This lesson will address the organizational structure utilized in retail stores. We will also discuss various management positions, personnel, and training programs that are used in retail stores.
Retail Organizational Structure
Have you ever taken a moment to think about the structure that is around us every day? Structure can come in many different forms. For example, a sports team without a coach and a game plan is destined for failure. The same is true for retail stores. Understanding a retail store's organizational structure is important when creating a business plan to determine its customers and appeal to them. Many retail businesses rely on a structure that places emphasis on three areas: centralized operations, store operations, and regional operations.
Centralized operations include duties such as store planning and human resources. Store operations include merchandising and marketing and are performed daily by retail stores. Regional operations refer to distribution and warehousing. This organizational retail structure is beneficial because it encompasses all areas of a business.
Retail Store Management Positions
A major part of the organizational structure of a retail store is that most of them have multiple management positions. Let's take a look at some of the types of management positions and what duties are required of them.
The manager is the person primarily responsible for the day-to-day operations of a retail store. It is the manager who makes key decisions including on who to hire, who to fire, and if a customer is entitled to a refund or exchange. For most retail organizations, the buck starts and stops with the manager.
2. Assistant Manager
The assistant manager is responsible for assisting the manager with the daily operations of the business. In the absence of a manager, an assistant manager is responsible for making the important decisions for the store. The assistant manager is also tasked with completing any duties as designated by the manager.
3. Finance Manager
When working in retail, everyone knows that money is what makes the wheels turn, and the finance manager is responsible for greasing those wheels. The finance manager makes certain that the retail store is carefully utilizing the money that comes in and ensures they are aware of how much money is going out.
4. Corporate Recruiter
Depending on the size of the retail store, there may also be a corporate recruiter position. This position involves a highly skilled employee with the task of finding top-level employees to work with the organization. These recruiters are searching for talent to fill management positions including manager, assistant manager, and finance manager. The recruiter must have a thorough understanding of what it takes to perform each of these jobs in order to find the right person.
Retail Store Department Personnel
Retail stores are renowned for their many departments, which are used to satisfy the many needs of many customers. With so many departments, it's important to have the right personnel for each one. Let's take a look at some examples of the types of department personnel and how they can be properly matched to their respective department.
Merchandising is the process of trying to advertise the sale of goods associated with a retail store. Since merchandising deals with sales, it's important that the personnel in this department have social skills in addition to a passion for the products they are selling. The department personnel must be personable in order to relate to customers to make a sale.
The warehouse of most retail stores is where shipments come and go. For example, if the store is Macy's, then the shipments will consist of items such as clothes, shoes, and other retail apparel. Since the warehouse duties consist of heavy lifting and squatting, it is important that the personnel in this department is physically fit and up to the task of performing physical labor.
Over 79,000 lessons in all major subjects
Get access risk-free for 30 days,
just create an account.
The executive management, including managers, CEOs, and finance managers of any retail store, must be selected with care due to the importance of their decisions. These executives, who are often responsible for making million dollar decisions, must be carefully selected through background screenings, credit checks to protect against possible fraud, and even providing real-life scenarios. These scenarios are helpful to understand how an individual will resolve problems that occur in everyday business.
Management training is one of the most underrated and important elements in the structure of a retail organization. The training for management is important because without this element, the retail store employees would not be properly equipped to handle the various issues that arise. Here are a few techniques that retail stores can implement to ensure their managers are being adequately trained.
1. Online training
In today's hustle and bustle where everyone is busy, it's critical for retail stores to offer online training for their management. This can consist of seminars, workshops, or surveys designed to educate management.
2. Classroom training
Many retail organizations implement classroom training, which is similar to the typical classroom environment experienced in school. The classroom allows a more hands-on approach and allows questions to be answered live and in real-time.
3. On-the-job training
There is no better method to give managers a feel for what to expect in a management position than on-the-job training. This is training and learning as an individual is doing the job. Although scenarios are great, they cannot accurately replicate experiencing those scenarios in a real environment.
Retail stores rely on an organizational structure, which is a structure that focuses on three areas: centralized operations, store operations, and regional operations. Centralized operations include duties such as store planning and human resources. Store operations include merchandising and marketing and are performed daily by retail stores. Regional operations refer to distribution and warehousing.
In order to ensure that these retail organizations are providing a structure that is strong and made to succeed, it must consist of a focus on management positions that include manager, assistant manager, finance manager, and corporate recruiter. It must focus on department personnel, including merchandising, which is the process of trying to advertise the sale of goods associated with a retail store and requires personable individuals; warehouse, which is where shipments come and go and requires physically able individuals; and executive management, which includes managers, CEOs, and finance managers of any retail store and requires trustworthy individuals.
Management training including online training, classroom training, and on-the-job training is essential to make sure employees are equipped to respond to various issue that will arise.
Did you know… We have over 200 college
courses that prepare you to earn
credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the
first two years of college and save thousands off your degree. Anyone can earn
credit-by-exam regardless of age or education level.