Retail Organization Chapter definitions, test, answers study

End of Chapter Definitions

Test Review

Retail Organization – How a firm structures and assigns tasks, policies, resources, authority,

responsibilities, and rewards so as to efficiently and effectively satisfy the needs of its target market,

employees, and management.

Hierarchy of Authority – Outlines the job interactions within a company by describing the reporting

relationships among employees. Coordination and control are provided.

Organization Chart – Graphically displays the hierarchical relationships within a firm.

Mazur Plan – Divides all retail activities into four functional areas: merchandising, publicity, store

management, and accounting and control.

Equal Store Organization – Centralizes the buying function. Branch stores become sales units with

equal operational status.

Diversified Retailer – Multiline firm with central ownership. It is also known as a retail conglomerate.

Human Resource Management – Recruiting, selecting, training, compensating, and supervising

personnel in a manner consistent with the retailer's organization structure and strategy mix.

Human Resource Management Process – Consists of these interrelated activities: recruitment,

selection, training, compensation, and supervision. The goals are to obtain, develop, and retain

employees.

Recruitment – Activity whereby a retailer generates a list of job applicants.

Job Analysis – Consists of gathering information about each job's functions and requirements: duties,

responsibilities, aptitude, interest, education, experience, and physical tasks.

Traditional Job Description – Contains each position's title, supervisory relationships (superior and

subordinate), committee assignments, and the specific ongoing roles and tasks.

Goal-Oriented Job Description – Enumerates a position's basic functions, the relationship of each job

to overall goals, the interdependence of positions, and information flows.

Application Blank – Usually the first tool used to screen applicants. It provides data on education,

experience, health, reasons for leaving prior jobs, outside activities, hobbies, and references.

Weighted Application Blank – Form whereby criteria best correlating with job success get more

weight than others. A minimum total score becomes a cutoff point for hiring.

Pre-Training – Indoctrination on the history and policies of the retailer and a job orientation on hours,

compensation, the chain of command, and job duties.

Training Programs – Used to teach new (and existing) personnel how best to perform their jobs or

how to improve themselves.

Compensation – Includes direct monetary payments to employees (such as salaries, commissions, and

bonuses) and indirect payments (such as paid vacations, health and life insurance benefits, and

retirement plans).

Supervision – Manner of providing a job environment that encourages employee accomplishment.

Job Motivation – Drive within people to attain work-related goals.

Practice Test

Question 1. Which of the following is not a job classification method?

Functional

Product

Associated

Combination

Question 2. The job classification method that divides jobs on a goods or service basis is

functional.

product.

associated.

combination.

Question 3. Which job classification method is usually used by large retailers?

Functional

Product

Associated

Combination

Question 4. An organization with several levels of managers that is characterized by close

supervision and with fewer workers reporting to each manager is called a

tall organization.

flat organization.

geographic classification.

span of control.

Question 5. Which of the following statements about organizational arrangements used by small

independent retailers is false?

Small retailers generally have little specialization.

Small independent retailers have fewer activities to perform than other types of retailers.

The owner-manager personally runs the business and oversees employees.

Small independent retailers have no branch units.

Question 6. Which is not a functional area included in the Mazur plan?

Merchandising

Strategic planning

Publicity

Accounting and control

Question 7. Under the Mazur plan, the individual with complete accountability for controlling

expenses and reaching profit goals within his or her department is the

general manager.

merchandising manager.

divisional manager.

buyer.

Question 8. The department store organizational plan in which most authority remains at the

headquarters location is the

Mazur plan.

main store control.

separate store.

equal store.

Question 9. The department store organizational plan which tries to achieve the benefits of both

centralization and decentralization is the

Mazur plan.

main store control.

separate store.

equal store.

Question 10. Which is not generally a characteristic of the organizational pattern of a chain store?

Many functional divisions

Centralized authority and responsibility

The use of a simple control system

Standardization of many operations

Question 11. Which is not part of the special human resource environment faced by retailers?

Inexperienced workers

Few part-time workers

Long hours

Variable customer demand

Question 12. Job analysis is used in which of the following personnel activities?

Personnel selection

Recruitment

Training

Supervision

Question 13. Which selection tool enumerates basic functions, the relationship of each job to overall

goals, the interdependence of positions, and information flows?

Application blank

Weighted application blank

Goal-oriented job description

Traditional job description

Question 14. Usually, the first tool used by a retailer to screen applicants is the

personal interview.

application blank.

psychological test.

pre-training session.

Question 15. The training method that places trainees into real-life situations and has them act out

conflicts is

lecture.

case study.

competency-based instruction.

role playing.

Question 16. The training method that uses extensive interaction and is good for supervisors as a tool

for understanding employees is

sensitivity training.

conference.

behavior modeling.

demonstration.

Question 17. Which form of compensation is an indirect payment?

Salary

Straight commission

Retirement plans

Bonus

Question 18. In which form of compensation are earnings directly tied to productivity?

Salary

Straight commission

Salary plus commission

Compensation cafeteria

Question 19. Executives choose their own combination of salary, bonus, fringe benefits, stock

options, and retirement benefits through which system?

Salary

Straight commission

Salary plus commission

Compensation cafeteria

Question 20. Which of the following is an example of a desired goal?

A safe work environment

Employee empowerment in his/her area of work

Fair compensation

Basic fringe benefits

Question 21. The retailer must perform all the tasks of retailing.

True || False

Question 22. The product classification method of categorizing jobs recognizes that differences exist

in the personnel requirements for different products.

True || False

Question 23. A firm with a large number of subordinates reporting to one supervisor has a tall

organization. True || False

Question 24. A firm with a tall organization structure can handle problems quicker than one with a

flat organization.bTrue || False

Question 25. An independent retailer has a much simpler organization than a chain retailer.

True || False

Question 26. Many small retailers use organizational arrangements that are a modification of the

Mazur plan. True || False

Question 27. The basic Mazur plan groups all retail activities into one functional area. True || False

Question 28. The equal-store organization is a popular arrangement today for chain retailers.

True || False

Question 29. Human resource management is required of all retailers. True || False

Question 30. Labor costs can amount to over 50 percent or more of a retailer's operating expenses.

True || False

Question 31. The special human resource environment complicate employee hiring, staffing, and

supervision. True || False

Question 32. Retailers often rely on employee recommendations or advertisements to recruit entry-

level personnel.

True || False

Question 33. During recruitment, a retailer's major goal is to generate a list of three to five qualified

applicants.

True || False

Question 34. Job analysis is used for selecting personnel, establishing performance standards, and

assigning salaries.

True || False

Question 35. A traditional job description enumerates the relationship of each job to overall goals.

True || False

Question 36. An application blank should be used in conjunction with a job description.

True || False

Question 37. The training programs used by retailers should be geared only to new employees.

True || False

Question 38. The training method characterized by no active participation by trainees is the case study

method.

True || False

Question 39. With a straight commission plan, employee earnings are directly tied to productivity.

True || False

Question 40. A motivated employee requires fulfillment of both minimum expectations

("dissatisfiers") and desired goals ("satisfiers").

True || False

Question 41. A retailer should carry out a task only if it is desired by the __________.

retailer's management

target market

current customers

retailer's board

Question 42. In a _____ classification, jobs are divided among areas such as sales promotion, buying,

classification is useful for chains operating in different areas.and store operations; a _____ classification divides jobs on a goods or service basis; and a ______

product, functional, geographic

structural, functional, geographic

functional, product, geographic

functional, tall, diversified

Question 43. The ________________ outlines the job interactions within a company by describing

the reporting relationships among employees.

informational organization structure

mother hen organization

division of labor

hierarchy of authority

Question 44. The basic Mazur plan divides all retail activities into four functional areas: _____,

_____, __________, and ____________.

merchandising, publicity, store management, accounting/control

merchandising, buying, store management, accounting/control

buying, selling, store operations, accounting/control

buying, merchandising, store operations, financial/accounting

Question 45. The buying organization in which department stores try to achieve the benefits of both

centralization and decentralization is the _______________.

main store control

diversified store organization

separate store organization

equal store organization

Question 46. A _________ is a multi-line firm operating under central ownership.

department store

chain retailer

diversified retailer

public retailer

Question 47. _______________ involves recruiting, selecting, training, compensating, and

supervising personnel in a manner consistent with the retailer's organization structure and strategy mix.

Retail labor relations

Human resource management

Retail management recruitment

Retail personnel motivation

Question 48. While a _______________ contains each position's title, relationships, and the specific

roles and tasks to be performed on an ongoing basis, a(n) _____________________ enumerates basic

functions, the relationship of each job to overall goals, the interdependence of positions, and

information flows.

formal job description, informal-based job description

traditional job description, goal-oriented job description

structured job description, unstructured-based job description

concurrent job description, static-type job description

Question 49. __________ is an indoctrination on the history and policies of the retailer and a job

orientation on the hours, compensation, chain of command and job duties.

Pre-training

Skill training

Human relations

Corporate culture

Question 50. The training method which entails presenting an actual or hypothetical problem and

learning by doing is __________.

live demonstration

sensitivity training

case study

programmed instruction

Question 51. Compensation includes both __________ payments (such as salaries, commissions, and

bonuses) and _____ payments (such as paid vacations, health and life insurance benefits, and

retirement plans).

straight salary, incentive

straight salary, fringe

direct salary, bonus

direct monetary, indirect

Question 52. With a _________ plan, a worker is paid a fixed amount per hour, week, month, or year.

combination compensation

collective bargaining

straight salary

straight commission

Question 53. _____ is the manner of providing a job environment that encourages employee

accomplishment.

Supervision

Motivation

Compensation

Satisfaction

Question 54. __________ is the drive within people to attain work-related goals.

Job enrichment

Job compensation

Job satisfaction

Job motivation

Question 55. ________ relate(s) more to the job environment.

Minimum expectations

Desired goals

Job compensation

Job motivation

Answer Score

Now for the following answers for the questions #1-#55. Question 1. Associated

Question 2. product.

Question 3. Combination

Question 4. tall organization.

Question 5. Small independent retailers have fewer activities to perform than other types of retailers.

Question 6. Strategic planning

Question 7. buyer.

Question 8. main store control.

Question 9. equal store.

Question 10. The use of a simple control system

Question 11. Which is not part of the special human resource environment faced by retailers?

Few part-time workers

Question 12. Personnel selection

Question 13. Goal-oriented job description

Usually, the first tool used by a retailer to screen applicants is the application blank.

The training method that places trainees into real-life situations and has them act out conflicts is

role playing.

The training method that uses extensive interaction and is good for supervisors as a tool for

understanding employees is sensitivity training.

Which form of compensation is an indirect payment? Retirement plans

In which form of compensation are earnings directly tied to productivity? Straight commission

Executives choose their own combination of salary, bonus, fringe benefits, stock options, and

retirement benefits through which system? Compensation cafeteria

Which of the following is an example of a desired goal? Employee empowerment in his/her

area of work

The retailer must perform all the tasks of retailing.  False

The product classification method of categorizing jobs recognizes that differences exist in the

personnel requirements for different products.  True

A firm with a large number of subordinates reporting to one supervisor has a tall organization.  False

A firm with a tall organization structure can handle problems quicker than one with a flat

organization. False

An independent retailer has a much simpler organization than a chain retailer.  True

Many small retailers use organizational arrangements that are a modification of the Mazur plan.

False

The basic Mazur plan groups all retail activities into one functional area. False

The equal-store organization is a popular arrangement today for chain retailers.

True

Human resource management is required of all retailers. True

Labor costs can amount to over 50 percent or more of a retailer's operating expenses. True

The special human resource environment complicate employee hiring, staffing, and

supervision. True

Retailers often rely on employee recommendations or advertisements to recruit

entry-level personnel.

True

During recruitment, a retailer's major goal is to generate a list of three to five qualified

applicants.

False

Job analysis is used for selecting personnel, establishing performance standards, and

assigning salaries.

True

A traditional job description enumerates the relationship of each job to overall goals.

False

An application blank should be used in conjunction with a job description.

True

The training programs used by retailers should be geared only to new employees.

False

The training method characterized by no active participation by trainees is the case study

method. False

With a straight commission plan, employee earnings are directly tied to productivity.

True

A motivated employee requires fulfillment of both minimum expectations ("dissatisfiers") and

desired goals ("satisfiers"). True

A retailer should carry out a task only if it is desired by the target market.

In a functional classification, jobs are divided among areas such as sales promotion, buying, and

store operations; a product classification divides jobs on a goods or service basis; and a geographic

classification is useful for chains operating in different areas.

The hierarchy of authority outlines the job interactions within a company by describing the

reporting relationships among employees.

The basic Mazur plan divides all retail activities into four functional areas: merchandising, publicity,

store management, and accounting/control.

The buying organization in which department stores try to achieve the benefits of both

centralization and decentralization is the equal store organization.

A diversified retailer is a multi-line firm operating under central ownership.

Human resource management involves recruiting, selecting, training, compensating, and supervising personnel in a manner consistent with the retailer's organization structure and strategy mix.

While a traditional job description contains each position's title, relationships, and the specific roles and tasks to be performed on an ongoing basis, a(n) goal-oriented job description enumerates basic functions, the relationship of each job to overall goals, the interdependence of positions, and

information flows. 

Pre-training is an indoctrination on the history and policies of the retailer and a job orientation

on the hours, compensation, chain of command and job duties.

The training method which entails presenting an actual or hypothetical problem and learning by

doing is case study.

Compensation includes both direct monetary payments (such as salaries, commissions, and

bonuses) and indirect payments (such as paid vacations, health and life insurance benefits, and

retirement plans).

With a straight salary plan, a worker is paid a fixed amount per hour, week, month, or year.

Supervision is the manner of providing a job environment that encourages employee

accomplishment.

Job motivation is the drive within people to attain work-related goals.

Desired goals relate(s) more to the job environment.