This document discusses human resource management practices in the retail sector in India. It notes that the retail sector is experiencing a shortage of skilled workers, especially at the middle management level, due to high turnover rates. This is partly because retail was not considered a specialized field until recently. The document also discusses how innovative HRM methods could help firms improve employee retention by changing mindsets. Finally, it concludes that HRM practices are critical for the growth of companies and that retailers must implement suitable policies to develop and retain skilled workers.
This document discusses human resource management practices in the retail sector in India. It notes that the retail sector is experiencing a shortage of skilled workers, especially at the middle management level, due to high turnover rates. This is partly because retail was not considered a specialized field until recently. The document also discusses how innovative HRM methods could help firms improve employee retention by changing mindsets. Finally, it concludes that HRM practices are critical for the growth of companies and that retailers must implement suitable policies to develop and retain skilled workers.
This document discusses human resource management practices in the retail sector in India. It notes that the retail sector is experiencing a shortage of skilled workers, especially at the middle management level, due to high turnover rates. This is partly because retail was not considered a specialized field until recently. The document also discusses how innovative HRM methods could help firms improve employee retention by changing mindsets. Finally, it concludes that HRM practices are critical for the growth of companies and that retailers must implement suitable policies to develop and retain skilled workers.
This document discusses human resource management practices in the retail sector in India. It notes that the retail sector is experiencing a shortage of skilled workers, especially at the middle management level, due to high turnover rates. This is partly because retail was not considered a specialized field until recently. The document also discusses how innovative HRM methods could help firms improve employee retention by changing mindsets. Finally, it concludes that HRM practices are critical for the growth of companies and that retailers must implement suitable policies to develop and retain skilled workers.
With a significant contribution to the Indian economy, retail has demonstrated its relevance in the Indian market. The growth of organised retail has provided Indian firms with the ideal platform to penetrate this market. Company based in India. Retailers that united in reaction to competition recognised the need of having a well-trained workforce. Organized retailers' human resource policies and employee happiness have become a key problem. This research will give a comprehensive picture of subjects related to human resource practises and their influence on employees. The research also looks at the different issues and obstacles that the Human Resources department faces in keeping and hindering organised store workers.
Innovative HRM methods may help firms and their employees change their mindsets, allowing them to enter and expand new markets. Retail is one of the service industries that is anxiously anticipating the demand for qualified personnel. Around the world, retail is a crucial component of doing business. It is the final step in delivering items to customers is retail. They offer both products and services to their customers. The process of "selling products or items in small or single quantities for direct consumption by the consumer from a permanent place such as a department store or kiosk" is known as retail. Product delivery is an example of a service that may be included in retail. Individuals or businesses can be buyers; a retailer buys items or products in bulk from manufacturers or importers, either directly or through a wholesaler, and then sells them to end users or customers in smaller amounts or batches. As an integral component of the entire manufacturing / merchandising distribution strategy, retailers are really the only link in the supply chain. The retail business is experiencing a severe personnel shortage, particularly at the middle management level. Though entry-level unskilled labour is readily accessible, it is extremely difficult to retain the talented people needed to succeed the existing leaders. This is due to high turnover rates in the retail business, which impede the establishment of a leadership pipeline. In addition to permanent employees, the unorganised retail sector uses a substantial temporary labour to service at lower levels. Students, recent graduates, and cyclical employees are examples of people who resign when they find better chances elsewhere. The lack of adequately trained employees is a major issue in the retail business. Retail as a Masters-level academic option is a relatively recent notion, with just a few colleges providing professional degrees in the field until the previous decade. This has resulted in a skills shortage in this business due to a mismatch between demand and supply. Traditionally, retail has been a professional choice for the less educated and young, who use it to fund their schooling or support their families, and they end up in the unorganised sector. However, they are unlikely to be specialists in customer relationship management or supply chain management.
Organized and Unorganized Retailing
There are two sorts of retail businesses in India: organised and unorganised. According to the research, India only accounts for 8% of organised retail and 92 percent of unorganised retail. Apparel is the most popular category in the organised sector, followed by food stores, mobile gadgets, and telecoms. Literature review According to a study conducted by Global Hunt India, the BPO, ITeS, and aviation sectors would have attrition of 40-45 percent this year, followed by retail and telecom (35-40 percent). According to AT Kearney's 2009, India's retail market, which is the world's fifth biggest, is the most appealing emerging market for retail investment. In India's GDP (Gross Domestic Product), retail commerce accounted for 8-10% of the country's GDP in 2007. It reached 12% in 2009. By 2010, it is predicted to be at 22%. There are 17 Indian shops in the top 500 retailers in Asia-Pacific, compared to 87 in China, 72 in Japan, 48 in Korea and Taiwan, 40 in Australia, 38 in Hong Kong, and 31 in Singapore (Retail Asia July 2008). According to the Compare Info Base Limited, almost all sectors in India are experiencing attrition, but the reasons and effects vary by sector, such as 50% in retail, 50% in BPO, 46% in aviation, 30% in telecom, 40% in financial services, 17% in FMCG, 35% in manufacturing, 35% in biotechnology, and 32% in pharmaceuticals, according to the Compare Info Base Limited, 2007. (Niketh S 2008). In the fields of human resource management, industrial relations, and industrial and organisational psychology, the influence of human resource management (HRM) policies and practises on company performance is a hot issue. High-Performance Work Practices may improve a company's existing and future employees' knowledge, skills, and talents, as well as their motivation, minimise shirking, and boost employee retention (Jones & Wright 1992). India is ranked 73rd in the United Nations Conference on Trade and Development's 2019 Business-to-Consumer (B2C) E-commerce Index. According to the World Bank's Doing Business 2020 report, India is the world's fifth-largest retail destination, ranked 63rd. India is the world's sixth most popular shopping location. In the FDI Confidence Index, India is ranked 16th (after US, Canada, Germany, United Kingdom, China, Japan, France, Australia, Switzerland, and Italy).
The Indian retail business has become one of the most dynamic and fast-paced industries as a result of the influx of several new enterprises. Total consumer expenditure is expected to exceed US$ 3,600 billion by 2020, up from US$ 1,824 billion in 2017. It accounts for more than 10% of the country's GDP and employs around 8% of the workforce. India is the fifth- largest shopping destination in the world.
Retailers meet their financial goals by successfully managing five key resources: their location, goods inventory, shops, staff, and consumers. Human Resource Management (HRM) is especially important in the retail industry, which, like the service sector, is labour intensive. For the following three reasons, HRM may be the foundation of a long-term competitive advantage. For starters, labour costs make up a sizable portion of a retailer's overall expenses. As a result, efficient personnel management might result in cost savings. Second, the activities of workers who pick products, give information and help, and fill display and shelves determine the experience that most consumers enjoy with a shop. As a result, a retailer's skill plays a critical role in differentiating its product from that of its competitors. Finally, it's difficult to reproduce the possible benefits. Conclusion Human resource management techniques are critical to the growth of any company or industry. Organized merchants are inextricably linked to HRM practises. The study shows that there are many differences in the implementation of HR practises from new hire to induction phase in the selected organised retailers, who are not only favoured by the incentive plan, but also play a crucial role in maintaining a healthy environment and close relationships with co-workers. High drop-out rates, absenteeism, and the adoption of novel point-of-sale methods are all problems for the HR department. Employee facilities and proper performance assessment procedures, according to this study, will always motivate employees to achieve their best. As a result, the outlets must decide and execute suitable human resource policies in order to maintain and develop the workers who represent the companies' capital. The government should also examine existing labour regulations, allow flexible working hours, and encourage employers to establish a welcoming atmosphere via their legislation.
