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Hr Challenges In Retail - Manpower Shortage

abalan Started The Discussion:

Hi Friends, I wanted certain inputs on what are the challenges faced by the HR in the retail industry.

leolingham2000 - Senior Member
Quote:
Originally Posted by abalan View Post
Hi Friends,
I wanted certain inputs on what are the challenges faced by the HR in the retail industry.

ABALAN,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
=====================================
INDIAN RETAIL INDUSTRY WILL BE AFFECTED IN FUTURE
-globalization impact on demand / supply
-supply base will be developing countries
-multiple levels of brands [ good . better. best ]
-population growth
-more demand in retails in developing countries
-population shift means more retail outlets
-increased income, means more retail demand
-increased disposable income, means more retail demand
-increased discretionary income, means more retail demand
-life style changes , affecting demand
-demanding consumer needs / wants
-technology impact on retailing
-technology on customer servicing
-shift in people personal values
-product packaging
-diversity of population
-demographical structure change
==============================================
CHALLENGES FACING THE INDIAN ORGANIZED RETAIL SECTOR
The challenges facing the Indian organized retail sector are various and these are stopping the Indian retail industry from reaching its full potential. The behavior pattern of the Indian consumer have undergone a major change. This have happened for the Indian consumer is earning more now, western influences, women working force is increasing, desire for luxury items and better quality. He now wants to eat, shop, and get entertained under the same roof. All these have lead the Indian organized retail sector to give more in order to satisfy the Indian customer.

The biggest challenge facing the Indian organized retail sector is the lack of retail space. With real estate prices escalating due to increase in demand from the Indian organized retail sector, it is posing a challenge to its growth. With Indian retailers having to shell out more for retail space it is effecting there overall profitability in retail.

Trained manpower shortage is a challenge facing the organized retail sector in India. The Indian retailers have difficultly in finding trained person and also have to pay more in order to retain them. This again brings down the Indian retailers profit levels.

The Indian government have allowed 51% foreign direct investment (FDI) in the India retail sector to one brand shops only. This have made the entry of global retail giants to organized retail sector in India difficult. This is a challenge being faced by the Indian organized retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the organized retail sector in India indirectly through franchisee agreement and cash and carry wholesale trading. Many Indian companies are also entering the Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition from these global retail giants. As a result discounting is becoming an accepted practice. This too bring down the profit of the Indian retailers. All these are posing as challenges facing the Indian organized retail sector.

The challenges facing the Indian organized retail sector are there
but it will have to be dealt with and only then this sector can prosper

NEED FOR LARGER FDI -----THIS IS NO. 1 PRIORITY.
The need for larger FDI is because India is at a stage whrere it needs US investments, technology, and management policies to sustain and enhance its economic growth. In 2006, Foreign Direct Investment (FDI) in India amounted to US$37 billion, out of which only $5 billion was from the US.

This was not a very encouraging figure in view of the goal of increasing the GDP by 34-36%. Therefore, there is a need for larger FDIs.

India still requires an FDI component equal to 4% of the GDP. The US needs to invest more in various sectors of the Indian economy. There is a potential to attract more FDIs in areas like infrastructure, IT hardware, automobiles, leather, textiles, gems, jewelery, and the financial sector. As such, India is rated as the 2nd best economy to invest in, after China. Surprisingly, the US is rated 3rd in this domain!

Focus is on the insurance and banking sector, in context with Foreign Direct Investments. Only 10% of the insurance sector has been tapped for foreign investment. Foreign companies need to persuade the parliament for increasing Foreign Direct Investment capital.

The banking sector is in the process of liberalization which will continue till 2009. The insurance sector is looking forward to increase in the capital as more and more FDIs happen. So the insurance sector is also planning on liberalization, taking a cue from the banking sector.

WHAT ARE THE BENEFITS OF LARGER FDI TO THE RETAIL INDUSTRY
The benefits of larger FDI can be tangibly felt in the domains pertaining to technological advancements, generation of export, production improvements, and hastening of manufacturing employment.

Capital inflow into India has increased and so have the exports from the country. Thanks to the economic boom India is experiencing, some Indian companies are doing better than even the multinational corporations.

The benefits of larger FDI have been briefly elaborated below:
Improved human capital: Indian industries are predominantly labor based but there is also a significant number of capital based companies. A capital intensive set up is indeed an expensive proposition but with the existing as well as potential labor intensive industries, India can look forward to more professional and sophisticated number of workers and employees at every level. Human capital, in terms of quantity was never a big problem in India, thanks to its huge population and quality and efficiency in work has been ushered in by the MNCs.

Competition Effect: The benefits of larger FDIs will include the launching and marketing of new products and brands in the Indian market. New products are used by the multinational corporations and then demonstrated in the Indian market. The processes followed by MNCs in India serve to have a demonstration effect on Indian companies which in turn improves market competition and the standard of products. This had started in the 1980s due to Japanese firms and as a result, Indian firms started inculcating the practices of QC, JIT, and QA.

Manufacturing Employment: Larger FDIs definitely generate more and more employment opportunities. The opportunities are highly experienced in the manufacturing area. This not only includes the quality human resource but also provides for quick and efficient work and effective outcomes.

New Technology: Technological advancements take place as larger FDIs come in. In fact, three-fifths of the FDIs result in new and advanced technologies. The local industry is benefiting from this to a large extent. This as a result, would encourage more and more foreign firms for investment.
The benefits of larger FDI are, however, very few in number but as India capitalizes on the above mentioned benefits, there will be more competition in the market at large and the rural sector of the country will be in the process of reformation, thus bringing about a socio-economic stability.
------------------------------------------------------------------------------------------------------------
SUPPLY CHAIN MANAGEMENT IN THE INDIAN RETAIL INDUSTRY
THIS IS THE SECOND MOST IMPORTANT PRIORITY.

The role of supply chain in Indian organized retail is very significant for on it depends the growth of this sector. The Indian Supply Chain Council have been formed to explore the challenges that a retailer faces and to find possible solutions for India.

The role of supply chain in the organized retail sector in India should be a shelf- centric partnership between the retailer and the manufacture for this will create supply chains that are loss free. This will also give rise to top and bottom line growth. In the organized retail sector in India the presence of fresh produce (vegetables and fruits) is very small. This is so for the nature of supply chain is very fragmented. This shows the important role of supply chain in the organized retail sector in India.

In the organized retail market in India the role of supply chain is very important for the Indian customer demands at affordable prices a variety of product mix. It is the supply chain that ensures to the customer in all the various offerings that a company decide for its customers, be it cost, service, or the quickness in responding to ever changing tastes of the customer.

The infrastructure in India in terms of road, rail, and air links are not sufficient. And so warehousing plays a major role as an aspect of supply chain operations. To overcome these problems, the Indian retailer is trying to reduce trans portion costs and is investing in logistics through partnership or directly. The Indian organized retail sector is growing so the role of supply chain becomes all the more important. It should become all the more responsive and adaptive to customers demand. There is also need for the supply chain to be more cost efficient and collaborative to win the immense competition in this sector.

The role of supply chain in Indian organized retail has expanded over the years with the boom in this industry. The growth of the Indian retail industry to a large extent depends on supply chain, so efforts must be made by the Indian retailers to maintain it properly.
----------------------------------------------------------------------------------------
THE THIRD PRIORITY IN THE RETAIL INDUSTRY
THE REAL ESTATE SUPPORT
-provide cheaper space for the retail.
-provide tax holidays for rural retail business.
------------------------------------------------------------------------
THE FOURTH PRIORITY
THE RANGE / VARIETIES OF FORMATS FOR THE RETAIL SECTOR
BY PROVIDING TAX BENEFITS.

Formats in Indian Organized Retail Sector -
Supermarkets
Hypermarkets
Department Stores
Modern format individual retailers
Shopping malls
Specialty Chains
High Street Shops

Specialty Stores

Supermarkets

Franchisee Outlets

Convenience Stores

Hypermarkets

Shopping malls
-----------------------------------------------------------------
THE FIFTH PRIORITY FOR THE RETAIL INDUSTRY
-INCENTIVE FOR TRAINING OF RETAIL MANAGERS
*category managers.
*retail store managers
*retail marketing managers
*merchandising managers
*store warehouse managers.
*supply chain managers
*procurement managers
etc etc
-------------------------------------------------------
THE SIXTH PRIORITY FOR THE RETAIL INDUSTRY
-INCENTIVES FOR TRAINING OF THE STAFF
*SALES STAFF
*CUSTOMER SERVICE
*MERCHANDISERS
--------------------------------------------------------------------
THE SEVENTH PRIORITY TO FOCUS.
THE RETAIL BUSINESS HAS TWO ENDS
1.FRONT END
-retailing
-merchandising
-customer servicing
-displays
-sales promotions
-consumer promotions
-retail marketing
etc.
2.BACK END
-buyers
-supply chain
-store supply
-accounts
-warehousing
etc.
In real life, it is the back end
which makes the real profit.
BOTH ENDS ARE IMPORTANT FROM THE BUSINESS
ANGLE, BUT THE PROFIT CHURNER IS THE BACK END.
CRITICALLY, IT IS THE
-buyers
-supply chain
WHICH MAKES SIGNIFICANT CONTRIBUTION
TO THE BUSINESS.
----------------------------------------------------------------------------
=================================================
FOR HR IN THE INDIAN RETAIL SCENE, THE CHALLENGES ARE
1.FILLING POSITIONS IN THE
1.FRONT END
-retailing
-merchandising
-customer servicing
-displays
-sales promotions
-consumer promotions
-retail marketing
etc.
2.BACK END
-buyers
-supply chain
-store supply
-accounts
-warehousing
etc.

There is a general shortage of skilled personnel.
===================================
2. WRITING JOB ANALYSIS
-job descriptions
-position specifications.
-KRAs
-KPi
=================================
3.MANAGING THE COMPENSATION PACKAGE,
based on sales performance.
-MANAGING THE MERIT PAY.
====================================
4.MANAGING THE HEALTHCARE BENEFITS.
======================================
5.RETAIL BUSINESS BRINGS A WIDE MIX OF
PEOPLE, hence managing the workplace DISCRIMINATION.
========================================
6.MANAGING THE BLENDED STAFFING
-skilled staff
-full time staff
-part time staff
-casual staff
-temporary staff
-unskilled staff
============================================
7.DEVELOPING AND MANAGING THE HR POLICIES.
=============================================
8.DEVELOPING THE HR manuals and THE employee handbooks.
============================================
9.MANAGING THE EMPLOYEE MOTIVATION
AT DIFFERENT LEVELS.
==============================================
10.MANAGING THE REFRESHER COURSES/
CONTINUING EDUCATION FOR ALL STAFF AT DIFFERENT LEVELS.
================================================
11.MANAGING THE LABOR / UNION ISSUES.
=======================================
12.HANDLING THE ALTERNATIVE STAFFING AND
INDEPENDENT CONTRACTORS.
===========================================
13.MANAGING THE Recruiting, hiring and termination issues.
==============================================
14.MANAGING THE LAYOFF.
===========================================
15.How would you handle -- worker/ STAFF / MANAGERS performance.
and manage the 360 degree feedback.
===============================================
16.HOW WOULD YOU MANAGE / HANDLE
-staff personal security
-personal protection
-violence-safety regulations.
========================================
17.How would you manage , as more women are
entering the RETAIL workforce.
==========================================
18.how would you manage different amenities at the workplace,
as more women are entering the retail workforce.
===============================================
19.how would you handle equal emplyment opportunites laws
and equal pay/ awards
==============================================
20. How would you manage outsourcing of services
ETC ETC
======================================

himlatha - 
Hi
I would like 2 thanks the person who has provided us wounderful information.....Thank you so much......
I am doing an assignment "Need of hr in Unorganised Sector"(jeans manufacturing).....
if any one can help for the same .....i hv to make questionair n everythg there after....
Thank You
Regards

leolingham2000 - Senior Member
Quote:
Originally Posted by himlatha View Post
Hi
I would like 2 thanks the person who has provided us wounderful information.....Thank you so much......
I am doing an assignment "Need of hr in Unorganised Sector"(jeans manufacturing).....
if any one can help for the same .....i hv to make questionair n everythg there after....
Thank You
Regards
HIMLATHA,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
================
''NEED FOR HR IN THE UNORGANIZED SECTOR.
How should it be conducted?
The process consists of a series of questions covering the eight primary components of the HR
function:
**Roles, head count, and HR information.
**Recruitment / selection
**Training, development, and career management
**Compensation and benefits
**Performance measurement and evaluation
**Legal issues and personnel policies
**Health / Welfare systems
**Employee Relations
**Safety
======================================
THE TARGET SHOULD INCLUDE
1.what is the current situation.
2.what is the satisfaction level currently---owners.
""""""""""""""""""""""""---managers/supervisors.
""""""""""""""""""""""""---staff.
3.what are the dissatisfactions---
at the owners/ managers/staff.
4.how the satisfaction can be achieved.
5.internally or outsourcing HR needs.
@@@@@@@@@@@@@@@@@@@@@@@@@
1.Department Organization Questionnaire
The Human Resources Department is structured, organized and
equipped to provide overall strategy, direction and effective
management of the organizationís human resources function
to accomplish organizational objectives.
 
*Is there one department or function within the organization that is responsible and accountable for planning, establishing, overseeing and coordinating all human resource policies, systems and services .
IF SO,
Does the senior-level human resources manager report to the same level position as all other major staff and line departments within the organization?
Does the senior human resources manager participate in addressing the organizationís strategic, tactical and policy issues?
Does the senior human resources manager integrate all HR activities with the organizationís strategic business plan.
Does the Human Resources department demonstrate a clear understanding of organizational and customer needs?
Are HR services and functions aligned and prioritized to organizational and DEPARTMENT needs?
 
IF NOT,
-how do you manage all the HR needs of the company
-is it a part time work of the manager/supervisors
-or do you use external agencies.
please explain.
#############################################
2.Human Resources Planning
The process of identifying and providing ways to fulfill
the organizationís developmental and human resource needs.
 
*
Is there one position accountable for reviewing the organizationís human resources requirements?
How is this review carried out?
Formally/informally? (please describe)
*How often is this analysis updated (e.g., yearly, every two years, three years or more)?
*Do your projected needs include the following considerations?
-Availability of outside workforce demographics (age, sex,
minority classification, education, skills level, occupations, etc.)
*Anticipated changed in your organizations technology,
processes, products/services and markets.
*Personnel needs these changes will require (e.g. new skills, education, knowledge and abilities).
Is there a formal career planning process in place?
IF YOU DO NOT CONDUCT THE HR PLANNING,
THEN HOW DO YOU PLAN THE HUMAN RESOURCES.
 
#############################################
3.Recruitment and Selection Questionnaire
The process providing timely recruitment, selection and
placement of high-quality employees to satisfy the organizationís
staffing requirements.
*Is there a policy in place stating the organizationís
philosophy on recruitment and selection?
*Does the policy contain procedures to guide managers through
the recruitment and selection process and describe how to get help?
*Is there one position within the organization accountable for
overseeing and coordinating recruitment and placement?
 
RECRUITMENT
*Is there a formal process in place for identifying job vacancies?
*Briefly describe the process from needs identification through
final approval authorization.
*Is recruitment done proactively from a planning mode
(i.e., projected workforce plan) as well as reactively to immediate
replacement and new job openings?
*Is consideration given to internal candidates for all or some job openings before outside recruitment begins?
*Is there a formal job posting procedure in place?
 
What kind of recruiting sources does your organization use and for what positions:
Newspaper sources?
Professional journals/periodicals?
College recruiting?
Special events recruitment (e.g., job fairs and expos)?
Community referral agencies (e.g., state employment and training offices)?
"Quasi-search" methods (e.g., hourly rate paid to recruiting professionals for targeting candidate sourcing or use of professional candidate researchers)?
Employee referral?
Internal computerized applicant database?
Professional networking (e.g., associations)?
Direct mail recruitment?
Personal networks (e.g., local competitors, customers, suppliers, outplacement firms or industry research)?
 
SELECTION
*Does the HR department perform all initial screening of candidates?
Are candidate telephone interviews, teleconferencing or video
screening conducted before personal interviews?
*How many candidates are typically interviewed before
filling a position and at what levels?
*Who participates in the interview and at what intervals?
*Are panel interviews used?
*Who makes the final hiring decision?
*Who performs the reference checks?
*are there Temporary placement?
*Internal temporary placement pool?
*Part-time employment and job sharing?
#################################################
4.Compensation Questionnaire
A system of evaluating jobs and compensating employees to ensure that the organization attracts, retains and motivates employees to accomplish organizational objectives.
*Does the organization have a policy clearly stating its position
on employee compensation?
*Is this policy linked to the organizationís management philosophy on
compensating employees, and does it reinforce the values of the organization?
*Is the organizationís compensation philosophy clearly
communicated to all employees?
*Does the compensation policy contain procedures to guide managers
on how to implement the compensation system?
*How frequently are there market studies performed?
#################################################
5.PERFORMANCE APPRAISAL
 
*Does your organization have an employee performance appraisal system?
*Does the performance appraisal establish clear objectives, expectations
and performance measurement criteria linked to that specific job?
*Does the performance appraisal provide objective, interactive
and meaningful feedback on performance?
*Do performance objectives clearly support departmental and organizational objectives?
*Are these objectives and measurement criteria discussed with the individual being appraised?
*Do performance appraisals include a written plan to improve
employeesí knowledge and skills?
*Are pay plans linked to rewards for measured performance?
#########################################
6.Employee Benefits Questionnaire
Programs by which employees receive noncash compensation to ensure that the organization attracts, retains and motivates employees to accomplish organization objectives.
Does the organization have a clear policy regarding employee benefits?
Is there one position within the organization accountable for fairly and consistently implementing employee benefit programs and ensuring compliance with governmental regulations, such as ERISA, COBRA, EEO and the Family and Medical Leave Act?
Is the organization current on competitive employee benefit practices, such as childcare, flextime, job sharing, vacation/sick time, time-off provisions and health plan alternatives?
Do you periodically gauge employee satisfaction with the benefit plan in terms of customer service, timeliness, claim management and accuracy?
#################################################
7.Employee Relations and Communications Questionnaire

This section reviews programs that govern employee treatment,
communications, support systems and services that encourage
greater employee satisfaction, motivation and productivity.
 
*Is there one position within the organization accountable for
overseeing and coordinating all employee relations and communications activities?
*Are there policies that state the organizationís employee relations
philosophy governing all conditions affective employees?
*Does your organization engage in employee opinion surveys?
*Are employees afforded a process where both sides of a complaint
are heard and a decision is rendered fairly?
#################################################3 33
8.Personnel Policies/Workplace Rules Questionnaire
Statements of guiding principles intended to translate organizational objectives and means into operational terms and help managers make decisions.
*Are there written procedures governing all conditions of employment
and policies clearly stating the organizationís human resources philosophy?
*Are there procedures for monitoring the organizationís compliance with personnel laws and regulations?
*Is there one position within the organization accountable for overseeing the development, coordination and distribution of these policies and procedures?
###############################################
9.Training and Development Questionnaire
Programs, processes and strategies that will enable organizations to
develop and improve their internal human resources in order to
optimize their contributions to organizational objectives.
 
*Is there a policy that states the organizationís philosophy
on employee training and development?
*Is there a position within the organization accountable for
overseeing and coordinating training and development activities?
*Is there a process for assessing the organizationís immediate
training needs and individual development needs?
If yes, how is this assessment carried out?
*Are job skills, knowledge and ability considered in assessing training needs?
*Are new technologies, processes, products, services, market changes
and community needs considered in assessing training needs?
*Are the results of training programs monitored and evaluated?
*Is there a method to track training costs in terms of lost work time?
################################################## ######
10.Labor Relations Questionnaire
The process that ensures and oversees fair and effective collective bargaining with those unions representing employees and fosters positive labor relations designed to achieve organization objectives.
*Does the organization clearly state its philosophy on labor relations
and implement guiding procedures for managers who deal with contract and labor relation issues?
*Is there a position within the organization that oversees and
coordinates labor relation activities?
*Is top management informed and supportive of labor management strategies and goals?
*Is there an atmosphere of management respect for union representation?
*Is there a formal labor/management group to discuss issues of mutual concern outside of the bargaining process?
#########################################333
11.Safety, Health and Wellness Questionnaire
Programs that provide a work environment that contributes to and
demonstrates concern for employee safety, health and well-being,
and that produce the economic benefits derived from a
safer work environment and healthier workforce.
*Does the organization have a policy stating its philosophy on
employee safety, health and wellness?
*Is this policy clearly supported and monitored by management?
*Are there policies and procedures that demonstrate compliance
with federal, state and local regulations?
*Does the policy provide guidance to managers on
implementation of related programs?
*Does one position within the organization oversee and
coordinate safety, health and wellness activities?
@@@@@@@@@@@@@@@@@@@@@@@@@@@@
 
How are needed improvements identified?
Once information is gathered, the audit team reviews each major section and notes disparities between
paper (what we think or say we do) and practice (what we actually do, as revealed by the answers to the
audit questions). This can then be compared to best practice (what we should do to best support our
organizationís mission).
How is follow-up and correction done?
ACTION PLAN WITH TIME FRAME.
Improving the HR system takes some time. A workplan ó with a timeline, accountability, and
deliverables ó should be created after the team reviews the completed audit and identifies areas where
improvement is needed. Follow-up and review should be a regular management function, performed on
an ongoing basis.
================================================== ===========
HERE IS A SAMPLE OUTLINE OF A SUGGESTED REPORT
 
 
 
 
REPORT 'CONTENTS'
 
[
FOR EACH ELEMENT, REVIEW
*OBJECTIVE ---what is needed to be done
*ACTUAL -------what is/is not being done
*GAPs------------needs
A. HEAD COUNTS/ ROLES
*OBJECTIVE ---what is needed to be done
*ACTUAL -------what is/is not being done
*GAPs------------needs
 
B.RECRUITMENT /SELECTION
*OBJECTIVE ---what is needed to be done
*ACTUAL -------what is/is not being done
*GAPs------------needs
 
1.HR MANAGEMENT
2. HR PLANNING
3.RECRUITMENT AND SELECTION
4.TRAINING AND DEVELOPMENT
5.PERFORMANCE APPRAISAL / MANAGEMENT
6.CAREER PLANNING / DEVELOPMENT
7.COMPENSATION AND BENEFITS
8.EMPLOYEE RELATIONS
9.SAFETY AND HEALTH
10.LEGAL ISSUES/ POLICIES
====================================
YOUR PROJECT REPORT COULD INCLUDE


1.Introduction
2.Purpose
3.Benefits
4.Mission of the project
5.RESEARCH DESIGN
6. METHODOLOGY USED
7.project objectives
8.project deliverables
9.project schedule
10.ANALYSIS
11.FINDINGS

APPENDIX
1.REFERENCES .
2.ALL DATA/ STATISTICS, WITH
GRAPHS etc
=========================
########################################

himlatha - 
Dear LEO LINGHAM

Thank You from bottom of my heart ....... this is reallly helpful ......... i am really thankful to u ...... i will try to send my assignment copy to you so that you have look on the same........
The assignment is about how the jeans manufacturing firm which are into unorganised sector works n how hr comes n can make the changes or play the role or can help out this sector....... This assignment i will be submitting to my col (TASMAC,Pune)its a Wales UNi.program for Mba.(hr,full time)
Once again Thanks
Regards
Himlatha
()



parulhrm - 
@ Leo Lingham Sir. Thank you for being so informative..sharing ur knowledge with juniors like me...

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