Page 269 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes
!
Caution Once the retailer is aware about his organisational growth pattern it becomes
easy for him to project future growth.

Notes It has also been observed that if a retailer has tried to expand his business even after
having this handicap. Then it has resulted in major losses. Thus under all circumstances a
retailer should look into his long-term needs and have a HR plan designed accordingly.

Self Assessment

Fill in the blanks:

6. The first step in task analysis is .........................
7. ........................ states as to what are the exact requirements of a particular job.
8. Strategic management is completely under the domain of ........................ management.

9. To make strategies for special occasions like festivals, the store has to do continuous
........................ term planning.
10. A ........................ may have to adjust his prices based on the market feedback.

Concept of Performance Appraisal

What does the term performance actually mean? Employees are performing well when they are
productive. Productivity implies both concern for effectiveness and efficiency, effectiveness
refers to goal accomplishment. However it does not speak of the costs incurred in reaching the
goal. That is where efficiency comes in. Efficiency evaluates the ratio of inputs consumed to
outputs achieved. Greater the output for a given input, greater is the efficiency. It is not desirable
to have objective measures of productivity such as hard data on effectiveness, number of units
produced, or percent of crimes solved, etc. and hard data on efficiency (average cost per unit or
ratio of sales volume to number of calls made etc.).
In addition to productivity as measured in terms of effectiveness and efficiency, performance
also includes personnel data such as measures of accidents, turnover, absence, and tardiness.
That is a good employee is one who not only performs well in terms of productivity but also
minimizes problems for the organisation by being to work on time, by not missing days, and by
minimizing the number of work-related accidents.
Appraisals are judgments of the characteristics, traits and performance of others. On the basis of
these judgments we assess the worth or value of others and identify what is good or bad. In
industry performance appraisal is a systematic evaluation of employees by supervisors.
Employees also wish to know their position in the organization. Appraisals are essential for
making many administrative decisions: selection, training, promotion, transfer, wage and salary
administration etc. Besides they aid in personnel research.
Performance Appraisal thus is a systematic and objective way of judging the relative worth of
ability of an employee in performing his task. Performance appraisal helps to identify those
who are performing their assigned tasks well and those who are not and the reasons for such
performance.

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