New Challenges in Retail Human Resource Management

Why Do We Need Professional military personnel Resource circumspection in handle? Such foothold as globalization, process finaglement, and valuate-based charge dominate the received discussion of centering in sell co mpanies. There has been an increase realization that slew atomic number 18 wizard of a fraternitys key assets. Re- tail means operative and serving customers in a direct, in-person way. This c boths for special actions from sell companies to fulfill the demands of an increasing num- ber of well-in conformati oned and sophisticated consumers.In view of every last(predicate) the c hanges in both(prenominal) national and global contexts, it is ab solutely essential to cook the undecomposed people if a fear is to be successful and sustainable. sell is a major labor-intensive diligence orbit. The refore, companies argon continu every last(predicate)y challenged to re-organize and align their st ructures to become a lot efficient. The necessity fo r part- date utilizationers, be brace of long insert open hours and peaks in the affair day/ calendar week, interprets a negotiable manakin to perfect labor processes. Emotionally, the work military group ask orientation and vi sion in changing times. homophile choice wariness (HRM) has to brook a coach, non just to organize, nevertheless(prenominal) too to support employees and m anagement mentally and p rofes- sionally in fulfilling their tasks in wrong of future political party goals. People atomic number 18 the driving string behind all transactio ns that occur in sell outlets. In the future world of sell, on that point forget be an increasing need to line up and change towards a to a greater extent than formative and proactive style of HRM. M. Krafft and M. K. Mantrala (eds. ), selling in the 21st Century Current and future(a) Tr reverses , DOI 10. 007/978-3-540-72003-4_16, ? Springer-Verlag Berlin Heidelberg 2010 257 258 Julia Merkel, outstandin g of Minnesota Jackson, and Doreen Pick mixed bags variegates in Retail The formats of selling consider been evolving continuously oer the last 100 years, and individual retailers earn changed tremendously in the merchandises they sell and in the manner in which they operate. Retailing of lifestyle products impacts directly on the changing culture of our societiesone has only to think of the introduction of the Sony Walkman or the Apple I-Pod to grasp the world- spacious range of con- sumer take.In h stop to provide an expanding product and assistance range, retail has had to alter and amend its approaches to satisfy ever more than voracious and in- creasingly sophisticated consumers. For several years, retailers nurse had a promi- nent power in todays society in their capacity as employers the retail industriousness em- ploys one in nine of the UK workforce, for example (Gilbert 2003). Nearly deuce thirds of employees be female. Therefore, special concepts in HRM ar gon require d to intromit for the compatibility of work and family.Gilbert (2003) as well points out that The retail sector has had a character for not supporting its employees and for having commence pay and longer hours than early(a) sectors. rising HRM h as to find a practical ap proach that will hire to the commerce counterbalance of companies and employees needs in terms of pay ment and hours for the workforce, and service guarantees for their customers. The turnments in many atomic number 63an countries read the changing attitudes of young university graduates for whom retailing now provides modern and attractive c arer pro spects.However, retailing is motionless far from the first choice for top graduates and this needs to change. Environmental factors such(prenominal) as economic, social, political, cultural, and demo- graphic give outments are driving the rapid changes in the retail business. Retail management and HRM departments have to be aware of all thes e changes. near of the environmental factors are described below. New Forms of Trading New commerce formats have been the lifeline allowing businesses to gain and sus- tain competitory advan punctuatee. New t rading form ats are eternally appearing at both ends of the spectrum.Higher margin goods, sometimes even with designer labels, have coexisted with the increasing demand for more belligerent pricing such as that app lied by hyper merchandises, off- wrong retailers, and hard discounters. Often, consumers tag on from smaller local anesthetic anaesthetic anesthetic stores to supermarkets, and increas- ing song of consumers are using naked transmit for Internet and TV shopping. The multinational press reports the continuing success of bran-new fo rms of online retailing (e-tailing) in Europe and the USA, as well as rapid changes in Eastern Europe and Asia in social occasion of the Internet.Within these trading formats, new pro- fessions, working locomotes, and execute s are developing very fast. To succeed, HRM has to recognize and manage these changes in retailing homo trip outualkind resource requirements. Exchange of knowledge is one of the basic prerequisites For ex- New Challenges in Retail humane Resource caution 259 ample, the German retailer METRO Group is installing software that will allow knowledge shar ing with sy stematic tr ansfer of all necessary infor mation and skills to METRO Group sites throughout the world.It is imperative for a retailer to co llect and struct ure all exper ience and knowledge fro m d ifferent staffs, stores and country-markets. The challenge in the future for retail company man- agement i n familiar and HRM in particular will be t o ensure t hat th e right knowledge is available at the right time and in the right place. Consumer Behavior Closely adjust with the working out of new trading formats are the changing needs of consumers.Increasing social acceptance of women in the labor force has led to the emergence of a new l ifestyle and changed consumer purchasing patterns oer the last seve ral decades (Gilbert 2003). Present-day consumers are m ore experi- enced, more aware of their fundamental position in the business, and more self-confident than previous generations. Further, as international retailers have found out, there is a great need for retail chains to adapt to local shipway, so as to fulfill regional needs and shopping habits, especially in the food business (e. g. , chit-chat c hapter by Mierdorf, Mantrala and Krafft in this book).Technology Let us consider what retailing looked wish 20-30 years ago little or no epos tech- nology, electro-mechanical tills, paper- subscriben accounting, checking and co mptom- eter systems, perhaps enhanced by a Kim ball tag system to aid stock replenish- ment. Thirty years ago there were not even many supermarketsself-service was just appearing over the horizon for some modern retailers in the 1960s and 1970s. The advent of inc reasing computerization in the late 1970s started to affect busi- nesses as they fitted to possibilities that began to open up through IT-supported working practices.Processes for controlling, distrisolelyion, payroll, accounting and, especially, merchandise management systems started to be aut omated during the early 1980s. E DI, s fundamentning, and bar-coding were im plementedafter heavy IT investmentsto lower cost and increase accuracy levels. Many organizations were downsized and refocused as these manual processes were converted to more cus- tomer-focused activities and superior supply chain management. Structural Trends and Competition In Europe and USA, retailing is characterized by increasing rates of market con- centration.This is caused by shareholders requirements for more cost-effective operating theaters, mergers among suppliers, and the growth of engineering science. futurity retail- ers have to be fast and flexible in making decisions astir(predicate) intercon tinental sourcing and selling. This calls fo r people to acquire skills and competencies that will allow them to compete successfully in both national and international contexts. Interna- 260 Julia Merkel, capital of Minnesota Jackson, and Doreen Pick tional HRM has to consider different ways of working with people in many Euro- pean countries, HRM departments have to second with plant councils, which influence companies management thinking.HRM has the role of developing and defining human working processes fai rly an d prov iding for cap business leader-oriented working conditions. Germanys political debate or so the consequences of capital- ism in 2005 shows the need for companies to act and communicate on the groundwork of consistent and balanced argumentation. HRM needs executives who are familiar with festerings going on in a society, shifts in cultural values and behavior. To be competitive in global markets, many organizations reduce staffing levels and change to automat ed processes to lower costs.Beyo nd this, h owever, more pro- gressive ret ailers, s uch as Carrefour, M ETRO G roup and Wal-Mart, have ex panded their offerings they have i nvested heavily in new product ranges, new trading f ormats, and joint v entures, o r i n shapi ng an d paste t heir bra nds. Merely cutting investments, e. g. , in the gross gross sales force, or opening stores around the world per se i s not enough to pucker the demands of the new retail age. A devolve system, stable and IT-supported processes, and correct allocation of financial and management resources are needful for international success the future. Globalization of SourcingSourcing from overseas vendors gathered momentum with the finale of trad- ing agreements with, for example, the Peop les Republic of China and grants of favored nation status. Manufacturings importance has decreased enormously in most W estern countries since the em erging Asi an t igers a nd l ess expensive Eastern European ma nufacturers began to dominate the supply of goods, espe- cially, nonfood goods, to the industrialized countries. Consequently, in the West, distribution has become one of t he most promising sources of improved margins as new technology drives down the cost of logistics.However, with globalization of sourcing, it has become imperative to develop special strategies to enable the headquarters workforce to be aware of international processes, markets, and com- petitors. Further, domestic retail companies anywhere have to also stay on top of emerging global trends. Companies that plan to enter new contradictory markets have to carefully consider local cultures, religious values, and national laws in developing their new market entry strategies. All the disciplines mentioned above are stron gly interrelated.Retail man- agement and HRM have to jointly examine all these change s to m ake adequate and abstract adaptations to organizational structures, systems, and processes. Changing Rol e of HR Departments HR departmentsoriginally called payroll departments, then relabeled staff man- agement, followed by another m etamorphosis to personnel and then to human resource managementhave been in the vanguard of change management in re- New Challenges in Retail Human Resource wariness 261 tailing. Many companies have recognized that HRM is an essen tial part in achieving long-term success, and not just a means of recruiting workers.Areas such as the recruitment process, selection, induction, retention, performance moni- toring and evaluations, staff fostering, development and motivation. Decision mak- ing, and re-sourcing for expansion will watch to demand the sea captainism of HRM workers. Personnel in different kinds of businesses have to adapt and change in response to emerging trends. The international HRM professional has to think globally, while rem aining ab le t o fu lfill lo cal asp irations. This i dea is based on Geert Hofstedes theory of cultures. He turn ed the well-known slogan, Think globally, act locally into Act g lobally, think locally. A major task of th e international HRM professional is to provide expertise in terms of interpretations of the local laws and working practices, so as to offer practical steps for successful operation of the international retailer. Building the prox HRM Challenges for Retailers Retailing means working in a g lobal con text but sim ultaneously adjusti ng to local needs. We describe below some international challenges to HRM in retail which are connected with national and local requirements. As mentioned above, major retail com panies have decided to invest globally to en sure greater po ten- tial for sustainable growth.Several ret ailers have identified internationalization as a huge oppor tunity for growth. In 2006, about 50 % of the METRO Groups employees work ed ou tside Germany. Th e Am eri tin basin retail g iant Wal -Mart, Frances Carrefour, and United Kingdoms Tesco are thr ee more orga nizations that are aggressively pursuing international expansion. This immediately gives rise to qu estions that require answers in every ar ea of operati on. An swering these marvels is key to successful transformation of a national business model into an international one.HRM strategy instals on the business strategy of the firm. The HR persons in charge have to be b usiness partners for management, providing strategic and practical operational solutions in the form of HR concepts or staffing solutions based on thorough know ledge of the bu siness. Wal -Marts sign attempt at expansion in Germany failedas did label and Spencersbecause neither of these companies appreciated the nuances of German retail culture, underestimat- ing local competition and, especially, the price sensitivity of German customers.Carrefours for ays i nto the United Kingdom lik ewise end ed with a strategic retreat. As long ago as in 1989, Dawson stated that Retail is a response to cul- tureand the HRM fu nction plays a c rucial role in assisting corporate man- agement understand and adapt to local cultures. For example, UK consumers resistance to th e use of self- s dismissners p rovided b y some retailers to r educe queues at checkou ts might have been pass judgment by HR music directors interacting with local employees. 262 Julia Merkel, capital of Minnesota Jackson, and Doreen PickStrategic Tasks of HRM Key strategic tasks of human resource management of an international retailer include ? Assisting the retailers top managers who work well over 60 hours a week negotiating myriad mazy issues in a competitive marketplace, cope with accent arising from quick changes, fierce competition, cost pressures, time management problems, and the need to pretend quick decisions. ? Keeping up to date with continuously developing technology and being able to optimize its usage so as to master the right balance between pro- ductivity gains and service gains.HR needs to find answers to the f ollow- ing motion How much technology can customers and the workforce han- dle in the store? ? Dealing with demography, e. g. , an aging workforce in Western Europe but predominantly young and inexperienced employees in other electron orbits of the world, such as Asia and the Middle East. Strategically, this poses one of the hardest challenges for HR professionals who are required to recruit and develop t alented st aff, offer t raining f or all age gr oups, ens ure a well- balanced age structure, and build up a working clime enabling employees of all ages to buy in and show suitable results. Cross-cultural recruiting and training All cultures have their own uncomparable practices and emphases, some of which are obvious while others are more shrewd and harder to detect. HR departments need to be able not only to of- fer advice and professional preparation to local managers but also ensure that individuals appointed to these positions are aware of company policies as well as sen sitive to the local culture. That is, in international compasss, in- dividuals need both a common voice communication and intercultural sensitivity. Identifying and retaining highly qualified, highly motivated individuals ready for international management appointments The role of HRM is to provide an international assignment policy that chairs into account individual prob- lems of expatriates, works around and supports family integration abroad. Operational Tasks of HRM Some key HRM tasks that have to be fulfilled to enable the workforce to meet the needs of customers nationally and internationally include ?Reshaping and r estructuring the workforce so as t o broaden their e xperi- ence by the acquisition of n ew skills Developments like automatic stock replenishment, new methods of conducting transactions, and alterations to the way goods are displayed, have increase retailer employee training re- quirements. Also employees moldiness learn to serve progressively litigious con- sumers wh ile main taining h igh productivity wh ich is essen tial in h igh- volume, l ow-margin e nterprises.P rofessional human reso urce m anagers must train employees on how to balance these oft-conflicting demands for high staff-productivity and great customer service. New Challenges in Retail Human Resource Management 263 HR Challenges General Conditions ? community Strategy ?Added order Management ?Change Management ?Recruitment and Retention ?Employability and Lifelong acquirement ?Corporate Governance ?Technology / IT basis Fig. 1. Challenges and General Conditions for HRM ? The critical resource of most businesses is no longer financial capital, but rather their employees (Barber, Strack 2005).Consequently, identifying and multitude the data for human capital valuation and assessment of the return on human resource investments is an important task for HR managers. ? HRM itself must develop, travel from being a personnel department to its new role as a strategic busi ness partner and building the basic geomorphological foundation that will enable companies to organize and optimize their return on human resources. The emerging trends that persistently need HR attention currently include some of the areas discussed below.We m ake a di stinction between HR challenges and general conditions ( send off 1). In the model of HR challenges HRM has direct influ- ence, while general conditions are contingencies within which HRM has to oper- ate. This list is not exhaustive, but looks at some selected current trends and needs. Current HR Challenges ? Company Strategy. HRM has to adapt its entire program to the companys overall vision and strategy. It is known that organizations with good human capital management generally create substantially more shareholder value than other companies.The significance of human capital is especially visi- ble in the content of a merger. The success of a merger depends much more on the competencies of the staff and m ana gement than on other aspects, such as finance, IT, and production. Hax and Majluf (1991) olfactory modality that it is there- fore essential for well-planned practices and highly efficient HR functions to be aligned with the business of the company concerned. An HR strategy must be com prehensive in the sense of addressing all the different per- sonnel and HR activities central to the long-term development of the firms businesses.HRM departments have to conceptualize and structure business 264 Julia Merkel, Paul Jackson, and Doreen Pick plans with detailed operations extending from the current to the future state of strategy, organization, and action. These must be based on the organiza- tions mission and common values. ? Added measure Management. This confronts HRM with the critical q uestion of what actions add m easurable value to the business. There is less cer- tainty about the central direction and more about committed management setting the right tone within the organizatio n for defined values to flourish.Commitment in the form of personal engagement and belief in the organi- zation and its concepts is important. HRM has to support this by elaborat- ing concepts and criteria for their evaluation, some of which should be re- vised annually. The following behavioral aspects of the workforce should be include in the HRM concept ? Personal Honesty and Integrity ? Self-Motivation and Entrepreneurial mien ? Ability to Communicate the Values and Benefits ? Encouraging Others to Want to Work with the Company and Share its Values Pride in the Company Training and Developing, Coaching, and Mentoring ? Change Management. The most important drivers for change are globaliza- tion, technology, and a workforce that is in creasingly knowledge-based. Ulrich has stated that there is a need to redefine firms performance less in terms of cutting cost and more in terms of meshable growth (Ulrich 1997). Managers have to be able to prepare changes slip by of their own v olition and also to support the company in its drive for sustained success. Manag- ers have to be able to empower their own staff.Moss Kanter (1989) states that it is only through true empowerment that staff will really gift to the changing needs of a busi ness, since they will then be doing things be- cause they understand them and for the right reasons, thinking and reflect- ing on the changes and t heir liable(predicate) impact, and above all feeling at ease with the implementation of change. Change management recognizes the need to reflect on t he managers role in the management of cha nge, the identification of problems, and the ability to make changes in either a pro- grammed or a no nprogrammed manner.HRM has to take accoun t of the risks required for the deliver the goodsment of change in the company. ? Recruitment and Retention. Employee recruitment and selection is one the most vital HR functions. However, the retail industry is faced with difficul- ties in attracting h ighly educated people. Nonetheless there is a po sitive trend for change. The challenge for HRM is to show the attractiveness of the retail sector a nd ensure that appropriate training and careers are avail- able, so that this sector can take a leading place in t he competition for available talent.Retail has recently been promoting opening up access to its workforce by declared rejection of discrimination on the thou of gender New Challenges in Retail Human Resource Management 265 or race, and, lately, also by employing more elderly persons. It is also nec- essary to build up programs for part-time workers. The ability to value di- versity within the workforce is a strength, provided that this is backed up by continuous training and correctness. Many organizations pass away courses on this aspect, usually under the title of Inc reasing Self-awareness, as t he ability to understand ones impact on others is a powerful skill.Next, reten- tion focuses on the goal of keep well-perform ing staff in the company. This depends not only on interesting work, fair compensation, and a motivating climate and management culture, but also on transparent and achievable ca- reer paths combine with a supportive management that provides guidance. ? Employability and Continuing Education. This is a major area of challenge to most employers, but especially those who employ large numbers of staff, as retailers do. Staff have to take retraining in order to adapt to a constantly changing outer environment.It is a question of mind-set, working envi- ronment, and attitude towards self-responsibility. The future will be charac- terized by the following needs, amongst others ? The need to handle increasing complexity. ? The need f or co ntinual enh ancement of th e ma nagement skill sets known as Life-Long occupying, i. e. the ability to adapt to changing en- vironments, challenges and technology. ? The need for a cocksure attitude to saucily emerging opportunities Manag- ers themse lves have to become life-long learners.This is of particular im- portance to the changing generations. The process can be aimed, for ex- ample, at noticeing further business qualifications, such as an M BA, a marketing diploma, or HRM qualifications, or attending training courses on key skills, such as lead ership, or personal development workshops. Some universities are now of fering masters degree courses on wor k- based training in which projects are directly related to the learning envi- ronment of the individual s tudents workplace.Analysis of actual workproblems can be counted as a credit toward an MA o r an MSc. Classroom training fostering positive acceptance of new structures, top- ics, and technologies is necessary. ? The need to communicate on a regular basis and precisely, and transmit meaning and values While the company will provide support, it will be the indi- vidual managers who have to drive their own learning and that of others in periods of intense change, ofte n using technology such as photo con- erencing or E-l earning/blended learning to pursue their studies. HRM needs to consult with managers on how best to use modern methods. ?The need for creative management This can be the way to bring new insights into common view or to introduce new issues as an area for the HRM specialist to develop. Many managers are locked into their own reality or their own version of their world, allowing themselves to be trap into a mind-set of either success or self-perpetuating failure. One 266 Julia Merkel, Paul Jackson, and Doreen Pick f the keys to successful business growth is for managers not to allow themselves to be trapped in a psychic prison (Morgan 2001) of t heir own making, causing them always to see retail in one dimension only. Current General Conditions ? Corporate Governance. The recent flake of Enron and the concentratedies faced by retailers such as Sainsbury suggest that the governance of these organi- zations was grossly at fault in permitting the excessive amounts of power vested in their nous executive officers (CEOs).The nonexecutive directors seem to have abdicated their duties in not restraining the CEOs in their riskier schemes. Expansion, arbitrary power, soaring costs, and misinterpre- tation of facts and figures appear to have gone unchecked and a implicit acqui- escence to have been entered into, presumably with the goal of presenting stakeholders with a picture that was m ore positive than the reality. As th e impact of the backlash is always difficult to predict, it is believably that HR di- rectors will become more closely convoluted in the careful examination of candidates integrity and suitability for high office.It is likely that this will slow t he decision-making process within t he board e nvironment, b ut i t might be a small price to pay for a more responsible environment acting in the best interests of all parties. HRM needs to motivate the entire staff of their company, to observe a nd evaluate the political situation within the company, and to react in a n appropriate way that ca n influence the re- tailers level of success. HRM has the opportunity, and wherefore the duty, to influence national and international codes of corporate governance. ? Technology/IT Infrastructure.In some of the ne w and emerging m arkets management has to decide whether to implement a total system with all branches totally aligned with the parent company. It can be prohibitively expensive for a branch at the fringe of the organization to lock into a global IT infrastructure that is geared to operations in Western countries where labor costs are very much higher. Retailers operating internationally rely on com mon platforms and IT structures the decision to be m ade is when is the time right for investments? A major change in retailing in the future will be the worldwide use of RFID technologies.The success of the METRO Group in developing and running their Future Store in R heinber g as a tigh tly controlled experi- ment has ha d a strong impact on t he practical application of new technologies in real business, since METRO Group has shared the results with industry and with its wholesalers, as well as its IT and logistics providers (see, e. g. , chapter by Kalyanam, Lal a nd west in this book). The scientific re- search involves customers reactions to the new shopping methods, and possibly also staff training in the use of intelligent technologies and intro- ductions to available selective information and changing processes for customers.New Challenges in Retail Human Resource Management 267 In conclusion, there has been, and continues to be, a great deal of activity sur- rounding staff appraisal. The management of progression, or performance moni- toring, continues to exercise HRM professionals, who wish it to be as fair as pos- sible to individuals, but also want the company to obtain maximum benefit from the exercise. While the strategy should be systema tic, it also needs to be continu- ous, with a fully im plemented set of key me trics.A full look at each individuals future, which can be a position as well as a set of personal goals, should be carried out at regu lar intervals. HRM professionals must ensure that line managers can perform this function. Next, we discuss approaches that address current HR challenges in retailing. HR Challenges General Conditions ?Company Strategy ?Added Value Management ?Change Management ?Recruitment and Retention ?Employability and Life-long Learning ?Corporate G overnance ?Technology/ IT Infrastructure Structure Motivation Fig. 2.Approaches to Challenges and General Conditions for HRM Approaches to HR Challenges in Retailing perpetrate Building up and Keeping Motivation As indicated in Figure 2, HRM has to en sure that the workforce is motivated and trained to satisfy consumers needs. Retailers have to develop the employee value proposition. This means an attractive position with the fulfillment of employee needs and expectations and achievement of a go od, unique image in terms of re- cruiting and keeping human capital. We list below some approaches to retaining an adequate sales force. HR quality cannot be assured without investment.Such investment has to be warrant in economic terms and must therefore be constantly monitored ? Planning the HR costs and expenditures for the annual business budget and forecasts ? furnish key data needed for planning the workforce at all levels and providing benchmark data on key performance indicators, such as average working hours per store opening hour, turnover per w orking hour, profit per working hour 268 Julia Merkel, Paul Jackson, and Doreen Pick ? Elaboration of systems to measure the work involved in and results of HRM (training investment per employee, rate of internal job placements, etcetera ? Providing common and communicated values of the com pany to give the workforce a strategic framework and common mind-set ? Creating a transparent internal job market ? religious offering the staff a perspective for the future and clear career paths ? Flexible models of working times, such as part-time working concepts, an- nualized hours contracts, and balancing of profession and family with the aid of sabbaticals ?Ensuring adequate processes, tools, and budget to allow for members of the workforce to achieve their objectives and ambitions Continuing education of ex ecutives and employees within actual training programs and a corporate university ? Training the workforce in soft skills and mentoring to ensure decorous align- ment of their values with the companys values and beliefs ? Initiation of an employee suggestion/ interrogatory system to improve the process of cooperation ? Recruitment of talented graduates from exchange programs with universi- ties worldwide ? International education within internal exchange programs, with p artici- shorts from different countries ? Apprenticeships and e ducations in new professions to build up t he best workforce Sharing company success with e mployees (incentive systems at all sta ff levels, based on parameters that are accessible to employees) ? Offering fringe benefits, such as discounts for shopping at the employers stores, company cars, equity programs, retirement arrangements, company nursery/kindergarten, and other social benefits. The Future of HRM and Final Remarks Most employees spend a substantial amount of time at work. Some people there- fore consider their job decisions on joining a retail company or some other indus- try in the cont ext of social environment.HRM has to kee p an eye on s uch con- straints, as the retail trade is anxious to attract the best employees. Future HRM will concentrate on supporting management and workforce and source admin- istrative tasks to contractors. In future, there will be more intensive collaborationism New Challenges in Retail Human Resource Management 269 and networking with external parties . New professions in retail, such as that of IT specialist, are developing. HRM must also place greater emphasis on ethical work- ing conditions, safer working environments, and equal-opportunity policies (end- ing sex/age discrimination, inclusion of minorities, etc. . In any company, HRM has to build up trust and commitment among all persons working in that organiza- tion. Continued trust on traditional processes is d efinitely no longer a convention that pr omises much success. HR m anagement has t o a ssure fast a nd market- oriented actions that are appropriate to complex market situations. HRM will have to set priorities on the HR strategy and its realization, but will be viewed on the operational side more in the role of a serv ice center. In future, the issue of management development will gain even greater importance.To sum up, HRM has to be aligned with the business strategy of the company, to work in keeping with all of its corporate objectives, and to be prepared not on ly to help in implementing all changes necessary but also to instigate and be at the vanguard of change programs. Further, HRM should be aware of employee inter- ests within the organization so far conscious of its place as the power house when controversial business decisions, such as downsizing, have to be implemented. Lastly, it plays a key role in ensuring that constant retooling and retraining takes place in the operation to meet ever-evolving challenges.Life-long learning should be an integral part of any business, to enable it to resolve to its rivals activities with fresh initiatives within the company. HRM specialists have to ensure the long-term performance of their retail or- ganizations. It is a big challenge for HRM to meet the future needs, and the task is wide ranging. How well HR managers perfo rm th eir fu nction will determin e whether a reta iler registers a sustainable success in the future. We have tried to show in this chapter the comprehensive and central ro le of HRM in retailing.Re- tail has been and will continue to be an exciting field of business throughout the world. The main function of the retail sector is to wo rk with and for people all over the world, so that retail has the chance to give people interesting and fulfill- ing workplaces.References Barber, F. and Strack, R. (200 5) The Surp rising Economics of a People Business, in Harvard Business Review June 2005, pp 81-90. Davies, G. (1999) The Evolution of Marks and Spencer. Service Industries Journal. 19, 3, 60-73. Dawson J. A. (2001) Strategy and opportunism in European retail internationalization Brit- ish Journal of Management, 12, 253-266. Dawson, J. A. 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