HR SERVICES IN RETAIL MANAGEMENT

DEFINITION AND SCOPE OF RETAILING:

The word retail is derived from the French word retailer meaning to cut a piece
off or to break bulk. In simple terms, it implies a first-hand transaction with
the customer. Retailing can be defined as the buying and selling of goods and se
rvices. It can
also be defined as the timely delivery of goods and services demanded by consume
rs
at prices that are competitive and affordable.
Retailing involves a direct interface with the customer and the coordination of
business activities from end to end- right from the concept or design stage of a
product or offering, to its delivery and post-delivery service to the customer.
The industry has contributed to the economic growth of many countries and is
undoubtedly one of the fastest changing and dynamic industries in the world toda
y.
TYPES OF RETAIL OPERATIONS: Retail operations enable a store to function smoothl
y without any hindrances. The significant types of retail operations consist of:
- Department store
- Specialty store
- Discount/Mass Merchandisers
- Warehouse/Wholesale clubs
- Factory outlet
Retail Management System targets small and midsize retailers seeking to automate
their stores. The package runs on personal computers to manage a range of store
operations and customer marketing tasks, including point of sale; operations;
inventory control and tracking; pricing; sales and promotions; customer manageme
nt
and marketing; employee management; customized reports; and information security
.
THE EMERGING SECTORS IN RETAILING: Retailing, one of the largest sectors in the
global economy, is going through a
transition phase not only in India but the world over. For a long time, the corn
er
grocery store was the only choice available to the consumer, especially in the
urban areas. This is slowly giving way to international formats of retailing. Th
e
traditional food and grocery segment has seen the emergence of
supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar), convenience
stores (Convenio, HP Speedmart) and fast-food chains.
It is the non-food segment, however that foray has been made into a variety of n
ew
sectors. These include lifestyle/fashion segments (Shoppers' Stop, Globus,
LifeStyle, Westside), apparel/accessories (Pantaloon, Levis, Reebok),
books/music/gifts (Archies, MusicWorld, Crosswords, Landmark), appliances and
consumer durables (Viveks, Jainsons, Vasant & Co.), drugs and pharmacy (Health a
nd
Glow, Apollo).
The emergence of new sectors has been accompanied by changes in existing formats
as well as the beginning of new formats: - Hypermarts
-Large supermarkets, typically 3,500-5,000 sq. ft.
- Mini supermarkets, typically 1,000-2,000 sq. ft.
- Convenience stores, typically 750-1,000sq. ft.
- Discount/shopping list grocer
The traditional grocers, by introducing self-service formats as well as value-
added services such as credit and home delivery, have tried to redefine
themselves. However, the boom in retailing has been confined primarily to the
urban markets in the country. Even there, large chunks are yet to feel the impac
t
of organized retailing. There are two primary reasons for this. First, the moder
n
retailer is yet to feel the saturation' effect in the urban market and has,
therefore, probably not looked at the other markets as seriously. Second, the
modern retailing trend, despite its cost-effectiveness, has come to be identifie
d
with lifestyles.
In order to appeal to all classes of the society, retail stores would have to
identify with different lifestyles. In a sense, this trend is already visible wi
th
the emergence of stores with an essentially `value for money' image. The
attractiveness of the other stores actually appeals to the existing affluent cla
ss
as well as those who aspire for to be part of this class. Hence, one can assume
that the retailing revolution is emerging along the lines of the economic
evolution of society.
RETAILING SCENARIO- GLOBAL VIEW: Retailing in more developed countries is a big
business and better organized than
what in India. According to a report published by McKinsey & Co. along with the
Confederation of the Indian Industry the global retail business is a worth a
staggering US$ 6.6 trillion. In the developed world, most of it is accounted for
by the organized retail sector.
The service sector accounts for a large share of GDPin most developed economies.
And the retail sector forms a very strong component of the service sector. In
short, as long as people need to buy, retail will generate employment.Globally,
retailing is a customer-centric with a emphasis on innovation in products,
processes and services.
With total sales of US$ 6.6 trilloin, retailing is the world is largest private
industry, ahead of finance and engineering. Some of the world largest companies
are in this sector: over 50 Fortune, 500 companies and around 25 of the Asian To
p
200 firms and retailers. Wal-Mart, the world second largest retailer, has a
turnover of US$ 260 billion, almost one-third of India GDP.
As many as 10% of the world billionaires are retailers. The industry accounts fo
r
over 8% of GDP in western countries, and is one of the largest employers.
According to the U.S.Department of Labor, more than 22 million Americans are
employed in the retailing industry in over 2 million retail stores.
RETAIL INDUSTRY IN INDIA: Retail is India’s largest industry, accounting for over
10 percent of the
country’s GDP and around eight percent of employment. Retail in India is at the
crossroads. It has emerged as one of the most dynamic and fast paced industries
with several players entering the market. That said, the heavy initial investmen
ts
required make break even hard to achieve and many players have not tasted succes
s
to date. However, the future is promising; the market is growing, government

policies are becoming more favourable and emerging technologies are facilitating
operations.
Retailing in India is gradually inching its way to becoming the next boom
industry. The whole concept of shopping has altered in terms of format and
consumer buying behavior, ushering in a revolution in shopping. Modern retail ha
s
entered India as seen in sprawling shopping centres, multi-storeyed malls and hu
ge
complexes offer shopping, entertainment and food all under one roof.
The Indian retailing sector is at an inflexion point where the growth of organis
ed
retail and growth in the consumption by Indians is going to adopt a higher growt
h
trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing working-women population
and emerging opportunities in the services sector are going to be the key growth
drivers of the organised retail sector.
Big in size and turnover, Indian retailing industry is characterised by certain
attributes. The network of retailers reaches every nook and corner of the countr
y. So any
product produced anywhere in the country can be easily accessed by the buyers fr
om
any location. Thus the spatial convenience of Indian retailers is vary high.
Secondly, in India the retailing industry is an unorganised lot consisting of, i
n most of the cases, small entrepreneurs. And the virtual omnipresence of the In
dian retailer can be attributed to these small entrepreneurs only.
The second attribute gives rise to the following characteristics
- Power of the retailers, as such is very less, and in many cases it is
negligible. This weakness has been exploited by the manufacturers and the strong
er
partners of the marketing channel. The retailers, in general, abide by the terms
and conditions set by the manufacturers and other "big brothers" of the channel.
- The manufacturers cannot directly reach all retailers in a particular
geographical area. Therefore, the manufacturers cannot maintain the desired
relationship with the retailers, which in turn, makes management of the channel
complicated. This also makes the possibility of a direct feedback loop from the
retailers almost remote.
- Therefore, the member operating between the manufacturers and retailers become
more powerful as they can block the channel of communication between the two. S
o the dependence of retailers on other channel members increases to a high exten
t. Thus the participation of retailers in the flows of marketing mix becomes low
er than desired.
- The financial strength of the Indian retailers, in general, is very low and
hence the investment capabilities. This makes the retailers more dependent on th
e
other channel members.
- However, these characteristics are peculiar to the small retail outlets and ma
y not be present at every kind of retail level. Retail Shopkeepers: India has so
metimes been called a nation of shopkeepers. This epithet has its
roots in the huge number of retail enterprises in India, which totalled over 12
million in 2003. About 78% of these are small family businesses utilising only
household labour. Even among retail enterprises that employ hired workers, the
bulk of them use less than three workers.
India s retail sector appears underdeveloped not only by the standards of
industrialised countries but also in comparison with several other emerging
markets in Asia and elsewhere. There are only 14 companies that run department
stores and two with hypermarkets. While the number of businesses operating
supermarkets is higher (385 in 2003), most of these had only one outlet. The
number of companies with supermarket chains was less than 10.
Retail Sales: Retail sales, which amounted to about Rs7,400 billion in 2002, exp
anded at an
average annual rate of 7% during 1999-2002. With the upturn in economic growth
during 2003, retail sales are also expected to expand at a higher pace of nearly
10%.
In a developing country like India, a large chunk of consumer expenditure is on
basic necessities, especially food related items. Hence, it is not surprising th
at
food, beverages and tobacco accounted for as much as 71% of retail sales in 2002
.
The remaining 29% of retail sales are non-food items. The share of food related
items fell over the review period, down from 73% in 1999. This is to be expected
as, with income growth, Indians, like consumers elsewhere, spent more on non-foo
d
items compared with food products.
Sales through supermarkets and department stores are small compared with overall
retail sales. However, their sales grew much more rapidly (about 30% per year).
As
a result, their sales almost tripled during this time. This high acceleration in
sales through modern retail formats is expected to continue during the next few
years with the rapid growth in numbers of such outlets in response to consumer
demand and business potential.
Government Policy: There has been vigorous opposition to foreign direct investme
nt (FDI) in retailing
from small traders who fear that foreign retailing companies would take away the
ir
business, lead to the closure of many small trading businesses and result in
considerable unemployment. Given the political clout of the small trading
community, because of their enormous numbers, the government has barred FDI in
retailing since 1997. Hence, at present, foreign retailers can only enter the
retailing sector through franchising agreements.
Growth of Retailing in India: Indian retailing industry has seen phenomenal grow
th in the last five years (2001-
2006). Organized retailing has finally emerged from the shadows of unorganized
retailing and is contributing significantly to the growth of Indian retail secto
r.
India Retail Sector Analysis (2006-2007) report helps clients to analyze the opp
ortunities and factors critical to the success of retail industry in India. - Or
ganized retail will form 10% of total retailing by the end of this decade
(2010).
- From 2006 to 2010, the organized sector will grow at the CAGR of around 49.53%
per annum.
- Cultural and regional differences in India are the biggest challenges in front

of retailers. This factor deters the retailers in India from adopting a single
retail format.
- Hypermarket is emerging as the most favorable format for the time being in
India.
- The arrival of multinationals will further push the growth of hypermarket
format, as it is the best way to compete with unorganized retailing in India.
Technology Impact: The other important aspect of retailing relates to technology
. It is widely felt
that the key differentiator between the successful and not so successful retaile
rs
is primarily in the area of technology. Simultaneously, it will be technology th
at
will help the organised retailer score over the unorganised players, giving both
cost and service advantages.
Retailing is a `technology-intensive industry. It is quoted that everyday at
least 500 gigabytes of data are transmitted via satellite from the 1,200 point-o
f-
sales counters of JC Penney to its corporate headquarters. Successful retailers
today work closely with their vendors to predict consumer demand, shorten lead
times, reduce inventory holding and thereby, save cost. Wal-Mart pioneered the
concept of building a competitive advantage through distribution and information
systems in the retailing industry. They introduced two innovative logistics
techniques - cross-docking and electronic data interchange.
Today, online systems link point-of-sales terminals to the main office where
detailed analyses on sales by item, classification, stores or vendor are carried
out online. Besides vendors, the focus of the retailing sector is to develop the
link with the consumer. `Data Warehousing is an established concept in the
advanced nations. With the help of `database retailing , information on existing
and potential customers is tracked. Besides knowing what was purchased and by
whom, information on softer issues such as demographics and psychographics is
captured.
Retailing, as discussed before, is at a nascent stage in our country. Most
organised players have managed to put the front ends in place, but these are
relatively easy to copy. The relatively complicated information systems and
underlying technologies are in the process of being established. Most grocery
retailers such as FoodWorld have started tracking consumer purchases through CRM
.
The lifestyle retailers through their `affinity clubs and `reward clubs are
establishing their processes. The traditional retailers will always continue to
exist but organised retailers are working towards revamping their business to
obtain strategic advantages at various levels - market, cost, knowledge and
customer.
With differentiating strategies - value for money, shopping experience, variety,
quality, discounts and advanced systems and technology in the back-end, change
in the equilibrium with manufacturers and a thorough understanding of the consum
er behaviour, the ground is all set for the organised retailers.
It would be important to note, however, that the retailing industry in India is
still a `protected industry . It is one of the few sectors which still has
restrictions on FDI. Given the current trend in liberalisation, it will not be
long before the retailing sector is also thrown open to international competitio
n.
This will see a further segregation of the international retailing brands and th
e
domestic retailers, thereby injecting much greater dynamism into the market. Tha
t
will be when the real action will begin.
Major retailers in India:
- India’s top retailers are largely lifestyle, clothing and apparel stores.
- This is followed by grocery stores.
- Following the past trends and business models in the west retail giants such a
s
Pantaloon, Shoppers
Stop and Lifestyle are likely to target metros and small
cities almost doubling their current number of stores.
- These Wal-Mart wannabes have the economy of scale to be low medium cost
retailers pocketing narrow margin.
RETAILING SCENARIO-INDIA: The retail scenario in India is unique. Much of its is
in the unorganized sector,
with over 12 million retail outlets of various sizes and formats. Almost 96% of
these retail outlets are less than 500 sq.ft. in size, the per capita retail spa
ce
in India being 2 sq.ft. Compared to the US figure of 16 sq.ft. India’s per capita
retailing space is thus the lowest in the world. With more than 9 outlets per1,0
00
people , India has the largest number in the world. Most of them are independent
and contribute as much as 96% to total retail sales.
Because of the increasing number of nuclear families,working women, greater work
pressure and increased commuting time, convenience has become a priority for
Indian consumers. They want everything under one roof for easy access and
multiplicity of choice. This offers an excellent opportunity for organized
retailers in the country who account for just 2% (and modern stores 0.5%) of the
estimated US $180 billion worth of goods that are retailed in India every year.
The retail business in India in the year 2000 was Rs.400,000 crore and is
estimated to go to Rs.800,000 crore by the year 2005, an annual increase of
20%.The contribution of the organized retail industry in the year 2000 was
Rs.20,000 crore and is likely to increase to Rs.160,000 crore by 2005.
GROWTH OF RETAIL OUTLETS IN INDIA: India is rapidly evolving into a competitive
marketplace with potential target
consumers in the niche and middle class segments. The market trends indicate
tremendous growth opportunities. Global majors too are showing a keen interest i
n
the Indian retail market. Over the years, international brands like Marks &
Spencer, Samsonite, Lacoste, McDonald’s, Swarovski, among a host of others have
come into India through the franchise route following the relaxation of FDI
(foreign direct investment ) restrictions. Large Indian companies among them the
Tata, Goenka and the Piramal groups are investing heavily in this industry.
Organizations ready to take on this challenge can leverage the opportunities
offered by a population of more than a billion. The prospects are very
encouraging. Buying behaviour and lifestyles in India too are changing and the
concept of �Value for Money� is fast catching on in Indian retailing. This is
evident from the expansion of the pantaloons chain into a large value format, Bi
g
Bazaar, and the entry of new discount stores in food retailing in the South,
namely, Subhiksha and Margin Free.
According to a report by the Centre for Monitoring Indian Economy (CMIE),
investments in organized retailing which include shopping malls, retail chains
etc.- doubled from Rs.1,000 crore in January 2000 to Rs. 2,000 crore in January
2001.
TRENDS IN RETAILING: The single most important evolution that took place along w
ith the retailing
revolution was the rise and fall of the dotcom companies. A sudden concept of
`non-store shopping emerged, which threatened to take away the potential of the
store. More importantly, the very nature of the customer segment being addressed
was almost the same. The computer-savvy individual was also a sub-segment of the
`store frequenting traffic.
Internationally, the concept of Net shopping is yet to be proven. And the poor
financial performance of most of the companies offering virtual shopping has
resulted in store-based retailing regaining the upper hand. Other forms of non-
store shopping including various formats such as catalogue/mail order shopping,
direct selling, and so on are growing rapidly. However, the size of the direct
market industry is too limited to deter the retailers. For all the convenience
that it offers, electronic retailing does not suit products where `look and see
attributes are of importance, as in apparel, or where the value is very high, su
ch
as jewellery, or where the performance has to be tested, as of consumer durables
.
The most critical issue in electronic retailing, especially in a country such as
ours, relates to payments and the various security issues involved.
RECENT TRENDS INCLUDE: - Retailing in India is witnessing a huge revamping exerc
ise.
- India is rated the fifth most attractive emerging retail market: a potential
goldmine.
- Estimated to be US$ 200 billion, of which organized retailing (i.e. modern
trade) makes up 3 percent or US$ 6.4 billion.
- As per a report by KPMG the annual growth of department stores is estimated at
24%.
- Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.
CHANGING TRENDS IN RETAILING: By the turn of the 20th century, the face of the I
ndian retailing industry had
changed significantly. The retailing industry, which, until the early 1990s, was
dominated by the unorganized sector, witnessed a rapid growth in the organized
sector with the entry of corporate groups such as Tata, RPG, ITC and Bennett
Coleman & Company into the retailing market.
With the liberalization and growth of the Indian economy since the early 1990s,
the Indian customer witnessed an increasing exposure to new domestic and foreign
products through different media, such as television and the Internet. Apart fro
m
this, social changes also had a positive impact, leading to the rapid growth in
the retailing industry. Increased availability of retail space, rapid
urbanization, and qualified manpower also boosted the growth of the organized
retailing sector.
Food retailing was a key area that saw some action at the national level, with
players like Foodworld and Subhiksha, establishing stores all over India. While
supermarket and departmental chains replaced traditional grocery and general sto
re

formats, introduction of fast foods (McDonalds), packaged foods (MTR, Namma MTR)
, vending machines and specialty beverage parlors (Nescafe, Tata Tea, and Barist
a) brought about significant changes in the eating habits of Indian consumers.
However, it was the non-food sector that saw tremendous action, with the
introduction of new product segments. These segments mainly comprised
lifestyle/apparel/ fashion/accessories (eg. Shoppers Stop, Westside, Lifestyle,
Pantaloons, Reebok), books/music (Landmark and Crosswords), drugs and pharmacy a
nd
beauty (Health & Glow, CavinKare and Shahnaz Husain). The emergence of new
segments also resulted in new store formats, including hypermarts, large
supermarkets (3,500-5,000 sq.ft), mini supermarkets (1,000-2,000 sq.ft),
convenience stores (750-1000 sq.ft) and discount/shopping/grocer.
According to reports, organized retailing, which accounted for about 6% of the
total retail industry in 1999, was expected to increase to about 20% by 2005. In
October 2003, the total organized retail market in India was valued at about Rs.
200 bn and was estimated to grow eightfold in the next decade.
SUGGESTIONS: To make Indian retailing world class many a challenges are to be ov
ercome by the industry. Some suggestions to improve the situation are offered be
low. Establishment of Retailer co-operatives, which will maintain warehouses etc
. to
work as a distribution centre for the member retailers can help Indian retailer
attain a respectable position in the relationship matrix mentioned above. The
whole organisation will run at a no-profit, no-loss basis. This would enable the
retailers to buy the products they want directly from the original manufacturers
in huge quantity This would make the application of the concepts of QR (Quick
Response) and ECR (Efficient Consumer Response ) possible to a certain extent..
However, many inherent difficulties may make the functioning or even establishme
nt
of such a co-operative difficult. Nevertheless, these problems are inevitable an
d
must be dealt with firmly.
Merger and buy-out of weak retailers by a stronger one, specially in metros and
big cities may be another step towards this direction. This would give the new r
etailer the desired leverage to be world class.
Use of technology to the greatest extent possible may also help strengthening th
e
retailer�s position in the marketing channel. First step may be taken with
setting up of a network of independent firms believing in use of technology for
business excellence. Then a collection of strong retail organisations may
pressurise the suppliers and other channel members to use compatible technology.
This may open the door for implementation of QR or ECR or other relevant concept
s
for the retailers.
An overall change is to bring about in the mindset of the retailers. They will
have to think differently. They must find out and satisfy service outputs of the
target customers Unless there is a drastic change in the mindset of at least lar
ge
and medium retailers and as well as that of the manufacturers, the required chan
ge
is not going to come by easily. The retailers must learn and understand to lead
the chain from the front.
Setting up of more and more non-store retailing centers would also ensure a stro
ng retailing organisation. Non-store retailing makes implementation of modern
principles easier and less costlier. Setting up of franchisee organisation may a
lso help in strengthening the position
of the retailers. The franchiser can exert a tremendous control over the way
retailing is done. Transnational service organisation like McDonald and KFC are
being able to offer a centralised control over purchase and operation. Large and
medium sized retailers may take up the concept of franchising to reach the marke
t
in a more meaningful way. Though the management of franchisee network is difficu
lt
than managing a retail chain in view of high level of investment and other
obligations, Indian retailers should spread out its wings its in this profitable
and efficient way.
CONCLUSION: Indian retailing, thus enjoys many unique features, is still done in
a primitive
way. Barring a few exceptions, Indian retailers, particularly FMCG retailers, ar
e
not in a position to implement world-class practices of supply chain management.
The concepts of Quick Response or Efficient Consumer Response are unheard of in
Indian retailing. The two bases of modern retailing management, the Electronic
Data Interface and a mutually respectable partnership among retailers and
suppliers (the manufacturers) are missing to a great extent in Indian context.
Also, Indian marketing channel members are performing some unnecessary tasks,
which makes the channel structure heavy and inefficient. Though these
inefficiencies are observed in all retailing irrespective of industry, the
symptoms are more evident in Indian FMCG retailing. Inefficiency in retailing
leads to lower profitability of the retailers and lower service outputs for the
consumers.
Ways and means to strengthen the position of the retailing industry, doing away
with the causes for the inefficiencies, therefore, are to be taken up in an urge
nt
manner. Such measures may include establishment of retailers co-operatives, merg
er
and buy-out, use of technology to the greatest possible extent, setting up of
nonstore retailing centers and increase in franchisee network.
The Indian Retail Industry stood at a value of a whooping US $330 billion in 200
7
with the likes of Reliance Retail and Wal-mart joining the conglomerates from
inside and outside the country. It is estimated that the retail sector will reac
h
around US $600 billion by the turn of this decade. Significantly retail industry
contributes about 10% to the GDP of India, and it is the largest source of
employment after agriculture in the country.
Scope for employment opportunities:
It is small wonder then that retail sector has open the floodgates of employment
opportunities to the Indian youth. Statistics reveal that the organized retail
sector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 la
kh
over the last couple of years.
About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the
unorganized retail sector will be thrown open by 2010 what with the likes of key
players in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle,
Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd. and
Reliance Retail Ltd. And the retail sector has abundant opportunities for part
time positions as well due to the long working hours.
Compensation packages:
In general, hefty salary packages with attractive perks and allowances are offer
ed
by the employers luring the talent of this country into the retail industry.
Surprisingly the average salary of even a fresher could be up to Rs.20,000/- wit
h
an assured average salary hike of 16% per annum. In some organizations the growt
h
in salary ranges from Rs.60,000/- to Rs.70,000/- annually.
HR in Indian Retail
The Indian Retail Industry stood at a value of a whooping US $330 billion in 200
7
with the likes of Reliance Retail and Wal-mart joining the conglomerates from
inside and outside the country. It is estimated that the retail sector will reac
h
around US $600 billion by the turn of this decade. Significantly retail industry
contributes about 10% to the GDP of India, and it is the largest source of
employment after agriculture in the country.
Scope for employment opportunities:
It is small wonder then that retail sector has open the floodgates of employment
opportunities to the Indian youth. Statistics reveal that the organized retail
sector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 la
kh
over the last couple of years.
About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the
unorganized retail sector will be thrown open by 2010 what with the likes of key
players in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle,
Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd. and
Reliance Retail Ltd. And the retail sector has abundant opportunities for part
time positions as well due to the long working hours.
Compensation packages:
In general, hefty salary packages with attractive perks and allowances are offer
ed
by the employers luring the talent of this country into the retail industry.
Surprisingly the average salary of even a fresher could be up to Rs.20,000/- wit
h
an assured average salary hike of 16% per annum. In some organizations the growt
h
in salary ranges from Rs.60,000/- to Rs.70,000/- annually.
HRM / HRD OPPORTUNITIES IN RETAIL SECTOR IN INDIA
________________________________________
As listed by experts in INDIAN ECONOMY, the retail industry is on the threshold
of
a boom.
This boom is driven by
-enhanced buying power of the middle class
-change in the lifestyle
-foreign investors in the retail sector
-government encouragement for local retailers
-relaxation of FDI in the retail sector.
This is going to impact the retailing industry -about 12% growth in the retail i
ndustry -about 2 million addition to the employment STATISTICS in the next 5/6 y
ears.
THE RETAIL SECTOR IS A LABOR INTENSE INDUSTRY.
WHAT DOES THIS MEAN TO HRM/HRD ?
1 .JOB OPPORTUNITY.
-there will big demand for HR specialists/ generalists for in-house operation. -
there will be for outsourced services, like training etc etc 2.RECRUITMENT/ SELE
CTION OPPORTUNITY
The following positions will be in demand.
SENIOR MANAGEMENT
-CEOs

-CIOs
-CFOs
-GM operations
-national marketing managers
-merchandising managers [ buyers]
-HR Managers etc etc
MIDDLE -category managers
-store managers
-training managers
-departmental managers
-sales promotion managers
-inventory managers
-financial controllers
-PR managers
-advertising managers
etc etc
FRONT LINE STAFF -check out staff
-counter staff
-retail sales assistants
-merchandisers
-supervisors
-customer service staff etc etc
SKILLS / KNOWLEDGE IN DEMAND -communication skills
-customer servicing skills
-retail selling skills
-merchandising skills
-interpersonal skills
-persuasion skills
-store management skills
-people management skills
-problem solving
-coaching skills
-staff counseling skills etc etc
CORE TRAINING AREAS -store management
-retail selling
-merchandise presentation
-customer service
-business communication
-stock taking
-train the trainer for managers
-coaching
-counseling
-product knowledge etc etc

FOR HR PEOPLE who are planning a career in retail

-either in-house
-or offer HR CONSULTING SERVICES
this is a great opportunity for the future HR factor in retail: Largely ignored
The HR factor in retail management is still largely ignored..
The lack of formal retailing education further exacerbates the problem of
recruiting. How should retailers build human relations in retail management?
The first ingredient is infusing a passion for success in employees. If the staf
f
are the employees of the company, rather than outsourced from agencies, there wi
ll
be greater commitment.
Further, retailers should make every employee a partner through a stock options
scheme. A watchman who knows that he has a stake in the final profits, in the fo
rm
of a bonus or a stock option, will ensure zero levels of shrinkage. Remember,
businessmen must share their wealth with those who generate it.
Get the basics right
Retailing is a hard business. It is rigorous. The floor staff stands on its feet
for up to nine hours every day. The job of the salesperson on the floor is
physically exacting and emotionally draining.
Which is why changing existing mindsets and motivating personnel will also requi
re
ensuring basic hygiene factors. It is crucial to provide toilets, restrooms,
canteens and dining areas, as
well as recreation rooms to the staff.
The astute retailer will provide meals to the staff, so that they eat wholesome,
nutritious food. He will provide not merely restrooms, but also resting rooms, f
or
women, with a few beds.
This provision is law in many countries. Leading global retailer Marks & Spencer
outsources manufacture of its merchandise. However, when it appoints a new
supplier, its managers first check the staff toilets and dining facilities.
Also, in a competent retail organisation, each employee should spend at least 10
working days a year in the classroom. Training of the staff is the best investme
nt
in the retail business.
Training has to be constant, in the classroom and on the floors, on a daily basi
s.
Business schools should come together to pioneer a new curriculum for master s
degree in retail management.
Next to training is the vital policy of building careers and promoting people fr
om
within the company. Internal progression systems augment loyalty and boosts
morale.
The staff are strongly motivated by the belief that they will grow when they
deliver results. There should be a well-defined succession plan in the company a
nd
potential candidates should be groomed with adequate training and exposures.
Respect the floors
Astute retailers will walk the floors every day. In a customer service-oriented
retail outlet, the supervisory staff, managers, directors or the chairman of the
company will walk the floors.
They will also seek advice and customer responses from the staff. As Sam Walton,
the best retailer of our times, once said, "Our best ideas come from the shop
floors.
Most CEOs are obsessed with the stock prices of their companies, their net worth
and how many million retail sq ft they own. They do not focus on organisation-
building or talking to the floor staff.
Looks do matter
Retailing is about the staff wearing clean, ironed uniforms. It is about shaving

daily, using the right type and the right amount of deodorant; it is about brigh
t
eyes and warm smiles, about polished shoes, no straps showing through the unifor
m
and no hairy armpits.
These are fundamental hygiene factors, but they can make or break a sale. It is
a
smart move to recruit the grooming and communications staff from top five-star
hotels to train retail staff.
There are also organisational implications. How many sets of uniform should be
given to a staff member? One of the largest retailers in West Asia gives only tw
o
blouses to the female staff.
Should the girl be washing her blouse every night when she reaches home at 11 pm
,
after having been on her feet for nine hours? If one blouse is torn, should she
wear the used one again, and perhaps smell stale?
Which is why manuals that define every operation of a store are vital: retailers
like Woolworths and Marks & Spencer, for instance, have comprehensive operating
manuals. The manual would clarify timings, responsibilities, operating condition
s,
policy on uniforms, leave, breaks, pilferage, shrinkages and so on.
Loyalty works both ways
Accept it: talent and skill are scarce. It is sensible to hold quality staff,
always. Arrogance proclaims, There are a billion Indians; we can always find
another salesman . Sense states: You may find another candidate, but not a good
salesman .
Andrew Carnegie, the American steel billionaire, asserted, "Take away my
factories, but leave my people, and soon we will have a new and better factory."
The people who work in the store are the family jewels. It is common to read in
the newspapers of many corporations and retail houses boasting of the terminatio
n
of 5,000 to 15,000 jobs, if the business is going downhill.
Such mass separations do not resolve underlying business issues and, in fact,
pulverise morale on wholesale scales.
When a business performs appallingly, the issues really stem from dim-witted
decisions and strategies conceived by the Board/CEO. The top guns survive. But
15,000 employees lose their jobs in loudly-trumpeted announcements across the
media, in bizarre attempts to restore share market confidence. Such phony remedi
es
have unforgiving impacts on employee morale and commitment.
Family ties
Working in any company should be fun and rejuvenating. The staff should look
forward to coming to work daily. This is possible when the team spends informal
times together.
Winning is great fun, becoming rich is glorious, and it is vital to celebrate
success together. If the employees of a retail company dance, sing, eat, rejoice
together, the company stays together. Remember, the family that eats together,
stays together. Retail is no different.
SETTING UP THE HR DEPARTMENT - RETAIL SECTOR
Talking of a small organisation or a start up typically below 50 in size but has
expectation to grow fast year on year. - Hire a competent HR Manager. The expos
ure of the HR manager to various fields of HR should be high.
- Hire a consultant to work with the HR Manager or leverage the HR Managers
knowledge to define Policies and translate to process maps for the organisation.
- Convert process maps to SOPs - 1 pagers easy to understand and communicate.
- set up communication process - to employees, to employer, to the business and
external parties
- set up feedback process from the above four as well
- Basic HR Software for Employee and Employment records, entitlement recording
etc.
- Set up Payroll and HR roles and responsibilities
- In the Retail sector Reward management, employee motivation, contingent workfo
rce, staff scheduling, productivity is of key importance. a. Corporate and opera
tional HR. Corporate HR will be the custodian for Ploicies
and HR strategies at a central and organisational level.
Operational HR will be deputed to individual Business units/Locations as
facilitators to support employees based on structure.
b. HR Vision and Strategy. Assuming that this will be driven and owned by the HR
Director/Head - this needs to be translated into action through
operational HR. The process for this translation needs to be defined.
c. Defining roles and responsibilities in HR - Based on size and complexity of t
he organisation. d. HR Deliverables to the Directors/CEO - Management reports, O
wnership of KPIs, Metrics etc e. HR deliverables to Employees - Employee entitle
ment/Payroll, Services, development, assessment. Processes for these need to be
set up f. HR deliverables to the Business - Manpower planning and Talent Acquisi
tion, Succession planning, Retention g. HR Policy Documents translated to Standa
rd Operating Procedures for operational
use and clear understanding. Setting up a pristine and
replicable process.
h. HR Process Maps - Develop these for each HR process. This helps in process re
view and enhancement. i. Software - Depends on size of the operation. Large scal
e operations can use a
SAP, Adrenalin or Oracle. You must remember that employees in a IT
company have a high adoption rate for technologies such as HR Workflow and Self
Service. Use this to HRs advantage.
The retail sector has a higher percentage of partime and often contingent
workforce.
Corporate/Head office
Area offices
Retail outlets
Call centers
Hr strategy needs to revolve around these four based again on size and complexit
y in business. Normally the store manager is responsible for HR/Admin day to day
transactions. Thus HR has to have a strategy to devolve HR tasks to store manag
ers. - Training Suppliers
- Process Outsourcing companies
- HR Consultants in different areas
- Staffing partners
- Others
Lets say you have 1500 employees and qualify as a Medium to Large organisation.
You already would have personnel practice in place but you are looking at formal
ise and restructuring the HR functiona and policies. I would stress on the follo
wing - Like your suppliers, customer (employee), partners (recruitment consultan
ts etc), employer (management). See what you give them and what you get from the
m in terms of Tangible and Intangible value. This give and take of Tangibles and
Intangibles needs to be balanced for a successful HR department.
Make your policies simple, modern and easy to understand by employees and HR. wh
ere you can put up your HR Policies/SOPs this should be easily accessible to the
employees. Invest in a good reporting tool which helps your team be proactive.
Helps you portray the health to the executive management promptly. Especially fo
r a company
that large and with a number of offices - HR Workflow Authorisation saves up tim
e
for HR to focus on Strategic activities.
HR Services HR Services is an integral part of the Headcount Solutions business.
Our mission is to enable our customers to shape their strategies and optimise th
e
contribution of their people, in order to achieve business goals. We do this by
supporting and developing the existing HR function or by introducing bespoke
systems into the organisation.
How can we add value to your organisation?
We offer practical, cost effective, results focused solutions in
partnership with our clients. We believe that developing strong relationships wi
th
client organisations will help us deliver the most appropriate solutions for the
business and will
How we operate:
With all of our clients we understand that their people are their most valuable
asset, and that we need to offer practical and pragmatic solutions to their
problems. We therefore operate to ensure that we:
Deliver a first class HR service
Provide efficient and effective transactional people processes
Understand the business drivers
Provide expert HR advice and guidance
Deliver work according to clear deadlines, milestones and benefits agreed
upfront with the business Services
1. HR Processes and Practices
HR processes and practices are the cornerstone of a value added HR business.
They ensure that companies are legally compliant and provide a clear framework f
or
both staff and managers which allow HR professions focus on more strategic issue
s.
We offer client organisations support in:
Outsourced operational HR
Managing HR audits
Achieving quality award recognition such as ETP
Creating T&C of employment
Implementing new policies and procedures
Keeping abreast of employment legislation
Employee relations matters such as Discipline, grievance cases
Attendance management
We will ensure that our solutions are practical, linked to the organisations goa
ls and as employee/ employer friendly as possible. 2. HR Excellence The role of
the Human Resources function is evolving rapidly in many organisations and has b
ecome strategic and critical to the organization’s success.
HR leaders need to be able to serve as key leaders in the organisation.
HR policies need to reflect the organisations values and HR Systems must
enhance the organisations productivity and performance Through HR an organisatio
n must be able to attract and retain the talent needed to meet the future needs
of the organisation Results must be measured and individuals held accountable fo
r them
Headcount HR Services supports organisations in supporting and developing their
HR
function through consultants who have held strategic roles in organisations and
have coached HR professionals in client organisations. The individuals are fully
qualified:
1.
To coach your HR professionals in their personal effectiveness 2. To align the H
R function with the organisation’s business strategies
3. Supply Chain Management
Many HR professional find the number of training and development providers to be
overwhelming, and struggle to find a provider who will have the right product as
well as the right cultural fit. Identifying the
right provider will ensure that cost and quality efficiencies are maximised to

ensure a greater return on investment.

Headcount HR Services can offer systems and support to help you establish a bes
t
fit Preferred Supplier List, for all your Training and development needs.
4. Organisation Development
Change is the only constant, they say and this is never truer than for
organisation trying to keep one step ahead of the competition.
In order to gain and maintain a competitive edge, organisations need to be clear
on their direction, strategy, the path they are going to follow, and the goals
that will help measure achievement.
HRServices can help organisations to:
Define the business strategy
Articulate the organisations mission, vision and values
Create communication plans to engage employees with the message
Identify and address issues around employee engagement, including staff
opinion surveys and 360 feedback systems Creating or –redesigning structures and r
elated role profiles and responsibilities Competency Frameworks to develop behav
ioural as well as technical excellence Measurement systems to assess performance
6. Change Management & Business Performance Management
During periods of organizational change, employees can often feel isolated and
unsure of the future. This feeling of uncertainty can have a negative impact on
business performance, productivity and can lead to high than usual levels of
turnover absence and attrition.
Headcount HR Services has experience at helping organisations through:
1.
Mergers & Acquisitions, 2. Periods of accelerated growth 3. Restructures 4. Down
sizing
This experience can be used to help organisations to manage uncertainties and
limit any negative impact.
Our experience has involved helping organisations manage change from both a
reactive (changes in legislation) and a proactive (acquisition) position and we
use a number of models, methods, techniques and other tools to help organisation
s
manage change and develop managers within organisations to better manage change.
We can assist organisations with:
•
Change management methods, processes and tools • Communication strategies to suppo
rt the change process • Provide individual support to individuals affect or implem
enting the change
process
Develop HR and key individuals in change management
HR practices in some of the most successful retail verticals in India:
Apparels: Pantaloon India: Here is a retail giant which hires at least 250 MBAs
for operations and merchandising profiles. The candidates go through an inductio
n
period and a short training thereon. Individuals are allotted projects for the
next five months under the supervision of project guides. They are placed in
suitable positions thereafter, with progressive authority and responsibility.
Indian software industry: The challenge for HR professionals in software industr
y
is sheer shortage of high intellectual human capital both in numbers and skills.
Recruitment of world class workforce and their retention is a serious challenge

posed in HR industry. The yawning gap between the demand and supply of
professionals has increased the cost of delivering the technology. The incentive
compensation is based on performance keeping the long term organizational
objectives in mind. Optimized compensation packages are offered as a motivator f
or
retention of manpower.
Food and grocery: It is estimated that the food and grocery market in India is a
n
astounding $236 billion, and it is the sixth largest grocery market in the world
today. No doubt that human resources are an important asset in this food and
grocery retail industry. Many top companies have made HR a strategic partner in
their operations. One famous example is Nestle, the global giant in consumer
packaged goods. Nestle has a strong internally developed employee backing which
gives a major push to the company s lead position in the retail industry.
Attrition rates and retention of personnel:
There seems to be a high level of attrition in the retail sector which is almost
40% according to a recent study. Front end jobs are facing an attrition rate as
high as even 80%.
Under the present circumstances, retention and motivation of personnel has becom
e
the major concern of HR. A congenial working atmosphere, support learning and
training facilities, a highly competitive pay structure are some of the effectiv
e
retention practices followed by the retail sector.
While money is the main attraction for freshers and starters, career satisfactio
n
is the main reason with experienced personals. Assigning the "right project to t
he
right person" is the organizational motto these days with companies setting up
Manpower Allocation Cells (MAC) to carry out this agenda.
Looking at the current scenario, it could be said that there is an acute shortag
e
of middle level management professionals in the Indian Retail Industry. The
current trend is to hire from a smaller organization tempting the incumbent with
a
better pay package. It is imperative that suitable talent be hired in various
areas such as technology, supply chain, logistics, product development and
marketing in order to stay abreast of the hectic race for success among MNCs.
The call is for HR practitioners to play a more proactive and prominent role in
order to retain the high tech skilled employees who are constantly looking for
greater gains and prospects in their work. This is the real HR challenge to reta
in
the "knowledge workers" and "knowledgeable workers" by introducing new processes
and procedures and still ride high in implementing organizational effectiveness.
THE DIFFERENT STAGES OF SYSTEMATIC RECRUITMENT PROCESS.
Interviews are a crucial part of the recruitment process for most organisations.
Usually applicants are interviewed after sending in an application form or CV fo
r
a particular position. The purpose of an interview is to give the selector a
chance to assess you and for you to demonstrate your abilities and personality.
It
is also an opportunity for you to assess them and to make sure their organisatio
n
and the position are what you want. Not to forget that to have reached the
interview stage you have already impressed the recruiters and they believe you
have the ability to do the job. All you need to do is show them they are right!
The recruitment process for most organisations is designed along the same path;
applications are received, either via an online application form, a postal form
or
a CV. Candidates are short listed and invited for interview. The interview forma
t
can vary considerably, as we discuss later, and can include assessment centers.
The number of interviews also varies. Some companies are satisfied after just on
e
interview whereas others will want to bring back a further shortlist of candidat
es
for one or more interviews. If you are successful at the interview stage you wil
l
receive an official letter offering you the job. This information describes what
you can expect at interviews and assessment centers, and takes you through to
making a decision about any offers that may result.
HR best practice has always been that organisations should not discriminate in
their recruitment procedures, and should always strive to recruit and retain the

most qualified staff. Most qualified was never to be interpreted as indicating a

preferred race, age or gender for the job. A diverse workforce has always been a
key feature of the best practice organisation.
As such, those who shudder when they hear reference made to legal recruitment
procedures, should actually see this as an opportunity to get their recruitment
function in line with HR best practice.
General Recruitment policy:
(i)
A company should recognize its staff as being fundamental to its success. A
strategic and professional approach to recruitment processes help enable the
organisation to attract and appoint staff with the necessary skills and attribut
es
to fulfill its strategic aims, and support the organisational values.
(ii) The organisation must be committed to ensuring that the recruitment and
selection of staff is conducted in a manner that is systematic, efficient, and
effective and promotes equality of opportunity.
(iii) Recruitment should be treated as a key public relations exercise as the wa
y
it is managed affects the organisation’s image, and consequently its ability to
attract and appoint high caliber staff.
(iv) This policy has been designed to provide a flexible framework which promote
s
good practice, adopts a proactive approach to equality and diversity issues and
supports fully the organisation’s core business.
(v)
Guidelines which form the basis for the implementation of this policy are
also provided. They have been designed to maximise flexibility to meet the needs
of all areas. For these reasons, while still ensuring that the organisation
complies with relevant legislation any significant variations in practice must b
e
discussed with the Senior HR Advisers to minimise risk to the organisation
Systematic recruitment process flow chart Steps of Recruitment:
Step 1: Vacancy
This stage decides what resources are required. Details of requirements will
emerge from the compilation and regular revision of HR plan. In practice job
vacancy may occur when:
1.
An organisation or work unit is set up. 2. An employee resigns from the post. 3.
An employee reaches retirement. 4. An organisation takes place through changes
in policy. 5. Technology 6. Mergers 7. Acquisitions. Because of the subtle chang
es that take place within an organisation the existence and nature of job vacanc
ies should be accepted. The first step in any recruitment process is to define t
he job requirements. A job
and person specification should be prepared, bearing in mind the actual
requirements of the job, for example required qualifications, skills and
experience. It is allowable to include desired qualifications, but be careful to
avoid mentioning “requirements” which are not actually necessary for the job, or
which may indirectly exclude a portion of society
Step 2: Sources

This stage concerns with the general questions about supply and availability of
resources and particular avenues through which these are likely to be obtained.
The human resource plan is to provide general information about the types of
factor that influence the supply of labour at macro and micro levels. Even when
it
is feasible to fill job vacancies from within the organisation, transfers and
promotions which this usually involves will more often not produce a vacancy at
the end of the chain. Nevertheless filling of vacancies internally should always
be given careful considerations.
Care should always be exercised when using images or photographs as a tool in
recruitment advertising. It is important that these do not reflect negative
stereotypes, which may indicate an intention to discriminate. On the other hand,
correct use of imagery can enhance an organisations perception as an equal
opportunities employer. Many employers now include an “equal opportunities
employer” statement in their advertisements, which indicates an acknowledgement
of, and compliance with, equality legislation.
There are 2 types of recruitment noted while sourcing the resources:
1.
Internal recruitment: Existing employees are known to the organisation are gener
ally familiar with the customs and practices. The costs and time that external r
ecruitment, selection and induction procedures consume can be reduced. Internal
recruitment to fill vacancies may be used as a means of career
development, widening the opportunities and stimulating motivation among existin
g
employees.
2.
External employees:
When organisation has to use external sources, 2 means of conducting the search
is
done:
Through employment and consultancies and agencies By contacting the public direc
tly through advertisements in newspaper, journals, posters, radio, and televisio
n and on the internet. Step 3: Application form/Resume/CV
Many organisations use application forms in an effort to ensure an equal footing
for all applicants, while at the same time also ensuring that all required
information is captured in relation to the position. Again it is essential that
the form is prepared in a style which complies with the legislation. Questions
which could be seen as discriminatory against potential candidates include those
requesting information regarding marital status, family status and nationality.
Questions should be carefully worded to avoid any hint of discriminatory
practices, and it is often worth including a statement indicating that the
organisation is an equal opportunities employer.
Design of an appropriate application form will clearly depend on particular
situation and needs. Different forms may be necessary for different kinds of wor
k.
The items that are normally needed in application forms are:
Job title
Applicant’s full name
Date of birth
Contact address and phone number
Nationality
Education
Academic qualifications
Professional qualifications
Present employment – details
Previous employment – details in chronological order from latest
Main interests
Health
Certifications
Awards and achievements

References
Step 4: Processing and assessing application (Pre-selection)
Once completed applications have been received, the next step in the process is
to
screen them in order to identify those most suitable for interview for the post.
This process is usually conducted by the hiring manager in conjunction with HR.
The screening involves cross-checking the applications against the job descripti
on
and choosing the most suitable candidates for interview.
Another intervention which HR may take in order to ensure equity, would be to
reformat CV’s, in order that they remove information which could result in
discriminatory selection by those screening them. Some organisations have a
practice of removing surnames, addresses, marital status, date of birth, and any
other details which may lead to discriminatory selection prior to passing them o
n
to the managers selecting interviewees.
Step5: Short listing
Short listing must be undertaken by at least two individuals who are involved in
the interviewing process. Interviews should normally be conducted by at least tw
o
people, and all interviews for one post must be conducted by the same people. In
order to promote equality of opportunity selection committees should, wherever
possible, be of mixed race and gender composition.
A further important point has to be made concerns the need of flexibility in
making final decisions about acceptance or rejections. Best is not be stubbornly
inflexible about length of experience, age etc. when job requirements are
established then room must always be left to decide the individual cases on thei
r
merits.
Finally a word needs to be said about the use of testimonials and referee report
s.
Referee reports are usually required as supplementary evidence for use in the
assessment of candidates during selection procedure. Employees are often more
frank on telephone conversations so over-emphasis must note on written reference
.
Step6: Tests
Any skills tests (e.g. presentations, in-tray exercises) must be directly relate
d
to the role and measured against objective criteria, and presentations for one
post must be assessed by the same persons. Candidates must be notified of the
details of any skills test when they are invited for interview and the selection
process for lectureships and senior lectureships must include a presentation or
short lecture.
Step 7: Interviewing/Group selections
The interview should always be viewed as a two way process. Not only is it an
opportunity for the candidate to present themselves in pursuit of the position,
but it is also an opportunity to ensure that the candidate has a positive
experience of the organisation. Part of this experience should be that the
organisation presents itself as an equal opportunities employer. Studies have
shown that an unsuccessful applicant, who feels that they were treated fairly by
a
company, is more likely to reapply should another position arise in the future.
The first step in ensuring that interviews are conducted within the law is in th
e
selection of the interviewer, or interview panel. Where an interview panel is us
ed
it is worth trying to form the panel in order that it reflects the diverse make
up
of the applicant pool, i.e. there should be gender balance. As a minimum,
organisations should attempt to have one woman and one man on a panel to ensure
that gender discrimination is avoided.
The next step is to ensure that the interviewers are trained in interview
techniques. This helps avoid them asking questions which could be deemed
unnecessary, and potentially discriminatory. A member of HR should always attend
interviews, and where an interviewer has not been trained in interviewing
techniques, this becomes even more important. Agreeing questions in advance of t
he
meeting avoids any discriminatory questions being asked out of the blue. The who
le
interview process should be transparent and interview notes should reflect this.
Interview questions must relate to the job requirements as exemplified in the

person specification and the candidate’s suitability for the position. The person
specification should be used as the basis for determining the interview question
s.
Step8: References/Medical
The next step in the recruiting process is investigation of those applicants who
appear to be potential employees. This may involve contacting the former
organisations to confirm the candidate’s work record and obtain their appraisal of
his/her performance, contacting other job related and personal references and
verifying the educational accomplishments shown on application. Background
investigation has major implications.
Last step prior to appointment decision may be the medical examination of the
person. For most jobs, this is a screening device in selection process. It is
assumed that the applicant can pass the physical examination however it is
intended to screen out those individuals who are unable to comply physically wit
h
the requirements of the job and the organisation.
Step 9: Appointment
The individuals who perform successfully on the employment tests, interview and
reference/medical examination are chosen to be appointed into the organisation
formally through a legally drafted Appointment order. For administrative purpose
d
the draft should be made by the personnel department, but their roles should onl
y
be administrative.
At the end of the recruitment process all records must be handed to the Human
Resources Department who will retain them for six months in case of requests for
feedback or the threat of litigation.
Offers of employment are conditional upon receipt of satisfactory references,
medical assessment and any other appropriate checks. This normally excludes
visiting and other casual appointments of less than three months duration. In
accordance with employment legislation, appointments will only be offered on a
fixed term basis where objective grounds exist for not making the appointment
permanent.
Step 10: Induction
This step involves formal introduction of the employee to the organisation. The
employee is given an overview of all the departments within the organisation, hi
s
role and designation, Training requirements and other elements which the new com
er
has to absorb. This also paves way for the employee to understand the rules and
regulation of the organisation which he is required to follow.
Step 11: Follow up
The last step in the recruitment process is the follow up on the employee, who h
as
moved into the organisation successfully after all the above processes. This giv
es
information about the performance of the employee in the organisation, his likes
and dislikes, requirements (if any). This completes the process of recruitment,
with successfully absorbing an employee with the laid regulations and benefits a
nd
perks, etc.

About Red Retail

Founded in 2001, Red Retail Recruitment recruits exclusively for the Retail
Sector. Specialising in operational retail recruitment, Red Retail offer a uniqu
e
search and selection process across all levels of retail management, with expert
project managers working in partnership with HR departments on assignments
including new store openings and nationwide vacancies.
As bespoke, search and selection specialists, we spend time with our clients in
order to gain an understanding their business and then tailor our selection
processes accordingly to ensure that only the correct calibre of candidates are
short listed.
As a result of our collaborative working and our unique selection processes, we
focus on building long-term relationships and becoming an extension of our clien
t
so as to try to ensure that the recruitment process from candidate attraction to
the successful applicants first day in their new job is seamless.
Red Retail Recruitment is a division of Purcon Limited and a part of the Oxinia
group of companies. Being part of the Purcon structure allows us to deliver the
quality, flexibility and responsiveness of a specialist niche supplier, whilst
being supported by the infrastructure, resources and experience of an industry
leader.
At Emirates Leisure Retail, we only consider individuals who we know will
contribute to the overall success f the Company. We employ a diverse workforce a
nd
do not discriminate on the grounds of nationality, race or religion. Our
recruitment process aims to highlight the skills and talents of each prospective
employee and will typically include aspects of the following key stages:-
•
Structured interview • Practical exercise • Occupational/Ability testing In applying
for any position with us, you can expect:-
• Timely responses • Fair consideration of skills and talents • Honest appraisals of e
xperience and expertise • Respect, dignity, compassion and encouragement Training
and Development in Retail-FMCG Sector Retail/FMCG Sector is the most booming sec
tor in the Indian economy and is
expected to reach US$ 175-200 billion by 2016. With this rapid expansion and
coming up of major players in the sector, the need of human resource development
has increased. Lack of skilled workers is the major factor that is holding back
the retail sector for high growth. The sector is facing the severe shortage of
trainers. Also, the current education system is not sufficiently prepared to
address the new processes, according the industry majors.
Training Programs in Retail/FMCG Sector Some of the training programs that are g
iven in the retail sector are: • Sales Training • On-the-Job Training • Seminars/Works
hops • Customer Relationship Management • Online Course • Group Study • Computer-Based T
raining • Self-Directed Training Training Institutes for Retail management Some of
the institutes for retail management are: • Indian Retail School • Loyola Institute
of Business Administration (LIBA) • S P Jain Centre of Management • Institute for I
ntegrated Learning in Management (IILM) • Welingkar Institute of Management, Centr
e for Retail Studies • K J Somaiya Institute of Management Studies & Research • Mudr
a Institute of Communications • Amity Business School
Training Retail Employees
"the average retail company spends less than $100 per year per employee on
training. There is no wonder so many employees are unhappy at their jobs; they
simply do not know how to perform them effectively." Here is the second
interesting piece of information; "Research shows well-trained employees can
increase a company s overall productivity by 22 percent. By combining a
comprehensive training program with continual mentoring, productivity can increa
se
by as much as 80 percent."
There are some powerful "nuggets" of information in both of those quotes:
1.
Most companies do not invest a lot of money in training their employees. 2. Empl
oyees become frustrated when they don t know the correct way to perform
their jobs.
3.
The employee who is well-trained and highly motivated is more likely to be produ
ctive. Develop an ongoing, comprehensive training and make it a priority and the
re is a
higher chance your employees will be more productive and that productivity can
lead to more sales.
If you have a training department, this job is easily delegated and monitored.
But if you are a small business, this task can be overwhelming. How does one fit
in training in between vendor phone calls, budget reviews, order placement,
scheduling advertising, stocking the floor, interviewing, vacuuming the floor an
d
yes, sleeping? There just aren t enough hours in the day if you are a sole
proprietor!
Training tips to keep your employees informed and you sane!
1. Develop an employee handbook.
This can be as simple as 20 sentences on one piece of paper or it can be a bound
document. What is most important is that you have one. In the employee handbook
you can address the "image" of the employee. They represent you and your company
and your brand. What do you want them to look like, sound like, act like and
behave like? It is your company and you can list simple rules you expect them to
follow.
2. Once your employee handbook is done you can now develop your training
program.
the program be divided into two areas, operations and sales knowledge. Start wit
h
the Operations section first. Write down all of the procedures that are necessar
y
for your employees to know how to do. Just write the main title. You can be more

specific as you develop the program.

Decide how you want to deliver this information. Technology allows us to deliver
the information in many formats. If you are developing the information in a text
format, you can print it and make it available in binders for new employees to
read and complete simple question and answer sections and/or you can copy it to
a
disk and have them complete it at work or at home. The operations end of the
training will probably come easily as it is procedure based. To make it easy,
develop your training program in steps. First you do step "a", then step "b" and
you get to the goal "c". Make it easy to read and easy to understand. The
operations part of the program should deal with the basics of handling sales,
returns, inventory control, opening and closing procedures, safety issues and
anything else that falls under the operations of the business.
The second training area is that of product knowledge and sales techniques. This
is more time consuming to develop because it is conceptual teaching vs. procedur
al
teaching. Product knowledge is mandatory in any business. Here are some ways to
deliver the information:
1.
Develop an instructional manual/CD or video that highlights the major
classifications or departments you have in your business.
2.
Conduct weekly meetings for 20 minutes before the store opens and give 5
employees 3-4 minutes to do a "show and tell" about a fast seller in their
department. Have them discuss the features and benefits of the product, why they
think it is selling so well, who is the competition and how are they priced and
how are they promoting the item. In twenty minutes, all of the employees will
learn something about 5 items in the store that are selling well and they can
offer that information to their customers. Have someone "take notes" during the
20 minute meeting and post the information in a break room or in a newsletter fo
r
all of the employees to read.
3. Employee newsletters can be another invaluable way of broadcasting
information about products as well as fun things about employees. Make your
newsletter a "quick read" and something they look forward to reading. You can
make it rewarding by adding a puzzle or something they must find within the
articles or pictures that they can win a prize for finding.
4.
Vendors are wonderful sources of information. Call some of your main
vendors and find out when they might be in your area so that you could schedule
a
"training time" with your employees. This is a win-win for everyone.
5.
Digital cameras and video cameras are wonderful ways to capture your
training information. You don t have to be Zig Zigler to make a training video.
Stay after hours and make the video with the help of a friend or employee right
in
your business. If you make the video conversational, your employees will want to
listen. Before you start filming, write down the areas you will want to cover an
d
how long you think you will need to record. Try scheduling a "filming session"
once a week for 5 weeks and you will have a complete set of training videos in a
little over a month s time. Let s say the first training is on greeting skills.
Talk to the camera and explain the right way and the wrong way to greet customer
s
according to your standards. That way they will learn how AND why they are
expected to do what you have asked. Your next sessions could be add on sales,
teaching about specific products, dealing with an unhappy customer, as well as
phone skills. It is far cheaper and easier to develop your own training program
than ever before.
6.
Send your employees to classes. There are wonderful programs in every city
that have to do with sales and communication skills. Your employees will feel
valued if you offer to send them to some off site classes. You can also call
local community colleges and ask business instructors if they would like to come
to do a special training session in your business. Usually they will come for
free or for a nominal fee and offer lots of great information.
7.
If you have a number of locations you can get creative by offering teleseminars.
There are a number of teleconferencing businesses out there: Simple
sign up and set up a time that everyone calls into a specific phone number, and
you can do training over the phone to your employees in other locations. They ca
n
be at home, in their car or on a speakerphone in another city.
There are so many ways to get creative in developing your own training program.
The most important thing is to get started. Don t give up on the idea if you loo
k
at the above list and say you don t have time. Most of us don t.
The difference between a happy and horrifying shopping experience is the amount
and quality of training that store-based employees, such as sales associates and
store managers, have received. But, as every retailer knows, the primary barrier
to successful training is the staggering rate of employee turnover in retail job
s
that costs sales and cuts profits. At StarCast, we understand the retail industr
y
and have solutions to help.
Immediate Results
With StarCast, you can get new-hires into training immediately, day-one, and
expose them to training that is store-specific, and deep. Before your new-hires
begin interacting with customers, they complete training and testing on topics
such as meeting & greeting customers, product knowledge, product pricing, taking
returns, store policies, and so forth. StarCast’s New-Hire Portal can even take
your new-hires through an entire OSHA safety series, plus all your HR, benefits
and harassment policies, before work ever begins.
Train Anytime, Anywhere
StarCast lets your retail employees train on any schedule and from any location
without tying up valuable store-manager time. StarCast retail training may take
place in the back room, out of the way, or up front from a web-based register; o
r,
at home. With standardized retail training delivered through StarCast, you can
insure that all your store-based employees deliver the same high level of servic
e
across all your locations.
* We can advise you on setting up store based training kiosks.
Better than Buddy-Training
Use StarCast to achieve results that go beyond conventional buddy-training to
drive more revenue and make happier customers. Interactive training courses may
be
custom tailored to your specific products, locations, the particular season, etc
.
Use video segments to demonstrate and role play the proper method of dealing wit
h
customers. Interactive testing insures comprehension and competence with results
that are tracked to each individual.
No More Training Binders, VCRs, CDs
StarCast eliminates the hassle and expense of physical training materials, that
are hard to update, difficult to track and expensive to produce.
StarCast captures and tracks all your retail training, documents, tests and
surveys.
On-Going and Continuous
Once your employees finish their new-hire series, they are automatically exposed
to the wider range of courses and on-the-job training delivered through StarCast
.
Retail Training becomes an on-going experience for all store-based employees,
continually reinforcing the best retail selling and customer service principles.
When your people are knowledgeable, they’ll feel more confident, and they’ll feel
better able to help the customer. The best retailers know that a positive "peopl
e
experience" is key to success.
WebCasting
For district manager meetings that cover multiple stores, use StarCast WebCastin
g
to cut down on travel by allowing groups of stores to meet “live”, over the web.
With up to seven “live” video screens, everyone can see and hear everyone else,
share information, and review sales results, all without leaving their store.
Detailed Reporting

StarCast makes it easy to see what regions or stores are performing, and who is
lagging behind. Armed with this data, you can spot problems and implement
solutions quickly.
PANTALOON RETAIL (INDIA) LIMITED
68
Human Resource
In a business where individuals comprise the principal asset, the structure of t
he
people pyramid
influences the quality of knowledge captured, the speed with which decisions are
made and the morale
of the organization. Human Resource is one of the critical support functions and
forms another key
element of the corporate backbone. We have 7,379 employees as on September 30,
2005. We are a
very young and energetic organization with average employee age being 30 years.
We believe that service is our core philosophy and people are our most important
resources. Our
attempt has always been to create an environment where our employees feel pride
of
being called
‘Pantaloonians’.
Our Human Resource philosophy is driven through our ‘The Pantaloon People
Management System’.
The Pantaloon People Management System
Pantaloon People management system is built on 5 pillars of people based growth:
a. Culture Building
b. Performance Management through Balanced ScoreCard

c. People Processes
d. Management Processes
e. Leadership Excellence
Organisation Structure
Our organization is headed by our Managing Director. We follow an inverse pyrami
d
structure; as a
result decisions are taken closest to the point of customer action. Sales
executive are encoureaged to
think customer first. They are empowered to run their respective departments lik
e
‘small busines
owners’.
Inverse Pyramid Structure
Performance Management: Appraisal, Rewards and Recognition
The organisation’s Compensation philosophy is ‘Pay for Performance, promote for
potential’ and is
designed to meet the following key objectives:
Attract and Retail Qualified Employees
Externally Competitive
Performance based pay
Internally Equitable
Legal Compliance
Our compensation policy is performance based and we believe it is competitive wi
th
industry standards
in India. Our compensation packages are adjusted annually based on industry sala
ry
correction,
Departmental Managers
Board
Store Mgr., Buyers,
Merchadise Mrg,
RM, GM
Sales and support staff
HR Function
Organisation planning
Systems building
Performance
Management Performance Enhancement Competency mapping and building Compensation
policy
69
compensation surveys and individual performance. From time to time employees who
have met or
exceeded performance standards are awarded bonuses.
Our employees post retirement benefits include a provident fund and a gratuity.
Both the provident
fund and the Gratuity have been approved by the relevant statutory authorities.
We
have set up a
“Pantaloon Foundation”-an employee welfare fund with effect from August 2004. The
fund provides
financial assistance in all cases wherein the employee seeks the Company’s
financial support in
medical emergency for him/herself or their families. The contribution to the fun
d
is voluntary.
Employee Insurance
We provide all our employees with group life insurance. We also provide medical
insurance coverage

for employees who are not covered under ESIC (Employee State Insurance
Corporation) benefit which
includes hospitalization benefits.
Recruitment and Selection
Our recruitment takes place through any of the following option or combination o
f
these option:
• In-house data bank
• Walk-in advertisement
• Internal Referrals
• NGO’s
Our selection processes are defined to evaluate the skill sets required for each
job and also to evaluate
the fitment to our various formats of retailing.
Training
We place special emphasis on the training of our employees to enable them to
develop their skills to
meet changing retail technology and to provide efficient and effective customer
services.
The Company has a well defined Learning & Development (L &D) team that is
responsible for training
at all the levels across the country. The L & D team focuses on primary and
secondary research into
various aspects of retail and assessment of training needs across Knowledge,
Skills & Attitude areas at
all levels.
Prarambh for Induction and Guru-School for Trainer Development are a couple
of
programs created
and disseminated by the L & D Team this year.
We are also in the process of establishing a training centre at each zone that
will be equipped with
extensive and up-to-date facilities and which offers relevant training programme
s.
Retention Strategy
We strive to foster a feeling of well-being in our employees through care and
respect, we have several
structured processes including employee mentoring and grievance management
programmes which are
intended to facilitate a friendly and cohesive organisation culture. Off-site
activities are encouraged to
improve inter-personal relationship. We also acknowledge the efforts exerted by
our employees by
organisation an annual celebration called ‘Pantaloon Day’ where we recognize
employees who have
shown exceptional talent, sincerity and dedication. We have implemented an
employee suggesstion
programme called ‘Prerna’ wherein the employee can give their suggestions. Every
quarter the best
suggesstion received per zone per format is awarded prize called “Golden Cap”.
3. Internal controls and Risk Management
The company uses the services of Ernst & Young for process audit and risk
management and the scope
of their work covers all the company’s formats i.e. Pantaloons, Big Bazaar, Food
Bazaar and Factory
Outlet. The objectives are to:
• Gain an understanding of the various Business Processes
• Identify the strengths and weaknesses in the existing systems and procedures
• Review use of technology in the function
• Identify key business process risks and review the adequacy of the controls and
mitigate them
• Test the effectiveness of controls the most significant risks and provide
recommendations to
improve controls
• Identify potential areas for improving process efficiency
• Broadly develop on improvement portfolio and raise the level of awareness of how
business is
impacted by inadequately controlled risks inherent in the business process.
Internal audit of our each store is also undertaken by an independent audit firm
on monthly/quarterly
basis.
4. Measurement of Customer Satisfaction
We have devised a model called CEM- Customer Experience Management Model to
measure customer
satisfaction in our stores. The Customer Experience Management Model focusses on
the customer’s
experience at every touch point in the store ranging from their first impression
of the store, to their
experience at the trial rooms, toilets, with our staff through various processes
such as billing and
exchanges. We have hired a research agency called MACRO-Market Analysis and
Consumer Research
Organisation. This agency sends people who are called ‘Mystery Shoppers’ to visit
the stores and then
their experience is documented on a feedback form which is then sent to us . Bas
ed
on the feedback
formed analysis is done and the stores are given scores. This allows us to track
performance on
customer expectaion at overall, format and store levels, determine critical
improvement areas ar all
levels and also identify opportunities that we can leverage upon.
Besides, we have also started an in-house initiative called ‘Pragati’ whereby one
person from the head
office operations team visits the stores and observes the stores with respect to
certain pre-parameters
like store exteriors, baggage window, customer service, store ambience etc. This
activity is done on a
quarterly basis and three best stores under each format are announced. This
encourages the stores to
improve the efficiency of their store operations.
Competition
We retail a range of branded apparel, footwear, perfumes, cosmetics, jewellery,
leather products,
accessories, home products, electronics, books, music and toys in our stores. We
also retail our own
Private Label apparel, footwear, fashion jewellery, leather products, accessorie
s
and home products.
This is complemented by cafe, food, entertainment, personal care and various
beauty related services.
We face competition from other retailers of similar products and services. These
include stand alone
stores in the organized and unorganized sector, as well as other chains of store
s
including department
stores.
We focus on offering our customers a vast variety of products and services
catering to their diverse
requirements and needs. We are the pioneers in launching verious new formats in
the country such as
Central, aLL etc. It is because of this and the service and ambience that we
offer, that we believe we
have been able to create a differentiation in the mind of the customer vis-à-vis
our competitors where
similar products and brands are available.