Page 130 - DMGT550_RETAIL_MANAGEMENT

Unit 7: Human Resource Management

‘Your Theatre’ is a two-day programme to improve sales skills and provide the highest Notes
level of customer service. It introduces the idea of selling as a ‘theatre’ requiring specific
skills and expertise. ‘The Theatre of Selling’ element covers personal presentation, effective
questioning, product selection and closing the sale. ‘The Science of Selling’ develops
employee awareness of customer types and needs.
The Harrods Fashion Programme is run in partnership with the London College of Fashion.
It enables sales associates to understand the entire ‘product journey’ from design to sale.
The School of Communication offers voice, body language and presentation skills
workshops. For suitable candidates, the Harrods Sales Degree provides the high level
sales skills the company needs. This is the first and only degree of its kind in Sales. It is
recognised globally and can be completed in two years.

High Potential programmes are concerned with succession planning. They are aimed at
ensuring there is a strong pipeline of potential senior managers. The Harrods Management
Programme develops ambitious and career-focused employees into a management role.
Jessica joined the company after graduating with a degree in Art History. After just 3 years
she is now a Harrods Retail Manager. She runs the Designer Collection sales floor,
managing 26 employees and controlling a substantial budget.
Employee retention is important for businesses. A low employee turnover can keep
recruitment costs down. It also ensures a skilled and experienced workforce. Employee
development is beneficial for both the employee and the business. However, sometimes
employees think that their new-found skills will enable them to gain a better job elsewhere.
Harrods, therefore, has put in place strategies to keep its talented Retail Managers. It has
found that employees who develop within the company tend to stay. Those brought in
from outside are more likely to leave. Another vital part of retention for Harrods involves
identifying the ‘DNA’ (key factors) of great sales people. It then matches applicants to
these factors.

To reduce employee turnover Harrods has developed a better management structure,
improved benefits and created initiatives which make Harrods a ‘great place to work’.
Harrods has put in place a system of rewards and incentives.
Harrods also has systems to improve employee communications so that it can listen to
feedback and address any issues. There is an Internal Communications department, regular
performance assessment meetings and SMART targets for employees to reach. These
initiatives have seen employee turnover fall from 51.4% in 2006 to 25% in November 2011.

Question:
What are the key factors by which Harrods maintains its high levels of employee retention?
Source: http://businesscasestudies.co.uk/harrods/developing-a-career-path-in-retail/careers-at-harrods.html#ixzz2NsIzbb00

7.7 Summary

 Objectives are predetermined goals to which individual or group activity in an organization
is directed.
 The objectives of the economic institutions are mostly to earn profits, and of the educational
institutions are mostly to impart education and/or conduct research so on and so forth.
 Institutions procure and manage various resources including human to attain the specified
objectives.

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