A CAREER IN THE RETAIL FOOD CHAIN INDUSTRY By Francis Augustine Dory A THESIS Submitted to the School ef Graduate Studio: of Michigan Stnte College of Agriculture and Applied Science in partial fulfillment of the requirements for the deg-e0 of MASTER 01' ARTS Department of General Business curriculum in Food Distribution 1952 I'HESIS ACKIIO WIED SHEET S The writer wishes to express his sincere thanks to the following men; Mr. Guy R. Beale, Jr. and Mr. Jack C. Fairchild, Colonial Stores, Incorporated, Atlanta, Georgia; Mr. M. W. Robinson, Crand Union Company, East Paterson, New Jersey; Mr. H. G. Stiefenhoefer, Jewel Tea Company, Incorporated, Chicago, Illinois; Mr. Edward J. Kenney, Kroger Company, Cincinnati, Ohio; Mr. John A. Jones, Safeway Stores, Incorporated, San Francisco, California; Mr. Andrew C. Kuhn, Stop and Shop, Incorporated, Boston, Massachusetts. Special recognition is given to the National Association of Food Chains, whose Fellowship grant helped make this research possible. Appreciation is also due to Dr. Kenneth Wilson, Director of the - Curriculum in Food Distribution at Michigan State College, for his in- terest, guidance and suggestions which aided in the preparation of this 131188130 .w M _., L21". JUN TABLE OF 001 ENTS CPAPTER PAGE I . IICTPLODUCTIOII O O O O O O O O O O O O O O O O O O O O O 1 On Choosing a Career . . . . . . . . . . . . . . . . l N The Purpose of the Thesis . . . . . . . . . . . . . . Reasons for the Selection of Companies . . . . . . . Method of Research . . . . . . . . . . . . . . . . . Plan of Presentation . . . . . . . . . . . . . . . . II. COLONIAL STORES, INCORPORATED . . . . . . . . . . . . . History of Company . . . . . . . . . . . . . . . . . Organization of Company . . . . . . . . . . . . . . . Contact Between Company and Graduate . . . . . . . . 09.01“] mm 47m N Interview . . . . . . . . . . . . . . . . . . . . . . Training Program . . . . . . . . . . . . . . . . . . 10 Progress of Men in the Organization . . . . . . . . . 13 Starting Salary . . . . . . . . . . . . . . . . . . . 15 Employee Benefits . . . . . . . . . . . . . . . . . . 15 Retail Store Organization . . . . . . . . . . . . . . 16 ChannelsofPromotion................ 16 Other Jobs in the Company . . . . . . . . . . . . . . 1b Brief Summary . . . . . . . ... . . . . . . . . . . . 17 III. GRAND UNION COKPAHY . . . . . . . . . . . . . . . . . . 18 History of Company . . . . . . . . . . . . . . . . . 18 Foode-Mat . . . . . . . . . . . . . . . . . . .-. . 19 Interview . . . . . . . . . . . . . . . . . . . . . . l9 CHAPTER Training Program . . . Progress of Men in the Organization Starting Salary . . . . Channels of Promotion . Employee Benefits . . . Routes Department . . . Brief Summary . . . . . 0 IV. JEWEL TEA CORPAIY, IHCORPORATED V. History of Company .Interview . . . . . . . . . Retail Store Organization . . Training Program . . . Progress of Men in the Organization Starting Salary . . . . . . . . . . College Sophomore Program . . Channels of Promotion . . . Employee Benefits . . . . . . "First Assistant" Philosophy Brief Summary . . . . . . . . KROGER COMPANY History of Company Type of Man Wanted in the Organization “0-week Special Training Program for Store Management Planned Training Program for Special Accounting Trainees O O O O O O warehouse Training Program Progress of Men in the Organization . . . . . . . . . #2 LB nu CHAPTER Starting Salary . . . . . . Channels of Promotion . . . Employee Benefits . . . . . Brief Summary . . . . . . . VI. SAFEWAY STORES, INCORPORATED History of Company . . . . Explanation of Company Terms Interview . . . . . . . . . Training Program . . . . . Starting Salary . . . . . . Progress of Men in the Organization Channels of Promotion . . . Employee Benefits . . . . . Brief Summary . . . . . . . VII. STOP AND SHOP, IHCORPORATED . History of Company . . . . Interview . . . . . . . . . Checker Training Program . Other Training Programs . . Progress of Men in the Organization Starting Salam O O O O O O O O O Other Company Positions . . Channels of Promotion . . . BriefSunmary....... VIII. URXARY . . . . . . . . . . . BIBLIOGRAPHY . . . . . . . . . . . . 61 63 63 66 as as 89 9o 98 II.- III. IV. V. VI. LIST OF TABLES The Overall Trend in Post-war Operations of Colonial Stores, Incorporated . . . . . . . . . . . . . . . . The Overall Trend in Post-war Operations of the Grand Union Company . . . . . . . . . . . . . . . . . . . The Overall Trend in Post-War Operations of the Jewel Tea Company, Incorporated . . . . . . . . . . The Overall Trend in Post-war Operations of the Kroger Company . . . . . . . . . . . . . . . . . . . The Overall Trend in Post-Tar Operations of Safeway Stores, Incorporated . . . . . . . . . . . . . . . . The Overall Trend in Post-War Operations of Stop and Shop, Incorporated . . . . . . . . . . . . . . . . . 20 3h 65 78 CHAPTER I INTRODUCTION Choosing a career is one of the most important decisions a person can.make. It has a lot to do with his social and economic position and affects his personality, choice of friends, health and interests out- side of work; He can easily brush aside many of the different Jobs available because he is not fitted for them.or because the opportunities in them are limited. In this manner, he automatically narrows the choice to a group of occupations within the range of his interests and abilities. The second decision is the selection of a vocational area from among many possibilities. The next step is to learn as much as possible about the different kinds of Jobs in that vocational area and to make a self-study, compar- ing'his qualifications with the requirements of the particular occupa- tion.1 This dissertation presupposes many of the foregoing steps. The choice of the vocational area has been made - the food industry - the different Jobs within that area have been examined.and the final choice has been to work for a retail food chain organization. The person is then left with the definite selection of a food chain which offers him the best opportunities for advancement. l Shosteck, Robert. Careers ig_Retail_Business Ownershi . Rash, ington, D. 0.: B'nai B'rith Vocational Service Bureau, l9hb. p. 13. 2 The college student interested in employment with a food company should certainly make a complete study of the opportunities available to him in the smaller as well as the larger food chains and to consider even the possibility of starting his own business, provided he has pre- viously acquired the experience necessary to operate a retail food store. This thesis is prepared to offer the college student an insight into the food chain industry and its Job opportunities. The six COEb panies presented in the dissertation are representative of the larger food chains in the United States and give the overall picture of the many companies in this category. Two reasons are cited for the selection of these particular organ- izations. One, they are some of the largest, medium and smaller chains in the food field and provide a satisfactory sample for discussion. Two, they represent food chains from.each section 0f the country - north, south, east, west - in order to obtain a more adequate and satisfactory representation. The method of research used to acquire information for the writing of this thesis followed six definite steps. These were: 1. Informal interviews were conducted with approximately twenty- five students in.the Curriculum in Food Distribution at Michigan State College. The purpose was to discover what facts each student wished to know about different companies prior to the final choice of an organiza- tion with which to be employed. In other words, what data would they like to have in front of them as criteria for comparing one company against another as regards the possibility for employment? Some stressed the starting salary, others want to compare the overall trends in opera- tions, while still others wished to know about the training program. 3 The results of these informal interviews were examined and.the subse— quent chapters answer the various questions cited by the students. 2. A.form letter was drafted by the author and sent to the person- nel directors of ten food chains. A ninety percent return resulted. 3. Six of the personnel directors did not forward all the mater- ial requested, therefore, another letter was sent to them stressing the need for additional data. Three of the men responded with the informa- tion requested. 4. This step consisted of a presentation of material, which had been gathered up to this point, to a seminar class. Suggestions by the students for additions and.improvements were acknowledged and another letter was constructed to gain supplementary facts about each of the remaining six food companies. The results were very gratifying and a one hundred percent return was achieved. Moody's Manual of Industrials, (19h7), (19H9), (1951) and various company publications constituted the other sources of information. 5. The chapters were typed and presented to Dr. Kenneth Wilson, Director of the Curriculum in.Food Distribution at Michigan State Col- lege, for criticism. After the various corrections were made, a cOpy of the chapter devoted to their particular company was mailed to the personnel directors of the six food chains, to be edited by them. 6. The copies were returned to the author, the corrections were made and the thesis was typed in its final form. The executives of the companies contacted all agreed that the op- portunities in the food field are abundant. The stores operation field is given particular stress, however, such phases as accounting, u warehousing, personnel, advertising and sales promotion should not be neglected by the college graduate when considering a career in the food industry. To report on any of these departments would require a thesis in itself, therefore, this dissertation is aimed at indicating, for the most part, the opportunities prevalent in the stores operation phase, as this is the area in which the greatest majority of trainees receive their initial instruction. A rather definite plan is followed in the presentation of the re- search material. The subsequent points indicate the general outline of the topics included in each chapter: 1. A.brief history of the organization and a table of some signi— ficant data from.the balance sheet and operating statement, which dis- plays the overall trend in post-war operations, is included. 2. Some of the significant characteristics expected in an appli- cant are presented to the reader. 3. The training program, whether formal or informal, is discussed. 4. The probable starting salary for the inexperienced college graduate is considered. 5. The progress of a few men in the organization is outlined. b. The lines of promotion are discussed. 7. Certain employee benefits are mentioned. 8. A brief summary is included. According to the students contacted during the informal interview- ing, this outline covers the questions foremost in their minds. With this information gathered together in a thesis, the students interested in,a career in the food industry can.compare and evaluate 5 the advantages offered by these companies before a definite decision is made concerning the organization with which they wish to be employed after graduation from college. CHAPTER II COLOETIAL smears, Imam-01mm: 628 panama STREET, SOUTHWEST ATIAHTA 2, GEORGIA In order to explain the development of Colonial Stores, Incorpor. ated, it is necessary to sketch the progress of two southern grocery chains. In 1892, Mr. L. W. Rogers opened a single store in Atlanta, Georgia. By 1925, the Rogers Grocery Company had increased its number of stores tremendously and in the same year this organization was incorporated as Southern Grocery Stores, Incorporated - with Mr. Scott W. Allen, past president of Colonial Stores, Incorporated, being elected president of the new organization. On January 2%, 1901, the David Pender Grocery Company was incorporb ated in Virginia and from.a solitary store grew into one of the largest food chains in the United States. The beginning grocery market was very successful and gradually others were opened, while still more were ac- quired by purchase. By l9#0, the David Pender Grocery Company had grown to a chain of 295 food stores. Southern Grocery Stores, Incorporated and the David Pender Grocery Company were merged, in 1940, under their present name - Colonial Stores, Incorporated. Seven years later, the Colonial Stores', Incorporated, rooster was adopted as the official emblem and trademark and became the identifying symbol on all the organization's brands, store fronts, trucks, stationery, buildings and so forth. Currently, the company operates about 3%? food stores, which do a combined volume of over $200,000,000 per year, in eight southeastern states - Tennessee, Georgia, Maryland, Virginia, North Carolina, South Carolina, Alabama and Florida. As a means of protecting the quality standards of goods sold in the company's retail food stores, regular chemical and microscopic tests are conducted on hundreds of items to ensure that the merchandise sold is the best obtainable. For this purpose, several government grading manuals are used as references in the testing of fruits, vegetables, coffee and other food products. In this way, buyers for the company can be certain that the products they purchase are of the standard of qual- ity acceptable for resale to the store customers.1 Three divisions of Colonial Stores, Incorporated - eastern, central and southern - divide the task of controlling and supervising the 3M7 stores. Each division is a complete operating unit in itself, with its own bakery, warehouses, trucks, maintenance department, merchandising organization, personnel department and accounting office - fully equip— ped to handle all divisional operational and merchandising problems. A group of ten men, each considered experts in their respective fields, is assigned to take charge of ten major functions in the entire organ- ization, such as warehousing, buying, advertising, personnel and account- ing. These men have the responsibility of coordinating all company l Colonial Stores, Incorporated, Atlanta, Georgia. The Colonial Way. 8 activities within the ten departments so that effective policies and practices in regard to the operation of all the stores in the chain can be formulated. Also, this group has the obligation of keeping manage- ment and personnel informed on any new operational developments. This provides a brief summary of the composition of authority and responsibility within the company. Next, an examination of significant figures from the Operating statement and balance sheet should furnish a condensed picture of the financial situation for Colonial Stores, Incor- porated. The statistical data, in Table I, was extracted from hoody's Manual of Industrials, (19‘47), (1911.9), (1951) and the 1951 annual report of Colonial Stores, Incorporated. This table serves to show the overall trend in operations during the post-war years. According to Mr. Guy R. Beale, Jr.,2 the initial contact between the college graduate and the company is usually from one of three sources: 1. College recruiting. 2. Applicant applying at employment office. 3. Personal recommendation. When a person is being interviewed for a position, the employment manager looks for personal appearance and cleanliness of the applicant. Since the nature of a food company's business causes it to come in contact with the public and the food that the public eats, these attributes rank first on the interviewer's check list. Tact, poise and, in general, "What brings him to me?" are other main points for consideration. These factors are not only important in Colonial Stores, Incorporated, or the food industry alone, but rather, they are important to every interviewer 2 Personnel department, Colonial Stores, Incorporated, Norfolk, Virginia. 'IH‘I ”II. 1" '1' til {VI 532.3 has; 338; $.83. amass Haws. wwm.mww.m amm.mma.w mom.moa.m amfl.wmm.m mmapsaspmag package maa.wwm.mm mmo.:ma.om mmm.mmm.mm m:m.mmm.~a upomma asses owa.mmw.zm 0mm.mmo.am m-.omm.ma :mm.am:.:a .somma seepage mmo.m~m.o mam.~a~.m aam.mmm.m omm.mm~.m ease ooo.~ oom.~ oo~.~ mm~.~ moohonaam no uoaasa Nam Nam aom ca: .oeosm mo senses mow.mma.m mmm.mmm.m mma.a:m.: mmm.a~m.m samosm mnapeuodo mmfl.mm~.moma mam.omm.maaa oom.mom.mmaa ~mm.mmm.mmsa modem uoz 1&9. Inc ma 13:9. mama. CH 39.8809 mono Anon .3035 amaqmommoozH .mmmoam anaoqoo mo monasmmmo maa-emom 2H gamma aqqmm>o was H @349 10 in any business dealing with people. College men Should cultivate these desirable traits for they are advantageous to them in any field they may choose to enter. During the course of the interview, the stability of the candidate is determined. The interviewer rates the man on this point by reviewing his background.of previous employment, family relationship and civic responsibilities. The significance of the answers to all these questions varies slightly, depending upon the position to be filled. For example, the qualities expected in a person applying for work in the personnel department should differ from those required for an accounting position. In conducting the interview, the employment officer also evaluates the ambition, capabilities, leadership, initiative and any other qualities of the applicant which might identify him as executive material. Presently, there is no formal training program to follow in Colonial Stores, Incorporated, however, the executives of the company have devel- oped a definite program which provides adequate training for inexperienced college graduates. It is expected that this new program will be in operb ation by September of 1952. This new program consists of rotating the trainee through the various store and office departments so as to fulfill certain course requirements such as produce training, meat training, ob- servance of advertising and sales promotional techniques, warehousing, an explanation of accounting methods and periodic interviews with members of the personnel department and top management officials. These definite steps receive proper followbthrough attention from these executives to ensure that thorough training is given and that the trainee is keeping in step with the course outlined for him. Currently, the company Operates formal training courses for meat and ll produce department employees, which range from an inexperienced trainee taking a sixaweek's course to a department manager attending a one-week refresher course. Informal grocery training is conducted at the separate stores, under the instruction of the individual managers. These training courses in.meat and produce are conducted in each division and are designed to supplement the knowledge gained by the em- ployees while working in the retail stores. A.good fundamental background in the operation of these departments is the goal which the trainer hopes the trainee attains. Employees who attend these classes receive full compensation while away from.the store, in addition to having their entire expenses paid during the training period. These classes are conducted by competent trainers who add to the trainee's informal instruction in the store with classroom teaching, discussions and visual aid.presentations. After completion of the course, the employees are tested, graded and ranked. This serves to give the trainee a picture of how’he has learned in rela- tion to others in.the class. It can also indicate to the instructor whether or not he has performed his Job efficiently and effectively. The produce class stresses the trimming, displaying, care of equip- ment, ordering, receiving and record keeping in the produce department. Also, safety, personnel relations and customer relations are taught. Colonial Stores, Incorporated, wants its employees to be well—trained in human relations as well as competent workers in their individual depart- ments. Meat courses give some training in Job relations, customer relations and safety, however, the majority of the training period is spent learning 12 and practicing the art of meat cutting - the company way. Meat cutting requires a knowledge of many kinds of meat products, skeletal structures of animals, grading systems and the proper use of tools. All these topics are taken into consideration by the trainer, however, the trainee should have some knowledge of these from.his previous on-the-Job trainp ing. In addition to meat cutting classes, ordering, receiving, storing, record keeping and displaying of the products are all stressed. These things are taught to the trainee to make sure that he understands the operation of the department in which.he works.3 With this store experience and classroom training firmly entrenched in his mind, the trainee should.then.be capable of assuming responsibil- ities involved as an assistant manager or department manager in one of the organization's large supermarkets. About three to four months are spent in this capacity. Then, he may be assigned to work.as relief man- ager in either his present store or another location. His work in this Job is under the supervision of the store superintendent (who has charge of the operations of a group of six to eight supermarkets). As soon as it is felt that he has the necessary experience and qualifications, he is assigned a store as manager, to assume the full responsibility con- nected with the managing of a department within a medium or large super- market, with.a weekly volume of sales ranging from $20,000 to $50,000. From.the department manager level, the trainee has an unlimited cp- portunity to exercise his sales ability, initiative, administrative abil- ity and other supervisory qualities which hasten his promotion to higher 3 Colonial Stores, Incorporated, Atlanta, Georgia. Colonial ways. school Days For Colonial Trainees. (April 1950). p. 10. 13 executive levels. However, it should be noted that at least two to three years has to be used in gaining experience at the manager level before he can progress to the next position in the merchandising channel - store superintendent. General store superintendent, division manager and vice-president in charge of stores operation in a division are the next steps upward on the promotional ladder. If, during his training, the employee expresses a desire to enter into a staff position (such as accounting or personnel) the transfer is made at the first opportunity. In.the event that the trainee finds he is not adapted for stores operation work, the store experience gained is still of value in qualifying him for a position in another department. This has been arranged in several instances and has been to the mutual advantage of the company and the employee. In other words, it is pre- ferred that all trainees start at the store level and from.then on they have the option of continuing in the stores operation field or switching to a staff Job in the divisional general offices. Retail store experi- ence such as this is specifically required for employees who are plan- ning to enter into the sales, merchandising or buying departments. Store training is also advantageous to the man wishing to advance in the wars- housing function. i The progress of three men in.the organization should aid in pointing out the different channels into which the trainee can branch from.the store level. Mr..A started as a utility clerk in one of the retail stores during July, 1950. He acquired about eight months' experience in this capacity and then decided to go into the administrative ranks. The transfer was made in.February, 1951, to the sales department, as a senior clerk. 11+ Mr. B, prior to coming to work.for Colonial Stores, Incorporated, had four years' experience with another food chain as a part-time meat cutter and.meat clerk. In addition, he had also worked in other depart- ments in a retail food store. In September, 19h7, Mr. B entered college and at the same time was hired as a part-time meat clerk for Colonial Stores, Incorporated. For two years, Mr. B worked in the meat department and during the summer months he relieved the head meat cutter in various stores throughout the city. In September, l9fl9, he was transferred to another city, where he was again attending college. He immediately be- gan work.as a part—time meat cutter in one of the company's supermarkets in that city. During the next summer, he relieved various meat depart- ment managers and head meat cutters in other stores in the area. From September of 1950 to September of 1951, Mr. B worked part-time in.a11 departments of the store and at times relieved the assistant grocery manager and the grocery manager of the store. In September of 1951, he was selected to represent Colonial Stores, Incorporated, to do graduate study in the Curriculum in Food Distribution at Michigan State College. Now, employee C illustrates a man who preferred to remain in the merdhandising ranks of the food business. In July, 19M9, he began as a utility clerk in one of the retail food stores. During the following summer, 1950, he was made relief manager while the regular store manager enjoyed his vacation. The next month, he returned to the position of general clerk. However, the store superintendent realized.his potenti- alities and a few months later he was made assistant manager, receiving increased compensation. One year later, in August, 1951, he was appointed grocery manager of a store — on the way to higher levels. In Just two 15 years' time, this man raised.himse1f from the ground floor - utility clerk - to the responsible position of grocery department manager. Starting salaries are commensurate with ability and experience, however, trainees at the retail level are usually hired at weekly wages of $60.00 to $70.00, in a store location as near as possible to their home town. At the end of every six months, up to a maximum of two years, the employee's salary is reviewed and usually an increase is effected at that time. After the two year period, the man is placed on a merit basis, subsequent increases to be determined by his ability and position held. After one year, the trainee's compensation should reach approximately $70.00 to $80.00 per week and after eighteen.months to two years it should range between $80.00 and $90.00 per week. When a department man- ager position is assumed, his salary should exceed $100.00 per week, which includes his base pay plus various incentive bonuses. Certain employee benefits are also available to the person who has been employed by Colonial Stores, Incorporated, for a prescribed length of time. Group hospitalization, life insurance and hospital, surgical and polio coverage for the employee's dependents are available to the employees at a very small cost to them. An employees' credit union is another organization owned and operated by company personnel. It pro- vides an opportunity to save money at attractive dividend rates and also gives employees a chance to borrow money at low interest rates. In addi- tion, Colonial Stores, Incorporated, has a retirement plan to which the company contributes to seventy-five percent of the project. ‘An employee becomes eligible to Join this plan when he has completed one year of con- tinuous full-time service and has reached thirty years of age. 16 Similar to a few other food chains in the country, Colonial Stores, Incorporated, operates each of its retail units with three department managers rather than one overall store manager. The meat, produce and grocery department managers report directly to the store superintendent and are accountable for the entire operation of the separate departments within the store. Ordering, record keeping, employee training and.ad- herence to sales, profit and other percentages stipulated for each de- partment are the responsibilities of the individual managers. Colonial Stores, Incorporated, is thinking in terms of converting the existing arrangement to one involving a single manager as head of the entire store but as yet this policy has not been definitely established. The opportunities in this company are many. It is generally recog- nized, in this organization, that ability overshadows seniority and, therefore, many younger employees, whose merits have been.acknowledged, are chosen to fill current existing openings or any newly created posi- tions. At present, the executives stress the stores Operation field to work.in, for it offers the greatest possibilities to the progressive employee. The employee's ability and the company's needs are the two factors determining how rapidly a trainee progresses. From.trainee to assistant manager to department manager and then on to store superintendent and general division superintendent is the usual channel of advancement in the stores operation phase. In the staff (or administrative) departments, an inexperienced col- lege graduate is usually started.as a senior clerk. From.there, he pro- gresses to assistant to the department head, assistant department head I‘l 17 and finally department head. This promotional channel applies to such departments as personnel, research and accounting. Also, the same order of advancement can be cited for the trainee in the sales, merchandising and.buying departments, although, as previously mentioned, some training in the retail stores is required. The company is located in one of the most promising and productive areas in the country and.because of this it should mean the continued growth and development of Colonial Stores, Incorporated. The general policy is to promote from within the organization when- ever possible and.a large number of men who started in.minor Jobs now hold key positions in the company. There are mahy opportunities available for college men who meet the requirements stipulated by Colonial Stores, Incorporated. The area of operations, the anticipated growth of the organization and the fact that the entire food industry offers unlimited opportunities all combine to make the college graduate realize that Colonial Stores, Incorporated, should be considered as a company for possible employment. CHAPTER III GRAND IE'TION COL-KIA}? 100 BROADWAY EAST PATERSON, NEW JERSEY The Grand Union Company actually had its start in 1872, when Cyrus Jones opened a small store in Scranton, Pennsylvania. He sold coffee and tea to the miners in the neighborhood, using an arm.basket to make his deliveries to their homes. Cyrus Jones was an ambitious man and a hard worker and as a result of these traits, his store grew and prospered. Soon, he began to build other stores and year by year his organization expanded steadily. In 1928, the descendents of Cyrus Jones decided to retire from.the food business and they disposed of their interests by selling their stock to the general public. Mr. Lansing P. Shield, new president of the Grand Union Company, became vice-president of the new organization. Expansion and progress continued as new locations were found, other existing stores became affiliated with the company, new products were sampled, new methods of operation were perfected and new equipment was developed.1 1 Grand Union_Company, East Paterson, New Jersey. Welcome 32. Grand Union. 19 The new'FoodPO-Mat? which was invented only recently by Mr. Shield, is one example of the progressive thinking of the management of the Grand Union Company. Sales during the years from.19u3 to l9u9 increased 320 percent ($h3,000,000 to $135,000,000), which shows the extraordinary growth of the organization during that time. At present, the Grand Union Company operates more than 300 stores located in New York, New Jersey, Vermont, Connecticut, Pennsylvania and Massachusetts. In July of 1951, thirty-five stores in Paterson, New Jersey, were acquired as a result of joining forces with Great Eastern Stores. This move is considered a major step in the company's growth. Throughout this growth and development, the Grand Union Company has still maintained the belief that friendliness - with employees and customers - is the main basis upon which can be built a bigger and better company with increased opportunities for all employees. Some significant balance sheet and operating statement data, taken from Moody's Manual of Industrials, (191m, (199), (1951), serve to show the taverall trend in operations during the post-war years. They are shown in Table II. The selection procedure for college graduates who wish to become associated with the Grand Union Company is very thorough and.a screen- ing process has been developed which aids the organization in its choice of an applicant. This screening process includes tests and interviews, 2 A.patented, gravity-fed, rear-loaded display fixture with adjust- able shelving for the displaying of canned, glass and packaged grocery items. Use of the Foodpo-Mat permits a single mass display of most of the dry groceries sold in a supermarket. The Food-O-Mat is generally situated along one wall of the store and is stocked from behind the wall at the rear of the Food» Mat. 20 .paomoa amends mmma momma .momaoh kmz .comaopem ammm .adeaaoo comes macaw s mma.aaa.ma mmm.mmm.:a maa.mmw.oa Hmo.:e:.w usagesm asses Hmm.amm.oa ome.mow.m ~mw.mmm.s mmo.w~m.s moapaaapsaq passage soo.mwm.mm aom.wmm.om mmm.omo.om How.omm.ma spoons asses mmm.mmm.om mae.:am.am Hmm.mwm.sa sas.mmw.oa m»o.m<.psossso smm.mmo.s ma:.mmm.: mmm.nam.m mam.mmm.m sumo H-.m maa.m ooa.m cem.: mooaoaasm so tosses mmm mmm mmm mam mesosm so tosses oo~.wam.m awm.mmm.s mmo.amo.m oas.~oo.m peyote esasssoao ooo.mmm.maaa mma.~oo.amaa amo.mmo.maaa :ma.m::.mma moasm pee Lmnmm mmam .mmmm “mam ..Ivl'l’ lull} Ii E N AH momma muse use» Heomfihv h24mfioo onmb mzmmm Ema mo szHHo mma HH mqmda 21 which are aimed at determining the best candidates to begin training for store manager positions within the company. All applicants for this program.must be college graduates who have a basic desire to enter into the retail food field. To supplement its source of candidates, the Grand.Union Company recruits personnel from twenty-two colleges and'universities in the eastern part of the country. According to Mr. M. W. Robinson of the personnel department of the Grand ‘Union Company, some of the qualities expected in an applicant are: 1. Have a basic desire to enter into the food field 2. Be an extrovert 3. Have some dominance and confidence in.himse1f 4. Have better than average intelligence 5. Have a good command of the English language 6. Have a good knowledge of simple arithmetic 7. Be ambitious 8. Be prepared to do hard work. As an aid in finding all these qualities in a college graduate, a battery of tests is employed. These tests range from.four to five hours and cover such subjects as spelling, arithmetic, vocabulary, aptitude for learning, mental ability and the large area of "personality in general". The Grand'Union Company has a definite, formal curriculum to follow in its training program. The training program, which was started in 19N7, is designed to train college men for store managers or for executive and administrative positions within the organization. It can be said, in effect, that the purpose of the program.is to train.a select group of men in stores operation in order to create a nucleus of executive material. 22 The actual program lasts eighteen months and is divided into many different phases, each one devoted to a particular part of the business. The general outline of the plan contains instruction in each of the fol- lowing named departments:3 Orientation and general floor training (2 weeks): the trainee spends this period of time learning company policies, receiving deliveries, stock; ing shelves, setting up displays, studying retail price lists, general housekeeping and care of store equipment. Also, in order to create the spirit of friendliness, he is introduced to all store employees. Dairy, bakery and frozen foods (3 weeks): the trainee is to be in— structed in all three operations during this same period, devoting a part of every day to each operation. He studies the dairy manual and in addition to training in all duties of these departments, he attends the dairy training course at the Pleasantville, New'York, training center. Produce (12 weeks): displaying, receiving, selling, trimming, pre- packaging, price-marking of merchandise and care and maintenance of pro- duce equipment and the produce selling area are some of the tasks performed at the store. During these twelve weeks, in addition to studying the produce manual and taking part in all produce department activities the trainee also attends the produce school at Pleasantville, New York. Also, the trainee rides with the district manager for observation of produce operations in other stores. At the end of this period of training, the the trainee visits the personnel department at the headquarters' office for an interview, during which his progress is discussed. 3 Grand Union Company, East Paterson, New Jersey. Trainee Proggam. 23 Checking booth operations (2 weeks): the trainee learns the proper checking procedure, the use and operation of the cash register and the maintenance and care of the register. Some time is spent at the checker training school at Pleasantville, New York.“ Groceryaproduce departments: introduction to store management (8 weeks): for the next eight weeks, the trainee is engaged in working in the combined operation of the grocery and produce departments. He also begins to assume some of the duties of the store manager, under the guidance of the manager. He learns to prepare warehouse orders and assists the manager in the preparation of standard reports. At the end of this period, the trainee spends a short time at the management train- ing school in New York; Supervised store management (h weeks): during this time, the trainee operates the store under the guidance and supervision of the store manp ager. 'He also rides with the district manager to observe the management of other stores. Once again, the trainee visits the personnel department for a conference regarding his progress and future assignments. deat department, general (2 weeks): the trainee receives a copy of the meat department manual for reference throughout training and gets instruction in the various cuts of meat and their uses. Price-marking displays, marking and cutting, reading scales and care of the meat de- partment are stressed. The trainee spends a while in both service and self-service meat departments during this elementary training. u A "checker" is the person who operates the cash register at the checkhout stand. all III. “I, 2h Cold cuts, fish and poultry (3 weeks): care and operation of the knife sharpener, preparation of beef carcasses, arrangement of stock in the cooler and the preparation of different cuts of meat are stressed. Meat cutting, advanced (16 weeks): now, the trainee learns actual cutting methods. He learns to break beef, veal and lamb, as well as com- puting margins and their relationship to cutting. Merchandising slow moving cuts and high margin items are explained. The self-service meat operation is considered. At the beginning of thesixth week of this period of training, the trainee again has a conference with the person- nel manager in the central office. Introduction to meat store management (8 weeks): for this period, the trainee assists in taking inventory, preparing weekly records, set- ting up the weekly work schedule and making out the weekly order. .,Dur- ing this time he learns about the relationship of volume to salaries and profits, as well as about the proper control of expenses and their rela- tionship to the volume of the store. This period is terminated by an- other visit te the personnel department. Supervised meat store management (1‘ weeks): unployee and customer relations, visits to other stores and attendance at the neat managers' training course in New York are some of the tasks for this period. he trainee assumes the responsibilities of managing the meat department, under the supervision of the meat manager. Warehouse (1 week): one week is spent learning about warehouse operations. Handling perishables, pricing and registering orders, stock.- ing merchandise, egg candling and coffee roasting are some of the Jobs connected with this phase of training. At least one day or night is spent in both the neat and produce warehouses. 25 Construction and maintenance (1 weekfi: the trainee spends some time working with the crew on the construction of a new store. He visits the construction and maintenance department where he studies store planp ning, maintenance costs, renovation procedures, laying out a supermarket on a drafting board and the overall methods of construction. FoodPO-Mat operations (1 week): studying the construction and en- gineering factors involved, visiting stores utilizing the Foode-Mat and assisting in.the construction of a unit comprise the tasks for this period. Advertising, sales promotion, personnel (1 weekD: preparing copy, selecting early week specials, planning a sales campaign and discussion of the selection of items to feature are part of this period's tasks. In the personnel department, employee benefits, recruiting and selection of employees, labor laws and the preparation of the company magazine are discussed. Probationary grocery-produce store management (M weeks): during this time, the trainee is in full charge of all operations, except meat, in a store. Actually, he acts as relief manager. Probationary meat store management (M weeks): for this time, the trainee isput in'full charge of all the operations of the meat depart- ment in a selected store. it the end.of this period, the trainee returns to the personnel department for his final visit. It is easy to see that with this training program as a background, the trainee can go into any phase of the company's operations. is each phase of the training is completed, the trainee is required to write a report to the personnel department, advising them of his opin- ion regarding his own progress and.development. The store manager and 26 district manager are also required to write periodic reports about their opinions regarding the trainee. During this training, the trainee works in several stores, in order to get a broader view of the operations of the business. Another reason advanced for continuing this practice is to allow the personnel depart- ment to receive opinions about the individual from a number of store and district managers. Since many people graduating from college have had little, if any, experience, they are in training for the eighteen months. 'However, this is not always the case. As positions become available, the trainee's records are studied and.he is called in for a Job interview. If it is felt that he is capable of assuming the job, he may be removed from training and placed in that position. If a man has been interested and has applied himself during these eighteen months, he is qualified to assume almost any responsibility in stores operation which may be placed upon hum. The progress of two men in the organization is next considered, to give the reader some idea as to the channel of promotion and the differ— ent positions that trainees now hold. Employee A started on the training program in l9h7. At the end of three months, a position in the research department became available and Mr. A was chosen as the man for the Job. During 19N8 and 19kg, he acquired experience in this department and was then promoted to head of the re- search department. Mr. A.held this position for one year and then in January, 1951, he was appointed assistant to the vice-president in charge of merchandising. 27 Mr. B's progress was different from.that of Employee A. From June of 19H8 to June of 1950, hr. B worked full-time (while still attending college) as a meat cutter for the Grand Union Company. In June, 1950, he was graduated from college and began as a trainee in the college training program, taking a decrease in salary. After two months of training, he was made relief manager. In September, 1950, he went back as a trainee, receiving further instruction in grocery, produce, dairy and check-out operations. A position in the research department became available in February, 1951, and employee B was selected for the job. He held this job until September of 1951, when.he was chosen as a repre- sentative of the Grand.Union Company to do graduate work at Michigan State College in the Curriculum in Food Distribution. These men have been with the company for a relatively short period of time yet they have advanced rapidly. They now hold responsible posi- tions and seem to display the qualities desired by the Grand Union Com— pany in its employees. Future promotions for these men appear certain. To supplement the progress of the aforementioned men, other instances of trainee advancement can be cited. The administrative assistant to the president, the assistant to the vice-president in charge of stores operation, the head of the research department, three division personnel managers, several produce and.meat buyers, a number of district managers and numerous store managers and meat department managers are all products of this training program. This is a very impressive record. At present, the starting salary for trainees is $55.00 per week for the first six months, $60.00 per week after six months and $05.00 per week after one year. Subsequent advances in salary are determined by the man‘s ability and the position that he holds. 28 Currently, most of the retail food stores comprising the Grand Union Company have three managers within each store - one for each of the three departments, grocery, meat and produce. In all instances, however, the grocery manager is considered the overall manager and.he is responsible for the successful Operation of the store. In stores having storage basements, there is a basement manager and in stores where the Foode—Kat is being used, there is ayFoodeo-Mat manager. In analyzing the promotional channel for trainees, there are numerous veins along which.the man can advance. The trainee can move to the position of assistant store manager or manager of one of the other departments and then he may become store manager. District manager, trainer in a company training school or buyer of grocery, produce or meat items can all be considered as the next level above store manager. Division (branch) manager and then vice—president in charge of stores operation constitute the top levels in this promotional channel. The trainee, at the division level, can work towards personnel manager, maintenance supervisor, real estate manager or expense control manager, if his interests are in any of these directions. In the general offices, the research department presents a possi- bility for advancement. Tabulating employees, a field man in the re- search department and a full-time lawyer, who interprets the Office of Price Stabilization regulations, are some of the positions available. The accounting phase of the business, under the direction of the treas- urer, and the advertising department also provide the trainee with numerous Job possibilities. In an organization such as the Grand'Union Company, the trainee is offered a multitude of different phases into which he can direct his interests, whatever they may be. 29 Certain employee benefits are also presented to the trainee. These include a five-day work week, paid sick leave, vacations with pay, profit- sharing for managers, holidays with pay, a retirement plan, group life insurance and hospital and surgical plans. When the employee compdetes three months of continuous full-time service, he becomes eligible for most of the aforementioned benefits. Some mention of the Grand Union Company's route division should also be made, for this segment of the company provides the facilities for a career which the college graduate can consider. The company supplies the employee with sales training, the merchandise to sell, a truck and pays all the expenses incurred in the operation of this vehicle. At present, there are about 850 route salesmen who operate in thirty- four states in the country. They sell premium.merchandise such as west- inghouse appliances, rugs, aluminumware, watches and bedspreads, in addi- tion to various grocery items. The route salesman serves about 500 to 600 accounts every two weeks on established routes. He is paid on a straight commission basis - ten percent of total sales. Most routemen earn from $60.00 to $150.00 per week. In addition, he can.purchase pre- miums for his own family's use, but not groceries, at ten percent less than the regular retail selling price. The Grand Union Company, in effect, provides everything to put the man in apos’ition where he is practically in business for himself. If the man has real sales ability, his earnings are unlimited. Advancement can follow to district manager, regional manager and route division manager. For the college graduate who has a desire to 30 enter into the selling phase of the food industry, the Grand Union Com- pany offers a wonderful opportunity, in the routes division, for earnings and promotion. In summary, it can be noted that the Grand Union Company presents opportunities to its trainees to advance in any phase of operations. A good starting salary, periodic increases up to eighteen months, a very comprehensive, formal training program, employee benefits and a chance for the ambitious trainee to advance, are all put forth for the college graduate desiring-to enter into the food business. The Grand.Union Company has supplied the means and incentives for advancement.' Now, it is left to the college graduate to recognize, ap- preciate and.utilize these means and incentives to work toward a respon- sible executive position. CHAPTER IV JETEL TEA COMIArY, INCORPORATED JEWEL PARK BARRIKGTON, ILLINOIS The Jewel Tea Company, Incorporated,is divided into three depart- ments - the Home Service Routes Department, the Food Stores Department and the Finance Department.1 The Routes Department, with its headquarters at Barrington, Illinois, is a direct selling organization. Seventy—six branch offices operate 2,089 routes in established territories in forty-two states and the Dis- trict of Columbia. The routes serve nearly a million regular customers in their homes with food products, home furnishings and appliances. The Jewel Food Stores Department, with general offices at 3617 South Ashland Avenue, Chicago, Illinois, is a retail food chain organization currently operating 157 food stores in the Chicago area. The total vol- ume of these units makes this department one of the largest retailers in the area. With its main offices at Barrington, Illinois, the Finance Depart- ment performs the staff functions of the business. These duties include the handling of investments, all company cash, payroll records, insurance, tax and legal matters and the general operating books of the company. 1 Jewel Tea Company, Incorporated, Barrington, Illinois. Ag_ Adventure i2_Business for the Collegg_§gphomorg. 32 A short synopsis of the history and background of the Jewel Tea Campany, Incorporated, gives the reader a description of the progress of the company since its inception and its present position in the inp dustry. In 1899, Frank.Skiff, equipped with $700 and a horse and wagon, started the Jewel Tea Company as a door-to-door grocery business. In 1903, the Jewel Tea Company was incorporated. During the period from 1903 to 1932, the capitalization was increased, warehouses and.manufac- turing plants were built, additional routes were put into operation, a profit-sharing plan was instituted and the routes became motorized. In 1932, the Jewel Tea Company, Incorporated, entered the retail food store field by purchasing from.Loblaw Groceterias, Incorporated, a group of seventy-seven stores in the Chicago area. During the follow- ing years, new stores were added, a second warehouse building was con- structed, the Jewel retirement estates (an employees? profit-sharing, savings and retirement fund) was started and further modernization con- tinued. Today, the route salesmen call on about one million home service customers every two weeks on the 2,089 routes. In the city of Chicago and its suburbs, the Jewel Food Stores Department operates 157 supermar- kets.2 In March, 1952, the Jewel Food Stores Department completed twenty years of service to its customers. The 1951 program of expansion and store modernization was the greatest in the past ten years. Nineteen k 2 Jewel Tea Company, Incorporated, Barrington, Illinois. Annual ReErte 19510 33 new stores were opened, sixteen outmoded stores were closed and three present locations were remodeled and enlarged. Equally important to the physical growth 'of the organization was the creation of additional well- paying Jobs. The growth during 1951 created 21} new, full-time positions. Foremost in the minds of the company executives is to make their stores a better place to trade and a better place to work. The modernization program is aimed at partially fulfilling that purpose. A brief summary of the post-war trend in overall operations of the Jewel Tea Company, Incorporated, is shown in Table III. These statistics are taken from Moody's Manual of Industrials, (1947), (19M9), (1951) and the 1951 annual report of the Jewel Tea Company, Incorporated. These data provide a general description of the financial and Operational situ- ation of the company. This chapter is intended to deal primarily with the Jewel Food Stores Department, however, from time to time, some mention of the Home Service Routes Department is made. The company is interested in employing personnel who possess the following characteristics: 1. Neat and clean appearance 2. Desire to develop and get ahead 3. Good physical and mental ability and the desire to work in the retail food business 1+. The degree of maturity to be expected of one of the applicant's age and experience. 5. 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The employment officers hire people primarily to work in the retail Of course, there are also Job opportunities in other phases of Even for these stores. the business such as accounting, finance or warehousing. departments, some store experience is desired, although not absolutely necessary. When evaluating the qualifications of an applicant, the employment manager usually places considerable emphasis on his first impression of the candidate. According to some authorities, this may be incorrect but if we look at the prime objective, it should be realized that the Jewel Food Stores Department is hiring people to contact its customers and customers Judge clerks or managers they meet in stores in exactly the same way. The first impression is ordinarily the one that settles in a customer's mind and that Justifies the personnel manager's reason for placing value on the first impression that the applicant makes in the mind of the interviewer. Before an explanation of the training program of the Jewel Food Stores Department is offered, some mention of the organizational struc- ture of a retail store within the company should be made. In each retail supermarket, there are two distinct departments - grocery and meat. The manager of each department reports directly to the district manager in his district. Each manager operates his depart- ment separately, however, they do coordinate their activities to make 36 for the success of the overall operation. The grocery manager has com- plete responsibility for the produce, grocery and cheese departments, while the meat manager supervises only the operation of the meat depart. ment. In this organization, the term "market manager“ is used to denote the meat department manager in the store so, in this chapter, the two toms are used interchangeably. Almost every new employee in the stores operating phase of the Jewel Food Stores Department is employed first as a utility grocery clerk, unless he specifically states that he wishes to begin as an apprentice clerk in the meat department. The new man is presented to the manager of the department in which he is to work who, in turn, introduces him to a competent employee in that department who acts as his teacher. This man explains the fundamental Jobs in the departnent to the new em— ployee and shows him how they are performed. Stocking of shelves, rota- tion of stock, price-stamping of merchandise, cleanliness, care of store equipment and fixtures and ordering of merchandise for the department It should also be pointed This are some of the tasks for the new employee. out that the new man is introduced to all other store employees. helps make better working conditions for the employees which in turn makes better shopping conditions for customers. When he has performed these Jobs and others satisfactorily, the employee may be transferred to the produce department. Here, he receives informal training in such jobs as trimming, displaying and merchandising of fresh fruits and vegetables. He learns how to read a scale properly and accurately, how to care for the produce counter during the day and how to order produce for the store. L,“ 37 Additional instruction in the dairy and cheese departments is also received. The many types of cheeses are explained, their uses are studied and different methods of display are shown to the new employee. Rotation of dairy products, ordering of these items and the care of the dairy cases are taught. In addition, some time is spent learning the store's check-out pro- cedure at the cash register. The training is given at a central school and is usually for a period of two days. Accuracy at the check-out counter, rather than speed, is stressed at all times. The teacher (a seasoned check-out employee from the stores) first explains the opera- tions, then performs it himself slowly and finally allows the new em- ployee to do the Job himself. The handling of bottle returns, refunds and the sacking of merchandise are some other points for consideration. Customer and personnel relations are other important features taught in the two-day checker training school. There is no set procedure to follow in the instruction given to a new employee in the produce or grocery departments nor is there any def- inite length of time stipulated for the informal training. The employee may be rotated from one department to another, depending upon the need of the department for additional help. If the new employee is desirous of entering into the meat depart- ment phase of the store‘s operation, than he is immediately assigned as an apprentice in the meat department, for three years, according to union regulations. After three years of meat training, he is termed a Journey- In the city of Chicago, because of union regulations, no grocery man. or produce clerks are allowed to work in the meat department and, 38 similarly, the meat apprentices and Journeyman must confine their work to the meat department. All new meat apprentices must Join the union within thirty days after beginning of employment in that department. With this picture in mind, it can be seen that instruction in all phases of store operation is not possible - union regulations have to be adhered to by the employees in the meat and grocery departments of the Jewel Food Stores Department. This same situation confronts all food stores with meat departments which are doing business in the metro- politan Chicago area. Also, within the city, self-service meat opera- tion is prohibited by the meat cutters' and butchers' union. All meat items, except for bacon and certain delicatessen items, are sold from a service-counter type of meat department. The trend toward self- service meat operation has been strong in other areas of the country but in the city of Chicago, due to the presence of a powerful union, this trend has not as yet gained a foothold. In order to show the rate of progress for some men in the Food Stores Department, three men who were promoted to grocery managers were chosen as examples. None of these men has had college training, however, the channels of advancement would coincide with those of a college grad- uate in the retail stores. In this company, both college-educated em- ployees and employees without a college degree have similar chances for promotion - the ability of the man is the deciding factor. Employee A is an army veteran, with a hig school education, who went to work for the Jewel Food Stores Department as a utility grocery clerk in a retail store in July, 1949. Previous to this, from 19% to 1918, he had owned his own business. By June of 1950, he was promoted 39 to produce manager at a salary of $70.00 per week, plus a share in the produce department's profits. Employee A was promoted to assistant man- ager in April, 1951 and then in December, 1951, he was made grocery man- ager of a store at a salary of $100.00 per week, plus a percentage of profits after one year. Employee B has a high school education and worked five months for another food chain prior to starting as a grocery clerk in April, 191%, for the Food Stores Department. In February of 19149, he was promoted to produce manager and thirteen months later he was advanced to assist- ant store manager. By May, 1951, Mr. B was promoted to grocery manager, at a salary of $100.00 per week, plus a percentage of profits after one year. a - Employee 0 worked part-time and then in May, 19%, he was hired as a full-time grocery clerk at the rate of $32.50 per week. In November, 19%, he was promoted to produce manager at_a salary of $60.00 per week, plus a share in the produce department's profits. By March, 1950, he was assistant manager and in October, 1951, he was advanced to grocery manager at a salary of $100.00 per week, plus a percentage of profits after one year. This young man had only completed one year of high school for his formal education, however, he had advanced from part— time grocery clerk to grocery manager in approximately five years, while increasing his salary more than threefold. The ability of this young man was recognized and, consequently, he was given the responsible po- sition of grocery manager in a retail store. In determining the starting salaries for new employees, the person- nel manager for the Jewel Food Stores Department takes into consideration 140 their previous experience and extent of education. For inexperienced college graduates starting as utility grocery clerks or apprentice meat clerks, the rate of pay would be approximately $60.00 — $70.00 per week. Periodic increases of $3.00 are granted every six months until a maximum of $77.50 per week is reached. Any increases beyond this maximum figure are based on the man's merit and ability. Produce man. agers receive up to a maximum of $92.50 per week, assistant managers receive $96.16 per week and managers are compensated at $100.96 per week, plus a percentage of profits. For the year 1951, managers' salaries ranged from $100.96 to $200.00. The Jewel Tea Company, Incorporated, also has a plan worked out whereby college sophomores can receive training in the retail Food Stores Department, the Home Service Routes or the Finance Department during the 3 summer months . For the college sophomore who is interested in the food business, the Jewel Tea Company, Incorporated, believes this plan to be advanta— geous to both the student and the company. The student first applies to the company by filling out an "Application For Summer Employment", which can be obtained through_the sChool placement office or by writing directly to the company. After receipt of the application, a company representa— tive contacts all interested college sophomores. He arranges to have a complete interview with the students and to answer any questions they have about the plan or the Jewel Tea Company, Incorporated. The offer is not limited to students interested in sales and mer- chandising, however, the majority of openings are in that field. 3 Jewel Tea Company, Incorporated, Barrington, Illinois. An. Adventure ig_Business for the College Sophomore. 1+1 Accounting and finance students, who display an interest in the food business, may be chosen for summer employment in the Finance Department. The number of students selected each year under the plan is between thirty-five and forty-five - chosen from various colleges and univer- sities in the entire country. If the student is selected for employment in the Routes Department, he is assigned to work which consists of direct sales service to regular trading customers on a route which has a regular salesman who is enjoyb ing his vacation. The rate of pay for this work during the first summer is $70.00 per week. In addition, because the work requires the student to change headquarters frequently, the company also pays transportation costs to and from assignments within the branch territory. If the student is chosen for retail store work, he is assigned to the grocery, produce or meat department in a retail food store. Such work is offered only in the Chicago area, where all of the Jewel food stores are now located. Currently, the rate of pay for this work during. the first summer is $63.00 per week. Both the Jewel Tea Company, Incorporated, and the college student stand to gain from this plan of summer employment. Through careful selection and training, the organization wants to develop a continuing source from which to select future executives. Since college men have the educational background to get ahead, they should be active candidates for executive positions, after a suitable length of experience. Then too, after two summers of work, the student and the company should.know Whether or not it is to their mutual interest to continue employment with the Jewel Tea Company, Incorporated, after graduation. 42 The program benefits the college sophomore in that he has two summers to learn the basic fundamentals of the business through actual exper- ience. With this experience as a guide, he may adjust the balance of both his education and future plans to a career in the food business. In this organization, a policy of promotion from the ranks is fol- lowed. If any vacancies occur or new positions are created, the exec- utives look to the employees first to ascertain whether any present employee is qualified to be advanced or transferred to the vacant or newlyhcreated position. In only a few instances do the executives re- cruit from outside the ranks to fill positions. At the store level, the new employee has the Opportunity to advance from utility clerk to produce manager to assistant manager to grocery manager. In the meat department, the employee can rise only in accord- ance with union regulations - three years as an apprentice then to journeyman. At this level, he may be considered for the position of market manager. From the manager level, the employee could rise to district manager. Other promotions might be to division superintendent to stores operation manager and then to vice-president in charge of stores operation. Also, a man may advance from work in the stores to buyer and.merchandiser in the general offices. The promotional steps above this level would be to assistant merchandise manager to merchandise manager and then to vice- president and general manager. If a manager expresses a desire or has the ability to work in other departments, he may be transferred to such phases as personnel, advertis- ing, sales promotion or the warehouse. ”3 No definite channel of promotion is stipulated or followed in the Jewel Food Stores Department. Usually, a man is transferred or promoted to whichever position can use his abilities most profitably. The man may move from manager to buyer to district manager to produce, meat or grocery merchandiser then again to district manager or to division super- intendent - whichever position needs his ability. In addition to paid vacations, holidays with pay and paid sick leave, the Jewel Tea Company, Incorporated, also has a "package plan". This plan includes a disability pay plan, surgical expense plan, medical expense plan and group life insurance plan. Eligibility for the plan is based on the length of service of the employee. After one year of continuous full-time employment, the man is eligible for all the benefits of the plan and after three years of continuous service, the employee is eligible for additional group life insurance coverage and increased disability pay benefits. The costs of the plan are shared by the company and the employee - the employee contributes one percent of his total wages. Also, the Jewel Tea Company, Incorporated, ias a profit-sharing plan for its employees below the executive level, which is in the form of a retirement plan. Employees may deposit each week from $1.00 up to the $5.00 maximum. Every year, the company contributes fifteen percent of its gross profits before taxes into the retirement fund. All funds con, tributed by the employees and the company are invested in government bonds and other high grade securities and the returns from these investments are credited to each employee's account, in proportion to the amount he has contributed during the year. The employees' shares are left in the in fund to increase, year by year, until, at retirement, a substantial amount will have been built up for‘their future security. Some mention of the Jewel Tea Company, Incorporated, "first as- sistant" philosophy should also be made. The "first assistant" philos- ophy has helped to develop a feeling of friendship, independence and teamwork among their executives and supervisory personnel. Each execu- tive is asked to consider that he works as a first assistant to the next person in line under him. He should forget he is their superior officer and try to think of people under him as human beings. If he thinks of himself in their place, then.he can understand their problems more clear- ly. According to Mr. George L. Clements, president of the Jewel Tea Company, Incorporated, the practical effect of the first assistant phil- osOphy is to turn the organization chart upside down and for each execup tive to feel that his Job is to help the next man up the line on the up- side down chart. This philosophy makes for company teamwork - a better place to work - and benefits the customer - a better place to trade. In summary, it should be noted that some of the main advantages offered by the Jewel Food Stores Department include a good starting sal- ary, a chance to be located in one city — Chicago, friendly working con- ditions, substantial employee benefits, a profit-sharing plan in the form of a retirement fund and a rate of modernization and eXpansion which provides opportunities for college graduates wdth ability. All these advantages and others combine to make the Jewel Tea Com- pany, Incorporated, with its three departments, a definite possibility for employment. The college graduate should compare the opportunities offered by the Jewel Tea Company, Incorporated, with those presented by 1*5 other food chains before a definite decision is made as to which organi- zation he intends to be employed by upon graduation. CHAPTER V KROGER COMPANY 35 EAST SEVENTH STREET CINCIhdATI 2, OHIO The Kroger Company was started in 1882 by Mr. B. H. Kroger, whose sound merchandising policies assured the success of his beginning stores and the subsequent success of the entire company. The principles on which the Kroger Company stores of today operate can be explained ade- quately and briefly in three points:1 1. Many sales at a small profit rather than a few sales at a large profit. 2. Maximum convenience for customers through provision of complete food service stores. 3. Merchandise of proven and uniform.quality, including prominent national brands as well as many Kroger Company brands. At present, the Kroger Company has twenty-five branch offices all through the mid-west, which supervise the operations of approximately 1975 individual stores. In addition, there are also many manufacturing plants scattered over the country, consisting of dairies, bakeries, a peanut plant in Georgia and.an evaporated milk plant in Indiana. The nationally known.Kroger Food Foundation, in Cincinnati, is currently the only one of its kind in operation and is one of the Kroger Company's l Kroger Company, Cincinnati, Ohio. A.Career for College Egg, 1+7 proud accomplishments in the field of quality control. This is a techp nical organization which develops new products and improves existing products. In addition, it maintains a housewives' advisory service and a market research division. It is here that continuous testing, compar- isons and research in the many laboratories and kitchens ensure a con» stant quality of all merchandise sold in.Kroger Company stores. The financial picture of the Kroger Company, in the form of some significant figures from.the balance sheet and operating statement, is shown in Table IV. These figures give the overall trend in operations for the period following lbrld war II as well as an indication of the size of this organization in relation to other food chain companies in the United States. The data is taken from.Moody's Manual of Industrials (19h7), (l9h9), (1951) and the 1951 annual report of the Kroger Company. The Kroger Company has definite ideas as to the type of college man wanted in the organization. The following statement, extracted from.a letter written by Mr. Edward.J. Kenney, in charge of college recruitment for the Kroger Company, to the author, expresses the qualifications ex- pected in an applicant for a position with the company. Kroger is interested in college men with personality, interest and ability - ability to look, act, think, talk and decide like a busin- ess executive - or reasonable assurance of having the potential to develop such abilities. A.man who is by temperament primarily a research scientist or technician, or who displays obvious introvert characteristics, is likely to find it difficult to progress far in the merchandising phase of the business. The man.must have a liking for participation in activities involving people, rather than a preference for solitary or highly individualistic activities - in brief, a good mixer and teamworker. Successful men in this company are usually those who have some prior experience in working with people, even on a small basis. Member. ship in campus organizations and participation in their activities, zam.m~m.oo Hoo.mam.am ooo.mmm.flm www.mmo.:m asaaasm Hence amo.oom.mm mma.-m.mm ooo.mmm.mm mom.amm.mm nonpaaapsag eeonuao mmo.wmm.mm~ amm.aom.maa ooo.~mm.mafl mam.mom.mm spammq Hence Nam.:mo.waa mm:.mmm.moa coo.amm.mw man.wo~.am mpommq escapee mmm.mma.0m mm:.mow.mm ooo.ma~.ma amw.awm.:a emso f imam mtam meme gnaw gasses a. ease wam.a amo.m mam.m Hao.m museum mo tongue cam.oaa.am Nam.:~m.am ooo.mflm.ma nam.omw.om pamoam maapeuoso mmm.mwo.~mma mam.mam.amwa ooo.wem.mmwm a:m.~m:.~mma modem poz .fim a ma flan 3m $9833 350 yeah 30:5 5560 mwdomum "name he mongo Qxlsmom 2H Same A355 E >H and.a 1*9 experience in talking before groups of persons and even part—time jobs as a salesman are all indicators which the interviewer looks for as a clue to whether or not the applicant will be a valuable addition to the company. Also, the qualities of ambition, initiative and enthusiasm are quite important for a man who expects to earn advancement in a busi- ness organization such as the Kroger Company. The Kroger Company is especially interested in the future possibil- ities of men who have an educational background such as that received in business courses. They also believe that the Midhigan State College course in.Food Distribution provides excellent training for their type of business. Then too, they are interested in.men who qualify for posi- tions as trainees in the accounting, warehouse, real estate, food pro- cessing and personnel fields. Formal training programs are followed in the case of merchandising, accounting, warehouse and personnel trainees, while special programs are outlined for the trainees in the food processing and real estate fields. A few of these training programs are explained in more detail later in the chapter. Of interest to the merchandising-minded college graduate who hopes to progress to higher management levels is the Kroger Company's special training program.for store management. The program includes courses in company procedures and policies as well as specialized instruction in approved merchandising and personnel practices. This special “0-week program is a formal, planned type of course and provides full opportunity for a man to get the basic fundamentals of good store operation. The program itself is designed especially for merchandising trainees and provides for regular periodic contact with branch executives, which 50 prevents them from getting that "lost feeling", as if they were just cogs in.a machine. Kroger Company executives take an individual inter- est in each trainee and do not regard them as merely a group or class. Every trainee's progress and accomplishments are given special attention in these periodic conferences. The general program calls for actual store experience in produce, grocery and meat merchandising - with broad training in all.other aspects of store management. They also get experience in supervising store per- sonnel and in building customer and community goodwill. _ At the conclusion of their training periods, candidates have a good understanding of the complexities of managing a modern Kroger store and also possess a valuable background of merchandising knowledge. No text- books are used in any training classes, but rather, the candidates ad- here to prepared outlines of training. Classroom training supplemented by actual store work.and proper followhup by the trainers constitute the general procedure of practice. During the frequent reviews of pro: grass with the branch.manager and the personnel manager, the employee is told whether or not he is qualified to go into the next phase of his training. The general outline followed by men in the “0-week store manager training programincludes:2 Utility clerk (3 weeks): the trainee is assigned to a store and performs the routine Jobs necessary for good store conditions. The proper care of sinks, toilets, baskarts and coffee grinders, cleaning and waxing floors, taking care of displays and.unloading of trucks are all Jobs assigned the beginning clerk. 2 Kroger Company, Cincinnati, Ohio. Special Training_Program.for Store'Management. 51 Grocery department (6 weeks): for one day during the first week in the department, the trainee has a conference with the branch manager, personnel manager and grocery merchandiser. These men review the pro- gress of the trainee and find out how well he is getting along with the program. Then, the man returns to the store and is instructed in build- ing displays, stocking shelves and price—marking merchandise. The main- tenance of the frozen food and the toiletries departments is handled by the candidate. During the fifth week on this Job, the trainee is sent to the dairy training session. When the man returns, he works at order- ing, displaying and record keeping in the dairy department. Produce department (6 weeks): another conference with branch exec- utives is held and once again the trainee's progress is reviewed. Next, the employee attends a three-day training session in produce merchandis- ing and has a talk with the produce merchandiser for the branch. He then works with the head produce clerk, under the supervision of the store manager, to make sure of becoming familiar with produce operations in the store. Finally, the trainee is allowed to take charge of the entire department - with helpful guidance from the store manager and head pro- duce clerk. Meat department (6 weeks): the trainee again has a progress confer- ence, then attends the five-day meat training course and confers with the meat merchandiser. When the man returns to the store, he spends some time with the head meat cutter and familiarizes himself with the opera- tion of that department. Care of the meat case, cooler trays, grinders, saws and other tools used in the meat department are stressed. The prep- aration of hamburger, beef, veal, lamb, poultry, fish and delicatessen .52 items are explained to the trainee. Instruction in cutting meat is given to the candidate and then he is allowed to perform these Jobs himself. Finally, ordering, receiving, rotating of stock and inventory control in the meat department are undertaken by the trainee, with assistance given by the store manager and head meat cutter. Head grocery clerk (12 weeks): again, employee progress is discus- sed. A conference with the grocery merchandiser or branch manager is also held in order to review food laws and sales planning at the retail level. Then, the trainee takes over as head grocery clerk, assisting the store manager in the overall operation. During the seventh week; he confers with the personnel manager, discussing procedures in hiring clerks and laws governing their employment as well as the basic principles and applications of good public relations. Accounting (1 week): during this part of the training, the employee is under the supervision of the branch accountant who acquaints him with information pertaining to store records, which otherwise would take a store manager a much longer period of time to acquire. The different order, tax, payroll, cash and sales forms are traced in their Journey through the accounting office. Lastly, the periodic store operating statements are explained to the trainee. Warehouse (2 weeks): the training in this phase of operations is directed by the warehouse superintendent and is for the purpose of show- ing the employee overall warehouse operations and explaining the entire procedure followed in the filling of orders and delivery of merchandise to the stores. The receipt of goods in the warehouse, the salvage de- partment and the traffic department are observed. Finally, the candidate 53 makes a complete tour of the warehouse and.he is invited to ask any questions concerning the warehouse phase of operations. Personnel contacts (1 week): during this period, the trainee is under the guidance of the personnel manager of the branch who discusses with.him.the relationships between.the stores and the personnel depart- ment. Then, the personnel manager makes arrangements for the trainee to attend a merchandising board meeting and spend at least one day with the general district manager. The trainee has a final review of his progress with executives in the branch. For the remainder of the week the man works in the store, while waiting for placement as manager of a Kroger store. After each of the nine phases of training is completed, the immed— iate supervisor of the trainee on the different tasks is required to fill out a Job check sheet. This is used to study how well each job was per- formed and has additional space for the trainer's comments on the trainee. These sheets are a means of checking on the trainee to see that he is grasping the important points about each department and, also, to see that he gets instruction in all the different aspects related to each phase of the business. For the college graduate who is interested in accounting, the Kroger Company has a training course similar to the store manager training pro- gram. This special accounting program extends over a period of approx- imately six months, the actual length of time depending upon individual variations in ability and experience. The following outline briefll.describes each phase of the account- ing training program:3 3 Kroger Company, Cincinnati, Ohio. Planned Training Program.for Special Accountinqurainees. 5h Tabulating department (2 weeks): the trainee observes the handling of store orders, operates the addressograph and works with master cards, item changes and store records. The entire operation of the tabulating department is explained to him. Closing week (1 week): the employee is assigned some duties in the general accounting office such as posting entries, balancing control accounts or working with eXpense ledgers. At the end of this week, the trainee reports to the branch manager's office to discuss his progress to date and the subsequent training he is to take. Warehouse office (1 week): at this time, the trainee is to note and.understand.how a store order is billed on the mechanical billing machine. Observation of necessary detail work in the warehouse and traffic department, plus any other duties assigned by the warehouse superintendent, are to be performed by the trainee. Accounts payable and receivable (3 weeks): all the operations in- volved in voucher work are considered here. The account classifications, check writing, posting, balancing statements to customers and followuup on accounts are all explained to and practiced by the trainee. Here, the trainee reports to the branch accountant, personnel manager and branch manager to discuss his progress. Stores accounting (4 weeks): there is a definite outline of tasks to follow in regards to stores accounting but some of the main categories are sales and cash reports, store deposit journals, store inventories, store expense items and store operating statements. A progress session is attended at this time. Store training (6 weeks): at about the middle of formal training in the accounting department, the trainee receives instruction in a 55 retail store. The main purpose of this is to give the trainee an oppor- tunity to see the correlation of work in the stores with that in the accounting department. Two weeks are spent in each department of the store - meat, grocery and produce - including the training classes. General accounting (h weeks): equipment and storage records, pro- duce and meat accounting, payroll and office service are the main de- partments in which the employee is trained during this period. Once again, the trainee's accomplishments are examined by his superiors. Store auditing (2 weeks): the trainee is assigned to store ac- counting work under the supervision of the chief store auditor. The primary tasks for him to perform.are observance of the method of taking inventory, balancing cash registers, completion of various forms in con- nection with these two points, actual accounting and listing of merchan- dise and any other necessary details. Supervision desks (1 week): the compilation of the periodic finan- cial report schedules, distribution of various reports, general discus- sions and a review of progress are all included in the work for the trainee during this final week. After completion of the entire program, he is assigned a position in the accounting department. The explanation of a program of this type is designed to point out that all courses are not for merchandising trainees alone. The Kroger Company recognizes the usefulness of a program of this type so it set up the aforementioned.outline to meet the needs of college men who want to pursue the accounting end of the food business. In addition to the store managerial and accounting training programs, there is also the warehouse training program. No individual is selected 56 for this training until he has been thoroughly screened by means of care- ful interviewing and testing. The preliminary screening includes special tests to determine the aptitude and ability of the candidate to perform the duties of a receiving clerk and a supervisory personnel test for manufacturing and warehouse trainees. The program is outlined to be completed in twenty-four weeks. Sup- ervisors of the employee must be thoroughly familiar with the program and then the trainee is told exactly what he is to do and how to perform each phase of the program. A general outline of the course is as follows: Store training (2 weeks): receiving and unloading of merchandise, checking orders, building displays and taking care of equipment are some of the tasks given to the trainee. .Ins truction in all departments of the store gives the man a chance to work with a better understanding of store problems, prior to beginning training in the warehouse. Branch office (2 weeks): the accounting and billing departments share this period. Instruction in the handling of freight bills, bills of lading and payment of demurrage highlight this phase of training. Also, the billing room is visited and operations are observed previous to the trainee assisting in the performance of these duties. warehouse (11 weeks): the major portion of this time is spent in warehouse grocery and produce operations. Lifting, receiving, house— keeping, storing and filling of orders are some of the important duties for the trainee. The candidate works in each of the following sections - ‘h 'Kroger Company, Cincinnati, Ohio. Earehouse Traini§g_Prog§g§. 57 banana room, salvage department, traffic department - doing any work directed by the foremen of these sections. Transportation (h weeks): the garage and dispatching departments of the warehouse are the places in which the trainee is assigned for this period. Inspection of trucks, mileage and gasoline records and actually accompanying the drivers on their routes constitute the maJor Jobs to be performed. Special training (5 weeks): meetings of product merchandisers, district managers and members of the sales promotion department are at- tended and a tour of the warehouse is made. Of course, during the entire training program.there are periodic reviews of progress with the trainee. Classroom training is attended for a short time and then.the trainee is placed in some department of the warehouse - working toward a foreman's Job and further advancement to warehouse superintendent. The three programs outlined in this chapter should serve to give the reader a clear idea of how the Kroger Company goes about formulating a definite training course for the different Jobs within the organization. All of these courses give the trainee a broad picture of the operations in each department of the company so that he is able to better perform his new Job with an understanding of the complexities of the tasks con- nected with other Jobs and the interrelation between.his duties and others in the company is then made clearer in.his mind. This is the Kroger Comp pany's policy throughout all of its training programs - give the trainee a substantial background of information on the performance of all the different jobs in the company. In order to help show the reader evidence of the opportunities avail- able in the Kroger Company, the progress of three men in the organization 58 is outlined. These three men began as trainees in the 40-week store manager training program. Employee A.was hired in February, 19M9, at a salary of $60.00 per week. In January, 1950, he was given the position of head clerk.and next month.he was appointed as manager of a store. In September of 1950,. he was chosen as one of the men to represent the Kroger Company in the initial class of the Curriculum in Food Distribution at Michigan State College. After completion of the course in July, 1951, Mr. A.was as- signed to his branch office as a Junior executive in the produce depart- ment. One month later, he was elevated to the position of assistant produce buyer, the rank he has held.up to the writing of this chapter.l .As a result of his promotions, his salary is now approximately $100.00 to $110.00 per' week. Mr. B started on the h0-week.training program at the same time as employee A.- February, 19H9 - however, by August, he was made head clenk and in December he was selected as a store manager. He continued to be a manager until September of 1950, when.he was selected to attend the Curriculum in.Food Distribution at Michigan State College. In July, 1951, he completed the course and was assigned to manage another store. In December of the same year, he was promoted to grocery sales assistant of his branch, receiving a compensation of about $100.00 to $110.00 per week. For those college men who are eligible to be drafted into the ser- vice of our country, the outline of employee 0 should be of value. He was hired as a trainee in September, 19kg and by June of 1950 he had been raised to the position of relief store manager - to be in charge of dif- ferent stores while the regular store managers are on vacation. In Sep- tember, 1950, he also attended Michigan State College to receive further 59 training in all aspects of the food business. By June of 1951, Mr. C had completed the course and was then given the store manager refresher training. The personnel manager knew that this young man was about to be drafted into the armed forces yet the Kroger Company still hired him as a trainee, processed him and gave him the benefit of additional food training at Michigan State College. According to the Kroger Company's military leave policy, this man is granted a military leave of absence with full accrual of all company benefits while in the armed service. An examination of the progress of these men reveals very aptly the benefit that is received from.participation in the Curriculum.in.Food Distribution at Michigan State College. The Kroger Company is very much interested in those men who are enrolled in this course and regard it as a real contribution of an educational institution toward aiding the food industry to have executives who are better trained to assume manage- ment responsibilities. The rates of pay for Kroger trainees are stated definitely. An out- line of the current salaries per month are as follows: After Starting_Rate Six Months Single $281.00 $303.00 Married, no children 281.00 303.00 married, one or more children 303.00 325.00 As can be seen from the above chart, there is an automatic increase in salary at the end of six months and from then on the man is placed on a merit basis. Subsequent increases in salary are determined by the man's ability and the position he holds after completion of the training program. A.manager's salary cannot definitely be stated, however, a 60 salary range of $35.00 to $11000 per week would probably include most of the earnings of Kroger Company managers. Once the trainee has completed the hO—week training program and has received the proper eXperience as a store manager, he then works toward the position of branch.manager or merchandising manager. Sales assistant or assistant buyer for grocery, meat or produce items is usually the next position held after store manager. From there, he moves to buyer, sales promoter or district manager supervising a group of about twelve to fif- teen stores. Next steps in the promotional channel are to product mer- chandiser and/or general district manager, merchandise manager and branch manager. For the man who wishes to enter into a staff phase of the business such as personnel, real estate or accounting, he advances from.a special trainee in these departments to the Job of assistant and then into the position of department head. Higher positions are available in the central offices in Cincinnati, Ohio. As in some of the other larger food chains, the Kroger Company has several employee benefit organizations managed by the company as well as a newly-formed profit-sharing plan. An employees' retirement plan, based on the length of full-time employment and an average annual salary (de- pending upon the compensation received by the man over a period of ten years previous to his retirement) is presently in operation. To be eli- gible for admission as a member of this plan, the employee must have reached twenty-five years of age and be retired when he reaches age sixty- five. The company bears the full expense of the plan — the employee pays no thi ngo 61 A group insurance plan, premiums varying with the salary bracket that the employee is in, offers the trainee a $2,000 life insurance policy at the small cost of $.55 per week. When the trainee advances to the position of store manager, he is considered to be on the manage- ment level and is eligible to participate in a supplemental group ins surance plan which allows the man to have more insurance coverage than the employees below the management level. Health and accident coverage and a sick leave plan for management personnel are also in operation in the Kroger Company. The Kroger Company's employees' savings and profit-sharing plan is the latest addition to the list of employee benefits. Each week, the employee is allowed to put a certain percentage of his salary into a fund and the Kroger Company also deposits to this fund a certain percent- age of the past year's profits. The employees share in this profit in proportion to the amount they have put into the fund, which actually represents a savings on their part. When an erryloyee reaches retirement age, this savings and share of profits will have been built up to a sizable amount, thus ensuring the employee a certain degree of security when he becomes older. To be acceptable to participate in this plan, the employee must be at least twenty-one years of age and.have had at least two years of continuous full-time employment with the company. He can save and deposit as much as five percent of his regular weekly earnings, not including overtime. In summary, some of the main advantages of the Kroger Company are - an excellent starting wage, definite formal training programs, employee benefits and a very good chance for advancement into the many different b2 phases relating to overall store organization and management. Finally, because the food business is a basic industry, full-year employment is assured and a secure position is certain for those whose performance is satisfactory. The college graduate should carefully examine the many opportunities prevalent in the Kroger Company. CHAPTER VI SAFEWAY STORES, INCORPORATED FOURTH AED JACKSON STREETS 0mm 1+, cnmomun What might be termed the "original store" of Safeway Stores, Incor- porated, was a small grocery market which opened its doors for business at American.Falls, Idaho, in 1915. At first, the establishment was pro- greasing nicely but within a short time after the opening of this store, prices began to rise. The owner of this little market became disturbed because food prices were so high. They were too high for his customers but if he lowered them so that they could buy easily, he found that he did not take in enough money to buy new groceries to sell. In analyzing his situation, he recognized that there were too many costs added to the price of food before it reached the consumer where it could be purchased. He decided that if he was able to buy groceries directly from the farmers and manufacturers, he could eliminate many of the handling charges which were traditionally added to the price of food. Also, he thought that if his customers were able to get along without some of the expensive services which grocery stores were giving at that time, he could make his money go farther and still sell more goods at lower prices. When he tried his ideas, he found they were right. Soon he had more customers than could be handled in.his little place, so he had to open another store. This process continued until a small chain was formed. on In 1926, this chain joined with another group of stores known as Safeway and that is where the organization of today really began. As it grew and prospered other groups and individual stores were acquired, all with the idea of finding new savings to pass on to the customers.1 Today, Safeway Stores, Incorporated, operates approximately 2,125 stores in twenty-three states and in Canada. Table V shows some signi— ficant balance sheet and operating statement figures, bringing out the overall trend in operations from.l9h6 to 1951. The data was extracted from Moochr's Manual of Industrials, (19117), (19:9), (1951) and the 1951 annual report of Safeway Stores, Incorporated. Beginning in about 1950, the retail store construction and modern- ization program of Safeway Stores, Incorporated, was begun. This program called for the constructing and equipping of 1,000 new stores over a per- iod of five years, at an estimated cost of $250,000,000. Also, construc- tion of a few new warehouses has been started. A brief explanation of some of the terms used to designate positions in the organization is necessary here, for they differ from.the titles used in other food chains. A."location.manager" is the term used by Safe- way Stores, Incorporated, to designate a store manager. This company uses the word "location" to signify a store so, in this chapter, the two terms are used interchangeably. "Retail operations managers" are responsible for the operations of the retail stores within a zone and the district managers are the execu— tives who report to the retail operations manager. l Safeway Stores, Incorporated, Oakland, California. Xgu_§nd Safeway. 65 ”eschew a. dalcwmmv Hmo.:om.mo amm.ooo.o~ mo~.mam.me msa.mao.mm sanctum fleece mem.~on.maa ~m~.mem.maa Nan.awa.mn wob.mwz.am noanaaancaa enocnno mmm.mmm.anm aao.wsm.amm mnm.mm~.mma mmn.mwm.mna occurs Hence mem.amm.mmm mow.oafi.ama :wm.omr.mma mnr.mmm.sma spoons neonnno nmm.mme.nm mmo.nom.wm nma.nas.om mem.man.wa neon oom.am ooo.:m Ham.nm mam.mm noosoanam no noose: mma.m mao.m osm.m mas.m nononm so senses nwm.wmm.~a mam.mmm.am ewm.mow.ma mm:.mmm.om sweets soapstone omm.msm.nmn.ae mma.mmm.mom.aa mmm.mam.m~m.aa mmm.mm:.anma modem see an mm was. was mmefimokmoobfl > mafia Gum homeroom name .8?» H338 .mmmoem Mgwmaw mo szHadthmo galemom HH Burma HHSQHNVO Mme 06 The "zone manager" is similar to a branch manager. He supervises the activities within his zone. "Division managers" are responsible for the successful operation of one or more zones. Each division manager reports directly to the pres- ident and is entirely responsible for all activities within his division. This brief explanation is necessary in order to acquaint the reader with the different positions in the company and the slight variation in terminology from other food chains. When being interviewed for a Job with Safeway Stores, Incorporated, the applicant should be conscious of the characteristics that the company desires in an employee. The candidate for a position should examine hon- estly his own personality, capacity and capabilities previous to being interviewed for a Job. This combination gives him.a knowledge of the type of man that the company is looking for and he can easily determine whether or not he measures up to the requirements stipulated. Usually, the inexperienced college graduate is expected to start as a food clerk in one of the retail stores, therefore, he should be aware of the traits desired in a person applying for this position. Some of the more desirable characteristics are: 1. Stability 2. Physical fitness 3. Maturity M. Perseverance 5. Ability to get along with people 0. Self-reliance 7. Initiative 8. Loyalty. 67 As a general rule, it is necessary for Safeway Stores, Incorporated, to evaluate these qualities largely upon the basis of factual information obtained through comprehensive interviewing. According to Merle L. McGinnise, in a talk given at the Chicago Con- ference of Operations, Incorporated, October 18, l9h9, the talent in greatest demand in the food industry is managerial ability or, to be more specific, the ability to get things done through the efforts of others. The managerial ability or managerial potential sought by Safeway Stores, Incorporated, is a blend of many characteristics and abilities. It is a combination of eXperience, judgment, human qualities and drive. The executive in this organization is expected to have: 1. Well-balanced temperament 2. Emotional maturity 3. Good social adjustment N. Strong desire for achievement 5. Decisiveness b. Realistic as well as practical point of view. 7. Good Judgment of fact 8. Planning and organizational ability. This appears to be the epitome of executive ability, however, this level can be reached if the inexperienced college graduate sets his mind on attaining an executive position. When considering applicants for employment who wish to work toward executive positions, it is impossible to predict accurately whether or not a man will make good as an executive. For this reason, it is neces- sary to look for potential qualifications as a man develops through 2 Manager, Pembroke Services, Division of? Safeway Stores, Incor— porated, San Francisco, California. 68 training and diversified experience. According to Mr. thinnis, probably the most important managerial responsibility is the ability to select one's associates, plan a program of action and delegate responsibility and authority. The personnel department, when searching for talent, looks for proven ability and potential ability and continually scouts employees within the organization as well as being on the watch for men who would probably be valuable additions to the company. In this respect, they are concerned with the finding and developing of executives. A few years ago, Safeway Stores, Incorporated, completed a new plan for selecting and training prospective location managers. Under this plan, selection of trainees is the responsibility of the district manager who, if he wishes, may request the employee relations manager (personnel manager) to give the candidates any selection tests which the ' district manager may feel are necessary. 'The number of trainees selected in a zone each year is determined mainly in accordance with expected turnover and expansion within the zone. Trainees need not all be selected at the same time but may be chosen and placed on the program.at the most convenient time for a successful fol- lowzthrough with the plan subsequently outlined.3 The purpose of the training is to provide each trainee with a well- rounded knowledge of those operations within a zone which are directly connected with the management of a retail location. In order to fulfill this aim, the trainee is sent to various zone training schools and then 3 Safeway Stores, Incorporated, Oakland, California. Safeway News. Advangemenp,$hrough Training. (January - February 1950). p. 3. 69 is assigned to work or be an observer in each one of the major zone func- tions for a period of time necessary for him to acquire the desired know- ledge and experience. An actual program setup calls for the zone employee relations man— ager to outline a proposed Job rotation plan for each trainee and then the outline is submitted to the zone manager for approval. When the pro- gram.is approved, the employee relations manager then arranges with the district manager and other zone executives concerned to provide the trainee with all the necessary training specified in the outline. Such training includes time spent on the following Jobs: Food clerk: this job is comparable to utility clerk and grocery clerk.in other organizations. No definite Job is assigned the food clerk. Although most of the training is in the grocery department, he is still to receive experience in other sections of the store. Ordering, stocking, checksout operation and general store cleaning are a few of the tasks per- formed by the employee. Meat cutter: during this phase of the program, the trainee gets store experience in the handling, cutting, displaying and merchandising of meat. Through training classes and instruction in the store, the trainee is taught the proper method of cutting meat, the care and handling of equipment and is also given some knowledge of effective customer and personnel relations. Produce clerk: building displays, the care of produce tables, trimp ming and the merchandising of fresh fruits and vegetables are some of the main Jobs in this category. Ordering, storing, stocking and cleanliness in general are other factors for consideration. 70 Grocery warehouse: in order to interrelate all the operations per- formed in the zone, the trainee is next given a suitable period of train- ing in the warehouse phase of company operations. Receiving of merchanp dise in the warehouse, storing, the filling of orders and loading on trucks are all carried out by the trainee. Produce warehouse: instruction in this department is similar to that received in the grocery warehouse. In addition, ripening rooms are examined and the procedure in storing produce is explained to the trainee. Meat warehouse: the receipt, checking and storing of meat is obser- ved. Filling of store orders and the loading of meat onto the trucks are also performed by the employee. Experience in these three departments brings to light the relationship between the stores and the warehouse and some of the problems involved in the Operation of each. Major zone departments: during this phase of his training, the trainee visits the zone offices and observes the operations of the depart- ments in that particular zone. Accounting, personnel, advertising and buying functions are explained to the employee. At various intervals dur— ing his training, the trainee has a conference with the zone manager, the employee relations manager and the district manager to examine the progress he is making and to answer any questions he may have about any phase of operations. Relief location manager or clerkainpcharge: after completion of the program, the trainee is assigned a job. If there is an opening for a relief manager he may be selected or if there are no vacancies existing at the time, he is placed as clerkainpcharge in a department where it is felt he receives the most valuable additional experience. 71 The amount of time spent training on each job is based upon the past experience and ability of the trainee. For example, if the trainee has meat cutting experience, his job rotation time is shortened by the extent of such experience. Insofar as possible, the assignments required as food clerk, meat cutter and produce clerk are obtained in three dif- ferent locations as an added means of broadening the trainee's experience. When the employee has successfully completed his training, the em- ployee relations manager prepares an analysis of the results of the train. ing and submits it to the retail operations manager, at the same time advising him.that the trainee is ready for assignment. If, as mentioned, an opening for relief location or location manager is not immediately available, the trainee may be selected to work in a retail store as a food clerk, produce clerk or meat cutter or whichever position provides him with the most needed additional experience — pending his selection as a location manager. Food clerks in Safeway Stores, Incorporated, are compensated.en a flat hourly rate which varies in the different geographical areas where Safeway stores are located. In 1950, the yearly earnings for food clerks ranged from $2,500 to 0 3,600. i The compensation for a location manager is based on a contingency compensation plan which takes into account sales and profits for the store. For the year 1950, location managers' earnings ranged from $5,000 to $10,000. An inexperienced college graduate desiring to secure employment with Safeway Stores, Incorporated, would.most likely be hired at a salary com. parable to that received by food clerks in that particular geographical area. 72 In order to point out some of the opportunities prevalent in this organization, the long range progress of three men is cited. These men are examples portraying the heights that can be reached in a food chain through perseverance and.hard work. Mr. A.began his career with Safeway Stores, Incorporated, over thirty years ago. He started as a food clerk and gradually gathered experience in all phases of store management and operation.. In apprOximately eighteen months after he was hired, Mr. A was appointed manager of a store. For a few years he was manager of that store and in subsequent years he was transferred to various other stores in that area. Next, he advanced to district manager. By 1939, he had reached his present position of divi- sion manager - reporting directly to the president. Look at this line of progress carefully. It is not so very unusual. In approximately twenty years' time, this man had.moved from food clerk to division manager - a top executive position with Safeway Stores, Incorporated. Mr. B began working for Safeway Stores, Incorporated, as a bOOkb keeper in one of the zone warehouses. Mr. B held this job only a few months when he decided that he would rather be in the field of retail op- erations, so he applied for a transfer. The request was granted and he became a food clerk in one of the retail locations, with a decrease in pay.. Within a year he was appointed manager of a new location and then some time elapsed before he was promoted to district manager. Finally, in 19h7, he was appointed a division manager. It took.Mr. B Just eighteen years to reach the top rung in this promotional ladder, an accomplishment h Safeway Stores, Incorporated, Oakland, California. Safeway News.s Choice g£_0ne's Career i§.§_Vital Decision, (March-April 1950). pp. 7-12. 73 of which he can be proud, for he now holds one of the most responsible positions in the company. A part—time job with Safeway Stores, Incorporated, was the begin—- ning of a wonderful career for employee C. He started as a part-time c1erk.in 1926 and in five months he was put on a full-time basis. Within a few more months, Mr. C was appointed.manager of the store where he had previously been a part-time clerk. A few years was spent in this capacity and then he was promoted to district manager. In 1947, he was selected as a division manager. V These three men are encouraging examples of success stories. Their progress is designed to illustrate the possible positions attainable for the ambitious man who wishes to make the food industry his career. Promotions in Safeway Stores, Incorporated, are usually from within the ranks and all opportunities arebased on individual merit. Whether or not you are promoted depends partially on.how many openings there are but mostly on the outstanding ability that you have demonstrated on your present Job and your ability to take on added responsibility. From food clerk or produce clerk or meat cutter, the employee has the opportunity to progress to the level of location manager. Anyone working in a retail location has, with study and effort, plenty of oppor- tunity to show the initiative, tact, leadership and knowledge needed for a manager‘s job. This work offers real earning possibilities. District manager, retail operations manager, zone manager and divi- sion manager is the order in which the successful location manager would progress. Of course, some experience has to be gained at each step of the ladder before advancement can be made, however, the time spent at each level is determined entirely by the employee. His ability to assume the 71+ next highest position and the availability of the position are, as pre- viously mentioned, the two deciding factors. If the trainee desires, he can request at any time for a transfer to another phase of the business. Positions in the accounting, advertis- ing, warehouse, personnel, research and maintenance departments are avail- able to the trainee who wishes to pursue his career along any of these channels. The positions of chief accountant, personnel manager, warehouse superintendent and advertising manager for a zone are levels which the employee can strive to attain. The merchandising phase of the organization offers positions as as- sistant merchandising manager or assistant buyer of the separate depart- ments - grocery, produce and.meat. Merchandising manager and buyer follow. Safeway Stores, Incorporated, also operates about thirty service companies. They provide specialized services for the entire organization. Examples of these include one company that advises on the layout and design of warehouses, another deals with the problems of store fixtures, while still another performs the task of research work on such subjects as cus- tomer buying and.shopping habits and store location. All these companies, which are owned and operated by Safeway Stores, Incorporated, provide a multitude of paths which the college graduate, who is interested in the food business, might follow.5 At present, Safeway Stores, Incorporated, stresses the stores Opera— tion field for those graduates desiring to become associated with the COMPany o 5 Safeway Stores, Incorporated, Oakland, California. Safeway News. The Story 9: Safeway_§tor§§, Incorporated. (March 1951). pp. 2-12. 75 Certain benefits are also available to the employee. Vacations with pay, sick leave (with weekly disability benefits), life insurance and hos- pital and surgical benefits for himself and.his family are some of the more prominent advantages presented to the employee. A retirement plan, eligible to employees who have completed five years of continuous full- time employment with the company and who have reached their thirtyafifth birthday, is another benefit available to the employee. In summary, it should be pointed out that this is a very large organp ization and the various phases of its operation offer the college graduate a chance to enter into almost any segment of operations in the food business. Although the stores operation field is stressed, there are many other zone departments such as personnel, accounting, advertising and warehousing, which all present excellent opportunities to the ambitious college graduate. Safeway Stores, Incorporated, provides the college graduate with a favorable starting salary, an outlined program.of training, various em» ployee benefits and a good chance to progress to higher management levels. With these advantages and opportunities to present to the college graduate, Safeway Stores, Incorporated, should definitely be considered as a possible choice of an organization in which to be employed after com- pletion of‘a college education. CHAPTER VII STOP mm SHOP, INCORPORATED 393 D STREET BOSTON 10, MASSACHUSETTS Stop and Shop, Incorporated, is comprised of a group of retail food markets in New England, although the greatest number of them are establish- ed in the state of Massachusetts. The general offices, warehouse and.man_ ufacturing plant are located in Boston, at the above address, except the manufacturing plant, which is located at 232 Causeway Street, in Boston. Potato packing houses are operated in Maine. The present management became associated with the company in 1919, when, at that time, they were operating twentybseven service-type stores. In 1925, this group of units was incorporated, in Massachusetts, as the Economy Grocery Stores Corporation. In 1932, they had grown to a chain of hue service markets. This large increase in number of outlets was due partially to the purchase of two food chains in the area. New stores were built, some were purchased and others were consol- idated, all with the aim of making Stop and Shop, Incorporated, a better place to work and.a better place to trade. In 1935, the company opened its initial self-service store, known as the "Foodmart". This was one of the first real supermarkets in that section of the country and was con- sidered the "very latest" in food store develOpment. The experimentation with this type of outlet proved very successful so they continued to pioneer in supermarket development, building new 77 markets and converting many of the service—type Economy Grocery Stores to self-service Stop and Shop, Incorporated, supermarkets. In 19U6, they reached.the point where ninety percent of the total volume was being done in the new supermarkets, so the management of the chain decided to change the name of the company from Economy Grocery Stores Corporation to Stop and Shop, Incorporated. Recognizing the trend to self-service as a def- inite change in shopping habits, the company concentrated on eXpansion into this field. At the start of 19%, the total number of existing stores was less than one-quarter of the number in operation at the peak of the service-type store expansion. However, the total sales volume of these units was far greater than it had been at the time of that peak.1 A brief picture of the financial situation between 19h6 and 1950 reveals the post-war trend in overall operations for this company. Table VI gives important key figures for the evaluation of this trend. The data is taken from Moody's Manual of Industrials, (1947). (19kg), (1951). There is no certain amount of education or experience needed to be- come a member of the Stop and Shop, Incorporated, organization, neverthe- less, these are points for consideration by the employment officer. Stop and Shop, Incorporated, wants to employ men whom.the executives think can be developed into future department and district managers. However, it must be realized that the employee without a college education.has as good a chance to advance as the college graduate and the fact that one has re- ceived a degree is no assurance of an executive position. Intelligence, initiative and hard work are important factors hastening the rise to the 1 Stop and Shop, Incorporated, Boston, Massachusetts. Welcome'g; Stop and Shop. 78 mm:.a~m.e Hza.s:o.s aam.wmo.m esaessm Hesse mma.ama.m mae.omm.m Nam.mas.a neaeaaepsag esoesso mmm.wma.oH new.aso.m oo~.mea.~ messes Hesse mow.-~.m om~.mmm.m wme.aam.: seemed assesso omm.mma.m www.mww.a Hao.ame.a aeso m:m.m ama.a mmm.a eeeseaasm me sepasz mm am am esteem no senses ~se.mw:.a mmm.mam.a emo.:wm pauses assesseao mom.mmo.oma mmo.~mm.mae mom.mwm.mma seasm eez arm 9.3 a Aom cash mdqo amok amenamv afiedmOmmoozH .momm 934 moaw mo mmoHemmmmo mdktamom 2H mmmma mammmpo mma Hb mqmma 79 management level and these elements, whether in a college graduate or an employee without a college degree, determine how quickly a man ad. vances. When interviewing people for employment in the retail stores, the employment manager is instructed to watch for certain characteristics in an applicant. According to Mr. Andrew C. Kuhn, personnel director of Stop and Shop, Incorporated, some of these traits are: l. Integrity 2. Appearance 3. Manners 4. General character 5. Physical and mental status 6. Ambition 7. Courtesy and friendliness 8. Background - work and education 9. Possibility for future growth. These factors are not listed in the order of their importance but the man who rates high in these traits will, undoubtedly, move ahead rapidly. Of course, an important aspect to be considered here is the development of a man by his immediate superiors. The employee may pos— sess many or all of these qualities yet without prOper guidance from his superiors his qualifications pass unnoticed. The training program for Stop and Shop, Incorporated, produce, grocery and.meat clerks is mostly informal. The checkers'2 training pro— gram is of the formal type with an instruction school located in Boston. 2 A "checkeri_or "cashier", as stated in this chapter, is the per- son who operates the cash register at the checkaout stand. The words are used synonymously. 80 All new checkers are required to take this three-day course, which teaches them the fundamentals of good and accurate checking. There is a short indoctrination period for the new employees, during which they are given facts and details about the history of the company, together with its aims and policies. Then, the training instructor discusses the need for thrift, bringing to light the relationships between the checkers, net sales, profit of the store and company profits - as a result of their efficient work at the checkbout stand. Personality, cooperation, friendliness and care of equipment are also discussed. Stop and Shop, Incorporated, desires to have friendly and courteous employees to work in the stores and, therefore, some time is spent discussing these points. Some of the main categories for con- sideration are:3 l. Arrangement of merchandise on the checkaout counter 2. Fingering of the keyboard 3. Change making u. Sacking, or bundling, of merchandise sold 5. Use of the scale - computations, reading 6. 'Fractions 7. What to do in case of an error 8. Bottle returns 9. Handling cf checks 10. Courtesy at the checksout stand 11. Balancing the register at the end of the day. 3 Stop and Shop, Incorporated, Boston, Massachusetts. Stopics. Checkers' Training School. (September 1951). p. 8. 81 "Guessing" and "memorizing", the two cardinal errors made by check- ers, are taught to be avoided. The instructor explains how profits, customer relationship and the amount of the employee's bonus depends upon following the correct procedures outlined in the course. After three days of classes, the employee is ready to report for work in her assigned store. Upon completion of the training of this group, the instructor makes out a report on each trainee. This includes her attitude toward the course, results of certain arithmetic tests and, on the whole, how well the training was performed. When the new checker reports to the store, she is given three, small, two-page booklets entitled: l. "A Stop and Shop Checker is a Good Checker" 2. "Your Second Week as a Checker at Stop and Shop" 3. "Your Third Week as a Checker at StOp and Shop". These are used as a self-check method for the trainee. At the end of one week, the cheeker should be able to answer the questions listed in the first booklet. For example, one question is, "How is merchandise arranged on the checkpout counter?". Another is, "What is the proper way to make change?". These are things that the trainee should have learned in school. Even though it is a self-test, the manager should make it his responsiblility to see that the checker knows all the answers thoroughly. Similar questions are in the booklets for the second and third weeks of employment. Also, tips on courtesy, friendliness, ac- curacy and efficiency are included in each pamphlet. Eight weeks after finishing the training course, the manager of the store in which the employee was assigned makes out a cashier's progress 82 report. This is used as a method to evaluate the employee as well as the progress she is making on her new job. Any weaknesses of the cashier can easily be detected and attempts made to correct them. This is the story of the checker in this organization. It is worth— while to note that these three factors - initial training, supervision and followzthrough - soon enable the employee to do a complete and effic- ient Job at the checkhstand. The reason for such a detailed explanation of the checker training program is to point out that positions in the food industry are not lim- ited to men only. Checkers play a very important role in the Operation of any supermarket and this is one Job which is dominated by women. Sim. ilar to any other position, the employee has to begin on the ground floor. In this case, the prospective woman executive has to start at the retail level also. After a suitable period of experience, the cashier can be- come a head checker, a training instructor and move higher into the exec- utive ranks, the same as any man would advance in a food organization. When a new employee begins work he is first introduced to all other store workers by the grocery manager and is then shown around the store. Next, he is given a careful explanation of the job he is to undertake, making sure he knows exactly what to do - in order to get off to the right start. If the new employee is to work in the grocery department, he is given three booklets similar to those presented to the checker but which apply to the duties of a grocery clerk. Questions such as, "What is the correct lifting method?" and "What is the proper way to clean and defrost 83 the ice cream chest?" are examples of queries included in these publica- tions. Again, tips on friendliness, courtesy and efficiency appear. There is no definite length of time that the worker has to stay on any one particular Job. He may be rotated from the grocery department to the meat department to the produce department as often as conditions require. This is advantageous for it gives the man a chance to work in these different sections thus broadening his overall knowledge of store operations. At the end of certain periods during this informal training, the new employee is shown the progress he is making thus helping him.correct any weak points he may have. This is an effective way of making good working conditions, improving customer relations and having the employee feel he is a team.member. Late in 1950, Stop and Shop, Incorporated, published a new manual for use in the meat department. It is clearly worded and illustrated so as to give the new employee in the meat department some introduction as to how this phase of the store operates. Up to the time that the man- 'ual was printed, there was no uniform method of cutting meat in the re- tail outlets but with this new publication as a guide the same cuts of meat are ensured for all customers and costly waste of meat has been greatly reduced, if not entirely eliminated. It has also arrested the confusion previously brought about when a meat clerk or meat cutter transferred from one store to another. Once again, if the new employee is to begin work as a meat cutter or meat clerk, he is given booklets pertaining to that job. Questions. ’such as, "What is the correct way to cut ham?", "How and when should ‘h Stop and Shop, Incorporated, Boston, Massachusetts. Stopics. Introduces New Manuela. Assures Uniformity 3: Operation. (November 1950). p. 16. T“ 84 knives be steeled?" and "What points are followed to make sure that merchandise is rotated properly?" are included in these small pamphlets. These, as well as suggestions on cleanliness, good personal appearance and pleasant manners assist the employee in becoming a better worker with a more pleasing personality - essentials in the operation of any retail establishment. New produce clerks are also given booklets. One question listed is, "What are the steps to follow in breaking down the counter for the night?". Another is, "What produce items are kept under refrigerationi". These are facts that every good produce c1erk.must know and the manager should.make sure that the answers and reasons are clear in the mind of the employee. . Grocery, meat and produce department managers are not neglected in the training of efficient personnel. One night each week, for thirteen weeks, the managers attend classes in Job instruction, Job relations training and supervisory techniques. These courses in human relations are taught by instructors in the Boston School Department, who are in, vited to speak to the group on various phases related to Job instruction, job relations and supervisory techniques. In brief, the course emphasizes the best instruction methods, unp derstanding the learner's viewpoint and the value of encouragement. This makes for efficient personnel, who are well-trained in all phases of store operation. Also, it assists managers and employees to become members of a team working for better personnel relations. Managers report they have found the course invaluable in working with employees and customers.5 5 Stop and Shop, Incorporated, Boston, Massachusetts. Stopics. More Than 100 Graduates. (July 1951). p. 20. 85 Summaries of the progress of a few men in this organization help show the opportunities present in the company. Employee A was hired in March, 19M9, as a grocery clerk. In Jan- uary, 1950, after a suitable term of training, Mr. A's ability was recognized and he was promoted to head grocery clerk, with an increase in pay. As a result of general wage increases in March and November, his salary was raised still more. In.March, 1951, the man was promoted to training instructor of the three-day checker training course. The training instructor supervises the three-day course at the very beginning of the week.and during the remaining two days of the week he visits the retail units to check on the progress of the cashiers. After only two years of employment, this man had raised himself to the responsible posi- tion of training instructor. As is seen, this man has a great deal of potential and future promotions seem certain. In September, l9h6, employee B started work as a grocery clerk at the minimum wage. One year later, he was promoted to head grocery clerk. In August of 19N7, employee B was advanced to the position of grocery manager - the most responsible position in the store. The grocery de- partment manager in each store is the person who coordinates the opera— tions of the meat, grocery and produce departments and he is the one who reports directly to the district manager in his district. Although.the other two managers - produce and meat - exercise control in their respec- tive departments, the grocery manager is considered the overall store manager when a debatable point has to be settled with a single decision. After about five and one-half years, employee B had almost doubled his salary, revealing that the opportunities are there, advancement depend- ing'upon the ability of the man himself. 86 As a matter of contrast, compare employee C to employee B. They were both employed at the same time yet employee 0 is still a head clerk in the grocery department. Employee C is a good worker, however, he is not capable of assuming the responsibility attached to the posi- tion of department manager. This is probably the highest level that em- ployee C will reach in this company because he does not seem to have the potential ability to rise to an executive capacity. In analyzing employee progress, there are two points that need to be taken into consideration. One is the fact that all employees are not promotable material. This is borne out by the comparison of employees B and C. Two, all qualified people cannot be promoted because of limit- ations of opportunity. Sometimes, the openings are not available and, obviously, advancements are retarded. This is true in any organization. Since the greatest majority of people are employed to work in.the retail stores, an inexperienced college man would.most probably start as a utility grocery clerk at the salary of $50.00 to $55.00 per week. There are periodic increases every four months, which would raise the salary of the worker to about $60.00 to $65.00 per week after a duration of one year. However, this figure can easily be raised by promotions for the employee, provided he shows the ability and the opportunities are available. The experienced college graduate would start at a higher salary, depending upon the amount and type of training previously completed. Once again, periodic increases are granted and.the way is always open for promotion. Stop and Shop, Incorporated, has a policy of promoting from within the organization. District managers are selected from S7 successful department managers and department heads are chosen from promising head produce, grocery or meat clerks. I As previously mentioned, the company's retail store organization consists of three departments - grocery, produce and meat - so the possibility of attaining any one of these three positions should cer- tainly encourage the employee to try and advance himself. Generally, department head salaries range from $75.00 to $125.00 per week, de- pending upon the size and volume of the store. In addition, there is a profit-sharing plan in operation in this company, the amount of parti- cipation depending upon net sales of the particular store, the employee's seniority and the position he holds in the store. As in other organiza- tions, Stop and Shop, Incorporated, has employee sickness and accident~ benefit programs as well as group life insurance which is available to all employees after a prescribed length of employment. At present, there is no formalized store manager training program but the executives in the company are thinking in terms of a course of this type. No definite plans have been made as the program is still in the formative stage. The long-range planning of top management calls for a definite, formal, outlinedptype of manager training program. The rea- son is that in the future, they look toward the centering of the store's operations under a single manager, rather than the decentralized system of store management now being followed. When the arrangements for this program.are completed, there will be openings for trainees who meet the requirements - physically, mentally and educationally - which the exec- utives desire in a potential supermarket manager. 88 In addition to the stores operation phase of the food business, Stop and Shop, Incorporated, also has accounting, personnel, sales, ad- vertising and research departments. However, only under unusual circump stances would a man be employed to work directly in one of these depart- ments. That would be when the need arises for an experienced.man or a man with specific qualifications and when there is no one in the organi- zation who could qualify for the position. Therefore, they would not ordinarily employ an inexperienced college graduate to work in one of these departments. They do employ college men to work in the retail stores and their movement within the company from then on would depend upon their ability to fill other positions in the organization. The greatest majority of men working in the aforementioned departments have come up through the ranks and a large number of men now holding key posi- tions in these departments began work in the retail stores. There is no formal training program for a person who is transferred into one of these departments. Knowledge of that phase of operations is gained through informal training and experience on the job. From the manager level, the employee can move to district manager (who supervises about fifteen stores). The next step would be to advance to vice-president in charge of stores Operation. Currently, Step and Shop, Incorporated, has a policy of opening at least six new stores each year, without combining any others, therefore, this necessitates the need for more department managers, more district managers in the near future and.more personnel in general. Advancement opportunities to responsible executive positions in the company are dependent upon the need for additional executives and the 89 ability and performance of the individual concerned. The current policy of expansion creates the first part of the opportunity, it is then up to the employee to fulfill the second part of the statement. A starting salary comparing favorably with that offered by other companies, a chance to be located in one state - Massachusetts, good earning opportunities and the fact that the company is expanding are all in the college graduate’s favor. With these points foremost in mind, it is easily seen that the future chances are very bright for the ambitious, hard-working college graduate to advance rapidly in this progressive organization. CHAPTER VI I I SUHNAEY For a long time, the grocery business scraped the bottom of the barrel in its search for competent employees. Too many people believed that a job in a grocery store was something a person took when he could not get employment elsewhere. In effect, it had long been a field with- out prestige but with each succeeding year the fallacy of this statement is being revealed more and more. As an industry, the food business has not done a very good Job of educating the general public on the mechanics of its distribution system and the average person has very little understanding of the wide range of activities involved in supplying his dinner table and practically no appreciation of the fascinating, romantic aspects of food merchandising. Parallel to this, most individuals do not realize the need and opportunp ity for capable executives in this basic and competitive industry. There was an era when the retail food field was at a competitive disadvantage with many other industries in wages, hours, working condi- tions and employee benefits, however, that condition no longer exists. There is only one main reason why the food business should not be able to compete sucessfully for its share of the best personnel available and that is, not enough.people know what the food industry has to offer in the form of Job opportunities. This thesis is written to assist in correcting the condescending attitude toward the grocery business and to arouse an active interest 91 and understanding of the food field. The main appeal was directed toward college students, however, the entire general public should be made aware of the mechanics of the food distribution system and the employment pos- sibilities in the area of food.merchandising and supplying. Too often, persons refer to a store manager as a "glorified grocery clerk" with little else to do but help stock shelves, keep track of the money in the cash register and nibble grapes displayed on the produce counter. This is the type of thinking that must be altered by executives in the food industry. In order to illustrate that the food industry is truly the world's biggest business, numerous research figures point out that, tomorrow (if it is not Sunday or a holiday), more than 50,000,000 Americans will walk into over 500,000 retail food stores and spend about $100,000,000. The larger supermarkets of today employ between fifty and one hundred persons, serve thousands of people each week, carry inventories of well over 5,000 different items and do a volume of between $30,000 and $75,000 per week. This is almost au,ooo,ooo per year in sales for only one store - big busi- ness from any angle. The managers of supermarkets like these have to be well trained in such tasks as work planning, sales promotion, inventory control, customer and personnel relations and record keeping. Compensa- tion for work of this type generally varies from $5,000 to $12,500 per year, depending upon the volume of business done by the store. Yith this picture in mind, it should be realized that a job requiring a man with the ability such as is needed to manage an operation this large and receive a salary of $100 to $250 per week is no longer in the category of "just a grocery clerk". The position begins to assume a certain amount of prestige and a rather sizable dollar income. 92 A career in the food industry does not limit a person to the re- tail food chain field. The processing, manufacturing, magazine, broker, wholesaler, meat packing and equipment fields are a few examples of the various other phases into which the college graduate may direct his in, terests. Since the food industry is the largest business in the world, a multitude of Job possibilities is made available to the individual desiring a career in this field. This dissertation relates mainly to the stores operation phase of the food chain industry, however, other areas such as personnel, account- ing, advertising, research and warehousing must not be neglected. Even though most food chain executives agree that perhaps more opportunities are in the stores operation phase of the business, the possibility of entering into other departments of the company should nctbe overlooked. As a result of this research work, certain observations concern- ing employment in the retail food Chain industry can be made. A factor of importance to applicants for positions in the food chain field is the interviewing procedure and the characteristics de- sired by companies in potential employees. When personnel managers inter- view prospective employees, no one definite point stands out in their minds, but rather, a combination of many traits gives the interviewer a chance to evaluate better the applicant. The employment officer in each company places more emphasis on certain items than on others, however, as much information as can be obtained about each candidate is weighed carefully prior to his selection as an employee. Some of the more pro- nounced points for consideration are: 1. "Why do you want to work for this company?". 2. Ability to meet, work and get along with peOple. 93 3. Ability and desire to get ahead. 4. Clean and neat appearance. 5. Desire to work in the retail food chain business. 6. Potential to develop into executives. 7. Initiative. 8. Ambition. 9. Courtesy and friendliness. 10. Good conversational ability. , ll. Physically and mentally capable of performing any Jobs assigned. 12. A degree of maturity in accordance with the applicant's age and experience. If Job applicants are aware of the traits that food chain companies desire in their employees, then they are able to conduct more accurately a self-evaluation, measuring their characteristics against those standards generally applicable to college gradnates desiring unployment in the re- tail food chain industry. If the applicant is weak in some points, he can recognize them more easily and attempt to correct them. In this an- ner, he increases his chances for employment, enhances his opportunity to be of service to the company and strengthens his possibilities for subsequent promotion. From an analysis of the information gathered, it can be noted that, at present, there are two extremes practiced in the food chain field re- garding training programs for individuals. One, some companies make no distinction between the college graduate and the employee without a col- lege education. Two, other companies have rather definite, outlined programs of training usually limited to college graduates. The former 91+ is generally termed an informal or on—the-job training program while the latter refers to a formal or planned training program. The formal training programs, similar to those offered by the Kroger Company and the Grand.Union Company adhere to prepared outlines of train- ing which set aside a proposed length of time in which the training is to be completed. However, there is some flexibility attached to these training programs. If, for example, a person has the ability to grasp quickly and to retain fully the basic fundamentals of each Job, then he may complete the training course in a shorter period of time than the individual who, although capable, requires the full length of time in training. Informal training programs are conducted in the store itself, al- though they may be interspersed with occasional classroom instruction. There is no definite time limit in which the program is to be completed. The man's ability to learn controls the amount of training he receives in each phase of store operation. Stop and Shop, Incorporated, and the Jewel Food Stores Department of the Jewel Tea Company, Incorporated, follow this method of training. Even for informal training programs, there is a marked difference in the length of time spent in training. The Kroger Company's “0-week special training program for store management and the Grand Union Comp pany's 18-month trainee program illustrate this point very aptly. No range could be mentioned which would relate to the length of time spent in informal training programs. The main determinant is the ability of the man to grasp the fundamental points and to move ahead rapidly. 95 Some food companies use classroom teaching and discussion to sup— plement their on—the-job training program. This can be considered as a middle course between the strictly informal and formal training pro- grams. Safeway Stores, Incorporated, has a program.similar to this. Currently, probable starting salaries for inexperienced college graduates range from $50.00 to $70.00 per week. Beginning salaries for experienced college graduates fluctuate with the extent of experience. A few food chains grant periodic increases to the trainee while others compensate the man upon his merit and ability in performing jobs assigned to him. The promotional lines in each chain seem to follow relatively the same pattern _ particularly in the stores operation phase of the business. Department clerk to head clerk or assistant manager to department manager and then to overall store manager constitutes the channel of promotion at the store level. Store or department manager to district manager (supervising about eight to fifteen stores) to general district manager to stores operation manager to branch manager and then to vice-president in charge of stores Operation is the usual line of advancement in the positions above store or department manager. For the man who wishes to enter into the merchandising or administrative phases of the business, the promotional line would probably be from store manager to assistant buyer or merchandiser to buyer or merchandiser to merchandise manager to branch manager and then to vice-president in charge of merchandising. In the administrative phases, one can rise to assistant to the depart- ment head, assistant department head, department head and then branch manager. Vice-president in charge of some specific function and then president of the company are the top executive levels to be reached. 96 Executives of these food chains realize the value of employing col- lege graduates who meet the requirements stipulated for employees in the organization and, consequently, there is increased emphasis placed on attracting college graduates into the industry. These men have the edu- cational background to get ahead and, with the prOper amount of experi- ence, they should be capable of assuming managerial or executive posi— tions. If companies employ college graduates, then the chance of receiv- ing executive material is increased. Food companies offer the applicant certain employee benefits, good wages and working conditions and an oppor- tunity for rapid advancement. The college graduate presents to these companies his educational background and potential executive ability. A noteworthy point is that each company investigated has a number of benefits to offer prospective employees. Paid vacations, holidays with pay, sick leave payments, profit-sharing plans, group life insurance coverage, hospital and surgical benefits and retirement funds were the most common among these companies. Some companies now operating stores under the three-department man- ager plan are altering their organizational pattern at the retail store level to one involving a single, overall store manager. Along with this tendency is the trend toward establishing more formalized types of man— ager training programs. Most companies have recognized the need for a program of this type, in order to give potential store managers a backs ground of information and experience in all phases of store operation, prior to managing a supermarket. Any individual interested in learning more about the food business is urged to consult the bibliography to this dissertation. The references 97 listed provide much valuable information pertaining to the food industry in its entirety. Such periodicals as Chain Store Age, Grocer's Digest, Progressive Grocer, Food Field Reporter, Food Topics and Super Harket herchandising all furnish excellent background material and current data relating to the food industry. If the reader wishes additional information regarding job opportun- ities in other food chain companies, he should contact the personnel directors of any organizations in which he is interested. In final summary, the author wishes to emphasize that the food chain field offers many advantages to persons desiring to enter into that industry. Security, starting salaries comparing favorably with those paid in other industries, training programs, profit-sharing plans, various employee benefits and, above all, a chance for rapid advancement are all presented to college graduates interested in a career in the re- tail food chain industry. 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