

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