1. Identified Problem
Difficulties surrounding the retention of employees and the high turnover rate in the fashion retailing industry is directly related to the common perception that retail jobs in this industry are low-paying jobs with limited opportunities for professional growth within the company (Roberts 2013). In most cases, this perception is accurate as retail jobs, including floor sale positions, have been historically one of the lowest paying jobs in the UK as these positions do not require definite qualifications, skills and training that justifies salaries above minimum wage (Green and Zhu 2010). As a result, these positions have gained the reputation as entry-level or part-time positions only, job descriptions that have been
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These factors are significant as they cannot be controlled by Clobber etc. and they affect the pay structure for employees as the organization needs to adjust to these external factors (Bratton and Gold 2012). The details of the case show that Clubber is already offering wages above the mandated minimum living wage regardless of the age of the employee. However, data from the exit interviews suggest that even the added pay is not enough incentive for employees given the difficult commute to the West End and the often long working …show more content…
Roberts (2013) explain that having a structured management training program can encourage employees to invest more of their time and effort towards a company and so improves employee retention and acquisition. The same can apply to fashion retail as there are some people who may consider this as a career option and the lack of such a program in Clobber etc. places it at a disadvantage compared to their competitors that have these programs when it comes to hiring
This shows the substantial disconnect between the top management’s goal and the front-line employees’ experience. Moreover, factors such as a decentralized corporate structure, extrinsic motivation system, and lack of employee relations all played into Nordstrom’s decline. Top management believed that the 20-year-old incentive system still worked and claimed that employees earned one of the highest base pay rates in the industry. This claim of success was based on the underlying assumption that money was the single-dominant motivation source for employees. Therefore, the system was entirely focused on extrinsic motivation. Furthermore, the decentralized control system allowed abuse of the incentive system and promoted hyper-competitive environment that actually demotivated employees. Without fully understanding the cultural problem associated with the performance standard, top management reluctantly issued a back pay for all employees for the unreported hours. However, it seems that the issue will inevitably bleed over this temporary band-aid solution. Management should have moved away from depending solely on employee’s extrinsic motivation since monetary reward has a temporary affect and the pleasure diminishes over
The general consensus among American citizens is that the retail industry as one of the worst jobs a person can take, just short of fast food and any job that is janitorial. There are many reasons behind this stigma that affects people both in and out of the retail industry. The perspective of the customer will always differ from that of the retail worker, with the exception of those who have worked or currently work in retail. However, just because the perspective is different, the level of respect has no reason to shift.
Many researchers have made efforts to study retail change, based on the assumption that they can gain an...
1. Identify the dilemma you are discussing and describe the choices the decision maker is facing.
In recent years there has been major growth in the wider business world surrounding the overall influence that the retailing industry holds and because of which, retailing and the issues that surround it have become a vital influence in today’s global economy. (Fisher & Raman, 2001)
It was stated in section fifteen that more and more people in the workforce will have to manage themselves and have to place themselves where they can make the greatest contribution. The section A Challenge for Individuals also said that entrepreneurial society individuals face a challenge which is to exploit as an opportunity the need for continual learning and re-learning. This then made me think about the whole process of the program. The Management Trainee Program specifically Seaoil’s Management Trainee Program allows us fresh graduates, to know ourselves better by allowing us to have a deeper understanding of what and who we are as an individual, by making us discover our strengths, our own way of performing and accomplishing tasks and meeting goals, and assessing if our values align that of the company as well as letting us gather more information and store more knowledge. It will not only make us aware, understand, and experience the different departments and operations of the company. Upon starting, it first made me wonder why unlike other MT programs of other companies, we do not directly get immersed in the company’s operations and why do we even have to read a book and submit a book report. But after several sessions and after reading The Essential Drucker, I have realized that this MT program
Companies are increasingly thinking about getting rid of annual pay raises. The positive side of this could redefine reward systems which motivates employees and attract high quality workers. Being that it could also have a negative side, it could prove to be a demoralizing switch that leaves many workers not able to provide for their cost of living. There is a decision to be made throughout companies which will have an effect not only on the company, but on the employees as well.
Over the summer I experienced my first real job in retail. It was fun because I didn’t have to always stand behind the cash register and deal with customers. I could be working at customer service one day and apparel the next day. While there were pros to having that job there were also cons. If I had to work in apparel I knew that I would be working hard the entire shift, and depending on what manager was in that day and what shift I got would determine how that day would end. For example, if I had to work in customer service during a closing shift I knew I would probably be in the front by myself for about half of time I worked and would be there longer than I planned. In all my experience with working in retail I have dealt with three
Old Navy is an American clothing and accessories company owned by the corporation Gap Inc. As holiday season approaches, retail stores such as Old Navy hire thousands of seasonal workers to keep speed with the millions of shoppers who are expected to hit the stores during the holiday season. Nearly two days after applying, I got called for an interview then hired for the seasonal position, this not only made me realize that this opening will lead me to gain some experience in retail, but also made me realize that in a way I will be joining a new community and will be part of a team that strives to create an environment that is functional enough
A private club by definition is a group of members who voluntarily organize themselves for a common purpose such as social or political pursuits. In order to grant private club status, courts consider the club's criteria for admission which must be a genuinely selective membership, membership fees, members’ control over the organization's operations, reasons for formation, and use of club facilities or services limited only for members and bona fide guests, in other words not open to the general public. My HRTM 285 class toured The Palmetto Club and Forest Lake Club which are both private clubs in Columbia, South Carolina. My first impression of the outside of the Palmetto Club was cold and boring, but the downtown location was convenient. Moreover, the inside reminded me of an older Southern nicely decorated plantation house. On the other hand, my
In this assignment, both control in the workplace and work satisfaction dimensions will be analysed at length. Relating them both to the case study of the Sports Direct Company and other relevant organisational theories; such as scientific management. Sports Direct was founded in 1982 by Michael Ashley in Maidenhead. In 18 years, ‘Mike’ Ashley expanded internationally opening stores in Belgium, and just seven years later listed his company on the London stock exchange. It was that listing that really kick-started Sports Directs’ exponential growth. 2 years later in 2009, Sports Direct established market leadership after their sales exceeded £1.0bn (Sports Direct, no date given). This information presents Mike Ashley as an entrepreneurial genius,
My passion for volunteering has grown steadily throughout my four years of attending high school. I viewed volunteering as an escape from problems at school and home and focused on bettering the lives of other individuals. By joining a variety of volunteering opportunities, one club strongly impacted my perspective on the lives of others, Best Buddies. This club gives students the opportunity to develop friendships and relationships with other students who have intellectual and developmental disabilities. When joining the club I had only thought about the impact I would be making on the students with intellectual disabilities and thought very little about the impact the students would leave on myself. When being paired with a student named
After watching the UMC video, I felt inspired. It refreshed my memory on how to be a store manager.It taught me that being a good manager is not only about managing a store or being a leader but you also need to know everything about the company and store. Everything from the manufacturing to the actual retail portion, from one product to the company concept as a whole. As a store manager, you need to have a passion for it that exceeds the average expectations. The store manager must have a good understanding of the company's products, the industry and culture. UNIQLO as a global company has access to many resources with a wide variety for new opportunities.UMC is an amazing program for recent graduates. There is a misunderstanding about retail,
“politically driven reforms like pay-per-performance are nothing more than reflections of public frustration”( Wilms and Chapleau, 1999)
In fact, it is the culture of motivated and empowered entrepreneurial employees that makes Nordstrom’s culture unique (Spector & McCarthy, 2012). There are less rules and procedures for Nordstrom’s sales personnel than in other retail organizations. Their sales clerks also operate with a certain level of autonomy, running their departments almost as if they are private stores (Mello, 2015). This overall strategic approach to HR keeps training costs low, and consequently the cost of turnover is also minimized. This is important, as Nordstrom’s turnover, due to the level of internal competition and entrepreneurialism this type of retail strategy requires, is one of the highest in its market (Mello, 2015). The high turnover rate makes HR planning an important factor in ensuring a stable workforce that can create and maintain ongoing customer relationships (Spector & McCarthy, 2012).