Module 9: Human Resource Management

Question 1

“The relationship that we have with our people and the culture of our company is our most sustainable
competitive advantage.”

Answer 1

Howard Schultz, Starbucks CEO

Question 2

Why is Human Resource Management important in retailing?

Answer 2

Human resource management is particularly important in retailing because employees play a major role
in performing its critical business functions. Retailing and
other service businesses remain LABOR-INTENSIVE. Retailers still rely on people to perform the basic
retailing activities, such as BUYING, DISPLAYING MERCHANDISE, and PROVIDING SERVICE TO CUSTOMERS.

Question 3

Critical Assets that help retailers achieve their financial objectives:

Answer 3

 Location
 Merchandise Inventory
 Stores
 Employees
 Customers

Question 4

HRM is a basis for building sustainable competitive advantage. This is attainable because:

Answer 4

1. LABOR COSTS ACCOUNT for a significant percentage of a retailer’s total expenses.
2. The EXPERIENCE that most CUSTOMERS HAVE WITH A RETAILER is DETERMINED BY EMPLOYEES
3. These potential advantages are DIFFICULT FOR COMPETITORS TO DUPLICATE.

Question 5

Measuring Performance of Human Resource Management

Answer 5

Employee Productivity
Employee Turnover

Question 6

– the retailer’s sales or profits divided by the number of employees.

• Can be improved by increasing sales generated by existing employees reducing the
  number of employees without affecting sales or both

-
Directly related to retailer’s short-term profits

Answer 6

Employee Productivity

Question 7

(the behavioral measure of employee attitude)

• The number of employees leaving their job during the year

Answer 7

Employee Turnover

Question 8

EMPLOYEE TURNOVER formula

Answer 8

NUMBER OF EMPLOYEES LEAVING THEIR JOB DURING THE YEAR
over
NUMBER OF POSITIONS

Question 9

Failure to consider both long and short-term objectives of HRM can result in

Answer 9

the
MISMANAGEMENT of HR and a DOWNWARD SPIRAL.

Question 10

ISSUES IN RETAIL HUMAN RESOURCE MANAGEMENT

Answer 10

HRM in retailing is very challenging for several reasons:

1. BALANCING THE HUMAN TRIAD.
2. EXPENSE CONTROL.
3. PART-TIME EMPLOYEES.
4. UTILIZING DIVERSE EMPLOYEE GROUP.
5. INTERNATIONAL HUMAN RESOURCE ISSUES.

Question 11

. It is difficult to achieve a delicate BALANCE between the ABILITY
TO SATISFY THE NEEDS of EMPLOYEES , the ABILITY OF HR PROFESSIONALS at the corporate offices to set
policies and the capabilities of store managers to implement those policies

Answer 11

BALANCING THE HUMAN TRIAD

Question 12

To be profitable, retailers often HIRE LITTLE OR NO EXPERIENCE employees TO
PAY LOWER WAGES.

Answer 12

EXPENSE CONTROL.

Question 13

Retailers have increased this proportion in
an effort to reduce expenses

Answer 13

PART-TIME EMPLOYEES