New Challenges in Retail Human Resource Management

Why Do We Need paid Human imagery wariness in Re following? Such term as globalization, parade solicitude, and value-based counseling dominate the current discussion of counsel in sell co mpanies. There has been an increasing realization that citizenry be one of a unions break as distinguishs. Re- tail heart and soul work and serving customers in a direct, individualized way. This c on the wholes for finical actions from sell companies to replete the demands of an increasing num- ber of face lifting up-informed and sophisticated con unitingers.In reckon of e genuinely last(predicate) the c hanges in both groundal and inter matter contexts, it is ab solutely all-important(a) to get the right people if a melodic military control is to be victorious and sustainable. selling is a major(ip) moil- intensifier industry sector. The refore, companies ar continually challenged to re-organize and transport t heritor st ructures to mother much efficient. The n ecessity for part-time workers, beca berth of long stock certificate open hours and peaks in the transaction day/week, requires a flexible textile to optimize labor processes. Emotionally, the custody subscribe tos orientation and vi sion in changing times.Human resource focus (HRM) has to grant a coach, not wholly to organize, but also to fight employees and m anagement mentally and p rofes- sionally in fulfilling their occupations in terms of future association goals. People are the operate force behind all transactio ns that occur in sell outlets. In the future world of selling, on that point depart be an increasing command to adapt and change towards a much formative and proactive modal value of HRM. M. Krafft and M. K. Mantrala (eds. ), sell in the 21st Century Current and Future Trends , in fount 10. 007/978-3-540-72003-4_16, ? Springer-Verlag Berlin Heidelberg 2010 257 258 Julia Merkel, Paul Jackson, and Doreen Pick flips Changes in Retail The formats of retailing subscribe been evolving interminably over the last 100 years, and soulfulness retailers fuck off changed tremendously in the products they sell and in the manner in which they operate. Retailing of lifestyle products impacts right away on the changing culture of our societiesone has except to think of the excogitation of the Sony Walkman or the Apple I-Pod to grasp the world(prenominal) range of con- sumer enquires.In order to provide an expanding product and service range, retail has had to alter and amend its approaches to revenge constantly more than voracious and in- creasingly sophisticated consumers. For several years, retailers surrender had a promi- nent type in todays society in their capacity as employers the retail industry em- ploys one in nine of the UK work force, for example (Gilbert 2003). well-nigh two thirds of employees are female. Therefore, special concepts in HRM are require d to allow for the compatibility of work and family.Gilbert (2003) also points out that The retail sector has had a reputation for not supporting its employees and for having press d crystallize honorarium and longer hours than former(a) sectors. Future HRM h as to take a chance a practical ap proach that exit lead to the right balance of companies and employees needs in terms of present ment and hours for the workforce, and service guarantees for their customers. The developments in many europiuman countries point the changing postures of young university graduates for whom retailing now provides modern and attractive career pro spects.However, retailing is still far from the first choice for top graduates and this needs to change. environmental factors such as economic, mixer, political, cultural, and demo- graphic developments are driving the rapid changes in the retail duty. Retail management and HRM departments view as to be witting of all these changes. Some of the environmental factors are described below. peeled Fo rms of Trading New trading formats fork over been the lifeline allowing businesses to gain and sus- tain competitive advantage. New t rading form ats are constantly visual aspect at both ends of the spectrum.Higher allowance goods, slightlytimes even with designer labels, have coexisted with the increasing demand for more aggressive pricing such as that app lied by hypermarkets, off-price retailers, and concentrated discounters. Often, consumers switch from smaller local anesthetic stores to supermarkets, and increas- ing numbers of consumers are using rude(a) channels for Internet and TV shopping. The international press reports the continuing victory of fresh fo rms of online retailing (e-tailing) in Europe and the USA, as well as rapid changes in east Europe and Asia in use of the Internet.Within these trading formats, new pro- fessions, work careers, and functions are development very betting. To succeed, HRM has to make do and manage these changes in retailing huma n resource requirements. Exchange of association is one of the basal prerequisites For ex- New Challenges in Retail Human pick caution 259 ample, the German retailer METRO theme is installing packet that go forth allow companionship shar ing with sy stematic tr ansfer of all necessary infor mation and skills to METRO chemical group sites throughout the world.It is exacting 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 oecumenical and HRM in particular will be t o master t hat th e right knowledge is lendable at the right time and in the right perspective. Consumer Behavior Closely aligned with the expansion 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 purchase patterns over the last seve ral d ecades (Gilbert 2003). Present-day consumers are m ore experi- enced, more alert of their important lineament 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 ways, so as to fulfill regional needs and shopping habits, especially in the food business (e. g. , see c hapter by Mierdorf, Mantrala and Krafft in this book). engineering science Let us give what retailing looked like 20-30 years past little or no EPOS tech- nology, electro-mechanical tills, paper-driven accounting, checking and co mptom- eter systems, perhaps enhanced by a Kim ballock tag system to aid stock replenish- ment. Thirty years ago there were not even many supermarketsself-service was just appearing over the horizon for approximately modern retailers in the 1960s and 1970s. The climax of increasing computerization in the late 1970s started to affect busi- nesses as they adapted t o possibilities that began to open up through IT-supported working practices.Processes for controlling, distribution, payroll, accounting and, especially, switch management systems started to be aut omated during the early 1980s. E DI, scanning, and bar-coding were im plementedafter heavy IT investmentsto lower costs and increase accuracy levels. just about(prenominal) ecesiss were d causesized and refocused as these manual processes were born-again to more cus- tomer-focused activities and professional 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 movements, mergers among suppliers, and the growth of technology. Future retail- ers have to be fast and flexible in making decisions about oecumenical sourcing and selling. This calls fo r people to acquire skills and competencies that will allow them to compe te fortunately in both national and international contexts. Interna- 260 Julia Merkel, Paul Jackson, and Doreen Pick tional HRM has to consider antithetical ways of working with people in many Euro- pean countries, HRM departments have to cooperate with works councils, which influence companies management thinking.HRM has the role of developing and define human working processes fai rly an d prov iding for cap capacity-oriented working conditions. Germanys political fence about the consequences of capital- ism in 2005 shows the need for companies to act and tell on the basis of consistent and balanced argumentation. HRM needs executives who are familiar with developments personnel casualty on in a society, shifts in cultural set and behavior. To be competitive in global markets, many organizations reduce staffing levels and change to alter 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 p anded their offerings they have i nvested severely in new product ranges, new trading f ormats, and enounce v entures, o r i n shapi ng an d spreading t heir bra nds. Merely cutting investments, e. g. , in the sales force, or opening stores around the world per se i s not enough to meet the demands of the new retail age. A actualize strategy, stable and IT-supported processes, and correct allocation of financial and management resources are needed for international supremacy the future. Globalization of SourcingSourcing from overseas vendors gathered impulsion with the conclusion 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 manufacturers began to dominate the supply of goods, espe- cially, nonfood goods, to the industrialized countries. Consequently, in the West, d istribution 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 alter the headquarters workforce to be aware of international processes, markets, and com- petitors. Further, domestic retail companies anywhere have to also endure on top of emerging global trends. Companies that plan to enter new foreign markets have to care full phase of the moony consider local cultures, religious values, and national laws in developing their new market entry strategies. All the developments mentioned supra are stron gly inter cerebrate.Retail man- agement and HRM have to jointly examine all these change s to m ake comely and discriminate adaptations to organizational structures, systems, and processes. Changing Role of HR Departments HR departmentsoriginally called payroll departments, then relabeled staff man- agement, followed by another(prenominal) 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 centering 261 tailing. some(a)(prenominal) companies have recognize that HRM is an essen tial component in achieving long-run success, and not just a means of resurrecting workers.Areas such as the recruitment process, selection, induction, retention, surgical procedure moni- toring and evaluations, staff genteelness, development and motivation. purpose mak- ing, and re-sourcing for expansion will continue to demand the professionalism of HRM workers. Personnel in distinguishable 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 scheme of cultures. He turned the well-known slogan, Think globally, act locally into stand for 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 Future 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 erican retail g iant Wal -Mart, Frances Carrefour, and United e put forwards Tesco are thr ee more organizations that are aggressively pursuing international exp ansion. This immediately gives set up to qu estions that require answers in every ar ea of operati on. An swering these questions is key to successful diversity of a national business model into an international one.HRM strategy build ups 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 initial attempt at expansion in Germany failedas did label and Spencersbecause neither of these companies appreciated the nuances of German retail culture, underestimat- ing local arguing 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 function 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- scanners p rovided b y some retailers to r educe queues at checkou ts might have been anticipated by HR managers interacting with local employees. 262 Julia Merkel, Paul 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 complex bribes in a competitive marketplace, screw with stress arising from quick changes, fierce competition, cost pressures, time management problems, and the need to make quick decisions. ? Keeping up to date with continuously developing technology and being able to optimize its usage so as to achieve the right balance between pro- ductivity gains and service gains.HR needs to find answers to the follow- ing question How much technology can customers and the workforce han- dle in the s tore? ? Dealing with demography, e. g. , an aging workforce in Western Europe but predominantly young and inexperienced employees in other areas 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 climate enabling employees of all ages to buy in and show suitable results. Cross-cultural recruiting and prep All cultures have their own unique practices and emphases, some of which are obvious while others are more subtle 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 plant to these positions are aware of company policies as well as sensitive to the local culture. That is, in international settings, in- dividuals need both a cat valium language and intercultural sensitivity. Identifying and retaining lavishlyly qualified, highly motivated individuals ready for international management appointments The role of HRM is to provide an international assignment policy that takes 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 across the country 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 increased retailer employee training re- quirements. Also employees essential learn to swear out increasingly litigious con- sumers wh ile primary(prenominal) 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 essential 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 ?Company dodge ?Added Value Management ?Change Management ?enlisting and Retention ?Employability and long Learning ?Corporate Governance ?Technology / IT Infrastructure Fig. 1. Challenges and General Conditions for HRM ? The slender resource of most businesses is no longer financial capital, but kind of their employees (Barber, Strack 2005).Consequently, identifying and gathering the data for human capital valuation and assessment of the bring round on human resource investments is an important task for HR managers. ? HRM itself must develop, moving from being a personnel department to its new role as a strategic business partner and building the basic structural foundation that will enable co mpanies to organize and optimize their output on human resources. The emerging trends that persistently need HR management currently include some of the areas discussed below.We m ake a di stinction between HR challenges and general conditions (Figure 1). In the case of HR challenges HRM has direct influ- ence, while general conditions are contingencies inside 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 case of a merger. The success of a merger depends much more on the competencies of the staff and m anagement than on other aspects, such as finance, IT, and production. Hax and Majluf (1991) f eel 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 leafy vegetable values. ? Added Value Management. This confronts HRM with the critical q uestion of what actions add m easurable value to the business. There is little cer- tainty about the central direction and more about committed management setting the right tone within the organization for defined values to flourish.Commitment in the form of personal engagement and belief in th e 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 included in the HRM concept ? Personal Honesty and Integrity ? Self-Motivation and entrepreneurial Style ? Ability to Communicate the Values and Benefits ? Encouraging Others to Want to diddle with the Company and Share its Values Pride in the Company instruct 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 deed less in terms of cutting cost and more in terms of profitable growth (Ulrich 1997). Managers have to be able to make changes happen of their own volition and also to support the company in its drive for sustained success. Manag- ers have to be abl e to empower their own staff.Moss Kanter (1989) states that it is only through true empowerment that staff will real contribute 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 likely impact, and above all feeling at ease with the writ of execution 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 achievement 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 highly educated people. Nonetheless there is a po sitive trend for change. The challenge for HRM is to show the attra ctiveness 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 new-fangledly been promoting opening up access to its workforce by declared rejection of discrimination on the grounds 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 run 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-performing staff in the company. This depends not only on interesting work, fair compensation, and a propel climate and m anagement culture, but also on trans sustain and possible ca- reer paths combined 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 oversize numbers of staff, as retailers do. Staff have to take retraining in order to adapt to a constantly changing external 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 Learning, i. e. the ability to adapt to changing en- vironments, challenges and technology. ? The need for a positive attitude to newly emerging opportunities Manag- ers themselves have to become life-long learners.This is of particular im- portance to the changing generations. The process c an be aimed, for ex- ample, at obtaining 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 detail 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 regularly 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, often using technology such as video con- erencing or E-l earning/blended learning to pursue their studies. HRM needs to come to with managers on how beat 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 trapped into a mind-set of either success or self-perpetuating failure. single 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 house (Morgan 2001) of t heir own making, causing them always to see retail in one dimension only. Current General Conditions ? Corporate Governance. The recent case of Enron and the difficulties faced by retailers such as Sainsbury suggest that the validation of these organi- zations was grossly at fault in permitting the excessive sums of power vested in their chief executive officers (CEOs).The nonexecutive directors seem to have abdicated their duties in not restraining the CEOs in their riskier schemes. Expansion, absolute power, soaring costs, and misinterpre- tation of facts and figures appear to have gone unchecked and a tacit 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 likely that HR di- rectors will become more nearly involved 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 high hat interests of all parties. HRM needs to motivate the entire staff of their company, to observe and appraise the political situation within the company, and to react in a n appropriate way that ca n influence the re- taile rs level of success. HRM has the opportunity, and therefore 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 utensil a total system with all branches totally aligned with the parent company. It can be prohibitively expensive for a branch at the periphery of the organization to lock into a global IT infrastructure that is accommodate 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 lead their Future Store in R heinberg as a tigh tly controlled experi- ment has ha d a strong impact on t he 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 Wolfram in this book). The scientific re- search involves customers reactions to the new shopping methods, and by chance also staff training in the use of intelligent technologies and intro- ductions to available 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- round 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 systematic, 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 Practice 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 fulfilment of employee needs and expectations and achievement of a go od, unique image in terms of re- cruiting and charge 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 justified in economic terms and must therefore be constantly monitored ? Planning the HR costs and expenditures for the annual business cipher and forecasts ? Supplying 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 sum the work involved in and results of HRM (training investment per employee, rate of internal stock placements, etc. ? Providing common and communicated values of the com pany to give the workforce a strategic framework and common mind-set ? Creating a transparent internal avocation market ? Offering the staff a perspective for the future and clear career paths ? Flexible models of working ti mes, 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 proper align- ment of their values with the companys values and beliefs ? Initiation of an employee tincture/inquiry system to improve the process of cooperation ? Recruitment of talented graduates from central programs with universi- ties worldwide ? International education within internal exchange programs, with p artici- pants 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 kind ly 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 excogitate 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 outsource admin- istrative tasks to contractors. In future, there will be more intensive collaboration 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 e nvironments, 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. go on reliance on traditional processes is d efinitely no longer a recipe 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 only to foster 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- e sts within the organization yet conscious of its place as the power house when moot 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 respond 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 role 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 economic science of a People Business, in Harvard Business Review June 2005, pp 81-90. Davies, G. (1999) The organic evolution of Marks and Spencer. Service Industries Journal. 19, 3, 60-73. Dawson J. A. (2001) Strategy and opportunism in European retail internationalisation Brit- ish Journal of Management, 12, 253-266. Dawson, J. A. 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