1 f... . ‘30 y IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIII IIIIIII III 304 0526 LIBRARY MICHIGAN STATE UNIVERSITY PLACE IN RETURN BOX to remove this checkout from your record. TO AVOID FINES return on or before date due. "o THE BIG JOB: DEVELOPING MANAGERS FOR THE REIAIL FOOD STORES BY Ralph Glen Fisk A THESIS Submitted to Michigan State University in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION Department of Marketing and Transportation 1962 PREFACE It has been observed in the retail food industry that there is a definite need for qualified responsible men in management. The supply of capable men to fill the management positions of the retail operation has been expressed as critical by the leaders in the industry. It is the feeling of the author that a great deal of the fault for the shortage of capable management, especially at the store manager level, is due to the inadequacy of store manager training programs to develop conceptual and human relations skills as well as technological skills. “the author believes that the above skills are lacking because of the de- pendency on present store managers who have risen to their position via ”the route of hard knocks" to administer the training program without any preparation by higher management. In many cases the ”manager" trainer is not able to administer the program because he is not trained or capable of doing the job; he has no incentive to help his subordinates develop be- cause of a protective attitude that he has for his job. It is the aim of this paper to substantiate the position expressed above. I wish to acknowledge the assistance of my wife, Mary Lou, for her patience and help in typing. The helpful assistance of the members of the MBA class of 1962 in ”Food Distribution" in giving criticism and sug- gestions for improving the paper was appreciated. Dr. Slate's and Dr. Bar-net's consents were welcomed and of considerable value in writing the paper. ill PREFACE LIST 0? II. c APE-’55 325m TABLE OF CONTENTS Page PREFACE O O O O O O O O O O O O O O O O O I O O O O O O O O O O 0 i1‘ LIST OF TABLES O O 0 O O O O O O O O O O O O O O O O O O O O O O V THE BIG JOB DEVELOPING MANAGERS FOR RETAIL FOOD STORES Is IntrOdUCtion a e e e e e e a s o s a e e a e e a s a a s e 1 Problem Objective Hypothesis Methodology II. Determining the Necessity of Better Trained Managers in the Ch‘In SEOEG s s a e e a o a e s o e e e s e e s a a o e 4 The Growth of the Grocery Store from 1939 to 1961 A Look at the Change in Structure of the Typical Chain Store The Store Manager's Job in the Past and in the Future III. The Use of Manager Training Programs to Up-Grade the Chain Store Manager s s a a e a o a a e s e e e e e e e e e a e e 16 Matching the Training to the Job Environment Necessary for Growth and Development Essential Elements for Successful Management Development Programs Benefits Available from Management Development Programs IV. A Current Manager Training Program Being Used by Jewel Tea Company 0 e s a e s s s s e e e s e s s e e a s e s s e a s 28 V- Some Considerations for Improving the Manager Training PtOSt‘. Of JCU‘A TC‘ Company a a s e a a e e a e e a e a a 30 APPENDIX A s e e a s e e e e o e a a s s e s s e O 0 O 0 0 0 0 0 39 BIBLImWHY O O O O O O O O O O O O O O O O O O O O O O C O 0 Q s 1 iv LIST OF IABLES Table Page 1 Characteristics of Retail Trade in U. S. . . . . . . . . . 5 2 How the Super Market Has Changed; A Typical Store IodlylndhnYelrlAgo............... 7 3 Non-Food Sales in a Typical Super Market, 1958 . . . . . . IO me "_ Mung .. grocery 31 m the ‘ MI: qu Sc I. INTRODUCTION There have been many articles written in the past few years em- phasizing the necessity for up-grading the manager's job in the chain grocery store. These articles point up a number of questions that con- cern the vitality of the organization in striving for new goals. They are people questions. Some of the questions that have arisen are indicated below. Is management tending to avoid considerations that will leave companies with static organizations that cease to surge ahead to new heights? Is man- agement afraid to hire and train men who might disagree or will be a threat in the future? If this is the tendency in business today, maybe a good look at the training and development programs will result in re- designing the programs so that subordinates will be given a chance to operate in a way that will make them able to recognize problems and handle them effectively. Problem: This paper is concerned with (l) determining the necessity for up- grading the store manager's job and (2) determining to what extent there is provision in current manager training programs being used at Jewel Tea Company for developing human relations and conceptual skills as well as technical ski lls. Definitions: 1. Human relation skills: The ability of the individual to moti- 931: ‘ 2. ' Mtctive Muss“ my, Wager ”38% shall d ' b«Isis future vate people and maintain a friendly productive environment. 2. Conceptual skills: The ability to relate previously separate and fragmentary components of thought into new wholes; to relate observations and practices that have been previously departmentally or store oriented and apply them to the firm as a whole. In short, it points up the need for minds that know how to think in terms of total systems analysis, or to use psychological jargon, it calls for minds aware of Gestalt. 3. Technical skills: The ability to perform the specific acts required in tasks of a physical character as outlined in job descriptions. Objectives: The primary purpose of this study is (l) to point up the growing necessity for men equipped with conceptual skills relevant to the in- dustry, (2) to show some of the elements for developing a successful manager training program, (3) to highlight some of the benefits of a manager training program that provides human relations and conceptual skill development, (4) to provide some considerations which might serve as In basis for changes in the program used by Jewel Tea Company in training future managers. Hmthesis: The hypothesis of this study is that existing manager training programs in the Jewel Tea Company have not provided comprehensive coverage it: their approach to developing the manager's conceptual and human rela- tions skills. kthodolog‘ Ihe Ills, news Icing done therefore based on I: 3 at the v0: ration du : trI ‘0 Im ' the autho ' “W380 IndIvIdua lore re 11 I "10pm” better I for in e Store me “ JeweI ““9 a: minim Methodo logy : The sources from which data has been obtained include trade jour- nals, newspapers, and textbooks on personnel management. The study is being done on the basis of historical evidence. The material used may therefore be subject to criticism due to the limitations inherent in work based on historical evidence. The sources may be biased, falsely reported, or the words may possess connotations and overtones which make interpre- tation difficult. An effort has been made to verify all sources and to try to interpret correctly the meaning of the words as they were made by the author. It was necessary to use an indirect method for obtaining data because of the limitations of time and mney. A direct method such as individual interviews and mailed questionnaires probably would have given a more reliable check of what the food industry is doing. The general approach will be: (i) to outline the growth and de- ve10pment of the retail food industry, thus showing the necessity for better trained managers; (2) to explain the type of environment necessary for an effective training program and how these programs can upgrade the store manager; (3) to show a manager training program being used currently at Jewel Tea Company, and (1.) to provide some considerations which might serve as a basis for changes in the programs used by Jewel Tea Company in training managers. I rut IMO 11 business twenty yc ——w E] the com the disc Of Opera number c Mlle: dIsIng I Stores '11 Incr “Wing $52.6 I “Woe: I“! be 8m: 1 Home: In the II. DETERMINING THE NECESSITY OF BETTER TRAINED MANAGERS IN THE CHAIN STORE The Growth of the Grocerx Store from 1939 to 1961: In the food business there has been a rapid growth in volume of business even though the total number of stores has declined in the past twenty years (Table l). The retail grocery industry has moved from being represented by the corner grocery store to the super market and now may be moving into the discount house operation. With each successive move to a larger scale of Operation, more and better trained people have been required. The number of stores decreased in proportion to customers served because the smaller store found that competition with the new giants in food merchan- dising was difficult if not impossible. Even though the number of food stores declined from 560,549 in 1939 to 384,616 in 1954, there has been an increase in sales from $10 billion to $40 billion. The trend is still growing in 1960. In 1960, there were only 260,050 food stores doing $52.6 billion (Table l). The industry has not grown in number of stores, but in sales and number of people employed. The trend to the larger store or super market has been pronounced in the past twenty years. As the size of the store grew larger, more and better trained personnel have been needed by the grocery industry. 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