OVERVIEW RETAIL

Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers
are part of an integrated system called the supply chain. A retailer purchases goods or products in
large quantities from manufacturers directly or through a wholesale, and then sells smaller
quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores
or markets, door-to-door or by delivery. In the 2000s, an increasing amount of retailing is done
using online websites, electronic payment, and then delivered via a courier or via other services.
Retailing includes subordinated services, such as delivery. The term "retailer" is also applied
where a service provider services the needs of a large number of individuals, such as for the
public. Shops may be on residential streets, streets with few or no houses or in a shopping mall.
Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full
roof to protect customers from precipitation. Online retailing, a type of electronic commerce
used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop
retailing.
Retailing in India
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its
GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail
markets in the world by economic value. India is one of the fastest growing retail markets in the
world, with 1.2 billion people. As of 2013, India's retailing industry was essentially owner
manned small shops. In 2010, larger format convenience stores and supermarkets accounted for
about 4 percent of the industry, and these were present only in large urban centers. India's retail
and logistics industry employs about 40 million Indians (3.3% of Indian population)

While India presents a large market opportunity given the number and increasing purchasing
power of consumers, there are significant challenges as well given that over 90% of trade is
conducted through independent local stores. Challenges include: Geographically dispersed
population, small ticket sizes, complex distribution network, and little use of IT systems,
limitations of mass media and existence of counterfeit goods. A number of merger and
acquisitions have begun in Indian retail market. PWC estimates the multi-brand retail market to
grow to $220 billion by 2020.

INTRODUCTION- HRM PRACTICES IN RETAIL
Human beings are considered as the dynamic elements of management. The success of an
organization depends hugely on the efforts of the human resources. Human resource is now
recognized and utilized as the most valuable of al organizational assets. The resources of men,
money, materials and machinery are collected, coordinated and utilized through people. Human
resource management (HRM) practices are most effective when matched with strategic goals of
organizations. HRMs role in the companys success is growing rapidly with the growth in many
sectors in the present globalized era. HRM is a vital function in organizations and becoming
more important than ever. The HRM practices are crucial in designing the structure for man
power, staffing, performance appraisal, compensation, and training and development. HRM
practices are a primary means for defining, communicating and rewarding desired role behaviors
and desired role behaviors are a function of organizational characteristics. Innovative HRM
practices can play a crucial role in changing the attitude of the companies and its employees in
order to facilitate the entry and growth in the markets. The HRM practices in service sector
especially in the area of retailing have found significant importance in the present scenario. The
retailing is one of the service sectors where the need of qualitative human resources is highly
expected.
Recruitment:
Depending on the size of the number of vacancies or if its a new store then campus recruitment
is done or recruitment is done through recruiters and consultants. For shop floor sales
requirement advertisement is put up in the local newspapers. The recruitment is so far done on
the basis of requirements. If the requirement is of junior level, then they go ahead with paper ads
for walk-ins, even the same is followed while there is opening of a store as it is required in a
mass number. If requirement is less for junior level, then they go ahead with consultants and
reference recruitments. If the requirement is of Middle level, then they complete the same with
consultants, Job - portals and newspaper ads of walk-ins.The recruitment process starts with an
interview taken by department managers followed by store manager and HR. For up to team
leaders. For middle Management level, first it is been shortlisted by HR. Then interview is
conducted with department head, followed by Store Manager, Zonal Manager and HR.
When a company is looking for new employees, they tend to use different channels in order to
find the most suitable personnel. The channels could be educational institution, TV/magazine
advertising, agency or any other channels which is the best way to find the right personnel. For
example, in a retail company, when they are looking for an entry level sales personnel, they tend
to reply on educational institutions, advertisements and employee recommendations. Moreover,
when a retail company is looking for middle-management positions, they are likely to use
employment agencies, competitors, advertisements and current employees. The recruitment
process can be very costly. It takes a great deal of time to set up an effective recruitment process.
Therefore, the company has to carry this job out in a systematic way.

The next job is to select new employees from among those the company has recruited. The main
objective in the selection process is to match the character of potential employees with the
requirements of the jobs to be filled. The process of selection includes job analysis and
description, the application blank, interviewing, testing, references and a physical examination.
These processes should be followed in an integrated manner. However, the selection process can
be very costly because the company has to pay for the postage of sending out application forms
to candidates and they may also have to pay for the travel expenses for candidates' journey to
interview.
Training and development:
Retail industry has finally taken shape in India, and is experiencing a rapid growth. Since
organized retail is growing tremendously procuring trained human resource for retail is a big
challenge. The talent base is limited and with the entry of big retailers in the market there is a
huge demand of trained and skilled professionals in this sector. This has led many retailers to
introduce Learning and Development department within the organization.

Retention:
The retail industry as a whole struggles with high staff turnover. The increase in competition, as
well as the younger generation of employees, can make holding on to staff a challenge for all but
the most employee savvy retailers. High employee turnover increases recruitment and training
costs, and can significantly affect your bottom line.
Higher employee turnover is a double-edged sword. On one hand, its a harbinger of an
improving economy, but on the other its a significant challenge for retailers who will need to
devote more time and resources to retention and recruiting. Retailers are very focused on
profitability right now, which is likely leading to an increased demand for part-time workers,
who can be scheduled to work at only the highest traffic times. To add to this, employees arent
seeing the benefits of pay increases and bonuses, yet instead are quite often expected to take on
more responsibilities due to cutbacks, which will eventually lead to a decrease in staff loyalty
and productivity. If an employee is dissatisfied in their career, they will look elsewhere and the
time and effort you have spent embedding your companys values and culture and investing in
nurturing that individuals talents will be wasted.

Retailers recognise the need to invest in new employees as they start, allowing them to see the
benefits in working for their business from the offset and encouraging them to thrive within their
role. What they should also consider is the value of maintaining this during the tougher times.
It is important to keep an open line of communication between employees and the management
level to enable the employee to feel a valued part of the team. The rumor mill begins when senior
team members shut off communication with individual teams and branches and this can
encourage the spread of negative feelings throughout the company. By giving staff open, honest
and regular updates, they will feel informed and more likely to remain loyal to the business.
There should also be a forum for feedback to ensure that individuals views are heard.

A comprehensive contract of employment allows an employer to specify an employee's duties
and responsibilities - so an employee knows exactly what is expected of them. See below for
what should be included.
Written Particulars of Employment
At the start of employment, employers must give workers a document containing the following
information
Employers and Workers Details
Employers full name
Employers address
Workers name
Workers occupation, or a brief description of the work
Employment Details
Place/s of work
Date of employment
Working hours and days of work
Payment Details
Salary or wage, or the rate and method of calculating wages
Rate for overtime
Any other cash payments
Any payments in kind and their value
Frequency of payment
Any deductions
Value and payment for any food or accommodation
Leave Details
Any leave to which the worker is entitled
Notice/Contract Period
Period of notice required
Period of contract
This document must be updated if any details change.
An employer must keep a copy of this document while the worker is employed, and for 3 years
thereafter.
If a worker is unable to understand the contract the employer is to explain the information in a
way that the farm worker understands.