Start Up of Retail Store From Recruitment Perspective

download Start Up of Retail Store From Recruitment Perspective

of 26

Transcript of Start Up of Retail Store From Recruitment Perspective

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    1/26

    1

    EMPLOYEE RECRUITMENT AND SELECTION TERM PAPER

    On

    Start up of retail store from

    recruitment perspective

    SUBMITTED BY:

    PALLE PRIYANKA - 09235

    SHALINI.E.S. - 09248

    SUSHRUTHA.M - 09251

    VEENA NEELANAJI.M - 09255

    HANUSHA SEETHARAM. G - 09261

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    2/26

    2

    TABLE OF CONTENTS

    INTRODUCTION TO RETAIL INDUSTRY .......................................................................................... 3

    GROWTH DRIVERS FOR RETAIL SECTOR IN INDIA: ..................................................................... 3

    STATISTICS OF INDIAN RETAIL INDUSTRY ................................................................................... 4

    KEY FUNCTIONS OF THE OPERATIONS DEPARTMENT IN A DEPARTMENTAL STORE: ......... 5

    HIERARCHY OF THE OPERATIONS DEPARTMENT OF OUR RETAIL STORE.............................. 6

    CSA (CUSTOMER SERVICE ASSOCIATE) ..................................................................................... 7

    TEAM LEADER: ................................................................................................................................ 8

    DEPARTMENT MANAGER: ............................................................................................................. 9

    JOB GRADE: First Level Management................................................................................................ 9

    JOB TITLE: Department Manager....................................................................................................... 9

    REPORTS TO: Floor Manager............................................................................................................ 9

    Each floor is divided into zones and a departmental manager is made responsible for these zones. ........ 9

    ROLES AND RESPONSIBILITIES: ................................................................................................... 9

    FLOOR MANAGER: .......................................................................................................................... 9

    ASSISTANT STORE MANAGER.................................................................................................... 10

    STORE MANAGER:......................................................................................................................... 11

    AREA MANAGER: .......................................................................................................................... 12

    GENERAL MANAGER:................................................................................................................... 12

    ZONAL MANAGER:........................................................................................................................ 13

    CHIEF OPERATING OFFICER:....................................................................................................... 14

    LEGAL CONSTRAINTS TO SET UP THE ABOVE DEPARTMENTAL STORE IN CHINA: ............ 15

    HR POLICIES IN CHINA:........................................................................................................................... 19

    RECRUITMENT AND SELECTION PROCESS IN CHINA: ..............................................................................20

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    3/26

    3

    We have chosen to set up a retail store and the following the reasons for which we have

    selected the retail industry.

    INTRODUCTION TO RETAIL INDUSTRY:The India Retail Industry is the largest among all the industries, accounting for over 10

    per cent of the countrys GDP and around 8 per cent of the employment. The Retail Industry in

    India has come forth as one of the most dynamic and fast paced industries with several players

    entering the market. But all of them have not yet tasted success because of the heavy initial

    investments that are required to break even with other companies and compete with them. The

    India Retail Industry is gradually inching its way towards becoming the next boom industry.

    Though initially, the retail industry in India was mostly unorganized, however with the change oftastes and preferences of the consumers, the industry is getting more popular these days and

    getting organized as well.

    GROWTH DRIVERS FOR RETAIL SECTOR IN INDIA:

    Rising incomes and improvements in infrastructure are enlarging consumer markets anaccelerating the convergence of consumer tastes.

    Liberalization of the Indian economy Increase in spending per capita Income. Advent of dual income families also helps in the growth of retail sector. Shift in consumer demand to foreign brands. Consumer preference for shopping in new environments. The Internet revolution is making the Indian consumer more accessible to the growing

    influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in

    creating awareness about global products for local markets.

    The increasing share of young population in total population of India.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    4/26

    4

    STATISTICS OF INDIAN RETAIL INDUSTRY

    With growing market demand, the industry is expected to grow at a pace of 25-30% annually.

    The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000

    crore by the year 2010. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross

    Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by

    2010.

    The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will

    grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middleand upper class consumer base, there will also be opportunities in India's tier II and III cities. The

    greater availability of personal credit and a growing vehicle population to improve mobility also

    contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail

    (MGR) sales in India are forecast to undergo enormous growth over the forecast period . This is

    a consequence of India's dramatic, rapid shift from small independent retailers to large, modern

    outlets

    Moreover, for the 4th time in five years, India has been ranked as the most attractive nation forretail investment among 30 emerging markets by the US-based global management consulting

    firm India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales

    through organised retail, meaning that the opportunity in India remains immense.

    Above are the strong reasons for choosing retail industry and in retail industry we have decided

    to set up a departmental store.

    A department store is a retail establishment which specializes in satisfying a wide range of the

    consumer's personal and residential durable goods product needs; and at the same time offering

    the consumer a choice multiple merchandise lines, at variable price points, in all product

    categories. Department stores usually sell products including apparel, furniture, home

    appliances, electronics, and additionally select other lines of products such as paint, hardware,

    toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    5/26

    5

    Thename of our departmental store is PRETTY SELECTIONS

    In our department store named PRETTY SELECTIONS we have decided to set up

    operations department first because for any departmental store operations department is a

    back bone and all the other departments act as support functions and all the front end

    operations of the store are under the control of operations department.

    KEY FUNCTIONS OF THE OPERATIONS DEPARTMENT IN A

    DEPARTMENTAL STORE:

    Track and measure retail store performance. Guides and evaluates staff's performance by providing timely feedback Manages inventory and cash to meet established guidelines Responsible for daily financial, accounting, and inventory control Implement store promotions and achieve sales and financial objective, within a timely

    manner.

    Efficiently managing all operational functions including receiving/back room, inventory,merchandising and store maintenance.

    Effectively managing sales and profitability of assigned departments. Actively maintaining a team approach in the day-to-day management of store associates Ensure each customer receives exceptional service by providing an open, friendly

    environment which includes greeting and acknowledging every customer, maintaining

    exceptional standards, solid product knowledge

    Control shrinkage through day-to-day management of store Responsible for merchandise set up and display maintenance Develop, communicate and implement plans to maximize sales Ensure compliance with all policies and procedures through regular store management.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    6/26

    6

    HIERARCHY OF THE OPERATIONS DEPARTMENT OF OUR RETAIL

    STORE

    COO

    ZONAL MANAGER

    GENERAL MANAGER

    AREA MANAGER

    STORE MANAGER

    ASSISTANT STORE MANAGER

    FLOOR MANAGER

    DEPARTMENT MANAGER

    TEAM LEADER

    CUSTOMER SERVICE ASSOCIATE

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    7/26

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    8/26

    8

    TEAM LEADER:

    JOB GRADE: First Level Management

    JOB TITLE: Team Leader

    REPORTING TO: Department Manager / Assistant Department Manager

    ROLES AND RESPONSIBILITIES:

    y Supervising the customer service associatesy Scheduling the shift timings and break timings of CSASy Addressing to their problems and any customer issues if necessaryy Ensuring the proper display of merchandise.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum SSC Passed

    WORK EXPERIENCE: Minimum of 18 24 months of experience in the same retail format as a

    CSA or Team Leader

    COMMUNICATION SKILLS: Excellent communication skills which includes ability to speak

    Hindi and English and proficiency in vernacular language.

    Ability to manage teams efficiently.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    9/26

    9

    DEPARTMENT MANAGER:

    JOB GRADE: First Level Management

    JOB TITLE: Department Manager

    REPORTS TO: Floor Manager

    Each floor is divided into zones and a departmental manager is made responsible for these zones.

    ROLES AND RESPONSIBILITIES:

    y Monitor the day to day sales of the merchandise in his department.y Monitor the rate of growth and de- growth of each brand in his department.y

    Prepare a day to day report on fast moving brands and slow moving brands in hisdepartment to floor manager.

    y Co-ordinate with the vendors and communicate with them effectively about theperformance of their products.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: Minimum of 4 years experience in the same retail format

    FLOOR MANAGER:

    JOB GRADE: First Level Management

    JOB TITLE: Floor Manager

    REPORTS TO: Assistant Store Manager

    ROLES AND RESPONSIBILITIES:

    y Monitoring the sales of the entire floor.y Monitoring the movement of stock size wise, department wise, brand wise.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    10/26

    10

    y Maintaining a day to day report of the fast moving and slow moving brands in eachdepartment of a floor.

    y Maintaining contacts with the vendors and the brand managers of the merchandise ofthe entire floor.

    y Coordinate with sales force.JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: Minimum experience of 4-5 years as a floor manager or department

    manager in the same retail format.

    Excellent communication skills

    ASSISTANT STORE MANAGER

    JOB GRADE: First Level Management

    JOB TITLE: Assistant Store Manager

    REPORTS TO: Store Manager

    ROLES AND RESPONSIBILITIES:

    y Supporting all the departments (Marketing, HR, and Visual Merchandising) of thestore.

    y Coordinates with the marketing department and visual merchandising department toensure the proper organization of events and displays in the store.

    y Assists the store manager in his duties.JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    11/26

    11

    WORK EXPERIENCE: Minimum of 6-7 years of experience in the same retail format as a

    department manager or floor manager.

    STORE MANAGER:

    JOB GRADE: First Level Management

    JOB TITLE: Store Manager

    REPORTS TO: Area Manager

    ROLES AND RESPONSIBILITIES:

    y Monitors sales figures of all the brands in the store on a weekly basis.y Monitors level of shrinkage in the store and takes necessary actions to over come

    shrinkage.

    y Maintains the track record of all performing brands and non performing brands inthe store and there by estimates the future sales.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: Minimum of 8-9 years of experience in the same retail format as a

    Assistant Store Manager or Floor Manager.

    Experience is measured in terms of square feet handled, staff handled, product knowledge and

    growth of the previous store where he has worked.

    Excellent communication skills.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    12/26

    12

    AREA MANAGER:

    JOB GRADE: Middle Level Management

    JOB TITLE: Area Manager

    REPORTS TO: General Manager

    ROLES AND RESPONSIBILITIES:

    y Holds responsibility for all the stores allotted to him.y Monitors the state wise profit and loss of the store and take necessary actions.y Reports to General Manager about the prospects of expansion in that state.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: A Minimum of 10-11 years of experience in the same retail format as a

    Store Manager or an Assistant Store Manager.

    GENERAL MANAGER:

    Each zone is divided in to two sub zones and General Manager is made responsible for each sub

    zone.

    JOB GRADE: Middle Level Management

    JOB TITLE: General Manager

    REPORTS TO: Zonal Manager

    ROLES AND RESPONSIBILITIES:

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    13/26

    13

    y Monitors the sub zone wise profit and loss of the stores and take necessary actions.y Reports to Zonal Manager about the prospects of expansion in that sub zone.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: A Minimum of 12-13 years of experience in the same retail format as an

    Area Manager or Store Manager.

    ZONAL MANAGER:

    The country is divided in to four zones and Zonal Manager is made responsible for each zone.

    JOB GRADE: Middle Level Management

    JOB TITLE: Zonal Manager

    REPORTS TO: Chief Operating Officer

    ROLES AND RESPONSIBILITIES:

    y Monitors the zone wise profit and loss of the stores and take necessary actions.y Reports to Chief Operating Officer about the prospects of expansion in that sub zone.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: A Minimum of 14-15 years of experience in the same retail format as a

    Zonal Manager or General Manager.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    14/26

    14

    CHIEF OPERATING OFFICER:

    JOB GRADE: Middle Level Management

    JOB TITLE: Chief Operating Officer

    REPORTS TO: Chief executive Officer

    ROLES AND RESPONSIBILITIES:

    y Monitors profit and loss of the stores in the entire country and take necessary actions.y Takes strategic decisions regarding the expansion of the stores.y Maintains the vendor relationships and acquires new vendors for the company.

    JOB SPECIFICATION:

    EDUCATIONAL QUALIFICATION: Minimum Graduate in any discipline.

    WORK EXPERIENCE: A Minimum of 18-20 years of experience in the retail industry.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    15/26

    15

    LEGAL CONSTRAINTS TO SET UP THE ABOVE DEPARTMENTAL

    STORE IN CHINA:

    From 1 December 2004, a new investment vehicle has been made available to foreign investors

    by the Chinese government by allowing and encouraging foreign investors to set up "Foreign

    Investment Commercial Enterprises" (FICEs) in China to conduct wholesale, retail and other

    permitted businesses. This type of business entity possesses the total right of trade and business.

    The FICE is a limited liability company wholly owned by a foreign investor. It is a legal person.

    The foreign investor has sole responsibility for its profits and losses. The liability is limited to

    the amount of registered capital injected into the entity. The FICE is able to implement strategies

    that effectively conform to the interests of its overseas parent company. To carry on differenttrading businesses, it must have the required permits and certificates.

    To establish a FICE (Retail Shop) in Shenzhen, a foreign investor has to submit the necessary

    incorporation documents to various authorities for registration. It is advisable for the foreign

    investor to entrust an authorised consulting body or agency to handle the tedious submission and

    application processes.

    Capital Contribution:

    A FICE's minimum registered capital has to conform to relevant provisions of the Company

    Law. In accordance with prevailing laws and regulations, the minimum registered capital

    required for a retailing business are RMB500,000 and RMB300,000 respectively.

    In addition, the registered capital has to match the actual business activities.

    The amount of the initial capital contribution cannot be less than 15% of the registered capital or

    the minimum statutory amount of registered capital.

    The investor is allowed to contribute registered capital in cash, in kind, or in the form of

    technology/intellectual property rights, or other non-monetary properties that may be assessed on

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    16/26

    16

    the basis of currency. The amount of the capital contribution in cash can be no less than 30% of

    the registered capital.

    According to the "Administrative Measures on Foreign Investment in Commercial Fields, for

    FICEs engaged in the retail business, import of commodities for marketing and purchase of

    domestically-made products for export are allowed.

    REGISTRATION

    Step 1: Choosing a business name

    The Chinese name should be in the following format:

    y First part - company namey Second part activity- If the company is in the retail business, it has to use the Chinese

    words "shang mao", meaning "business and trade")

    y Third part - Shenzheny Fourth part - company structure.

    Use of "China", "Sino" and "International" are not permitted in the Chinese name unless

    permission is given, although they are permitted in the non-Chinese name.

    Step 2: Reservation and Application of Name

    Prior to any of the following applications, the investor should reserve a name for its prospective

    FICE with the Shenzhen Administration of Industry and Commerce.

    Step 3: Registration of Approval Certificate

    After completion of the Name Approval Notification, the Approval Letter and Approval

    Certificate are the next to be registered.

    (1) For a FICE intending to be in the retail business, approval from the Shenzhen Economic

    Committee is required. The Articles of Association, Feasibility Report, Lease Agreement of the

    proposed store, etc. should be submitted at the time of application.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    17/26

    17

    (2) The foreign investor has to apply using similar documents such as the Articles of

    Association, Feasibility Report etc for the Approval Letter and Approval Certificate from the

    Shenzhen Administrative Bureau for Trade and Industry. The municipal approval authority will

    review all documentation.

    (3) If the documents are in order, the authority is able to approve and issue the certificates in 5

    working days.

    Step 4: Registration of Business License

    Within 30 days of obtaining the Approval Certificate, the foreign investor will need to register

    and apply for a Business License for the FICE from Shenzhen Administrative Bureau for

    Industry and Commerce. The foreign investor is also required to submit similar documentation to

    the Shanghai Foreign Economic Relation and Trade Commission for approval and filing.

    Once the Business License is issued, the FICE is deemed to be a legal person duly organized and

    existing under PRC laws. It will have full operational rights to operate a business in China within

    the scope of its Business License.

    Step 5: Registration of Organization Code Registration Certificate

    This is purely a procedural step. The Organization Code Bureau will issue certificates within 1-3

    working days.

    Step 6: Registration of Tax Registration Certificate

    Once your Organization Code Registration Certificate is approved, you may apply for a Tax

    Registration Certificate at the local tax authority. At the same time, you should also apply for thecompany seal and legal representative seal. Together with the Approval Certificate, Business

    License and other documents, the formal application form affixed with the seals should be

    submitted to the authority for examination and approval.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    18/26

    18

    Step 7: Other Certificates

    y Statistics Registration Certificate issued by the Statistics Bureauy Foreign Exchange Registration Certificate issued by the Foreign Exchange Supervision

    Bureau

    y Finance Registration Certificate issued by the Finance Bureauy Customs Registration Certificate issued by the Customs Bureau.

    Others

    Having obtained approval from the tax and foreign exchange authorities, you are legally entitled

    to open USD Capital and RMB Basic Accounts. You may then proceed with capital injection,

    capital verification and certificate renewal.

    For Establishing a Store

    Existing foreign investment commercial enterprises applying to establish a store have to meet the

    following conditions:

    1) Meet relevant regulations on urban development and urban commercial development2)

    Participate on time and pass the joint annual review on foreign investment enterprise

    3) The registered capital of the enterprise has been paid up.The procedure of establishing a store is the same as an enterprise set-up. The existing FICE is

    required to obtain a series of certificates for the proposed store. The following documents are to

    be submitted:

    y An application lettery

    Articles of Association modified accordinglyy Feasibility Report pertaining to opening of the storey Board's Resolutions on opening of the storey Lease Agreement of the store and a copy of the Real Estate Certificate (landlord)y Capital Verification Report of the FICEy Copy of latest Audit Report of the FICE

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    19/26

    19

    y Copy of the Incorporation Certificate of the FICE investor.

    TIME AND GOVERNMENTAL CHARGES

    y The processing time is within 60 working days if all supporting documents and additionalinformation are provided.

    y The total government charges for the establishment of a FICE in Shenzhen are estimatedto be between USD250 and USD350.

    y The total government charges for establishment of a FICE and a store together areestimated to be between USD400 and USD500.

    HR POLICIES IN CHINA:

    HR policies in China are divided in accordance with national laws and local laws. This format

    has made the implementation of HR policies complicated and thus, varies between firms. In

    recent years, Chinese labor laws have undergone certain changes in accordance with the laws of

    developed countries like USA and UK. The transition of Chinese economy from a closed one to

    a market economy has been the reason for this shift in labor laws. HR policies in China for

    general HR issues like Recruitment, Termination is as follows:

    HR RECUTIMENT POLICIES:Types of employees recruited by companies/firms in China include on a broad category of

    Locals, Non Resident Chinese seeking jobs in China, foreign nationals trying to establish

    themselves in China.

    Recruiting Locals Various firms, particularly outsourcing, joint ventures or Multi Nationals

    prefer local population because of the lower cost to company even for high ranking management

    positions.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    20/26

    20

    Recruiting Non Resident Chinese Non Resident Chinese are often preferred by companies

    because of a mixed combination of local knowledge and foreign expertise.

    Recruiting foreignnationals Foreign companies setting up branches in China seek foreign

    nationals in the beginning. More precisely people from Hong Kong and Taiwan are preferred.

    HR TERMINATION POLICIES:

    Although laid down very briefly in both national and local legislations, termination policies have

    been a complicated issue in China. However, in recent years implementation of these laws has

    been more rigorous owing to a rise in labor rights consciousness. The laws for termination

    include the following primary guidelines:

    1) A 30 days notice citing the cause of termination has to be given.

    2) The causes for termination will include: incompetence, violation of company rules or criminal

    offence, bankrupting the employer and redundancy.

    3) The following reasons are not applicable for termination: Pregnancy/nursing, disabilities,

    injuries, illness.

    RECRUITMENT AND SELECTION PROCESS IN CHINA:

    The nature of work in China is greatly affected by some of the traditional Chinese cultural values

    such as guanxi, face and harmonious relationships that require employers, state or private,

    to recognise their obligation to find or create suitable jobs and retrain surplus staff for newpositions . In China, whilst there are financial incentives for those who employ surplus workers,

    the practice of human resource management is largely based on relationships. Furthermore,

    although the job for life tradition may be diminishing, it still has a significant place in Chinese

    psyche and human resource practice.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    21/26

    21

    Historically, it has been difficult to recruit people from different parts of the country because of a

    strict residency policy (UPS 2003). However, these rules are being relaxed in major cities and

    city authorities, keen to attract more talented workers, are becoming more flexible.

    Nevertheless, there are four outstanding features of Chinese culture as it relates to Chinese

    management practices and organizational behavior; each factor needs to be considered by

    organizations in the practice of recruitment and selection.

    1. Respect for age and hierarchy.

    The concept of showing respect for superiors or seniors in a family originates from Confucian

    beliefs. It is one of the basic requirements within a Chinese family, and to respect the superiors

    of a different family is recognition of an individuals social standing and position (Bond, 1991).

    In the business environment, respect for authority will result in unquestioned centralized

    decision-making and the recognition of hierarchy.

    2. Face and harmony.

    Face and harmony are significant features of social life in China (Bond, 1991). Saving face is a

    key point when reaching consensus within a group. For example, if a manager criticises a

    subordinate in the presence of other employees, this can cause that employee to lose face. A loss

    of face will break down all personal relations and will destroy communication between managers

    and employees and influence the internal management process (Sudhir, 1993). Gao (1996)

    explained that the indirect Chinese communication style is an attempt to minimise the loss of

    face and keep harmonious relationships.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    22/26

    22

    3. Group orientation.

    Bond (1996) indicated that Chinese individuals tend to identify themselves to be part of a group,

    team or unit and they consciously form a distinction between insiders and outsiders due to the

    collectivist culture.

    4. Personal relations orGuanxi.

    Guanxi can be regarded as customarily dealing with mutual favors and string pulling between

    organizations and authorities. However, it is also important to know that guanxi exists within an

    organization. A good personal relationship can promote more open and frank communications

    between managers and subordinates. Thus, a close guanxi can facilitate the management

    development process in the organization and can create ties and loyalty between employers and

    employees.

    RECRUITMENT TECHNIQUES

    Since new labor laws were introduced in 1995 and a new employment contract system was set

    up, recruitment policies have changed .Enterprises, especially the state-owned enterprises, have

    the power to hire and fire employees almost at will; however, the new labor laws protect the

    individual rights of each job seeker, whatever their gender or ethnicity, thereby giving graduates

    the right to seek their own jobs. State-owned enterprises can recruit both graduates and people

    with experience from other companies However, these laws do not always counteract the cultural

    influences surrounding equality and rights of the job seeker. It is almost impossible to change

    organizational norms and values because there is such a strong power structure and interpersonal

    system of guanxi prevalent in almost all organizations whether they are state- or privately-

    owned. Hence, it is often difficult for externally recruited employees to integrate into an existing

    organization, no matter how well educated or skilled they are.

    The informal labor market where priority is given to children and relatives of existing employees

    is prevalent despite the lip service that is paid to the concept of unbiased, objective recruitment

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    23/26

    23

    practices. A study by Ip (1995) indicated that about 80% of respondents had found their jobs

    through references from friends and relatives; the figure was found to be similarly high in a study

    conducted by Ding et al. (1997). Chatterjee and Nankervis (2003) reported that nepotism was

    still prevalent at department and work unit level although it was less obvious at top management.

    The implication is that, although the economic climate may have changed and there has been a

    demand for more Western style HR procedures, recruitment practices in China have changed

    little.

    Advertisements:

    It is common that employers use newspapers for their employment advertisements, although

    recruitment advertisements are not permitted in the news media without the prior approval of

    the local labor and social security department. The strategy is used to provide an information

    channel for potential workers. Many companies attract high quality applicants through

    newspapers. Many small service-oriented or retail companies use help wanted signs in store

    windows to save advertising. Advertisements are usually placed in local papers or specialized

    industry publications. In general, company names and place of origins are listed because

    corporate reputation is a key to attracting job seekers to respond to an advertised position.

    Job Fairs:

    The common recruitment avenues are the labor market, personnel exchange seminars that are

    called lao dong li shi chang (free labour market. The job fairs are sponsored by the Labor

    Bureau. In todays intensively competitive business environment, more and larger job fairs are

    being held in cities in China; fairs often play host to hundreds of companies and attract thousands

    of job-seekers, even though job seekers are admitted for a fee

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    24/26

    24

    Campus recruitment:

    To recruit potential applicants, many companies regularly go to college or university campuses

    to interview students. They can negotiate the job terms directly with the students. If both come

    to an agreement, the student will be given an offer after he/she graduates. The campusrecruitment season normally runs from October to December.

    Global image:

    Since the advent of the new century and the development of technology parks and technology

    development zones in China, there has been a concomitant growth in the use of Western HR

    strategies among multinational companies; the strategies are closely related to those used in

    branches around the world.

    Business Management Services:

    While China has excellent technical education, there is a dearth of managerial training because,

    in the past, managers were promoted on the basis of their political party allegiance, and many

    parts of the country remain provincialized as shown in the HR inflexibility such as the hukou

    (residence) policy. Thus, although China may be becoming more open, there remain strong

    cultural imperatives which must be addressed and respected by business management services.

    Corporate Co-ordination:

    International Communications and PR companies are developing offices throughout China to

    assist local and overseas businesses work together effectively to meet the demands of Eastern

    and Western markets. Chinese customers, employees and suppliers are managed by the ICPR

    companies which also provide technical support in dealings with Chinese government officials.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    25/26

    25

    SELECTION TECHNIQUES

    Interview:

    The interview is a common selection tool for many companies and is the dominant method used.

    Punctuality is very important in China and in greeting the applicant the employer will not look at

    them directly because lowering of eyes shows respect.

    Tests:

    There are a series of tests that often are used by Chinese companies, such as technology tests,

    technical tests, problem solving tests and English proficiency tests. Traditional companies rarely

    use psychological or aptitude testing because they result in a potential loss of face for applicants;

    however, psychometric testing of abilities and attitudes, interests and motivations, needs and

    aspirations and/or personal management style has been adopted from Western HR practices,

    especially in the Healthcare industry.

    Behavioral Event:

    Interactive role play, simulation exercises and leaderless group discussion (LGD) are behavioral

    events which are increasingly popular in the task of selecting the most appropriate employees.

    There is an emphasis on identifying values and experience because companies are seeking to

    have an excellent working relationship among staff and that is considered to come from staff

    having common education, culture and norms.

  • 8/8/2019 Start Up of Retail Store From Recruitment Perspective

    26/26

    BIBLIOGRAPHY:

    A book named Essentials of human resource management and industrial relations by SubbaRao

    An interview from Mr.Srinivas, Head HR, Coupons, Kukatpally

    www.chainabusinessreview.com www.citehr.com