Week 6

Ch 9: Management Roles and Responsibilities

FM20512 – Retail Operations

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Midterm Exam Scores

18 54%21 61%24 68%27 76%30 83%33 90%36 98%37 100%

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Midterm Exam Results

1

87

8

2

6

1 1

5

2

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10

55% 60% 65% 70% 75% 80% 85% 90% 95% 100%

Midterm Exam Grade

# of Students

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Management and Managers• Management

– “The process of getting activities completed efficiently and effectively with and through other people”

• Managers– People who have been given formal authority

and power to direct, supervise and motivate employees, to ensure that the company’s needs are met

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Roles and Responsibilities• Understand company goals

– Company policies and procedures– Their role in achieving them

• Planning– Reaching goals

• Promotions

• Organizing– Scheduling

• Assigning work

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Roles and Responsibilities cont’d• Directing

– Leading– Instructing– Informing– Training– Assisting

• Controlling– Monitoring

• Personnel decision-making– Disciplining– Counseling

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Morale and Motivation

• Morale– Enthusiasm and happiness of employees– Increase customers– Increase sales

• Motivation– To stimulate employee action – Intrinsic rewards

• Recognition

– Extrinsic rewards• Compensation

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Job Roles and Titles• Job roles

– The part an employee plays for an employer– Job descriptions

• Spell out and clarify roles

• Job titles– Denotes a particular position– Helps identify role– Can vary from one company to another

• “Executives” vs. “Managers”• “Asst. Store Managers” vs. “Second Keys”• “Merchandise Managers”

– Regional/Corporate vs. store-level

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Management Style

• Varies from person to person

• Authoritative

• Caretaking

• Work alone or with others

• Delegating

• “Management by walking around”

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Levels of Management• First-line or entry-level

– Supervisors– Assistant Managers

• Middle managers– Department Heads– Managers– Divisionals– Buyers

• Top or upper-level managers– Officers and top Execs

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(Ideal) Manager Attributes(from Macy’s)

• Problem solvers

• Idea generators

• Action oriented

• Flexible

• Leaders

• Jugglers

• Courageous

• Resilient

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Managers are Role Models!

• Employees try to emulate

• Bad management– Unmotivated employees– Rocky work environment– Trains bad managers

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Organizational Charts• Model the structure of the company

– How a company is set up and directed

• Hierarchical structure• Chain of command

– I.e. who reports to whom

• Relationship between parts and whole– Line positions

• Direct authority and responsibility

– Staff positions• Advisory and support

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Mazur Plan• Four major retail divisions:

– Merchandising• Buying and selling

– Publicity• Promotion & advertising• Special events

– Store operations• Customer Service• Physical plant

– Accounting and control• Credit & collection• Budgets

• Usually add human resources

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Five-Function Retail Org. Chart

Training

Benefits

Human Resources/Personnel

Asst. Buyer

Buyer

Div. Merch. Mgr

Gen. Merch. Mgr

Merchandising Advertising &Promotion

Sales Associate

Asst. Dept. Mgr.

Dept. Mgr.

Asst. Store Mgr.

Store Mgr

Operations Mgr

Operations

Bookkeeping

Accounting

Control/Finance

Vice President

President

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Other Structural Options

• By division or region

• Add branch management

• Essential functions:– Merchandising

• Product/service offered

– Operations• Method of selling

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Management Training• Structured/Formal

– Supervised or directed– To accomplish set goals

• Unstructured/Informal– “On–the–job” training

• Some retailers only hire from within– Nordstrom– Apropos– Many others

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Advancement and Promotion

• Progressive management advancement– Career ladders

– Work your way up

• Job promotion– Advance into higher position

– Can be difficult

– Avoid the “Peter Principle”

General Manager Area Manager

Store Manager

Assistant Mgr.

Associate Mgr.

District Manager

Regional Manager

Gap, Inc.

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Effective Management• Communication!

– Individual and/or group meetings– Memos– Letters– Open-door-policy

• Other philosophies - from Rich’s/Lazarus/Goldsmith’s – Equal Employment Opportunity– Sexual Harassment

• “Unwelcome” advances• Tied to employment• Hostile work environment

– Legal Compliance

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Management Evaluation• Communicate how a manager is performing• By immediate supervisor• Formal and Informal• Annually or semi-annually

– Often tied to rewards and promotions

• Management by objective– Managers help create objectives– Monitor their own progress

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Term Project

• Pick a store or department– Customer profile

– Retail structure

– Goal setting

– Sales incentives

– Shrinkage controls (Loss Prevention)

– Customer service

– Management style

– Merchandising methods

– Technology