Submitted by Ben Teehankee of De La Salle University
Why is this important to Humanistic Management? Retailing has a reputation for jobs which undermine dignity. This article reports on interesting case research which tries to solve this problem.
The conventional view in the US and in the Philippines is that in a low-margin sector like retail, companies cannot afford to pay workers better or to give them more secure jobs. Doing so would make the prices of goods too high for customers. Furthermore, it would make retailers lose the flexibility they need to deal with fluctuating demand.
This mind-set results in what Ton calls “retailing’s vicious cycle.” Low wages, part-time and seasonal work, and unpredictable schedules lead to high turnover, unmotivated employees, high absenteeism and tardiness rates, and low morale. High turnover and unmotivated employees lead to low profits and further cuts in investments in employees (wages, benefits, and training), resulting in even higher turnover and lower morale.
But it doesn’t have to be this way. Read more: http://bworldonline.com/we-need-good-retail-jobs/