Sunday, June 20, 2010

Week 8 - Human Resource Management (HRM)

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

In Body Shop all retail staff are called Sale Advisor. The staff benefit that The Body Shop provides are:

+ 14 days annual leave
+ Birthday leave
+ Annual health screening
+ Medical and dental care up to S$200 within a year
+ Staff insurance coverage
+ Quarterly product allowance up to S$250 worth pf products
+ Staff discount up to 50%

Other than providing staff dicsount and also product allowance. The Body Shop care for their staff to make sure that they are in their best health condition to serve the company as well as the customer.

Body Shop staff itself stated that they loved Body Shop as they are well-taken care of with staff benefit like medical and dental.

The Body Shop uses the HR practices such as:

1. Safe, Healthy Work Environment

Body Shop ensures that all their staff is working in a safe and healthy environment. They provide medical benefit to make sure all staffs are in healthy condition, this is to ensure the staff own health and also to others.

2. Open Management
Body Shop has a open management that let all employees know what is happening in the company. This will let the employees to feel motivated and develop enthusiasm. Body Shop opens up to them and discusses the company policies, sales, clients, contracts, goals and objectives. This encourages participative management. Asking them for ideas on how to improve will get their creative juices flowing. Being open about everything related to the company will help in building trust and motivating the employees.

3. Opportunities and development
Body Shop also emphasize on employee well-being and development. They are part of the bigger L'Oréal family. We have none of those glass ceilings and they encouraged their employee to stretch their experiences and develop into other roles. The staff career will progress without compromising values or business ethics. Plus every employee of The Body Shop is offered a competitive and flexible employment package.

Done by: Pearlena

4. 360 Degree Performance Management Feedback System
This is conducted every year in terms of appraisal. Each and every staff would first grade themselves accordingly to how they feel about their own performance. After which, the Shop Manager would then go through it with the respective staff again and lastly, with the rest of the fellow colleagues. And at the end of the year, the Area Manager would then a morning meeting with all staffs and manager to further evaluate and answer to any of the staffs unhappiness.

5. Performance Linked Bonuses
Through the appraisal, the amount of increment or bonus will then be decided. The Body Shop base increment for a confirmed full time staff would be S$50 and according to Karen, the increment could hit up to S$500 and so if the staff performs exceptionally well.

6. Fair Evaluation System for Employees
In order to ensure fairness among all employees, all staffs were graded upon the same set of requirements set by the management. All staffs will given individual target to meet up with daily, this is to ensure that all staffs work as a team and there should not be any presence of free-rider. Therefore, all planned and actual target were recorded in the "Staffs KPI (Key Performance Indicator) Book". By the end of the year, it will be all review and analyzed during the morning meeting.

7. Training and Development
When one first started working, the manager would give them a one-to-one training for a week and thereafter, it would depend more on individually ability to unleash the potential in them. However, if there's any product launching soon, staffs would be sent for training which will be held at there Holland Training Room. The Body Shop have got their own professional trainers to train and guide staffs the correct and appropriate way of using the products. This is so because only by fully maximized it's benefits would gives their customer the desire results. Also, every year before GSS (Great Singapore Sales) and Christmas, all staffs were required to attend trainings too. The Body Shop ensures that all staffs attend all of the trainings, so that all of them were well-equipped with the basic and necessary information to assist all of their customer.

Done by: Christine

Monday, June 14, 2010

Week 5 - Merchandise Management

Merchandise Category is an assortment of items that customer see as subsitutes for each other. It is the basic unit of making merchandise management decision.

The Body Shop practices Merchandise Category too, as quoted from Ms Karen Tay, The Body Shop (Paragon Outlet) Shop Manager. Just a little more information about Ms Karen Tay, She is one of the most successful Shop Manager I've ever met. She joined The Body Shop since 1991, till now, it's almost 20 years. Just last year, she had received her 15 years service award issued by the company
and earlier that year, she also received her certificate upon completion of the diploma course sponsored by the company.


Here's a picture of Karen and i while she guides me along.
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Karen explained that The Body Shop's categorize their products according to the uses as well as the scent.

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From left to right, we could see that the daily body care were arranged nicely according to their:

1st - scent
For example, passion fruit shower gel (purple in colour) is best seller among all of the scent. But, when it goes out-of-stock, the next nearest product would be strawberry or satsuma (Japanese orange) which smells rather similar to it.

2nd - functions/purpose
For example, Olive shower gel on in the 3rd column is actually more suitable for normal to dry skin due to organic olive oil in it that helps to condition the skin. However, if it goes out-of-stock, customer could then choose between either moringa or shea which is more for dry to very dry skin.


Certain companies practice categorizing products according to their functions e.g all of the shower gels under the same category named - Shower Gels. However, The Body Shop actually categorize their products by scent. Why is that so? Karen explained to me that, this is done so as to make it easier for Sales Advisor to link-sell e.g. when customer get a shower gel, Sales Advisor will link-sell it with either a scrub or a body cream. Nonetheless, every company have their own special and unique way when it comes to dealing with their customers, thus, there's pros and cons in either way.

Advantages of managing category by category
- Makes the requisition of stocks much easier.
- Promotes link/up-selling.
- Creates assortments that satifsy customers.
- Improves link/up-selling of category
- Merchandise arranged according to their respective colours are able to draw more attention to the customers.

Disadvantages of managing category by category
- Too many product lines may get customer confuse.
- Insufficient space for displaying equal number of merchandise for all products.
- Shelves spaces not utilized wisely.

As quoted from Karen, The Body Shop does not exercise Catergory Captain.




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Above is the Merchandise Classification and Organization Chart after asking Karen.


Types of Merchandise Management Planning Process
As known, there are two distinct types of merchandise management system for managing namely - Staple (Basic) Merchandise Categories and Fashion Merchandise Categories.
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Above would be a simple illustration of the types of merchandise management. Thank you!


Done By: Christine