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Retail Management
Notes Retail Organizational Structure
Retail organizational structure differs according to the type of retailer and the size of the firm.
A retailer with a single store will have a completely different structure that a national chain.
Owner-manager of a single store may be the entire organization. As sales grow, the owner-
manager hires employees. Coordinating and controlling employees in a small store is easier.
The owner-manager simply assigns task to each employee and watches to see that these tasks
are performed properly. Each employee must perform a wide range of activities, and the owner
manager is responsible for all management tasks.
As sales increases, specialization in management may occur when the owner manager hires
additional management employees. The owner manager continues to perform strategic
management tasks. The store manager may be responsible for administrative task associated
with receiving and shipping merchandise and managing employees.
In contract to the management of a single store, retail chain management is very complex.
Managers must supervise units that are geographically distant from each other. In most large
retail firms the two senior executives, typically called the CEO and COO, work closely together
in managing the firm. One is primarily responsible for the merchandise and marketing activities
of the firm and the other is responsible for the stores, human resource, distribution, information
systems and finance divisions.
Key activities like Merchandise, planning, marketing, finance, visual merchandising and human
resources are managed from the corporate headquarters.
Did u know? The organisations structure identifies the activities to be performed by specific
employers and determines the lines of authority and responsibility in the firm.
Self Assessment
State whether the following statements are true or false:
6. The organizational structure of a retail store will vary by the size and type of the business.
7. An organizational structure is a principally hierarchical perception of subordination of
entities that work together and add to serve one universal aim.
8. Retail increases when employees have the proper amount of authority to effectively
undertake the responsibility assigned to them.
9. In contract to the management of a double store, retail chain management is very complex.
10. Key activities like Merchandise, planning, marketing, finance, visual merchandising and
human resources are managed from the corporate headquarters.
7.4 Managing Diversity
Diversity in the workplace means bringing together people of different ethnic backgrounds,
religions and age groups into a cohesive and productive unit. Advances in communication
technology, such as the Internet and cellular phones, have made the marketplace a more global
concept. In order to survive, a company needs to be able to manage and utilize its diverse
workplace effectively. Managing diversity in the workplace should be a part of the culture of the
entire organization.
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