HRM IN RETAILING

It is really interesting that in Retail scenario Human Resource Management (HRM) is highly volatile and truly vulnerable. The reason is in any other scenario of manufacturing (of garments for e.g.,) or other industries the end user or consumer in particular and customer in general are not physically present with the people in the arena of action. In fact who are they or where are or how are they is not known to the people in the scenario.

Whereas in the Retail scenario the end user or consumer in particular & customer in general are present in front or with the people in the arena of action every minute of the work. In fact work in Retail scenario starts with and ends with the End user or Consumer or Customer. For this reason Human Resource Management (HRM) is highly volatile and truly vulnerable in this context.

The Retail Firms/Companies are service Organizations. The business performance of the Organization largely depends upon the human resources. Employee’s performance at the back end and at the front end operations are criteria for the success of the Organizations. Human Resource Management (HRM) therefore is the critical managerial function that affects every other function of the Organization.

The job of retail employees particularly at from end operations is critical and demand high level of involvement and commitment in job performance. They need to perform different roles while performing the job often simultaneously. The employee roles include:

• Service designer: The final package of the retail service will be decided by the employee on spot after assessing customer’s specific needs, desires and expectations. This means proper training of the retail personnel is required in need analysis of the customer.

• Performer: An employee of a Retail Organization is the performer of services. He/ She has to interact with uncontrollable elements (attending consumer complaints and grievances) and deliver quality performance, by influencing the customers to get involved in the process.

• Technician: The sales personnel should have the technical knowledge of various products offered for sale. In most cases in Retail, the manufacturers themselves take responsibility on the product training or in large multi-brand retail stores, the Companies appoint their own trained technical salesman.

• Associate: Employees of the Retail Organization and manufacturers, service consumers together. The expected role of an employee is to associate with the consumer and produce quality service. Further, some services may need group involvement. For example selling of Microwave, where the salesman makes effort to sell the best product, a trained technician will go to the customer’s home to offer a full demonstration of the products capability and application. Then it may be necessary for a service employee to associate with the group members for performing the service.

• Friend: A Retail employee has to play the role of a friend with consumers as well as co-employees in a team. Co-employees and customers look for help, cooperation, guidance and support from others on various issues. Every employee of the Retail Organization should respond to such needs positively.

• Empathizer: Empathy is the key quality parameter in retail services. The consumers feel comfortable and perceive better quality when contact employees are empathetic. Retail employees should have the patience and inclination to be empathetic towards customers.

• Assurer: Retail employees’ words and actions should reflect assurance to customers. As services are intangible, variable and perishable, customers seek assurance in every service process. For the consumer, contact employees are the representatives of the Retail Company. This is why a contact employee needs to perform the role of an assurer.

• Salesman: The performance of a retail employee builds a positive image for the Retail Company. The customers of the Store are likely to become consumers of other services offered by the Company. Contact employees will have an opportunity to interact closely and intimately with customers. Therefore, their role in influencing and persuading the customers to buy other services of the Company is vital.

• Marketing intelligence: One of the most prominent sources of marketing intelligence is contact employees. They are the right personnel to assess response of the customers on Company policies and quality specifications. The feedback from contact employees proves to be very valuable.

• Researcher: Innovation is the key to success in service business particularly in retailing. Employees of the retail companies are innovators in many respects. As an innovation they should be able to create a need or necessity in the end user or Consumer.

As variability is the key character of services, continuous improvements, whether minor or major, provide a competitive edge in the market. Employees, with their continuous involvement in work and interactive experience with varied customers, with a distinctive knowledge base, are capable of bringing innovation in work. There is a lot of scope to exploit the creativity of employees in retail business.

The performance in retail jobs also tests the emotional balance of the employees. The tolerance for errors in performance will be very less. The errors of the employee affect seriously the customer confidence on the retail outlet. Therefore, the function of human resources management is vital in displaying the performance strength of the Organization.