RETML FOOD CHAIN STORE SUPERVIS!“ V‘Thasia '90: tho Degree 64‘ M. A. MidflGM STATE ca was; CSei'us Fraéerick Earning, Jr. 1953 ' * ‘ “153:5 This is to certify that the thesis entitled mu. 100D CHAIN STORE SUPERVISIOI presented by GEMS II'. EWING, JR. has been accepted towards fulfillment of the requirements for L degree inWifiO" Curriculum in load. Distribution ' /= T ,M‘ " .r 1’ j Major professor 1)ng 0-169 ~‘eee;;_t_r_ .A A .‘L‘ I --¢14-.'o. . . ' .‘ - '5‘ Tx.xmmua,...v.v.z-. RETAIL FOOD CHAIN STORE SUPERVISION BY Cletus Frederick Berning, Jr. WU 59“ A THESIS Submitted to the School of Graduate Studies of Michigan State College of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of General Business Curriculum in Food Distribution 1953 / THEsrs ACKNOV. 339731-qu The writer wishes to eXpress his sincere appreciation to the Kroger Company for making this study possible. Special recognition is due the following Kroger men for their valuable contributions and assistance: hr. Kenneth Schneider and Mr. Villiam Jeffries, Cincinnati Branch; Mr. Robert Kallbrier, Indianapolis Branch; Mr. C. F. McCaffrey, Detroit Branch; Mr. A. W. Metzger, Mr. L. Smith and Mr. Floyd Gridley, Grand Rapids Branch. The writer is grateful for the assistance of Miss Jean Osgood, Director, Government Services, National Association of Food Chains, Washington, D. 0.; Mr. Jack C. Fairchild, Colonial Stores, Incorporated, Atlanta, Georgia; mr. Andrew C. Kuhn, Stop and ShOp, Boston, dassachusetts; and Mr. John A. Jones, Webster Services, Division of Safeway Stores, In- corporated, San Francisco, California. A debt of gratitude is due to Dr. Kenneth Wilson, Direc- tor of the Curriculum in Food Distribution at Michigan State College, for his interest, guidance, and prodigious leader- ship and instruction in class. Apologies are due for not mentioning the names of friends, business associates, college professors at the Uni- versity of Cincinnati and Michigan State College, under whom the writer studied, as to no small degree these men have all influenced the writer's thinking. ‘) \( I‘-*J,f u C5D I U The writer's wife, Laura, will always be remembered for her interest, assistance, patience, and for maintaining a pleasant environment in the home. TABLE OF CONTEIIS CHAPTJR I. II. III. IV. INTRODUCTION . . . . . . . . . . . . . . . . . . Purpose of the Study . . . . . . . . . . . . . Need for the Study . . . . . . . . . . . . . . Limitations of the Study . . . . . . . . . . . method of Research . . . . . . . . . . . . . . QUALIFICATIONS OF A GOOD SUTBRVISOR. . . . . . . Basic Characteristics Needed for Leadership. . Qualities Needed or to be Developed to be Effective Instructor . . . . . . . . . . . . RESPONSIBILITIES AND DUTIES OF THE SUPERVISOR. . Why a Supervisor Needs to Know His Re- sponsibilities . . . . . . . . . . . . . . . Responsibility to Customer, Employees and His Company. . . . . . . . . . . . . . . . . . . Promoting Sales to Secure Maximum Gross Dollar Profit from the Stores of His District . . . Controlling Store and Other EXpenses Consistent with Maximum Sales . . . . . . . . . . . . . Developing and Maintaining a Competent Organi- zation . . . . . . . . . . . . . . . . . . . Supervisor Aids. . . . . . . . . . . . . . . . RECORD FOR AHD BY THC STPELVISOR . . . . . . . . Need for Records . . . . . . . . . . . . . . . PAG til \lflW-P’le-J 12 16 16 l7 18 2h 25 27 28 28 CHAPTER V. weekly Store Records . . . Explanation of Table II. . Frequency of Information from Central Office EXplanation of Table III . Variable Expenses. . . . . Types of Desirable Records Explanation of Table IV. . Commodity Records. . . . . Summary Records of Store Operations. Inventory Reports. . . . . Store Expense Itenm. . . . Personnel Records. . . . . Check Lists and Other Aids Budgets. . . . . . . . . . Explanation of Table V . . BUILDING a COMPETSiT ORGANIZATION. Position of the Supervisor in the Organiza- tion 0 O O O O O O O Q 0 Principles Underlying a Good Organization. Emotional and Psychological Tools. Stabilizing Tools. . . . . Time Saving Tools. . . . . Conforming Tools . . . . . Restraining Tools (for the Individual) Handling Personnel Problems. #5 #6 A9 #9 50 5h 56 57 l: / 59 61 CHAPTER Brief Summary . . . . . . VI. HERCHANDISIKG AND CONTROL . Promoting Sales to Secure maximum Dollars . . . . . . . . The District Sales Meeting. Store Sales Meeting . . . Merchandising Each Store. Public Relations and Goodwill Tile Hi E'flt IxIe I‘CllanOl S e e 0 Displaying Lerchandise. . Other Factors Affecting Sales Controlling Shrinkage and Spoilage. Specific Things to Look for in Grocery Department. . . . . . . Things to Look For When Meat Gross is Expense Control . . . . . Wage Control. . . . . . . Safety. . . . . . . . . . Heat, Light, Water, Power Wrapping Supplies . . . . Laundry and Towel Service VII. SUHMARY AND CONCLUSIONS . . Qualifications of a Good Supervisor CS tel 63 65 67 67 7O 71 72 73 76 77 78 8O 81 83 83 85 85 86 86 88 89 CHAPTER PAGE Building a Competent Organization . . . . . . . 90 Operating Records . . . . . . . . . . . . . . . 92 merchandising and Control . . . . . . . . . . . 9h BIBLIOGPBLSEDhY . C O O O O O O O O O O O O O O O O O O O O 99 LIST OF TAB TS TABLE PAGE I. What Makes A Leader? . . . . . . . . . . . . . . 16 II. Weekly Store Report. . . . . . . . . . . . . . . 30 III. Individual Store Operating Statement . . . . . . 33 IV. Produce Results. . . . . . . . . . . . . . . . . 39 V. Store Managers' Period Budget. . . . . . . . . . h? FIGURE 1. LIST OF FIGURES Job Relations Chart . . . . . . CHAPTER I NTRODUCTION Personnel turnover and a paucity of desirable personnel for retail stores are two of the most pressing problems in the food retailing industry today.1 One does not have to look far to see the effects of labor shortages in light of advancing production schedules, construction programs, and our terrific national defense eXpenditures. While such factors as wage payment plans, vacation and sick leave plans, and fringe benefits affect the rate of per- sonnel turnover, there is no one factor as significant as personnel relations when we consider the elements of job sat- isfaction. Sound personnel programs must keep pace with our techno- logical advances in manufacturing and distribution. The per- sonnel department can do much u) institute programs to bol- ster employee morale, but it is the supervisor, or district ;manager who is the company's front line representative in re- gard to employee relations. The production.and morale of the ‘work force in the retail units depend upon his actions and attitudes. The supervisor is typically in charge of and directly re- sponsible for the Operations of from eight to twenty retail lUnanimous opinion of all persons contacted who are at this writing engaged in retail food chain store Operations. units. How.many units a man can effectively supervise will depend upon the caliber of the individual, the size of the stores, the number of employees in the stores, the distance he must travel between the stores in his district, and the details assigned to him. Purpose of the Study Fundamental changes in the nature of food chain Opera- tions have increased the problems connected with effective supervision. The volume of business, diversification Of lines of merchandise handled, and the increased number of em— ployees in the larger markets of today have all had their ef- fects on the need for better supervision. The supervisor Of today is no longer a lead man who performs many of the tasks as his subordinates. The success of Operations depends upon the supervisor's skill in handling people, his job knowledge, and his ability to multiply himself. The purpose Of this study is to set forth the duties and responsibilities of the supervisor in three broad categories: (1) promoting sales to secure maximum gross dollar profit from the stores in his district, (2) controlling store ex- penses and other eXpenses consistent with maximum sales, and (3) developing and maintaining a competent organization. It is hOped that an understanding Of these three basic fundamentals will help to establish a clear picture Of the supervisor's duties and reSponsibilities, thereby improving 3 the relations between peOple in the stores, in other Opera- tions, and among all levels of supervision. Improved super- vision, with added emphasis On personnel relations, will im- prove employee morale with resulting increases in sales and profits. This study can also be of assistance to those aspiring to a career in food retailing as the position of supervisor is Often the first step up the ladder after successful store management and is, in itself, a necessary background position for attainment of higher level jobs in merchandising and other capacities. Need for the Study Undoubtedly, the studies of human relations and effec- tive supervision have not kept pace with other advances in manufacturing, transportation and economic studies. The greatest weakness in supervision is not inadequate job eXperience or insufficient knowledge Of the business, but the lack of leadership ability.2 Inasmuch as the store manager is in a position very simi- lar to that of the supervisor, except in a lesser degree, many of the fundamentals presented herein can well be applied by store managers and those men in other supervisory capaci- ties. 2John A. Jones, Webster Services, Division Of Safeway Stores, Incorporated, San Francisco, Cal. Written Communica- tion, June 18, 1953. The supervisor needs to know exactly what is expected of him in order that he can coordinate and plan his activ- ities more accurately to do the most efficient job. By rec- ognizing and developing the traits needed for good supervi- sion, the supervisor will be able to minimize employee fric- tion and release more of his time to be consumed in planning merchandising activities. Limitations of the Study It is not within the sc0pe of this study to exploit fully the aspects of selecting and develOping supervisors, but rather to investigate the complexities of the responsi- bilities involved in effective retail food store supervision and what the individual can do to execute these responsibil- ities. The types of supervision used will vary with different companies Operating in different areas under various condi- tions. Some companies still use dual supervision; that is, they employ one man who supervises the meat Operations with- in a given territory and another supervisor to oversee the grocery and produce departments. Of the #7 companies repre- sented at the National Association Of Food Chains Store Super- vision Clinic, A majority of the companies reported single super- vision Or plans to change to single supervision from dual. Supervisors with grocery background should be trained in meat Operations and vice versa for meat men. A substantial majority of the companies use grocery and meat managers in the store - few have one over-all store manager. It is not the purpose of this study to compare the at- tributes of single versus dual supervision inasmuch as the basic fundamentals set forth as used in single supervision can be easily applied to Operate within the framework of com; pany policies and procedures as outlined by food chains em- ploying dual supervision. The words "supervisor" and "district manager", as used in this thesis, are synonymous. Method of Research A number of large retail Operators in the food industry were contacted for the possibility of Obtaining Operating manuals which would define what they expected Of their super- visors. With one exception, all the companies contacted either had no such manual for their supervisors or such in- formation was to be kept within the confines of their organi- zation. The writer then resorted to secondary information in- cluding the results Of National Association of Food Chains clinics and supervisor manuals develOped by companies outside of the food industry. Text books, periodicals and company pamphlets served as a fertile field for ideas pertaining to 3National Association Of Food Chains. Store Supervi- sion Clinic.‘ Washington, District of Columbia. l9h9. p. l. human relations and the qualities to be develOped by those men in supervisory capacities. Through information originat- ing in several of the larger companies and from.text books, the writer was able to recOgnize the inherent responsibili- ties Of good food chain store merchandising and control. An adequate number of personal contacts were made to get the feel Of the problem from those men actually engaged in supervisory and higher management capacities in the food retailing business. Ideas disseminated in courses taken in the Food Distri- bution Curriculum at Michigan State College were helpful in recognizing and develOping many of the tOpics necessary for this study. CHAPTER II QUALIFICATIONS OF A GOOD SUPERVISOR Basic Characteristics Needed for Leadership The importance of the supervisor in maintaining good re- lations with employees is widely recognized. is have all seen a supervisor appointed because he was the best worker or be- cause some member of top management thought he was a good man. Often such men turn out to be good supervisors, but very Often they do not. The importance of selecting a man with the right qualities cannot be over-emphasized. The supervisor's attitude toward his company and his employees shows up in so many ways that any faults he has as a supervisor are soon multiplied to the point where they become 'front Office' problems. The use of tests to determine whether or not men will be successful supervisors must be done with cau- tion. General experience is that tests may indicate peOple not fit to be supervisors, but will not neces- sarily show those who are competent. Use tests to 'cull out.' It was noted that the man with too high an I. Q. sometimes cannot get along as well with other men - he may be too bright. The man below a given level is 'tOO dumb.‘ we must hit a medium. Se- lection of supervisors is almost always from.the ranks of store managers. Select a man who has a good record covering inventory, housekeeping, personnel, and sales. In small and.medium sized organizations, approval of 2 selection of supervisors is given 'by tOp executive.’ l 1General Electric Company. G. E. Selection Program.for Supervisors. Lockland, Ohio. 1952. p. 3. 2National Association Of Food Chains. Store Supervi- sion Clinic. Washington, District of Columbia. 1949. p. a. 8 The greatest weakness in supervision is not inadequate job experience or insufficient knowledge of the food busi- ness, but the lack Of leadership ability - the ability to ‘/’ select, train, and direct the efforts of others in the accom- plishment of pre-determined Objectives. The supervisor in retail food Operations must be a medi- um for the flow of orders from the central Office to the ‘ store level. He is a sounding board from which management gets the feel of operations at the retail level. Jfl Since the supervisor is primarily a dealer in human quantities, let us examine the qualities necessary to effect good human relations. Perhaps it would be useless to attempt to list all the traits desirable in a man to be considered for supervisory work as the omission of any one characteris- tic would certainly be damaging. Among the traits which anyone in a supervisory capacity needs in abundance are: "(1) Innate interest in and affection for people, (2) strength or power Of personality, and (3) a scientific trend of mind."3 An innate interest in and affection for people is impor- tant because in the final analysis the supervisor is a mould- er of human beings. The importance of his personal contacts can best be recognized by Figure l on page 9, which is a 3Erwin Haskell Schell. The Technique of Executive Con- trol. First Edition. New York: McGraw-Hill Book Company, Inc., 1924. p. 9. FIGURE 1 JOB RELATIONS CHART BRANCH MANAGER GENERAL SUPERVISOR GENERAL 1 ADVERTISING MERCHANDISER MANAGER GROCERY ‘ PERSONNEL MERCHANDISER MANAGER i .__..__. SUPERVISOR g NEAT J WAREHOUSE MERCHANDISER ' SUPERINTENDENT PRODUCE ACCOUNTING ImRCRANDISER DEPARTMENT RETAIL UNITS UNION _‘ AUDITING REPRESENTATIVES ‘ CREWS DELIVERY COLB‘IUNI TY LEN ' RELATI ONS J MAINTENANCE CREW CONSTRUCTION AND l SAIESRLEN ' 10 chart indicating the job relations of a supervisor in a chain store organization. Success in handling men requires constant interest and continuous thought. Many of the supervisor's most effective tools can be forged out of his sincere affection for his men and the hastening of their self-improvement and progress. The supervisor's problem of human relations is complex, ever changing and always defying standardization. Strength or power of personality is a quality which is difficult to define. It is a quality which is not confined to any particular type of physical or mental make-up, but seems to be a vigor Springing from the nervous system. Many times this quality does not Openly manifest itself, but gives the impression of reserve force which may be drawn upon if needed. It may be evident in a man's forcefulness of speech or gesture or it may find outlet in a sturdy determination which never lessens until the goal is reached. Inasmuch as peOple are extremely sensitive to this qual- ity in other pSOple, it is one of the basic elements justify- ing a natural right to authority. The third quality, a scientific trend of mind, is strongly essential for those in supervisory capacities. The supervisor is constantly faced.with problems that yield most . readily to the analytical approach of the scientifically minded thinker. The technical problems involved in coordi- nating the work of men, materials, and equipment so as to get 11 a maximum of output with a minimum of waste are often com- plex and require solution well in advance of their actual doing. The efficient supervisor must be a man who can win recj ognition through preventive rather than curative action. Thus, to plan for the future and schedule the work of others requires a process of thought which is definitely scientific in nature. These three traits, interest in and affection for people, power of personality, and a scientific trend of mind, may be said to be outstanding requirements for anyone who must de- pend on getting results through other pe0ple. It is also true that the supervisor should be a man of moral uprightness, physical vigor and a given level of in- telligence.’+ However, these latter three qualifications will not distinguish a supervisor from.men filling other Job ca- pacities. In other words, if a company were considering a man to fill a fairly responsible position such as store mana- ger, it would look for men of moral uprightness, physical vigor, and a given level of intelligence; then, to select a man for supervisory work, it would necessarily include these three attributes plus the requirements of interest in and af- fection for people, power of personality, and a scientific trend of mind. thid., p. 13. 12 EXperience and educational training are, of course, req- uisites for supervisory jobs in food retailing. Such train- ing and education, however, can only be developmental - they can only make effective the innate resources of man. ‘With this thought in mind, many companies select supervisors only after they have had the Opportunity to observe the perform- ance of the individual in lesser jobs; this fact alone has led many companies to develOp long range personnel programs in order that supervisors may be developed from.within the organization. "The individual himself and his qualifications for su- pervision are more important than variety of eXperience in grocery, meat, and produce."5 Job knOwledge is also impor- tant as it enables the supervisor to manifest better leader- ship qualities in dealing with specific problems arising with- in the retail unit. Qualities Needed or to be DevelOped to be Effective Instructor Aside from being a leader, the supervisor must be a man of superior ability, judgment, and he must be a capable in- structor. He must either possess or develop the following qualifications: (1) A keen interest in the food business, 5National Association of Food Chains. Supervision. Special Bulletin Number 30. Washington, District of Columbia. 1951. l3 (2) A complete knowledge of store jobs, (3) A personality that can inspire confidence and stimulate interest, (A) A complete knowledge of his responsibilities, (5) A knowledge of federal and state laws govern- ing the sale of food, (6) A knowledge of the laws governing the employ- ment of peOple in the State in which his com- pany operates, (7) A working knowledge of union contracts nego- tiated with his company, (8) A complete knowledge of all company benefit plans, (9) His manner should be firm but friendly, (10) He should be patient and sympathetic towards employees' problems and be able to put himself mentally into their position, (11) He must be a skillful trainer, (12) Have or acquire skill in planning, (13) Skill in leading and, (lh) Have a complete knowledge of the food business and his company's policies as outlined in its manuals and guides. Table I, on page lh, is a Simplified chart showing the qualities needed by a leader and how to develop these quali- ties. This coverage is by no means all inclusive of the in- tricacies involved in setting down the qualifications of a good supervisor, but the writer feels it is adequate inasmuch as it approaches the problem from the standpoint of what the individual can do to improve himself; thereby attaining more 1h TABLE I WHAT MAKES A LEADER?* Qualities Needed by'Leaders How to DevelOp or 1 Improve Them Physical and nervous energy Keep fit Conserve your energy Direct it prOperly Sense of purpose and N Self examination: direction Just where am I headed? What are we trying to do? Enthusiasm Maintain vigorous interest Be human - Let yourself go! Friendliness and under- standing (Open-mindedness, patience) Know subordinates personally Be considerate and cordial Develop personality Integrity Be loyal to yourself and your subordinates Technical skill (knowledge of his field of work) Constant study, training and improvement Decisiveness (self-confidence) Get all the facts Make a decision - and act: Be willing to experiment Intelligence W__ Do not overestimate your intelligence. Obtain the advice of others Teaching skill Study teaching methods Practice teaching Faith (Belief in work or cause) Do work you can believe in Overcome pessimism *Source: R. O. Beckman. How to Train Supervisors. Seventh Edition, New York: Harper and Brothers,dlghh. p. 302. 15 satisfaction from everyday life while making easier the at- tainment of business goals. CHAPTER III RESPONSIBILITIES AND DUTIES OF THE SUPERVISOR Why a Supervisor Needs to Know His Responsibilities It is not the duty of the supervisor to run the busi- ness nor can the business run prOperly without the supervis- or. Management must let supervisors know exactly what is expected of them and allow sufficient time for the objectives to be carried out. In other words, the supervisor should not be held responsible for details that could otherwise be car- ried out through bulletins or such other media as would prove feasible to accomplish the job. It is essential that the supervisor know and study his responsibilities in order that he gain a thorough understand- ing of his duties. Once he knows the extent of his responsi- bilities, then and only then, can he effectively coordinate and plan the various activities. By reviewing one's duties, it becomes easier to discover neglected duties, duties which have been overemphasized, and to determine which of them can be delegated and which ones cannot be delegated. The supervisor must be able to determine if he is han- dling his job properly, and if the most efficient use is be- ing made of men and equipment. It is the opinion of the writer that the supervisor can do justice to the trust 1? invested in him only if he has a basic job sheet which he can review periodically to check and plan on his own per- formance. Responsibility to Customer, Employees and His Company The first responsibility of the supervisor is to the customer. If the customer is not satisfied, the supervisor has failed. Therefore, in his visits to stores, the district manager must look at the store through the eyes of the cus- tomer. The supervisor is responsible to the peOple who work in the store. He must assist the manager in carrying out come pany policies and instructions. The manager can accomplish his job only through the combined efforts of all personnel in the store; the supervisor must be able to explain to the store peOple why things have to be done in a certain way. A supervisor's responsibility to his company will be carried out if he prOperly takes care of his obligations to the customer and the employees. The actual responsibilities of the district manager can be summed up in three broad categories. He is responsible for: A. Promoting sales to secure maximum gross dollar profit from'the stores of his district. B. Controlling store expense consistent with maxi- mum sales. 18 C. Developing and maintaining a competent or- ganization. Promoting Sales to Secure Maximum Gross Dollar Profit from the Stores of His District I. Support company and branch sales policies and programs. 1. See that stores are selling company products in the correct quantities, with prOper re- gard for freshness and variety, in accordance with company policies. See that all merchandise is sold at not more than the company's established price for the item -- 16 ounces to the pound. II. Effectively execute branch Grocery, Produce and Meat Sales Plan. I. 2. See that all display material is properly used. See that permanent and temporary diSplays are set up and price tagged in accordance with branch display plans. Counsel with manager to see that he has ordered sufficient merchandise to back up sales plan. See that displays are located in the stores to realize greatest sales potential. Have store managers acquaint store personnel with sales plan as it affects their particular l9 department. This refers particularly to department heads. III. DevelOp supplemental sales plans in conjunction with company sales plan for individual stores. Project these plans to store personnel and see that they are properly executed. l.‘ h. 5. 6. 7. Recognize stores which need in-store promotions other than those in the branch sales plan. Analyze results by departments and determine where and what assistance is required to attain desired results. Plan with the key men concerned in regard to the sales plan, the length of promotions, de- livery of merchandise, physical store changes and any related details. Present promotional plans to managers and store personnel. Check on results of promotion to determine soundness of the plan and the way it was executed. Secure from merchandisers or buyers a list of high markup items with good sales volume possi- bilities, and use one or two of these items each week to off-Set low markup items. Promote produce sales. Promote meat sales. 20 IV. Establish necessary controls to insure satis- factory retail shrink. 1. Have store manager explain to you what he thinks is the cause of unsatisfactory re- tail shrink. Request that store inventories be taken on regular schedule in accordance with branch policy. See that store personnel arrive at correct total for all merchandise sold and money placed in the register. Keep entire stock in an orderly manner with reserve stocks being kept at a minimum. See that all store personnel are impressed with the importance of accuracy as it af- fects retail shrink. Recognize and work on a solution to correct store layout and location of merchandise that will adversely affect retail balance. Stress the importance of good clean store conditions to managers as a means of reduc- ing pilferage. V. See that satisfactory loss ratio is maintained for all stores. 1. Compare loss ratio with similar stores, district and branch results. 21 2. Break down loss by departments. 3. Determine whether loss is being caused by over-ordering, improper handling, poor rotation, padding, condition on arrival or late deliveries (particularly bread, produce and meat). VI. See that manager understands how to order prOper- ly to avoid overstocks. 1. Controls necessary for proper ordering. 2. Check Shelf stock and back-room stock. 3. Seasonal demands. h. Be careful not to get manager too conservative: VII. Review the dollar inventory of each store. 1. Explain the importance of stock turnover. 2. Observe turnover of individual items. VIII. Be sure manager knows what to do and how to do it. 1. See that manager understands cause of unsatisfactory condition and knows how to avoid duplication of the same trouble in the future. IX. On subsequent visit check to see whether instruc- tions have been carried out. 1. Check location of displays. 2. Check quantity of merchandise used in displays. 22 X. Execution and follow-up of branch and company policies as they affect stores. I. 3. Be familiar with branch and company policies. This also includes the most current changes or innovations. See that the manager understands and is sold on company and branch policies which affect store operations. Suggest new policies and revisions as the need arises. XI. Supervision of store reports and maintaining neces- sary 1. district records and reports. Maintain only those reports which are auth- orized by the general district manager or the branch manager. Review reports he keeps periodically whether any can be combined or eliminated. XII. Scheduling and organizing his work. 1. Plan in advance the stores to be visited and the date which they will be visited. Arrange schedule so time will be spent where it is needed most. Make provision in plan to handle matters of major importance first. Check on specific instructions which have been issued to stores in bulletins. 5. Include in his folder a written re- minder to check on whether previous instructions have been carried out. Also check on whether requests from and 00mmitments to store personnel have been fulfilled. 6. Make provisions in schedule to handle current conditions and problems. 7. Once each accounting period, review store operating statements with mana- ger and plan corrective measures based on the information received. XIII. Supervise store for conformance with Fair Trade, federal, state and local laws and regulations gov- erning the sale of merchandise. 1. See that instructions issued from time to time by merchandising and other depart- ments are carried out in the store. XIV. Submit recommendations on relocations, remodels, re- arrangements and establishment of new stores. 1. Notify real estate department of desirable rooms in good locations in or near his district. 2. Analyze sales potential in his stores and recommend remodeling or relocation. 24 3. Advise merchandising department of re- modeling, relocation, new Store Open- ings and closed stores of his competitors. 4. Submit recommendation for improvement in equipment or store layout. Controlling Store and Other Expenses Consistent with Maximum Sales I. Control clerk hours per hundred dollar sales in ac- cordance with established schedules. 1. See that stores observe Opening and clos- ing hours. 2. Avoid overtime. 3. Check schedules of full-time and part-time help. 4. Check manager's schedules Of work and work methods used. 5. Break clerk hours down by department in large stores if needed. (Particularly pro- duce and dairy as included in grocery hours.) 6. Encourage manager to give help prOper super- vision for improved efficiency. 7. Check hours used against standard weekly. 8. Is store manager a "working manager"? II. Observe rate schedules established for your branch. III. Control wrapping supplies, store supplies, laundry, cash register, over and short, sundry items, heat, 25 power and light, ice and store repairs in compari- son with similar stores, district averages, and results from previous periods. 1. 7. 8. Know what items are included in these accounts. Encourage prOper ordering, care and use of right size bags, wrapping paper and supplies in stores. Encourage the sale of shOpping bags. Encourage grouping of items into a single package. Use store quota for linen and proper care of linen in store. Check part-time help on use of store linens. Check cash paid-outs of all expense items. Get an analysis Of sundry hired services and check cost periodically. Developing and Maintaining a Competent Organization I. Inventory all store personnel for promotion or elim- ination. 1. Check on performance: if not qualifying find out why. 2. Have best clerks assigned to jobs where they can be most productive. 26 3. Train clerks before reassigning them. II. Cooperate with other districts or departments to place good personnel. III. Select personnel for company training programs and broadening Opportunities in the district. 1. Include managers in produce training to step up sales. 2. Find out clerk's preferences. 3. Include new clerks as soon as possible. a. Include present clerks to step-up per- formance. 5. Follow-up on trained personnel in the store to determine (a) what the clerk learned in training, and (b) is he doing the job the way he was trained. If not, why? 6. Give trained personnel all the responsi- bility they can stand. IV. Maintain and use to advantage trained reserves. 1. Have personnel ready before he needs them. 2. Until permanently assigned, use trained re- serves who have possibilities, to assist store manager to help improve the Operation. V. Be constantly on the alert for personnel WhO'Will strengthen the organization. 27 l. Instruct managers and store personnel to conduct selves so as to reflect only good will for the organization. 2. Stress the need for being on the alert for new employees WhO'Will help to im- prove the organization. The majority Of the aforementioned duties and responsi- bilities are as outlined in the Kroger Company's guide for its district managers. Supervisor Aids Most companies provide the supervisor with a procedure guide or Operating manual to aid in the observation and ful- fillment of his many responsibilities. Management can also aid the supervisor by having tOp executives, including mer- chandisers, visit stores for the purpose of making sugges- tions which will be helpful to the supervisor. Management committees are sometimes used to rate stores, especially dur- ing clean-up campaigns. The personnel department, through its efforts to recruit desirable personnel and to provide prOper training facili- ties, definitely affords an aid to the supervisor. Then, too, the personnel department should provide rating sheets for the supervisor in order that he can periodically review his personnel and provide assistance in hastening their im- provement. CHAPTER IV RECORDS FOR AND BY THE SUPERVISOR Need for Records Most large food chains must provide some system for han- dling standardized activities, i.e., they must have a formal- ized procedure. A system without the use of records would not be very successful as the records themselves are even more tangible than the system. Records are definite, there- fore, the maintenance and improvement of them are important. Records should not be considered ridiculous or unneces- sary detail work for the supervisor, as they should, if prop- erly kept, give facts concerning the Operation of his stores and make possible the elimination of guess work. Most records, with which the supervisor will be con- cerned, are the results of the operations of the stores of his district. Most results are tabulated and recorded into usable form by the accounting department. The types of records required of supervisors Operating in different companies will vary. Many companies require de- tailed information while others give and require information from supervisors only on matters over which he has control. Too few records are costly and too many records are even more costly. The important consideration is to avoid dupli- cation and unnecessary refinement of information, and if 29 possible to consolidate forms. Records which do not give the chain store supervisor comparative information are prac- tically useless. Hence, this thesis will deal primarily with those records used by the supervisor as an aid to im- proving operations. wSekly Store Records On a week-to-week basis, the supervisor is most inter- ested in knowing how each store performed in regard to sales, clerk hours, and the balance of cash. Inasmuch as each store will Send a weekly report to the central Office, one might wonder why the supervisor would need the same information as recorded on Table II, page 30. This same information is ac- cumulated on a period basis by the accounting department. If the supervisor had to wait until this information was processed in the central office and returned to him, there would be a delay of Several days if not a full week. By getting this information from.each individual store which will mail it to his headquarters, the supervisorwwill have this in- formation on Monday morning in plenty of time to notice any serious difficulties which may be prevalent in any one of his stores. The importance of planning his schedule will, in some reSpect, be influenced by the weekly reports he gets from his star es. Upon receipt of this type of information, it immediately becomes apparent to the supervisor the sales volume for each 30 TABLE II WEEKLY STORE REPORT* Store Number xyz Week Ending h-7-53 Same Week Compared to 1952 Previous Week h,500 Grocery Sales $5,000 $+100. 2,500 Produce Sales 3,000 4200. 900 Meat Sales 1,000 + 50. $7,900 TOTAL STORE SALES $9,000. $- 50. CASH Over Short .20¢ CLERK HOURS PER HUNDRED DOLLAR SALES Hours Per $100. Sales **Grocery Dept. 250 h.2 Heat Dept. 125 [Ire 2 Total Store Hrs. 375 A.2 COMMENTS J Manager's Signature “Store Stamp **Includes hours used in produce department and manager's hours. *Source: The Kroger Company. Mimeographed Material. 31 store and if any store is not with the trend, if the prOper amount of clerk hours were used, and how any particular store balanced out on the cash report. In other words, it will inform him immediately where his attention is needed. Explanation of Table II The amounts as listed on the form are not to be inter- preted as realistic standards for performance in actual re- tail Operations. It is a common practice in food chain Operations to com- pare the current week's sales with the previous week, thereby affording a goal to achieve, regardless of whether the previous sales figures were over or short. The total store's sales represent the actual sales as registered on all the cash registers in the store. Cash over or short represents the difference between the total amount of cash the store has accounted for as compared to sales as indicated on the cash registers. Of course, paper trans- actions involving daupons, welfare orders and the like are counted as cash, as are checks cashed for customers. Clerk hours per hundred dollar sales is one way Of meas- uring the cost of doing business. Some companies will com- pare wage dollars per hundred.dollar sales, but the writer feels that the clerk-hour method is better inasmuch as the manager of the store has no control over the dollar wages paid to his employees. Oftentimes the basis for determining 32 how many clerk-hours are needed to run a store is the result of the performance of the more efficient Operators. Typic- ally, self-service stores can Operate on less clerk hours than the service type store and this fact must be taken into consideration, as will be shown later in another type of record used by the more progressive companies. The percent of clerk hours used is computed by first di- viding the sales volume by 100; this amount is then divided by the number of clerk hours used during that particular sales period. Example: The grocery department with $10,000 weekly sales and employing 10 full time clerks each.working 45 hours a week, would have a total of 450 clerk hours and 100 ($100 sales) - 450 hours divided by 100 : h.5 clerk hours per hundred dollars. Frequency of Information from Central Office Once every accounting period, be it four weeks, two weeks or every month, the supervisor should have available to him from the accounting department, a complete record of the store's performance for that period. A report such as Table III, on page 33, is an example of the type frequently used. While records like Table III do not show the actual net prof- it Of each unit, it is sufficient to show the results of all factors over which the store manager and his department heads will have control. TABLE III INDIVIDUAL STORE OPERATING STATEMENT* 33 Store Number Period Ending % of Line Amount Sales Line 1 Grocery Sales $ 60,000 60 1 2 Produce Sales 10,000 10 2 3 Meat SaIes 30 000 30 3 "T ""T 0' T A” 'L" “533m"? S SI , TOO 4 5 GrocerymarkuppProfIt' 9,000 IIIS 5I 6 Grocery Shrinkage andSpoiIage 600 1 6 7" Grocery_Gross ProfItIDollars 8,400’ 514 '7 8’ Produce HarEdp Profit 2,500 25 ISI 9 Produce Shrinkage and SpOIIage 750 3’ 9 10’ Produce Gross Profit Dollars 1,750 22 #10— 1I' Meat Gross Profit DoIlars 4,500 15* 11 12 TOTAL GROSS PROEIT 14,650 14.65 12 Variable Expenses 13 Store Manager's Wages $ 400 0.4 13 IE‘ Grocery Wages 4,000 4 14 15' Head—Meat‘Cutter Wages 350 0.35 I5“ 16I Heat Clerk's Wages 2,000 2 16 17 TOTAL WAGES 6,750 6.75 17 Other Variable Expenses 18 Wrapping Supplies §_ 500 0.5 18 Heat, power, light, water 19 and ice 200 0.2 19 20 .aundry 400 0.4 ”20‘ 21 Cash over and shorE --- --- 2II 22 Sundry hired services 100 0.1 22 23 Store maintenance and repair 300* 0.3 23; 24 TOTAL VARIABLE EXPENSE $8,250 8.25 24 25 TOTAL F 13D EXPENSE 1 000 1 25 26 TOTnL EXPENSE 335,550 9.55 5-0 27 STORE OPERATING GAIN $5.400 5.4 27 *Source: The Kroger Company. Mimeographed material. 34 It is not enough that the store manager or department heads get this information, but the good supervisor uses these reports as a basis for commending a good job or show- ing where improvement is needed. The supervisor keeps these reports in chronological order for each individual store so as to provide a ready reference. The store manager, who al— so receives a OOpy of the record of his ”store operating gain", will also Keep the records so as to be able to com- pare results of any previous period as he may desire. It must be understood that these results can and should be in- terpreted by the store manager to guide his Operations and to inform him what department or details need attention. The Operating results for each individual store would mean nothing in themselves, so every accounting period the district manager receives a composite record to show the aver- age performance for all the stores in his district, plus the average results of each point listed on Table III for the en- tire branch. In other words, a store Operating gain of 5.4 percent as indicated in Table III could well be above the branch average, equivalent to branch average or it may fall below the average for the entire branch. It is only when the figures for a given stone can be compared to others that the Operating results begin to be significant. 35 Explanation of Table III The first four items are self explanatory. Item (5), grocery markup, is the total dollar profit of all grocery merchandise ordered by the retail unit. Realizing that all merchandise is charged to the store at retail price, and in- ventories are taken at retail price, it would be necessary to record each individual item in the store when taking in- ventory in order to arrive at a 100 percent accurate markup figure, inasmuch as all items do not carry the same markup. Therefore, this figure is arrived at by taking the inventory according to commodity gnaups. For instance, experience would tell the accounting department that canned fruits, on the average, carry a certain markup. Consequently, the whole canned fruit section of a store would appear as one section on the inventory sheet. Other commodities would be similarly grouped on the inventory sheet. Obviously, the grocery markup percentage is significant to the supervisor as it can be influenced by in-store promo- tions of the higher markup items. However, it is well to mention that gross dollar profit is the important thing and oftentimes a decision must be made as to the type of commodi- ties to display. For example, a diSplay of a high markup item.may move sufficient merchandise to gross only $100, while convenience goods of a lower markup could well move enough merchandise to gross more dollars deSpite the lower markup. 36 Item (6), grocery shrinkage and spoilage, is the item commonly referred to as "stock shortage". The merchandise in the store at the beginning of the period plus purchases minus sales accounted for through the registers indicates the amount of stock that should be in the store when inventory is taken at the end of the accounting period. However, pilfer- age, breakage and markdowns on perishable items such as; .cakes, bread, and milk, will often result in short invento- ries. A shortage of .5 of 1 percent on grocery items is not considered abnormal by many companies. In the event the supervisor notices this percentage to be above what is ex- pected, it will be his signal to confer with the manager to see what is causing the excess shrinkage and what steps can be taken to remedy the situation. Produce gross, item (10), is comparable to grocery gross as is the meat gross. However, it is difficult to measure shrinkage, as such, in the meat department since there are so many different items with varying margins of profit. There- fore, the meat gross can be significant only as compared to the over-all branch results. It must be realized, however, that there are certain groups of items which traditionally carry a higher markup than the average of all meat items and should be recognized as such for promotional activities. 37 Variable EXpenses All wages, as such, are not under the control of the supervisor or store manager. However, the number of clerk hours used will determine what the total wage dollar expense will be. The supervisor will balance his organization inas- much as he will provide for the dispersiOn of experienced personnel throughout the stores in his district. Store managers should not be penalized for having clerks who draw top wages due to seniority. Rather, the store mana- ger who can keep his help long enough for them to reach the tOp pay bracket should be commended. The fact that the long- er employees remain on the job the higher their base pay is reason enough to calculate clerk hire used on the basis of clerk hours in preference to wage dollars per $100. sales. The total wage percentage, however, can often indicate that the clerk hour schedule is not in line. All other variable eXpenses are controllable and must constantly be scrutinized. A good axiom.to use in regard to wrapping supplies and laundry is, "Do you have all you need? Do you need all you have?" In other words, supplies should not be "skimped on" to the extent that customer service or the general appearance of the store will suffer. Frequently management holds Operations meetings to call attention to variable expense factors which are running a little high. The supervisor, in turn, counsels with his 38 managers and makes them more aware of the need for closer control of eXpenses. Item (27), Store operating gain, is not a net profit figure by any means as the overhead expenses of the office, warehouse and transportation costs, and advertising have not been prorated to the store. It is advisable to give the supervisor such information as is necessary for him to deter- mine what percent of Operating gain is necessary for any one unit to Operate at a net profit. Types of Desirable Records Aside from getting the information illustrated in Tables II and III, it is helpful to the supervisor, as well as his managers and department heads, to get a composite result for the various departments, including a district average as com- pared to the branch average. Ionthly records, filed by departments, can and do facil- itate the supervisor's task when he wants to conferwNith the department heads. Information, such.as Table IV, page 39, is anxiously anticipated by employees and is a means of building a compet- itive Spirit as it immediately becomes apparent to the mana- éer and department head the exact position of their perform- ance as compared to the branch and district average. 39 .Hmwnmpmz conmwmwomafiz .hdmmaou HmonM one "oondom* *meaemmm woeeomm >H mqmme m.OH OH 049 mm mm OH+ .ONN+ .OON.N .OOO.N .Hm>¢ nothm o o o a o A. o.H®>¢. m OH OH ma+ am mm m + 6am: 06a m 006 m pages amen m.oa oa so. em mm OH. .oome .oom.m .ooo.m oa m.oa OH 0:. mm mm 6H. .oomq .oom.m .ooo.m m m.oa OH 0:. mm mm ca. .oom+ .oom.m .ooo.m m m.oa oa we. 6N mm OH. .oomq .oom.m .ooo.m e m.oa oa Nee 6m mm oa+ .oom+ .oom.m .ooo.m 6 H.m OH wmau ma mm can .oom- .oow.a .ooo.m m m.oa oa mm+ em mm OH. .oom+ .oom.m .ooo.m a m.oa OH 6 + mm mm oa+ .oom+ .oom.m .ooo.m m m.oa oa mm- Hm mm 0H. .oom+ .oom.m .ooo.m m m.oa oa mm+ am am oa+ .oom¢. .oom.m .ooo.m H coanmm oofiemm ammonomm woflhmm cofinmm pamonmm mhwaaom . ooanmm voflnmm 02 m :9 msowpoum no ammonocH m as mso >onm . II H H H omwmsoom so ommmsoQH mama msofiposm osopm madam whopm mamaaom owmpaoonom mmamm modem Hmpoe yo pdooamm pagonm mmonc pflmonm mmoew mmuomua museum sonnmm a nonhuman 40 Explanation of Table IV It is apparent to the supervisor that his district in general has made progress in produce sales. However, the increase is not as great as the branch average. The branch maintained the same gross profit percentage as the previous period, but district number one had 1 percent less gross profit percentage than the previous period. It is obvious to the supervisor that all of his stores are keeping pace with the branch trend except store number five. Store number five snows only 19 percent gross profit percentage compared to the branch average of 25 percent. Al- so, proauce sales in store number five have fallen to 8.1 percent of total store sales while the branch average has climbed to 10.5 percent. This store has definitely lowered the average results for the district and requires the imme- diate attention of the supervisor. The percent of total store sales is important as a basis for determining how efficient a produce Operation is within each store. Commodity Records The information listed in Table IV is indicative of the type of records that the supervisor frequently receives on any commodities that management wants emphasized. For ex- ample, many chain organizations try to push their private brands of coffee; not because cOffee is a high markup item or 41 not necessarily because of its volume, but rather because the customer can only buy the private brand in stores of that company. Once a coffee customer is made, the customer must at least shop one of the company stores. Information on dairy department sales, frozen foods, and cookies are frequently presented to the supervisor, ex- pressed as a percent of total store sales. Summary Records of Store Operations There are significant variations in the Operations of stores with different sales volume. The larger stores are apt to be more efficient as a result of newer fixtures, more complete lines of goods and higher unit sales per customer. Therefore, such information as recorded in Table IV on page 39 might indicate that the larger stores in the district are in a very healthy condition when compared to the district average or even the branch average, without due regard for the differences in the size and type of Operation. To get an even better picture of the Operating results of each store, management can make available to the supervis- or, a summary of store Operations every six months or so, and classify all stores in the branch according to sales volume - giving the same results as presented in Table IV. Each store in the supervisor's district could be com- pared to other stores within the branch which are similar in sales volume. It is not unusual to find a spread of 25 42 percent in clerk hours or store Operating gain between the largest and smallest store. Of course, sale volume alone is not a true indication of how efficient a store is Operating when compared to a similar retail unit. Such a factor as fixed expense might well make the difference in some cases and this should be recognized in analyzing cumulative reports for the purpose of showing where improvements are needed in any one unit. The writer does not wish to imply that the records men~ tioned are all inclusive, but operating results are the foundation for most records kept by the supervisor and for him by the accounting department. Inventory Reports In a large organization, it would be an impractical, if not impossible, task to take the retail inventory of each unit on the same day. As a matter of fact, companies employ- ing separate crews to audit stores have their inventory crews working five or six days a week which means that inventory results are forthcoming 20 or 25 times each month. If the supervisor were to wait for these results until all his stores had been audited, he would obviously get information on some stores a few days after the inventory was taken, while, in other instances, the information would be three or four weeks old. The objective is to get this information to the supervisor as soon as possible; therefore, it is essential 43 that a separate record of each inventory be sent to the supervisor as soon as inventory results have been computed by the accounting department. Meat and produce inventories are usually taken by store personnel at the end of each period and consequently this information is included in the store Operating statement. It would be helpful, however, to send a OOpy of inventory re- sults to the head of the meat and produce department. In- ventory results are always anticipated by store personnel, and affords them the Opportunity to think about the means for im- proving control before they are actually approached by the supervisor. Store EXpense Items Store expense items include any sundry items purchased within the retail store and are recorded on a Special form by the store manager to be included with his weekly report when sent to the office. The results of such expenses are called to the attention of the supervisor on the regular accounting period Operating statement. As an added measure for insuring further control of store supplies that are normally ordered through the company warehouse, some companies require the supervisor to approve the requisition of such items as step ladders, scotch tape, fluorescent lights, meat knives, and stamping equipment which are listed on a special form carried by the supervisor. This method of control may or may not be 1+4 important, depending upon how expense-minded managers and department heads are and how much latitude is given to them. Periodically the supervisor attends Operational meet- ings where expense items are discussed and goals set for better control in the subsequent Operating periods. Personnel Records It is essential for management to know the location of all personnel for payroll records. The supervisor, in bal- ancing his organization, will necessarily transfer personnel at which time he should make out a transfer report. A OOpy of this record is sent to the personnel department and gives the position, pay rate and location to which the employee was transferred. It is good policy for the supervisor to fill out separa- tion forms on all store employees leaving the company. By so doing, the influence of personalities can be minimized, as oftentimes a good employee may not work well with one manager, but might well prove to be valuable in.some other retail unit. Then, too, an employee can be transferred to other locations by the supervisor'wmere the authority to make such transfers does not lie with the store manager. Check Lists and Other Aids It is highly probable that management can aid supervis- ors by providing them with a check list of various things to 45 look for in all the departments of the stores. Such a check list is used to aid the supervisor in noticing if faults have been corrected since his last visit to the store. A OOpy to store managers and department heads gives them con- crete information on what departments or items need their immediate attention. Then, as a matter of good policy, the supervisor should check weights in the stores, a OOpy of which.is sent to headquarters. Budgets It is the budget that stimulates thinking in terms of present and future retail Operations. The budget is usually the first order of business, but is mentioned last in this presentation as an understanding of preceding records is necessary in order to arrive at logical goals in budget-making. At the beginning of every fiscal year, t0p management will try to estimate sales for the coming year, what percent of profit will be needed from these sales in order to cover the estimated expenses and amortization of fixed assets, and how the necessary sales volume can be achieved. In other words, the company budget must be borne by the districts and each district must rely on the stores within that district to bear its share of business. The supervisor submits a budget, which is a projected estimate of what the sales volume in his district will be for 46 the coming year, along with expenses and a projected profit. In turn, the supervisor indicates to each store manager the necessity of the budget and the significant part the store plays in the group effort. To stimulate thinking in terms of adequate promotion of sales and control over items which will make for a good Operation, the store budget, Table V, page 47, is presented to each store manager. EXplanation of Table V It is apparent that all items appearing on the store Operating statement, Table III, are the same as those appear- ing on the budget. The store manager, who has a complete record of all pre- vious periods to use as a basis, will fill out his budget after the supervisor has counseled with him on the items which need improvement. It may be that the particular retail unit has been lagging in sales compared to other stores and the branch as a whole, or it may be that expense items have been running a little high and the manager must be made con- scious of the need for controlling such eXpenses. The store manager is encouraged to be Optimistic and rea- listic in making out the budget. If the budget is not real- ized, the supervisor is to encourage the manager to further analyze his Operations to see why he missed the goal. The budget is a stimulating tool and is not to be used as a basis for a reprimand. 47 TABLE v STORE MANAGERS' PERIOD BUDGET* SALES Grocer ooooooooooYooooooooooooooooooooooooioooooooooopooooooooo... Produce Total Grocery and Produce O'Dogggyooooooooooooooo00000000000.+ooooooooookooooooooooo. 4 2 3 5 TOTAL SALES 6’ Grocery Markup Profit T 7 8 9 O 0.0.0..........OOOOOOOOOOOOOO......4....Ol.......OOOOOOCOOO. Grocery Shrinkage and Spoilage % Grocery Gross Profit % Produce markup Profit % O ......OOOOOOOOOOO .....OOOOOOOO0.001’00000.....POOOOOOOOOOOQ 10 Produce Spoilage % ll Produce Gross Profit % 12 TOTAL GROO. & PROD. GROSS PROFIT % 13 Meat Gross Profit % 14 TOTAL GROSS PROFIT % 15 Store Manager's Hours 16 Groc. & Prod. Clerks' Hours 17 Total Groc. & Prod. Hours Per $100 Sales 18 Head Meat Cutter's Hours 19 Meat Clerks' Hours 20 Total Meat Hours Per $100 Sales 21 Wraoping Supplies .......... ... .....T.................................... 22 Store Supplies S 0......0......0.........OOOOOOOOOOOOO....OOOOOOOpOOOOOOOOOOOO 23....9ese.ovar.&.$t9r§.f % @000............OOOOIO.......OOOOOOOOO 24 Laundry Cost 3 d 25 Hired Service S ‘99.} *Source: The Kroger Company. Mimeographed Material. 48 Management must exercise much care in the selection of records, in order that the supervisor have such information as needed to guide his Operations, but not to burden him with too many details. Records for the supervisor must be fully understood lest they be misleading and he must under- stand and appreciate his responsibility of keeping records to aid his own planning and that of management. CHRPTER V BUILDING A COHPETENT ORGANIZATION Position of the Supervisor in the Organization In many reSpects, the job of a chain store supervisor can be compared to that of a company commander in the army. The company commander is in charge of the basic fighting or Operating unit of the division, and although he has the bene- fit of advice and assistance from his battalion commander and division staff officers, he is solely responsible for the success of his unit in battle. The chain store supervisor has the benefit of assistance from his immediate superiors and men in staff positions, but he is solely responsible for the success of all the stores within his district, the store managers being his platoon oohmanders, so to speak. Like all other executives, the supervisor is reSponsible for getting results through the efforts of other people. He is reSponsible fOI'and to other peOple in achieving objec- tives through cooperative group effort. In addition to know- ing the job itself and knowing company policies and proce- dures, he must first be able to build and mould his subordi- Iuates so as to form an organization capable and willing to carry out the objectives of the company he represents. It is Obvious that the supervisor cannot be expected to personally Opaqate all the stores within his district. The task of 50 running the stores belongs to the store managers whom the supervisor must counsel and aid in the selection, training, and delegation of tasks to store employees. In building a competent organization within each store, people, not things, are the most important factor."The sig- nificance of developing a Sincere and continuous interest in the handling of human relations cannot be over-emphasized. Principles Underlying a Good Organization In order to demonstrate the principles and practices necessary to good organization, the capable supervisor will: 1) Plan for the needed manpower. He must seek out the kind of talent he needs. He knows Specifically what person- nel he needs now and will anticipate his future needs. He will spare no effort to attract potential personnel to his organization. 2) Train his peOple. He will realize that people learn by doing; they grow on the job with proper interest and super- vision. It must be realized that men have to be assigned responsibility and allowed a: make mistakes in order to learn to stand on their own two feet. Each clerk in each store must be given assignments which will strengthen his weak— Imzsses and utilize his abilities most effectively. The entire success of store Operations depends on how he develOps and makes use of the capabilities of others. He gives them the Opportunity to show what they can do. 51 3) Counsel employees. He will take a personal interest in each man's welfare and progress. By advising and counsel- ing with each man, he will let him know where he stands, how to do a better job, and will offer him encouragement. He visualizes the job the individual will be most capable of do- ing with proper guidance. 4) Provide Opportunities for participation. He will provide for maximum individual participation in the group ef- fort, each man knowing what his job is and how it contributes to the end result. When each man feels that he is consulted and plays an important role in the operation, wholehearted interest and OOOperation will be forthcoming. 5) Create an attitude of confidence. By how the super- visor acts and what he says, he can very easily create an en- vironment of confidence. He will recognize that the relation- ships between him and his men will determine whether or not they will grow and develop on the job. It must be the rela- tionship of a leader, not a boss, and must be founded on the basis of reSpect for each individual. The supervisor must recognize that it is not an easy process to develOp the kind of relationship which makes employees want to give their best. 6) Give fair treatment to each individual. The good supervisor will be absolutely fair and his men can count on a fair deal. Every man must know that he will be judged fairly according to his own point of view. 52 7) Provide for prOper induction of new employees. The first few days for anyone on a new job are the most trying, eSpecially if the person is new to the type of business ac— tivity. "More can be done to make or mar the new employee's future in the first few days than in weeks at any other time."1 The good supervisor will realize the importance of eliminat- ing the feeling of awkwardness and ignorance that is preva- lent in new employees. He will counsel with store managers to emphasize the need for making new employees to feel "at home," have a complete knowledge of their employment condi- tions, a feeling of pride in "his store" along with an under- standing of the importance of company rules and regulations. 8) Attempt to match.nen.and jobs. By knowing the re- quirements for each job, the supervisor will talk personally to employees to determine their background training, educa- tion, and attempt to match these factors with the requirements of a specific job. Once a man is assigned, he must be kept under close supervision until he is satisfied and prOperly in- structed so he can intelligently proceed to carry out his duties. 9) Develop depth in his organization. By providing for participation for employees with the potential, the supervis- or can and will develop reserves before he needs them. 1George D. Halsey. Handbook of Personnel Management. New York: Harper and Brothers Co.,’I947. p. I09. 53 10) Periodically rate employees for improvement. Some means of determining the relative value of an employee is an indispensable phase of management.2 Regardless of the type of rating system used, it should assist the employee to se- cure recognition for good performance and show him where im- provement is needed. The capable supervisor will recognize the rating system as an aid to help him organize his ideas and to know his men better. It will provide Opportunities to discuss with each employee how well his job duties and re- sponsibilities are being met and to make suggestions for im- provement in carrying on the work. The rating of employees, if properly administered by the supervisor, will serve as an aid to the functions of higher managenent. "The rating of the individual can serve as a basis for personnel actions involving promotions, trans- fers, dismissals, layoffs, and demotions."3 11) Set standards of performance. The supervisor will demonstrate high standards of performance in his conduct at all times. It will give him the strength to be frank and firm. The example set by the supervisor must be a standard for his men to emulate. 2Frank Cushman and Robert W. Cushman. Improvin Su er- vision. New York: John Wiley and Sons, Inc., I§E7. p. 255. 31bid. 51+ Emotional and Psychological Tools Since it is the supervisor who will set the standards of conduct for inSpiration to his employees, and since it is he who will provide the inspirational leadership, let us ex- amine some of the executive "tools" which might well be ap- plied in the over-all develOpment of his organization. The executive tools of which the writer Speaks are of an emotional or psychological nature and will not appear in the form of words, but rather they form an atmosphere of dis- position. It is up to each individual to develop his own diSposition in keeping with his personality. The important thing is that one in a supervisory capacity be conscious of develOping personality traits in himself that will minimize emotional frictions and at the same time produce definite, positive results in employees. The writer, in attempting to ShOW'hOW certain emotional displays can help the supervisor to get the desired results through other people, will use the approach as presented in a book entitled, "Technique of Executive Control", written by Erwin Haskell Schell and published by the McGraw-Hill Book Company in the year l92h. If the supervisor will think of certain tools as produc- ing certain results, he must take time to analyze each one of the traits to be presented in light of his own personality. What enthusiasm, for example, means to the writer may be en- tirely different from the way in which it will be interpreted 55 by the reader. Therefore, it is extremely important that the reader ask himself "How do I look at this situation and would I use the 'tool' in the manner mentioned? Does my personality allow me to use it as suggested in this presen- tation?" If we first approach the task of stimulating employees, we would undoubtedly place enthusiasm high on the list. En- thusiasm is contagious - it breathes faith into the project and concentrates attention on the task at hand. Remember, enthusiasm is emotional in nature and hence, it cannot be continuous - it waxes and wanes. It is easiest to arouse when a new project is started, but save some for the final stretch. Too much enthusiasm can be dangerous as it can dis- turb mental tensions to the point where inaccuracies will arise. Visualize the satisfaction that will accompany accom- plishment and enthusiasm will be forthcoming. Cheerfulness is another stimulating tool; it is a never failing source of stimulation. The supervisor should con- sciously develop its use. It produces a pleasant mental en- vironment for thought and helps to carry any organization through difficult times. One need not be afraid to be cheer- ful - it will not injure one's dignity, but it will yield far greater returns in cooperation. You can be cheerful and still be grave when need be. To develop sincere Cheerfulness, it is necessary to take a cheerful vieWpoint of things: 56 Unselfishness - employees distrust a selfish boss - es- pecially when he takes unjust credit for suggestions made by others. It is a "must" for anyone in a supervisory capacity to recognize suggestions made by employees and to make known the results of such suggestions. When subordinates are certain that the leader has their interest at heart, loyalty is established: Stabilizing Tools lemhggg clearly belongs in this category. Everyone en- joys dealing with a calm man - it indicates habitual self control. Like many of the other qualities, calmness is con- tagious as during times of emergency everyone watches the leader. Calmness is particularly important where women are employed as emotionalism spreads very rapidly amongst women. Calmness is a product of true thoughtfulness as it is only natural to imitate the emotional diSplays of other peOple. Only conscious self-control enables one to restrain his feel- ings and allow his mind to function unhampered. Calmness comes with thought; to think requires self discipline. Consistency is a tool which breeds a feeling of satis- faction and stability. The executive who is the same, day in and day out, is always welcomed by employees. The good supervisor is the man who does not deviate from his plan, but is consistent enough to recognize its weaknesses. 57 Do not be changed by every whim of circumstance - set a standard of conduct and stick to it. Time Saving Tools Executives who are receptive make it easy for employees to come to them without hesitancy and quickly present the task at hand. Any member of an organization can have close, cordial and even friendly relations with his superior and still not break down any attitude of reSpect and courtesy. The employee is entering strange land when he enters the office of his superior. The method of greeting will help to put the employee at ease and tend to lower the barrier. Some executives have gone so far that they will not talk to a sub- ordinate over the desk; the feeling being that the desk is a natural barrier symbolizing authority which creates an atmos- phere of homage which is restraining. Simplicity is also time saving. Do not attempt to im- press other peOple with your learning or vocabulary. Simplic- ity brings about a mutual understanding and a more intimate contact of the minds - after all that is why we attempt to communicate with other peOple. A novelist once said, "he should Spend more time on our books so that the reader may Spend less." This rule can well be applied to our dealings with peOple; work over any facts 58 to be presented to employees until they can be offered Simply and in the language of the listener. Frankness brings economies in time also, for frankness in the leader encourages frankness in employees. There is no need for mental reservations, no need for beating around the bush; lay the facts on the table so the problem can be attacked without delay. Many well-meaning peOple are not candid because they dislike saying a thing which might bring offense. Never be- come angered by a fact: Conforming Tools From the employee's vieWpoint, firmness is a welcome ex- ecutive quality. Firmness brings confidence and conformance to the will of the leader. The executive can be mild, but firm; it simply means that he faces his problem squarely and with assurance. Firmness is the quality wnich protects the supervisor's judgment from the influence of other personalities, but it need never close the door to reason. We have all heard a great deal about £333. Tact does not mean the avoidance of unpleasant tasks; it Simply means appealing to the positive moods of the individual - such posi- tive moods as loyalty, duty, and justice. Tact is also a means of removing from the individual the influences of nega- tive moods such as hatred, resentment, suspicion or anger. 59 When influenced by negative moods, an individual is rarely cooperative; hence, tact is a good conforming tool. Remember it is demoralizing to hurt the pride of an em- ployee or to injure his feelings in any way. It is demoral- izing to arouse an employee's anger or resentment towards another; the tactless person often does these things unin- tentionally. Tact is born of a regard for the personalities of others. The greatest ignorance of our educated people of today is ignorance of ignorance -- in other*words, we oftentimes demand undue haste without due consideration for the limita— tions of the individual. Tolerance and patience are a "must" for the supervisor. Employees cannot be expected to grasp new ideas and things as quickly as their leader - if they could, they would not be employees. It is more difficult to determine what is best to overlook than to discover what to criticize. Restraining Tools (for the Individual) Dignity is a requisite for every position of authority. It should merely be a symbol of assurance that the reSponsi- bilities which accompany authority are not being treated lightly. Dignity does not infer solemnity, but rather it should represent the individual's desire to give the best that is in him in meeting his responsibilities. It cannot be simulated - 60 it must stem from a Sincere appreciation of one's responsi- bilities. Courtesy to employees is another way for the supervisor to manifest his recognition for the need of good human rela- tions. Courtesy to subordinates or employees lessens the possibilities of negative moods and enables the organization to function more smoothly. Courtesy does not require ceremony; it is an outward regard for human sensibilities and the man who develops its use will be reSpected. Last, but not least, the Supervisor must think in terms of develOping qualities, in himself, that will help to fash- ion loyalty. Kindness and friendliness are undoubtedly super weapons. It is not enough to merely feel kindly disposed or friendly towards employees, the good leader Shows his kind- ness and friendliness. Oftentimes peOple remember such acts above all others and build their loyalty on that basis. It is not necessary to go out and search for the Oppor- tunity to evidence these qualities, but it is the wise man who is watchful for the Opportunity to capitalize on his self-imposed assets. Not one of these qualities can be purchased outright, nor can they be fashioned for us by another - each man must develop them for himself through a process of strict 61 self-disciplining. Benjamin Franklin in his autobiography explained how he took one virtue at a time and practiced its use until it became a habit. Regardless of how much planning a supervisor puts into developing himself and his organization, there are bound to be problems arising which will require his personal atten- tion. Host serious grievances are an accumulation of petty grievances, which if they had been prOperly handled at the time would never have developed to any serious prOportionS. How problems with individuals and groups are handled will, to a large extent, determine how often the personal attention of the supervisor is needed. There is no magic formula for handling personnel prob- lems as each person is different and any solution to all problems defies standardization. However, a logical, common sense approach is within the reason of those who Will recog- nize and study it. Iandling Personnel Problems The boss orders the action he desires, but the leader secures the same action by guiding the thinking of the indi- vidual. In other words, the supervisor can handle best prob- lems dealing with people by using a directed discussion. First, the problem must be clearly and completely stated so there can be no misunderstanding and the employee will agree on the objectives to be accomplished. Once both parties 62 are fully aware of, and agree on the problem concerned, the employee should be encouraged to express his ideas and opin- ions. An employee's Opinion is a fact to him and must be regarded as such. In the process of the employee presenting his viewpoints, the tactful supervisor will ask questions to direct his thinking along the prOper channels. The leader must be careful to keep the discussion on the immediate sub- ject and not allow himself to be led away by the introduction of irrelevant facts. Each fact must be discussed until a conclusion is reached. Then the next problem can be attacked. The leader must recognize any ideas presented by his subordinates and use them to crystallize an agreement. An agreement, when reached, should be permanently recorded as a basis for a future follow-up. During a directed discussion, it is important for the leader to be patient, and, above all, to avoid sarcasm if the individual fails to produce the ideas expected of him. In the final analysis, a satisfactory solution can re- sult only if the agreements reached are summarized, and the individual or group gives a commitment as to what action will be taken to improve the problem discussed. The supervisor will then express his intent to follow-up to see if the prOp- er action has been taken. 63 Brief Summary It would be folly for the supervisor to expect maximum sales and profits from his stores if he had not first con- Sidered the importance of good organization within each store. The supervisor accomplishes his objectives through the personal contacts and observations he makes when visiting the stores of his territory. How well he can plan to cover his territory will in no small degree be dependent upon the organization of the will of his employees. A supervisor may have to visit each store twice a week, and he may have to Spend two or three hours in each store examining it through the eyes of the customer. The size of the store, the number of employees, and the ‘istance between stores are factors governing the supervisor's time to be Spent in stores. These factors he cannot control. However, the caliber of personnel will, to a degree, determine how much personal attention the supervisor must give each store in his district. It is to the supervisor's advantage to develop personnel who require a minimum of counseling and per- sonal supervision. In order that the combined efforts of all employees will make for an efficient operation in each store, the supervisor must know and realize what the employees expect of him as their leader. He must know each individual personally and try to determine each person's interests and aptitudes and how Oh they can best be used. He must understand fully the reasons for treating each person as an individual and be able to cope with group as well as individual problems. Again comparing the supervisor to the company commander in the army, there is one significant difference. The com- pany commander maintains his organization through absolute headship and authority, while the supervisor in the retail food industry must be a leader spontaneously accorded by all. CHAPTER VI MERCHANDISING AND CONTROL The food chain organization finds one of its greatest advantages in its ability to multiply the knowledge of each one of its specialists. Specialists in the central office can multiply their knowledge as many times as the number of retail units in the organization. In other words, to take full advantage of having specialists in charge of such activ- ities as; buying various products, accounting, advertising, Jarehousing, and personnel, means that these functions must be standardized in the retail units to a degree. With all the specialization that can be develOped in a central office, management needs to be certain that each specialist is able to integrate his activities with the over- all Operation. Most specialists are men who have had pre- vious experience in retail Operations; others must be pro- vided with adequate training in order for them to be able to recognize the need for gearing activities to mesh with retail Operations. Management, as such, plans for the purchase of goods, the warehousing, and the selling plans necessary to make a profit if SXpense items are controlled consistent to maximum sales. Obviously, management cannot devise plans which will be ideal for each retail unit. The supervisor projects man- agement's plans to his store managers and must necessarily 66 know the peculiarities of each store and how the individual store can best adapt company plans to its Operation. It must be remembered.that the store manager himself is an ex- ecutive whose natural prerogatives should not be restricted. Instead, the supervisor encourages and stimulates the store managers in the functions of directing and scheduling per- sonnel, and in taking advantage of training, Operating, and merchandising aids presented by headquarters. In order that the supervisor will be able to fully understand company plans as applied to any one store, he must have a complete knowledge of the principles of merchandising in retail food stores, recognize the in—store factors that influence sales, and be able to analyze Operating results to determine the factors that will detract from the gross dollar profit. A business, in order that it be considered successful, must Operate at a profit - lest it be a social or government Sponsored enterprise. The retail food chain business is no exception. Since the retail food chain organization is pri- marily a selling organization, it would seem logical to con- sider first the factors that will affect the gross dollar profit and then to consider the elements that will determine the amount of gross dollar profit remaining for net profit. Net profit, as concerned with this chapter, is the profit re- sulting only from the factors over which retail Operations has control. 67 Promoting Sales to Secure maximum Gross Profit Dollars The very nature of a food chain organization necessi- tates that selling plans be made well in advance of the actual selling event. It is customary to project sales plans four to six weeks in advance with enough flexibility to make changes to meet competition and to take advantage of any good buys that can be made in the meantime. Regardless of the frequency with which managehent makes plane, it is the super- visor who will see that company sales plans are followed through at the retail level. Management calls in the supervisors and projects plans on items to be featured, advertising, and items to be empha- sized; in turn, the supervisor holds sales meetings for his store managers in order to lay plans well in advance. How well the supervisor conducts his sales meetings and how he follows through by counseling with.each individual store mana- ger will, to a large extent, determine how effective manage- ment's plans will be. The District Sales Meeting It may seem to the casual observer that the supervisor need merely to relay.management's plans to his store managers and they will absorb all of the ideas presented. The truth of the matter is, that the preparedness of the supervisor will be reSponsible for intelligent results. Since the supervisor will lead the discussion, he must apply his intelligence, 68 practice, and use the benefit of his experience. AS men- tioned in Chapter III, the discussion leader must first mast- er himself before he can develop the art of successful group leadership. Each time the superviser conducts a sales meet- ing for his managers, he must constantly try to improve himr self. Of first importance in conducting a sales meeting is the need for preliminary study. It cannot be assumed that the supervisor will get all the ammunition he needs when he attends his headquarters' meetings. He must logically plan what he intends to cover, now he will cover it, and the time he will need to thoroughly cover the subject. The supervisor must be able to answer any possible questions that might arise and, to avoid embarrassment, he must spend considerable time in studying the plan he will present, its objectives, the various phases of the plan, the sequence of thought, and all significant points worthy of special emphasis. Once the supervisor has thoroughly thought out his pre- sentation, he will go tO‘WOIK on props, charts, and any other supplemental information that he feels will be helpful in getting his story across. Only after he has completely thought out the plans for the meeting is the supervisor ready to outline the meeting and start practicing what he will say and how to say it. As the supervisor presents the plans and begins the meet- ing, it is necessary that the confidence of the group be his 69 in order to secure the most beneficial results. Since confi- dence is ordinarily built up over a period of time, the supervisor realizes the importance of contacts made with store managers on the job. The supervisor Should not appear to dominate the meeting, but Should take the attitude of be- ing one of the group. However, he must talk with conviction, be sincere and create enthusiasm in the group by being en- thusiastic himself. The context of the presentation must be SO clear that there can be no misunderstanding. Oftentimes too much dis- cussion or no discussion at all is a clue for the supervisor in_determining how well he is holding the group's interest or whether or not his message is reaching home. Oftentimes no discussion will mean that the group has no interest in the subject or that the supervisor has not ad- justed the plan to fit the needs of the group. It is impor- tant to emphasize what the plan will do for the managers in improving the Operation of their individual store, not what it will do for the company. A lack of interest can become apparent if a certain topic or aSpect of the discussion has been exhausted. The supervis- or should never stand pat on a tOpic which lags or meets with Opposition. He must be ready to go on to another tOpic when its possibilities have been exhausted for one reason or an- other. If the discussion lags, chances are the supervisor has failed to make his tOpic clear or he has failed to liven 70 it up with adequate illustrations. Inasmuch as managers at— tend meetings regularly, it is important that vivid descrip- tions be used. Appeal to the five senses and when possible use gimmicks and props as interest builders. In order to get action and make sure that the goals are fully understood, the good discussion leader briefly summa- rizes the main points and requests questions regarding any points that may be a little hazy. The meeting itself will be a success if a team spirit has been built up, if the managers are really sold on the plan, and if the supervisor secures actual commitments on what each manager will do U3 most effectively execute the sales plan in his store. The supervisor follows through to see if and how well the plans are being executed in each store in his district. Store Sales Meeting In adapting an over-all plan to fit each store, the ne- cessity for holding adequate sales meetings within each store cannot be overlooked by the supervisor. The store manager receives a sales plan telling him what items are to be featured in company advertising in order to guide his ordering and promotions. The store meeting is a means of getting each department head to think in terms of how he will execute the sales plan for his locale. 71 Company sales plans can be only as effective as they are at point of sale in each store. Therefore, the super- visor helps the store manager in planning his meetings so as to develOp a group discussion leader within each store. He advises each manager to let the various department heads pre- sent their plans at each weekly meeting; the purpose being to stimulate the thinking of each department head and to give him a feeling of belonging. After counseling with each manager on how to conduct store meetings, the supervisor will do well to sit in on store meetings occasionally to see how intelligently they are being conducted. However, he must be careful not to criticise or offer c0nments during the meeting, but rather to privately offer constructive suggestions to the individuals concerned. Merchandising Each Store It is not lOgical to assume that by simply fellowing and backing up company sales plans, maximum sales and gross prof- it dollars will result. Nor is it logical to assume that the store manager will be solely reSponsible for all the phases of merchandising needed in his store. The supervisor is the store manager's immediate superior and it is he who needs to be better versed than his managers in order to recognize mer- chandising mistakes and those merchandising essentials which are being neglected. Maximum sales and profits in each store 72 can result only from the group effort exerted to satisfy each and every customer. Company advertising and goodwill can and do attract new customers and.will keep old customers coming back. However, once the customer enters the store, only courteous service, sufficient varieties and quantities of goods, and the best use of available facilities will insure a desirable sales volume. The supervisor must consider the elements of merchandis- ing in each store with due regard for the limitation of each store as governed by physical appointments. No two stores are exactly alike and neither are the clientele of any two stores. Therefore, the importance of counseling with each manager individually cannot be over-emphasized. Since it is the ultimate aim of merchandising to satisfy customer wants, each unit manager and department heads must be indoctrinated in the techniques of proper ordering, proper display and the prOper care of the entire store area. Public Relations and Goodwill While the company itself may enjoy a good reputation, it is the obligation of each retail unit to maintain and develop goodwill and public relations within its own community. To meet this end, it is extremely important that customers be given courteous treatment in the store and that employees re- flect character in their undertakings both in the store and outside. 73 It may not become apparent immediately to the supervisor when public relations and goodwill have been jeopardized in some way, therefore, he must constantly stress the importance of the store's position in the community and help the manager in realizing and accomplishing his reSponsibilities as a good citizen of the community. Public relations itself can be manifested in any type of customer service and it is the elevent, which when prOperly developed, keeps peOple coming back into the store. The at- tention paid to children shOpping for parents, the courtesy and speed with which peOple are checked out, the courtesy of the carry-out boy, and the condition of the store parking lot and garbage shed, are all factors to be considered in build- ing good customer relations. The Right Kerchandise The right merchandise means enough merchandise to satis- fy customer wants as geared to the locality; keeping in mind the intention of backing up company advertising, tie-ins with manufacturers' promotions, the availability of seasonal items, and with due regard for turnover of stock. In considering the right merchandise for each location, the supervisor necessarily sees that the prOper controls have been set up in each store for proper ordering and helps to institute supplemental sales plans for the store. He follows 71+ through to make certain that the plans are being executed in each department. In develOping supplemental plans for each store, the supervisor should secule from headquarters a list of high markup items which have sales volume possibilities, and should encourage store peOple to push these items to offset the low markup items. "Balanced selling" is an important consideration when one considers the over-all markup in a re- tail food store. Oftentimes items are featured in advertis- ing to give price impression to the reader and, consequently, are designed to pull traffic into the store and not because of the markup which is usually lower than average. In order to come up with a satisfactory gross profit, it is necessary that the higher markup items be located and displayed where the greatest impulse sales will result. In order to promote any one item to advantage, a careful study needs to be made to determine the flow of traffic and the feasibility of allo- cating various amounts of shelf and display space. A selling organization can only be successful in a highly competitive field such as food retailing, if there is a sufficient quantity of stock carried to obtain maximum sales. maximum sales are only desirable to the extent that a favorable relationship exists between the amount of stock carried and sales. Inasmuch as gross margins are declining and the cost of doing business is continually rising, it behooves the supervisor 75 to impress upon store managers and department heads the need for turning over stock as often as possible. The retail in- ventory when taken in each store gives an indication of stock-turn. For example, if the inventory of a retail unit shows there is a quantity of goods on hand at retail price in the amount of ¢S0,000 and monthly sales are $100,00, the stock-turn would be two; however, on a daily basis, it would be a fifteen-day turnover. This illustration is relatively simple, but it is also realiStic inasmuch as food chains are striving to keep inventories on a twelve to eighteen-day turn- over. The quantity of stock, while being important, is of less- er importance than stock balance. By stock balance is meant the balance of the quantities of given items in relation to movement. Stock balance is not shown on inventory results and can only be accomplished through the diligent effort of the person making out the order. Necessarily, there must be some control in ordering mer- chandise as it is not a game of guessing. The supervisor im- presses upon his men the need for keeping records concerning the movement of goods to be used as a guide for making out orders. Extreme care must be exercised in the ordering of perishable items such as bread, milk and produce, but some- times penny-wise is pound foolish. Store peOple should not become so control conscious in ordering that they frequently run out of perishables. Rather it is better to lose a few 76 loaves of bread, or a few quarts of milk now and then, than it is to run the risk of losing a customer. Produce items, when over ordered, can sometimes be moved to another store by the supervisor, but otherwise the price should be cut to sell merchandise that will not carry over. The first price cut snould be the last one; in other words, make the first price cut the one that will move the merchan- dise. A good check on produce orders is to review occasion- ally the number of items offered on the order sheet as com- pared to the number of items actually being ordered. By do- ing this a few times, the supervisor can impress upon depart- ment heads the need for having as much variety as possible. A frequent check at closing time, particularly on Satur- day evenings, will tell the supervisor what items are not in stock. If the supervisor finds that a store is not in busi- ness until closing time, it is reason enough for him to con- fer with the manager and department heads to stress the im- portance of satisfying the late shOppers also. Displaying Merchandise Self-service food retailing is becoming more predominant. The merchandise and how it is displayed is often the only selling point. People shOp with their eyes. The supervisor will check to see that all display mater- ial, window signs, and point of sale material is being used to best advantage. In order to determine the value of 77 displays, let us examine some of the characteristics of a good display and shelf arrangement. A good diSplay will keep the merchandise off the floor, will show plenty of the merchandise, be easy to reach, tell the price, and suggest a use for the product. The use of printed material furnished by manufacturers is often an aid to presenting merchandise on display. An important consid- eration for store diSplays is the fact that they must be changed frequently lest they lose their value as a display. Displays should offer something different to the consumer every week. Shelf position and shelf frontage are devices of sales- manship in self-service that can greatly influence the sale of products or brands. Vertical arrangement of stock enables the customer to see more types and varieties of merchandise. merchandise placed between the waist and eye level on a shelf is considered to be most prominent and, therefore, should be considered in allocating shelf space to brands or items desirous of being promoted. Still another way of in- creasing the sale of an item is to give it more shelf front- age and better still, place it between two fast moving items where it will be noticed. Other Factors Affecting Sales It would be folly to disregard prOper pricing when re- ferring to maximum sales. Inasmuch as all the retail units 78 within a given organization sell merchandise at the same price, it would promote distrust in the whole company for any one store to charge prices not in accordance with com- pany prices. PeOple frequently shOp.more than one store and, consequently, it is not difficult for them to make a compari- son. The prOper rotation Of merchandise, while being a fac- tor tO reduce waste, is also a great booster for sales, as peOple build their confidence on the quality Of the merchan- dise they receive for their money. Then, tOO, the supervisor should be fully aware Of com- petition as it affects his stores. He will notify headquar- ters of remodeling, the Opening of new stores, and any par- ticular aggressive campaigning by his competitors. As the supervisor sees the possibility Of a good loca- tion for a store in his district, he will also notify head- quarters. The supervisor needs also tO recognize where im- provements, new equipment, or remodeling can help him to do a better job in the stores already Operating within his district. Controlling Shrinkage and Spoilage There are factors to be considered in over-all store Operations which can affect the gross margin Of one or all departments and then there are specific things the supervisor can look for in each department. 79 Excess Shrinkage or spoilage is evidenced when the monthly statement snows that a particular store or depart- ment in the store has a lower gross markup than normally ex- pected as compared tO other stores and the branch as a whole.- The supervisor would first contact the store manager or department head to get his ideas on what he thinks is caus- ing excessive losses. He would then see to it that all store personnel are impressed with the importance of accuracy as it affects inventories and the need for the manager and his personnel to be Oh the floor during busy hours to dis- courage and be on the lookout for pilferage. It is not unusual for store peOple to blame all shrink- age on pilferage, but customer pilferage is sometimes only an insignificant part of stock shrink. In looking at over-all store Operations, the supervisor should first emphasize the need for accuracy at the check-out lanes. Casniers must be Observed and periodically checked to see if they are performing their jobs accurately and correct- ly. Tie possibility Oi‘merchandise being removed from back rooms which are left unlocked cannot be overlooked. Many stores suffer excessive losses because employees' purchases are not properly checked. It is good business to have one responsible person check all employee purchases and then staple the bag closed with the sales slip on the outside. The manager himself must set the example and have his purchases 80 checked in the same way he requires employees' purchases to be checked. Specific Things to Look for in Grocery Department 1) Careful checking of incoming merchandise. Oftentimes incoming merchandise is not checked at all or else a piece count is taken. A piece count must be recognized as insuf- ficient as it will not show up errors occurring within com- modities. A commodity count is not only the most accurate, but it acquaints store personnel with merchandise. The same applies to direct store deliveries - sales tickets should never be signed until the merchandise is accounted for. 2) Careful checking of returned merchandise. Frequently direct store delivery men will pick up stale bread, empty bottle cartons, and Specialty items for which they will either issue credit or make payment. No matter how well these men are known by store employees, it is unwise to let them perform their duties without being checked by the manager or some reliable employee. 3) Making price changes promptly. Making price changes promptly not only keeps the store competitive as markets fluctuate, but is good business and is vital as far as profits are concerned. 4) PrOper price marking and price tagging displays. The wrong prices on merchandise have caused many a bad inventory. One reliable person should be definitely responsible for 81 price stamping merchandise. Frequent Spot checks by the man— ager will tell how accurately the job is being done. 5) A careful check of returned bottles. All checkers and store personnel should be impressed with the importance of checking all bottles and returned merchandise. It is not enough merely to accept the customer's word; a definite sys- tem for handling returns can save many dollars in a year's time. o) A careful check on perishable items. Order control must prevail on perishable items such as bread, milk, eggs, and cookies. Along with prOper order control, there must necessarily be prOper rotation to minimize loss. 7) Check the location of high unit price items. The supervisor will look the selling area over to see if some item particularly susceptible to pilferage is located in a blind corner. He will realize the importance of placing such items near the check-out lane or in some location where pil- ferage will be discouraged. Things to Look For When Meat Gross is Too Low 1) Check scales. It is worth while to check scales at least once a week. Scales are delicate machines and can easi- ly get out of adjustment without being noticed. During a per- iod of high price levels, a scale underweighing an ounce or even less can cause many dollars loss in a very short time. 82 2) Observe method of trim. The profit margin on meat items is rather narrow and consequently the slightest bit of excess trim can be costly. 3) Check how long meat is kept. Fast turnover is impor- tant in the meat department and slow moving items must be merchandised or called to the attention of the supervisor, who, in turn, can transfer them to another unit. Meat is al- ready aged when it reaches the store and, therefore, becomes less valuable every day it is allowed a: hang in the cooler. A) Does meat cutter weigh meat in? It is just as impor- tant for the meat cutter to weigh incoming merchandise as it is for the grocery manager to make a commodity count on his incoming order. 5) Observe the handling of seafoods. Seafoods are ex- tremely perishable and require constant refrigeration and care lest they ripen and create a loss. 6) Examine the possibility of special customers. Does the meat cutter have pet customers? Does he have dealings with restaurants or other institutions that demand a discount? The things to look for in the produce department are basically the same as those for the meat department inasmuch as the merchandise is highly perishable. However, the need for prepackaging produce to increase turnover and prevent damage is a worthy consideration in eliminating losses. It might be said that the supervisor would also recog- nize the need for clean, orderly, store conditions which will 83 discourage pilferage inasmuch as good store conditions indi- cate capable management. Then, too, the element of friend- liness is a weapon for fighting pilferage, as peOple do not ordinarily steal from friends. EXpense Control As Operating costs increase, more and more attention needs to be given to efficiency of Operation without jeopard- izing customer service. Decreasing margins and increasing costs can only be balanced by increased efficiency through greater productivity and closer control of Operating expenses under the management of the retail unit itself. Management, through the analysis of operating results, can get a composite view of expenses which are increasing in proportion to sales and profits. At Operational meetings and sales meetings, management has the opportunity to bring forth ideas to correct situations concerning expenses which are running too high. The supervisor, in turn, projects these ideas to his store managers. However, the control of expenses is an individual problem in each store and must be regarded as such. Wage Control The most significant cost of doing business in a retail food store is that ofxwage dollars paid to employees. While the supervisor has the benefit of Operations results to tell him the quantity of help being used in relation to sales, he 81+ must constantly be on the alert to promote efficiency which will not only reduce Operating costs, but make the tasks of employees more pleasant. In weekly reports received from stores, the supervisor should require the clerk hours used to be broken down into departments. However, the amount of clerk hours used, while important, is not as important as the conditions maintained in the store by a given number of employees. In other words, the need for scneduling and organizing work so as to be able to maintain satisfactory conditions within each store must be appreciated by the supervisor. Store managers must be counseled on the reasons for scheduling help and giving definite assignments to personnel during working hours. A written schedule, showing exactly what hours and what days each employee will work, helps the store manager to gauge the total clerk hours he will use as compared to his expected sales volume. It is essential that clerks be scheduled to work when business is at its peak. Therefore, it is wise to schedule as many employees as possi- ble to work in the latter part of the week when they are needed most. A certain amount of flexibility can be obtained by hiring part-time clerks who can be scheduled as they are needed and drOpped when business does not warrant keeping them on the payroll. Managers should also be encouraged to take advantage of work simplification procedures resulting from the observations 85 of the supervisor in his dealings with a large number of Operations. Safety While safety itself cannot be considered an eXpense, the neglect of it can certainly be expensive. The importance of employee safe practices in using knives and other equipment must be emphasized. The need for'safe practices in.minimiz- ing customer accidents is obvious. host customer accidents are preventable as they usually result from boxes or merchan- dise piled on the selling floor or from green trimmings in the produce department. All employees should be made safety con- scious and it is the supervisor who should provide the incen- tive for preventive rather than curative action. Heat, Light, Water, Power and Ice To the average manager or Clark, the suggestion of turn- ing off lights, heaters, and water when not in use may seem no less than slightly ridiculous. However, when the sum total of all these items is calculated, it can amount to a sizeable amount. managers should be encouraged to check equip- ment frequently to make sure it is Operating properly and only when needed. Using equipment when it is not needed, or not giving it proper attention, certainly influences the expenses of repairs and maintenance of equipment. 86 Wrapping Supplies A little thing like a paper bag may seem trivial, but employees must be taught to use everything in the store with discretion. The right size bag or just enough paper to prOperly wrap a meat package is all that is needed. Why throw profits out the door? Wrapping supplies should be or- dered by the manager in quantities as they are needed and then prOperly stored and cared for. Wrapping supplies which are ordered in excess and allowed to be stored in the back room soon become soiled and represent an unnecessary expense. Laundry and Towel Service Laundry expense can only be controlled if there is ade- quate provision for the prOper storing of uniforms and aprons. Clerks must be allotted a certain quota of uniforms or aprons consistent with their needs lest they use clean ones at their own discretion. To the casual observer, the need for emphasizing control over these petty items may seem unnecessary, but when the total of all items is added together and multiplied by the number of stores in one district, the figure becomes rather startling. Perhaps management would be wise to give each dis- trict manager the dollars and cents figures on these expenses each accounting period to stimulate thinking along the lines of better control. 87 One word of caution is in order when Speaking of con- trols: the supervisor snould never become so control con- scious that he forgets the primary function of selling more and more mercnandise to more and more peOple. CHAPTEF VII r\. Swami-“av mm CONCLUSIONS During periods of prOSperity, the labor market becomes tight and the need for better personnel relations becomes more evident. Food chains, in general, have made great strides in the directions of employee benefits and training programs. However, as stores become larger and more complex, the need for better supervision becomes apparent. The food chain store supervisor of today is not just a lead man, but is an administrator. He is solely responsible for the operating results of all the stores within his dis- trict. He needs to be a leader who can coordinate the efforts of store people in order to accomplish predetermined objec- tives. A coordinated group effort requires the attention and consideration of a leader who is willing to study human rela- tions and able to recognize his obligations to subordinates as well as superiors. The Specific responsibilities of the supervisor are: (l) to secure maximum sales and profits, (2) to control ex- penses consistent with maximum sales, and (3) to develop and maintain a competent organization. Management must clearly define these responsibilities for the supervisor. In turn, the supervisor must gain a thorough understanding of his ob- ligations and reCOgnize the need for planning the direction of his efforts. It is the use of energy that counts - not 89 the sheer output of it. A complete understanding of what is expected of him will enable the supervisor to recognize those duties Which have been neglected or over-emphasized. It will start him on the road to increased efficiency. Qualifications of a Good Supervisor Considering the complexity of reSponsibilities inherent in chain store supervision, it may appear that the supervisor needs to be a human dynamo. Man rarely uses his innate ability to its maximum capacity. Therefore, the first quali- fication for anyone engaged in a supervisory capacity is a willingness or ambition to do the job. The supervisor accom— plishes his task through the efforts of other people and con- sequently he must be a student of human relations. He must be a man who makes an earnest effort to recognize and de- velop those characteristics which will identify him as a true leader. A dealer in human quantities must have an abiding inter- est in peOple. The supervisor who has a sincere affection for his subordinates and fellow workers is an asset to his organization. The man who displays a genuine interest in em- ployees is a leader who aids them in self-development and hastens their progress. A quality desirable in anyone to be considered for super- visory work is an analytical mind. The retail food chain store supervisor is faced constantly with the task of 90 coordinating the activities of men, materials and equipment. To win reCOgnition through preventive rather than curative action requires a process of thought which is definitely scientific in nature. The supervisor must be able to plan for the future. A logical plan can be conceived only by the mind of a well disciplined person. Experience and educational training are, of course, requisites for a supervisory job in retail food chain distri- bution. experience and education will not in themselves qualify a man for supervisory work. How the individual re- sponds to such influences will, to a large extent, determine the probability of his being;a capable supervisor. Building a Competent Organization The chain store supervisor has the benefit of assistance from other key men in the organization, but he is solely re- sponsible for achieving satisfactory results through the co- Operative group effort of all his store peOple. Take away some of the facilities and an organization will still survive, but take away the peOple and it will not survive. It is peOple, not things, that are important in carrying out the objectives of a company. In building a competent organization within each store, the supervisor first plans for the manpower he will need. He Spares no effort to attract new employees who will strengthen the organization and he makes an earnest effort to develOp 91 employees who are presently employed. New employees are prOperly introduced to their jobs and old employees are counseled periodically to provide a basis for self-improve- hent as well as commendation for past performance. The supervisor makes positive suggestions on how improvements can be best accomplisned. The supervisor, in building his organization, provides for individual participation in the group effort. Employees are given the Opportunity to diSplay any special talents and they are allowed to make mistakes in order to grow. PrOper supervision enables employees to benefit from mistakes and to improve on the job. The whole process of building a good organization evolves around the study of human relations. The supervisor recognizes that it is he who must provide the inspirational leadership for his organization. He first masters himself before he attempts to master others. The process of master- ing himself means that the supervisor recognizes those vir- tues that enployees eXpect of their leader. The leader is enthusiastic, cheerful, calm, consistent, receptive, candid, firm, tactful, and uses finesse in all his dealings with em- ployees. To recognize the need for these personality traits is relatively simple. To consciously develOp the use of these traits until they become a habit requires a process of Strict self-disciplining. The supervisor accomplishes self- develOpment by himself for the benefit of all people with 92 whom he comes in contact. The leadership of the supervisor must be accorded Spontaneously by all his employees and superiors. Operating Records An organization as large as most corporate food chains must provide some system for handling standardized activi- ties. A system without records would not be very successful as the records themselves are often more tangible than the system. The supervisor must recognize the need for keeping accurate records as required by his.company and the need for proper analyzation of those records provided for him. The records that the supervisor receives from management are pro- vided to make possible the elimination of guess work when determining which stores in his district require particular attention. The records the supervisor will keep for his com- pany should be such as to enable the company to recognize Special competitive conditions in his territory, and the need for review of policies which may Show some signs of weakness as a result of the supervisor's experience at the operating level. The most significant records used by the supervisor are those reports pertaining to the Operating results of his store. The records giving the results of sales, Operating expenses, and the ultimate gross profit of each unit, are of prime importance in directing the efforts of the supervisor and his people. 93 It is not enough to evaluate each store or department individually as there must be some basis for comparison. Records comparing the Operating results of a particular unit to the district and the entire branch provide a basis for comparing the unit to an average. However, the larger stores can, in many cases, be expected to be more efficient as a re? sult of better equipment and more diversified lines of mer- chandise. The more complete markets have a greater Opportun- ity for higher unit sales per customer. Therefore, in the final analysis Of Operating records, stores should and can be, if the company will so provide, compared to other stores in the same sales bracket and Similar type of Operation. Breaking down commodity records into a percent of total sales is very indicative of the merchandising capacity of the department concerned, but must be evaluated in terms of out- side influences over‘which the retail unit has no control. If retail sales people are expected to develop into competent Operators in their stores and departments, management must furnish them with.the results of Operations over which they have control. The use of Operating results is an invaluable aid in recognizing weaknesses and in develOping plans for im- pro ve me nt . The need for planning is evident in any successful busi- ness. The supervisor can plan with his store people by hav- ing them submit a budget which will indicate what they will attempt to reach in sales and profits in a future period. 91+ Budget planning is a means to stimulate enthusiasm and en- courage progress, but the budget should never be used as a basis for reprimand by the supervisor if results do not live up to expectations. Instead, it is a basis for further coun- Seling to determine what prevented the budget from being reached and what steps can be taken to improve results in the future. Merchandising and Control The food chain organization finds one great advantage in its ability to multiply the knowledge of each Specialist employed in the central office. Specialists are actually staff members performing one function such as buying, but they need be merchandisers to the extent that they must be able to integrate their activities with those of the over-all operation. The central office, which has the benefit of the eXper- ience of all stores within its Operation besides its many Specialized merchandisers, will develOp selling and operating plans for the retail stores. The supervisor's recommenda- tions often aid in getting the real pulse of things at the Operating level. Management's plans are sold to supervisors who, in turn, must adapt them to the needs of their particular districts. The individual supervisor then plans for a meeting with store managers who, in turn, will carry the plans to their store 95 peOple. Management's plans can only be as effective as the plans become in each store. How well the supervisor plans for and executes his meetings with store managers will, to a large extent, determine how effective the knowledge of staff members can be multiplied. Not only must the supervisor con- duct an understandable meeting for his managers, but he must follow through to make certain the retail unit manager con- ducts meetings with store people to sell and inspire them on the benefits of company plans as applied to their particular establishment. It is not logical to assume that maximum sales and prof- its will result simply from following company plans. The supervisor must counsel with each store manager to offer ad- vice and suggestions as to how the plan can be best adapted to the particular unit, and to offer help in developing sup- plemental plans within each store. The aim of merchandising is to satisfy customer wants. Each unit manager and department heads must be indoctrinated in the techniques of proper ordering, proper display, and the need for prOper care of the entire store area. These will ‘definitely aid in developing and maintaining goodwill and satisfactory public relations for the company. It is not al- ways easy to detect goodwill that has been damaged or undesir- able public relations. The supervisor must constantly stress the importance of the store's position in the community and 96 help the manager and his employees to realize and accomplish those things which will.make them good citizens of the com- munity. The right merchandise, in the right place, at the right time, in the right quantity, and at the right price is what every supervisor should strive for in each store within his district. The right merchandise is the merchandise as re- quired by the people of the particular locale. The right place is where peOple will have easy access to it and turn- over will be greatest. The right time is when due regard is given to seasonal items, special events, and in accordance with Special company plans. The right quantity is the quan- tity that is sufficient to meet customer wants with little left over. The right price is that price as established by the company, the company price being competitive as governed by local conditions. Controlling expenses is an important consideration in attaining maximum profits. The supervisor must be aware of even the seemingly insignificant items. Wage expense is the most significant cost in retail store Operations. The super- visor can do much to help store managers control this expense. The proper training, supervision and channeling of employee efforts can do much to increase productivity. The quantity of help needed to efficiently run a retail unit will be influ- enced greatly by the quality of the personnel. The supervisor is responsible for develOping a competent organization. 97 Excessive inventory losses and spoilage must be of prime concern to the supervisor. The importance of carefully checking in merchandise, proper marking, careful control of perishable items and absolute accuracy at the cash registers cannot be overlooked. The checking of scales and the turn- over of merchandise are important in protecting the gross profit in the meat and produce departments. Items such as wrapping supplies, heat, water, power, light, store supplies, and ice may seem unworthy of mention, but are nevertheless important to the profit of the Operation. As Operating costs continue to rise and gross margins continue to grow smaller, the supervisor must become expense control conscious. However, the supervisor must never become 'so control conscious that the primary function of selling more merchandise to more peOple is forgotten Or neglected. The supervisor must carefully plan his work. However, the supervisor is not to plan the work of his store managers and store peOple. The store manager is also an executive; his natural prerogatives must not be restricted. Instead, the supervisor must encourage and stimulate the store manager to perform the functions of directing and scheduling person- nel, and to take advantage of training, Operating, and mera chandising aids presented by the central office. Merchandising is the art and science of coordinating all the activities necessary to buy {pods to be sold at a profit while maintaining and developing customer satisfaction at the 98 Operating level within a retail food chain organization. The retail food chain store supervisor has the Opportunity to oiSplay his talents along many lines Of endeavor. He must constantly strive to coordinate all the activities which will help to realize maximum Operating efficiency in each of the stores within his district. BIBLIOGRAPHY A. BOOKS Beckman, R. 0. How to Train Supervisors. Seventh Edition, New York: Harper and Brothers, l9hh. 329 PP. Bower, Marvin. The Development of Executive Leadership. Cambridge, Hassachusetts: Harvard University Press, l9h9. 130 pp. Brisco, Norris A. Retailing. Second Edition. New York: Prentice-Hall, Inc., l9h7. h9h pp. Cushman, Frank and Robert W. Cushman. Improving Sapervision. New York: John Wiley and Sons, Inc., l9h7. 232 pp. Dipman, Carl W., Robert W. Mueller and Ralph E. Head. Self- Service Food Stores. The Progressive Grocer. New York: The Butterick Company, Inc., 19h6. 299 PP. Duncan, D. J. and C. F. Phillips. Retailing Principles and Methods. Revised Edition. Chicago, Illinois,’l9E8. 56 pp. Halsey, George D. Handbook of Personnel Management. New York: Harper and Brothers, 1947. 402 pp. Hartley, E. L. and R. E. Hartley. Fundamentals of Social Psychology. New York: Alfred A. KnOEf. 7&0 pp. Hayward, W. S. and P. White. Chain Stores, Their Management and Operation. New York: kcGraw-Hill Book Company, Inc., I928. Heyel, Carl. HOW'tO Create Job Enthusiasm. First Edition. New York: McGraw-Hill Book Company,’Inc. Haynard, H. N. and T. H. Beckman. Principles Of Marketing. Fourth Edition. New York: RolandIPress COmpany, 19467 736 pp- Newman, William H. Business Policies and Hanagement.w Second Edition. Cincinnati, Ohio: SoutEWestern Publishing Com—“2‘~ Pany. 1940. 886 pp. H: ' Sayres, Paul. Food Marketing. new York: McGraw4Hi11;BOOk company, Inc., I956. 335 pp. -— - FM- lOO Schell, Erwin Haskell. The Technique Of Executive Control. First Edition. New York: hoGraw-Hill Book Company, Inc., l92h. 133 PP. Spriegel, William R. Industrial Management. Fourth Edition. New York: John Wiley and Sons, Inc., 1950. 656 pp. Wingate, John W., and Elmer O. Schaller. Techniques of Re- tail Herchandising. New York: Prentice-Hali, Inc., 1950. OZO pp. - B. BULLETINS American Management Association. Management Development in Action. Personnel Series Number 148. New York. 1952. 64 pp. . National Association of Food Chains. Store Supervision Clinic. Washington, District of Columbia. 1949. 10 pp. National Association of Food Chains. Supervision. Special Bulletin Number 30. Washington, District Of COlumbia. 1951. 5 PP. New York State School of Industrial and Labor Relations. Improving the Supervision in Retail Stores. Extension Bulletin Number 7. Ithaca, New York. 1950. 64 pp. C. COMPANY PUBLICATIONS Colonial Stores, Incorporated. Company Policies and Operat- ing Procedures for Superintendents and Store Managers. Atlanta, Georgia. 1953. General Electric Company. G. E. Selection Program for Super- visors. Lockland, Ohio. 1952. The KrOger Company. Public Relations, Cincinnati, Ohio. The Kroger Company. A Pain in the Lane. Cincinnati, Ohio Safeway Stores, Incorporated. Safeway News. Oakland, Cali- fornia. May-June, 1953. Safeway Stores, Incorporated.. Safeway News. Oakland, Cali- fornia. March-April, 1953. 101 D. PERIODICALS Anon. "What Does it Take to Make a Supervisor?" Chain Store Age. Grocery Executives Edition. 27(June I951). pp.160-lOl. Anon. Grocers' Manual. Chain Store Age. Grocery Execu- tives Edition. 28(Ju1y 1952). pp. 83-106. Anon. Produce Hanual. Chain Store Age. Grocery Executives Edition. 29(Harch 1953). pp. 91-I26. Anon. Heat Hanual. Chain Store Age. Grocery Executives Edition. 28(NovemberOI952). pp. 87-150. Anon. "Bringing Up the Boss." Fortune. XLIII. (June 1951). pp. 118-121, 166-17h. Anon. "What's Wrong with Retail Salesmanship?" Fortune. ELVI (July 1952). pp. 77-80, lt6—154. Anon. "Nine Steps to Good Management - And Better Profits." The PrOgressive Grocer. 32(Hay 1953). pp. 52-53. Trout, Joseph J. "Eight Ways to Keep a Customer Coming Back." The Progressive Grocer. 32(Aay 1953), pp. 48-51. Haters, George W. "Showmanship Sells Manager-Executive Meet- ings." Chain Store Age. Grocery Executives Edition. 29(June 193?), PP. 156-157, 198. E. WRITTEN COHHUNICATIONS McCaffery, C. F. The Kroger Company, Detroit Branch, Detroit, Michigan, May 22, 1953. Jones, John A. Webster Services, Division Of Safeway Stores, Incorporated, San Francisco, California, June 18, 1953. ROOM USE ONLY A... » 1L\