PLACE IN RETURN BOX to remove this checkout from your record.
TO AVOID FINES return on or before date due.

DATE DUE DATE DUE DATE DUE

 

 

 

 

 

 

 

 

 

 

 

 

MSU In An Affirmative Action/Equal Opportunity Institution
MWMHJ

 

 

 

flats

 

v— E,- ‘4‘;—

AND STATUS OF THE SUPERMA:¢A_

CHAIN STORE MANAGER

Vannice

3?
Lu
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H.
m
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[—1

Submitted to
iohigan State University-
] allflllr&fl't o: the itxyiivements
for the o gwee of

QP'VT“

HAUILR OE BU‘INISS ADMII IISTFA ICN
department 0” Marketing awe Transportation Administration

CNlum V Iv+a1213TKet1IۤInifi nagerient

”The extent to which management philosophies,
policies, and practices take into account the
inherent values, oignity, ano aspirations of
human beings has now become the greatest
single factor in competitive survival.”

—-Qréway Teao, The Art of Administcation

 

The status of the career of supermarket chain store
manager has rated low in public esteehnuntil it has nearly
reached the point whereby those who engage in it often seem
expected to apologize for their existence and activities,
as if there were something slightly sub-social about them.
Cartoonists have often portrayed the store manager in an
apron as a glorified clerk, intimating that he was neither
well paid nor well inf rmed. This mischievous denigration
of the job and the public m'sconception of it cerive directly
from the growth of the supermarket industry anu the opinions,
attitudes, and significance attributed to the job by upper
management.

AS the industry has grown and the business has become
more and more complex, the job of supermarket chain store
manager has shifted more and more from the amateur to the

professional. However, to many the supermarket manager

Qi

represents a figure ill-fie

ne whose significance in society

'_.

is misunderstood. The place and furctions of the store
manager are little appreciated by the public, and not always
even by those who work with, or live off, the business.

In the broadest sense, the efficiency of fooo distri-
bution determines the entire nation‘s standard of living-—

and efficiently managing the highly competitive supermarket

C)

iii

in the mass distribution of food products requires ambitious
and capable men with authority, responsibility, and leader-
ship ability. The formal giving and informal taking back

of authority by upper management that too often passes for
delegation tends to complicate the job for the most ambitious
and capable managers. Tie absence of opportunities for
genuine professional leadership at the store manager level

«sts the manager as a victim of double talk and thus dooms

O
p

the firm to mediocrity and eventually dissolution.

Since the manager can not escape from this difficulty
unaided, this paper is an attempt to demonstrate that the
continuance of efficiency and thus the survival of the firm
is closely linked to its ability to upgrade the status of
the supermarket chain store manager. The ideas presented
here may be right or wrong in terms of the experience of
specific food chain retailers; thus, the final test of these
concepts can only lie in the extent to which they provide

some degree of insight into problems within the reader's

experience.

ACKNOWLEDGMENTS

The author xratefulli acknowledges his debt to man“
E J7 a. J ,

both in and outside the field of food distribution, and

particularly to Dr. Edward M. Barnet, Dr. Daniel M. slate,

and The Kroger Company.

April, l9c2 Adrian L. Vannice

iv

I‘DYYTL“W(“
k‘ liLHi .LL/

0
P—JJ

TABLE

Chapter

I. INTRODUCTION . . . . . . . . . .

The Proble 'Tl . . .
Objectives of the Study. . . . . .
lhe prQtTleSiS. . . . . . . . .
The {unoroacli . . . . . . . . .
Definition of Terms . . . . . . .

II. THE STRUCTURE AND THE GROWTH OF THE TNDUSTR

- the Eu*eiiarket . . . . .
f tIma ape*"“‘fiket . . . .
industrI is onciccpltoli d . . .

I I I e r: IVE r: A '1‘ {.1 Egg 0 E! T 7:: 1‘71“»:{1 ;\A G 2}} I L: k] <4“ B e e e e

Responsibilities of St) e Management .
The Supermarket Ch;in Store Manager Tod
The Independent Ope ator . . . . .
The Need for St-ong leaie ship . . .
IV. CIAIN STORE IIAN GRNENT: THE TAB” ”I AN
EXICUT IllE OR THE IUNCIION OF A FCREM N. .

. I.) II . . . . . . . . . .
The Executive . . . . . . . . .
The Responsibili ti s of the Executi e .
The Difference in

of the Executive and the Foreman . .

J. TF3 STATUS OF THE SURE P’AR'TT MANAGER . .

)—-‘

Lthtus o e o e e e o e o . e
The Pallil y of tfluaiiyster1. .

The Status symbol of the.L‘toie Manager:
A Lasting Psychological Imprint. .

VT. THE Nng) FOR 1 EVA} ING THEZ'JIATUS CE7ITHE JO"

Advantages of a Properly Eclar Icei Status

System. . . . . . . . . . .

on
Q/

.3
the Managerial Function

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Chapter

VII.

IX.

T

THE ACTUAL ROLE

7*
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K;

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The Store Manager Holds One Key to
Sucvival of the Firm. . . . . . .

Status and Function . . . . . . .

PROJECTED HOIE OF THE CHAIN NANA? ER

STONE

The Purpose of Examining the
Pole . . . . . . . .
the Na n .- ’-

The PI oJe<ted Desciiption of agex .
The Autho itv of the Chain Store Manager

Su1m.ary of the PtoJecteo Pole. .

OP THE CHAT STORE MANAGER
The True Meaning of the Job Title . . .
Long Hours and Pei—Tape. . . .
The Salary Scale . . .
The Dilemma of the Nanager. . .
The Discrepancy Between the Pr roJected

Role of the Manager and His Actual Hole
Suppression and Con.t otmity. . . . . .
The nage”*'s Peal.E%.otleNL . . . . .

The True Nature of the Job. . . . . .

‘I‘rg'
I‘Jor

v—‘ F1

f‘DTIIN ETHATIVE DEC NTHALI7ATIU‘N CCN LuPl'
{HA A\1ulll NT . . . o . . . o o o

DecenV aliz ation . . . . . . . .
:unc tional Detentralizltion . . .
Peo era 1 Decentza lization . . . .
The Decision to Decentralize . . . .
The Degree o? Decentra ization . . . .

LlCAT CNS ENC JTEPED Ill; UPGRADING THE
The Nature of the lnoustny.

The Structure of the Organi2:ation

The Pesponsibilities of the Job .
incentives and Compeisation . . .
The N.t “e of Contzol lmposeo by Hezo-

'1‘433138/8. o o o o o o o o
(' )IT‘LITI“ v.niC‘.—; ti ans 0 o o o o I o I
{JIT(TJ:.USICJ‘\I1‘SO o o o o o o o o o

Sem-ntic Wi<I:ery. . . . . . . .
The Gap Between Managerial Levels . . .
Tie Ps,cho logital :3tate o1 Transition . .
The Social Climate at Store Level .
Solving the Problem . . . .

vi

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Chapter 35:8
Take the Store Manager Of? :5 the

Treadmill. . . . . . . . . . 91
in Petraspection . . . . . . . . 93

BIBLIOGRAPHY. . . ; . . . . . . . . . . 94

INTRODUCTION

Perhaps the supermarket chain store manager is not
ireally regarded as a true executive member of management if
tOp management is seeking the advantages of flexibility in
the local marketplace by merely granting lip service to a

preferred description of his role. I

(D

this a part of a
sales campaign whereby companies ar striving to improve the
store manager's morale or upgrade his status by describing
him in one manner while expecting him to act differentl 5W
Upgrading the status of the supermarket chain store
manager may very well be an important key to the successiul
endurance of the firm in the sanguin ' rv competitive struggle
in the marketplace. The supermarket chains like most other
business are :5: ed with the thIee immediate tasks of:
striving to obtain more sales volume; attempting to increase
net profit; and securing enough capable people to man the
organization. Within he supe-uacket industid the particular
problem of staffing the O“: g;1nization with capable store
managers and retaining them appears to he a difficult problem.
Looking to the future and merely hoping for the test
is no longer good enough to insure survival in this dynamic

industry. As each new battleground is approached, the

.
I,
.—

competitive process changes and the adjustments which are so
vital for survival have a dramatic impact on the market
structure of food distribution.

The competitive behavior of each firm in the industry
is determined by the type of market structure in which it
operates. Survival of the firm depends upon its ability to
make necessary adjustments rapidly and thus more effectively
compete in the market by performing a service to society
through economies in mass distribution of food products.

As in any other hand—to-hand conflict, the man on the front
line is of critical importance in determining who shall be
triumphant. Therefore many firms within the supermarket
industry and many people who are closely associated with

the industry appear to be attempting to elevate the status

'<

of the store manager in order to strengthen the forces on
the firing line.

The question arises as to whether food retailers have
strengthened their store management group and upgraded the
manager's job as rapidly as they have seemingly rushed to
make new and larger investments in expansion of facilities.

f the preferred or projected role of the food chain store
manager and the role actually performed by him are entirely
different, the store manager may be on the spot and his
company may be losing its position in the marketplace because
it lacks the flexibility to compete locally with the indepen-
dent supermarket. Are large corporate food chains becoming

more and more vulnerable because the objectives and policies

with regard to the store manzger are astiqusted? These

questions can only be resolved if the true nature of the

Cf

manager's job and his ac ual role in performing the job is

understood.

The Problem

 

The problem is to determine the nature of the super—
market chain manager's job and his true role in actual
performance on the job. The problem to be attacked in the
study may be a result of a common violation of the respon—
sibility principle within the industry regarding the chain
store manager. On the surface the chain store manager
appears to be commonly referred to as an executive member of

management on the one hand, and on the other hand, he is

.1

associated with the joint task o: being part of the store
work force while being charged with fill management respon-
sibilities for the store performance. The store manager is
being held responsible for the performance of the store
operation despite the fact that he can not control many of

the conditions or terms under which he must cperate.l

The continuous search fo

H

* strong, capable people to
man the organization is a major personnel problem in many
large corporations. Within the supermarket industry the
particular problem of staffing the organization with capable

{-3 0

store managers appears to be difiicult because in the past

 

H . -
1 sm

Food Topi

peakers Explore sole 0 the Store Manager,”
c P

I]
hilacelphia: Topics Publishing Co., lnc.,
O 32 O

U) '.

 

(
p

4

the job has been downgraded and so d short.1 The store
manager's job has been regarded primarily as an intermediate
step to a better position. Furthermore, apparently many

firms in the supermarket industry have done very little to

improve the status of the job.

Obiectives of the Study

 

The specific objectives of the study are: (l) to show
the actual role of the chain store manager and his projected
role or description; (2) to demonstrate that he may not
actually be performing his role in the manner commonly des—
cribed by many in the industry; (3) to examine the relation—
ship and effect of his status upon the store and company
operations; (4) to show the need for improving the status
of the job; (5) to examine some implications encountered in
upgrading the job; and (c) to outline briefly a frame of
reference within which it may be possible for top management
to consider appropriate programs to improve the status of
the job.

The chain store manag r, with his unique knowledge 0
his individual unit and his customers, can compete more
effectively in the local market if he has the freedom to be
flexible in directing the store operation. However, it
appears that maximum benefits can only be gained through

added flexibility if the barriers of restriction are actually

 

sdward A. Brand, C ass Lecture, Michigan State
c a

University, January 8, l‘

5
lifted from the chain store manager, giving him the auth-
ority to meet his independent competitor on equal terms on
the battleground of the marketplace.

Many people in the supermarket industry have become
increasingly concerned about the status of the chain store

manager. The trade publications are filled with articles

0,

iscussing the amount of recognition given to the job of
the chain store manager and the importance of his performance
to the success of each competing firm within the industry.

The structure of most industrial organizations is such
that a supervisor at any level plays a dual role. He must
be an accepted member of his own management group on the
one hand, and on the other hand, he must be an accepted
member of the group he supervises.

By design, the supermarket chain manager must also be‘
a member of two subgroups. His role requires that he be
motivated and able to integrate creatively the goals of in—
dividual subordinates and the objectives of the firm. This
dual role is no problem for the manager if the goals and the
expectations of the two groups are compatible and if both
groups recognize it. Under conditions of extreme conflict
however, the chain store manager may not be able to perform
the two-fold representation required by his job and the life
of the firm may very well depend upon his reactions as well

as his capacities.

 

lFloyd C. Mann and James K. Dent, ”The Supervisory
Dilemma,” lndustria Man, eds. W. lloyd Warner and Norman H.

 

Martin (New York: Harper and Brothers, 1959), pp. 294—306.

6

Full participation by the store manager in both organ-
izational families appears to be one of the most effective
ways to insure two—way flow of communications and thus the
most effective means of integration in the large-scale organ—
ization. Does top management recognize the dual character
of the role in which the store manager is inherently cast
and create on the front line an environment which fosters
initiative, interest, and creative leadership? ls top manage-
ment seeking the advantage of flexibility in the local market-
place by merely grcnting lip service to the preferred des-
cription of the store manager's role or is the store manager
really regarded as being an executive member of management?
The objective of this study is to seek an answer to these
important Questions because the continued life of the firm
may very well depend upon the actual performance of the store

manager--his actual role within the organization.

The Hypothesis

 

Although the foreman's job in some firms remains on

D

the executive level of management the growth Oi Big Business

has tended to strip him of all managerial function by re-

H

ducing him to a mere ”gang boss. The foreman and the execu-

. being signif'cantly dif-

V

(/2

tive are regarded in this study a'
ferent in the degree and weight of responsibili y apportioned
among the several functions they perform.

Briefly, the executive is regarded as being responsible

for conceiving ideis, formulating policies, and ’mplementing

7
decisions necessary to achieve the objectives of the firm.
Since the foreman does less planning and more implementing,
his decisions have quite a different degree of significance
for the entire firm. .

Although a definite difference does exist between the
function of the executive and that of the shop foreman,
upper management may choose to define or describe the job
as if it were an executive position and actually regard the
managerial functions of it in an entirely different manner.
This twofold use of terminology with its implications and
effect upon the performance of the store manager is the focal
point of the study rather than an attempt to contrast the
job of the foreman as a line supervisor at one level with
that of an executive in a high staff job at another stratum
of the organization.

In terms of the implication that the chain store

rD

arrying oxt the role of a line

u

manager may actually be
foreman while being referred to as an executive, the hypothe-
sis that ”The supermarket chain manager is a foreman, not an
executive,” provides the basis for the investigation and
study. The study is conducted with the orientation of
evaluating the elements found in terms of the hypothesis.

The hypothesis necessitates that the actual functions of

the supermarket chain manager be investigated, evaluated, and
compared with the preferred description of the store manager‘s

role in order to demonstrate the need for upgrading his

The Approach

 

An indirect method of inquiry is employed in the stuoy.
Background material has been drawn from these general areas:

(1) observations and ideas resulting from eight years' exper—

F“)

ience of the author in the field 0 food chain store manage—

ment; (2) personal discussions with fellow students in a
seminar at Michigan State University; (3) current trade pub-
lications; and (fl) secondary sources contained in the
Michigan State University library in the areas of training,
management, and the behavioral sciences.

The historical method of research implies that the
organization of the report follow the order of cause and
effect which is basically chronological. A brief description
of the origin and growth of the supermarket as well as the
nature of the chain store manager's job are presented in an
effort to emphasize the magnitude of the job and its impor-
tance to the corporate food chain. The relative importance
of the store manager‘s position with his own company is
demonstrated in a brief description of the manager and in
a short discussion on the need for strong leadership.

In order to describe the plight of the chain store
manager more vividly and thus appraise his true status, his
actual role is compared to that of an industrial shop foreman
and to that of a staff executive. For the purpose of eval-
uating the findings of the study one chapter is devoted to

the positive definition of the terms "foreman" and ”executive'I

9

as well as their function and duties. Qualified definitions
of the terms "stctus" and ”authority” are also presented.
After investigation of the status of the supermarket chain
store manager and the comparison of the actual role of the
manager with his projected role the valid elements of the
problem are evaluated and presented in the conclusions.

To cover only a few broad aspects of the problem in

such short time in a paper of this type has called for much

restraint in the selection of subject matter.

Definition of Terms

 

Definitions are a most important preliminary consider-
ation in a study dealing with words that may have different
meanings in different contexts and are often subject to
controversy. Since one study or the practices of one organi—
zation can not impose its own usage upon others, terms most
frequently used in the study are defined with due consider-
ation for common usage with an attempt to use them consis-

tently throughout.

A supermarket is any retail food store, chain or

 

sales of $375,000, or more.1

U)

independent, with yearly gros

An independent is an operator of ten or less retail food

 

stores. A chain is composed of eleven or more retail food

stores with central buying and ownership. COOperative

 

Retailers are independent retailers who are stockholder

 

 

1Robert W. Mueller (e .), Facts in_Grocery Distribution

(New York: Progressive Grocer. chl), EC.

’

 

10
members of cooperative wholesale buying groups, such as

Certified Grocers, or Associated Grocers. Voluntary Group

 

Retailers are retailers who belong to voluntary merchandising

 

groups sponsored by wholesalers and who operate under a

common name, such a

1

(I)

IGA, Red a White, Super Valu, and
Clover Farm.

Authority and Responsibility—-Numerous concepts of

 

authority exist within the supermarket industry. However,

this study authority is defined as the

F.)

for the purpose 0
right to guide or direct the actions of others and to exact

from them certain reactions or responses which lead to the

U1

.

achievement of the organization's objectives. Authority i

a right rather than an absolute power to force action by

/
.—

subordinates. Both the supervisor and the subordinate must

have some understanding as to the limits within which auth-

ority can be exercised. The subordinate subject to authority

must voluntary accept the authority and have a willingness

 

1”The original definition of a supermarket was coined
by Super Market Nerchandising in 193e, and widely accepted
everywhere. It described a supermarket then as a retail
establishment with a self—service grocery department, and
meat, dairy, and ,roduct departments--doing a comtined volume
of at least $250.000 a year. This minimum sales figure was
revised to $500,000 recently, since the food price index has
risen well over 100 per cent, making it logical to double

the minimum at least.” ”The True Look of the Super Market
industry l960,” Super Market Merchandising, XXVI, No. 5
(May, igti), p. 7i.

 

2Chester i. Barnard, The Functions of the Executive
(Cambridge: Harvard University Press, 194C), p. lc3.

 

ll
to cooperate or the right of authority is relinquished and
becomes meaningless.1 By accepting authority the subordinate
accepts responsibility and accountability.2 By accepting
employment the subordinate implies acceptance of responsibi-
lity; therefore, responsibility is defined as the obligation
of the subordinate to accept and perform as directed by the
one possessing the authority.

Polic* is used to include the very broad statement of
company intent set down by tOp management. It also refers
to those plans and agreements that have become a pattern of
unwritten ”laws” over a long term.

Application of Policy is used with reference to specific

 

decisions concerning the individual situation or person.

Such decisions also include both those made within the limits
of establishing policy and those initiated at lower manage-
ment levels when no formal written policy has been estab-
lished.

Coordination refers to the deciding of who does what

 

and to the tying together of the thinking and actions of
diverse groups to achieve the desired organizational objec—
tives.

Decentralization is u: zed in the study only in relation

 

to administrative decentralization. it is specifically

 

1Herbert A. Simon, Administrative Behavior (New York:
The Macmillan Company, igti), p. 124.

 

2 *‘v '1 n ' ‘
Dalton B.c:a1rland.hanagement PrinCiples and Prac—
tices (New York: The llacmillan Company, 1959), p. 20%.

 

12

defined as the maximizing of authority and the localizing of
responsibility for results at the lowest possible level in
the organizational hierarchy. Administrative decentraliz—
ation is not to be confused with geographical decentraliz—
ation of the operating units of the organization.

The level of decision making is the crux of the
definition. Precisely who is involved in the making of a
specific decision is sometimes difficult to ascertain; how-

ever, the point at which action is determined can be isolated.

CHAPTB E II

THE STQUCTUFE AND THE GPOWTH OF THE INDUSTRY

The historical background and growth of the supermarket
are investigated in order more full y to understand the nature
of the store manager's job and to assure proper appraisal of
the role.which the manager verfcrms.

One of the most vexing problems of the store manager
throughout th e inch istry appears to be that of constantly
striving to adjust to tie rapidly changing environment in
which he operates. A brief description of the growth of the
supermarket industry shows how quickly changes do occur and

some of the problems which result from such rapid shifts.

The modern supermarket is a product 0: evolution.

It ha

01

rapidly developed through the stages of the general

store, specialized grocery stores and meat markets, "self—

service” Operations, combination stores, and finally, emerged
as the supermarket. An idea patented by Clarence Saunders in
19i6 may very well have been one of the great innovations in

the industry and the forerunner of today's supermarket.

 

1Godfr v M. lebkma' "The Birth of the Sy'tem, ” Chain

 

Stores in America: 1359-1939 (continental edition, New York:
Chain Store Publishing company, 1959), p. El.

.J
(JU

fir

Saunoer s opened his
with all merchandise displayed

‘T t
l

' ._ll

store in Memphis, Tennes

on open slie

L3.

plainly mirrei, and gave his custome s the privilege Oi
selecting their own merchandise. He called his inventio

Store and

carry grocery operation was

,_
’3,

Ir.)

Bu.ine:.ren wer e qiick t

self-service groceiy operitior

I

were lower, the advanta ge es of
requirements for the merchant

of ll it was demonstrated th
service idea. Although the se

readily accepted, it was not t

not really begin to grow by en
the depression of the early 19

”supermarket" appears to be quite obscure, but the first
us r of the word supermarket in a corporate or firm name is
as3o ated with Albe_. Super Nrr‘et: inc , in Cincinnati,
0
Ohio in Novemuer, 1933.“
The first s permarkets were rough and ready products
of the depression, geared to selling a large ”oiume of foo

at the lowest possible prices.

r 1
cash-ano-

Sacce es.fl:il that within three
es *
0 rec ogn lize the va l e of the

Prices were lower, wages
cash transactions cut capita

consideratly.

at the customer liked the sel
lf-service Operation was
ermed a supermarket and did
ormous leaps and bounds until
30‘s. The origin oi the term

Since then their growth

with prices

Most important

d

has

see,

[1
I

 

 

 

 

 

~Pau'ine Arno] and Percival White, Ford- -Gmericol'_
Biggert BulineJ‘ (New Yor" Holiday House, IQf“), pp. 2:2-33

9

‘WNillard F. Muelle1'anwi'ieon Garoiaru (luau ge: in the
liaclzet Structure of Grocery “otll’lff (Hadi; HON The Univo —
sity of Wisconsin ’res 19c17_, pp. S-ll.

f...)
U1

1 ._
ipid. “ Mike Cullen is said to have

a)

been particularly r

*o
l“!
s

I

(A)

posed the idea or a self-service market to his firm in 19 0.
When his p opo :al was refused he resigned, went to New York,
rented an abandoned garage, and opened a self-service dis-
count grocery. He became known as "King Kullen, the Price-
Wrecker." Although his cut-rate specials nade local gioceis

shudder at the time, his merchandising ideas have remained

the principal devices which today's supermarkets use to

a

J
I

generate sales volume.

Growth of the SL1“€T” arket

 

The superma: ket has becom.e a major factor in all forms
of retailing since it not only specializes in food products

but

,4.

seils a host of nonfood lines. The general stores

of a few years go handling food and nonfood items gradually

in

became specialty stores, ”self—service” stores, combination
stores, and supermarkets in the struggle to meet the changing
needs and demands of society.3 The creative energy of the,
supermarket has increased the number of food markets and

‘I

pushed the wupeim ar-l :ets into noniood f

(1
I

CL

el

H.

 

1John W. Wingate and Arnold Corbin, Changing Patterns
in Feta iling (Homewood, lllinois: Richard D. Irwin, l§§t),
pp- (5- 1-

 

 

rg ian, ”Super Egzine s of Supermarkets,”
New York Time: Magasine (New YorK: The New York Times Com—
pany, Marco c9, l959), p. 23.

 

l

os -eph E. Hall, ”Evolution Not Fevolution: The Present
Job of Manageme nt in Food Di‘s tribution, The Tobe' lectures
l

 

 

in Petai Distrilution--19§r-l953, edited by lalcola P. Mc—
Nair and H ton P. Brown (Norwood, Mass.: The Plumpton

"\

Press, 1“: ), 2C.

(1; t“

is
The general character of food retailing has changed.
The rapid disappearance of the general store has also meant

dramatic changes in the kitchen and the community. The

'3

entire mode of shoppin hws changed—-the service butcher no

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{

longer teaches the young housewife how to prepare various
cuts of meat, ana the store manager can no longer walk over
to every customer and show her where the various products
are located, because touay‘s supermarkets are getting larger
and larger. In addition to the lure oi special prices , con—
venience, wide variety, parking facilities, air conditioning,
modern decor, and snack bars bring customers into the super-
market today.1

Supermarket cices are substantially higher now than
in the 30's and the display shelves are more elaborate than
the pineboard shelves in the early days of King Kullen.

During the days of King Kullen, margins of only lO-lE cents

of the customer's doll

Q)

r we.e enough to keep the wheels of

I

the machine rolling, but today the modern elaborate super-
market requies 18-19 cents. It costs a million dollars to
. 3
open one and it becomes obsolete in seven years.
The supermarket has become a symbol of Amesican life.
The grocer has moved into the big 1eague--he now does as

much volume in a week as he once aid in a year. In lgfll

the 38,#50 food chain stores acc untec for $3,820 million in

 

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iWingate anc Corbi.,

 

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store sales with average sales per chain store of $99,349
per year. In 1952 the 22,000 food chain stores turned in

1

average sales of $

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total chain store

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30: 45+ pe ‘
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sales volume of $ll mi

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sales of the chain store was $i,019,950 and 20,050 food chain

stores turned in $20,450 million in gro~=

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1960 the sales of the nation‘s ECO:OSO fog; retailers
reached $52.6 billion with supermarkets Pocounting for 69
.i. 7—.

per cent of the total sales. rood retailing is big busi—

ness—-a business that continues to grow and grow and grow.

he lndustrv is Overcapitalized
During recent years, competition has been intensified

by the rapid expansion of medium and large cor rate chains

'0
O

and voluntary chains. This tends to place large, suppos dl‘

efficient, rivals in competition with one another in the

While their share of sales and purchases in their local

nies

31)

operating region may be quite high.many chains and comp
are relatively insignificant in terms of national sales.
However, competition in the inoustry is such that one store
is permitted to enjoy high volume only a short time before
being cut down by rivals. Consequently, all stores in a
particular locali y are forcec to operate below capacity and
become overcapitalized in terms of the volume they can do.

C ”a PI ' .v7 1 . . 4" ‘ , f‘ ‘ ‘\ ‘l . 7 I. .4"! I” ~ '7‘ .r -‘ I 7"
stores involved are usually iorted to -ose money or opeiate

 

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very close to the treaL—even point. In mu lti—unit cc ompanies
the weaker units are subsidized by the stronger ones. This
is a "chain reaction" which increases total cistllbu Mo
and voluntari

81' J7 EI'OLJ.pS

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-esult, chains, whole

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cost. As
are not making sufficient use of their facilities other than
by simply storing merchancise, and consequently. must look
for new means by which acuitional volume can be generated
and operational costs lowered.

Operating costs in food retailing have been rising at
a very rapid rate. The problem of increasing operational

costs has become particularly acute f0r some corporate chains.

}_1

Giant ult: anole-n sto‘1 es lit}! all of the fancy fril s are

._-J

very expensive to and maintain. With narrowing margins
between sales and expenses the cost of overhead and operation
can be overcome only by the combination of high volume and

quick turnover Oi inventory.

The low price image of the corporate chain has

EJO
m

quickly diminished. Independent grocers have Joined volun-
tary chains and formed cooperatives. 0n the other hand,

the independent continues to function quite independently
while providing the same service to sOciety as that formerly
provided exclusively by the la ge corporate chain. This

1 nificant change in the market structure of the industry

(1)
073

is making a dramatic impact upon th behavior of all firms
competiting, as they must, in each locality.
eanwt lile , giant ciscount houses continue to inva e

the food h431dego anc create more competitive problems for

19
the supermaykets: particularly in terms of price. The dis-
count house is actually a department oy variety store some—
times with all of the vacious departments leased out.
Merchandise is often moved with fork-lift trucks which
reduces labor expense. The elimination of all frills,
stamps, and secvices further.reduces operating costs,
enabling the operaton to cut mack—ups thus gaining over-all
retail price advantages compared to those in the supermarket.
Recognizing that lower prices are by far the best appeal for
food shoppers, some ciscount operators are running their
entire food department as Loss-leaders to generate traffic
and increase profitable volume for other departments within
the stone.

Constant competitive pressures on existing institutions
to cut distribution costs have resulted in many innovations
in the facilities and the methods of mass merchandising.

Fooo merchants have been forced to face these facts and

adjust to the changing narxet conditions in order to survive.

CHAPTER III
THE NATURE OF THE MANAGER'S JOB

In order to evaluate the status of the supermarket
chain store manager objectively in terms of the hypothesis,
the general nature of the job as well as some of its major
responsibilities are briefly presented.

The changing market structure, competitive balance,
and technology within the industry account for vast changes
in the supermarket manager's responsibilities. These factors
of greater complexity in the job are compelling the food
chains to match men with special managerial skills with the
Job in order to insure survival in the local situation.
Strong leadership on the spot becomes imperative if the busi—
ness is to succeed because the industry is saturated with
supermarkets in many areas and customers have the opportunity

to choose among a number of nice food stores.1

1Since the saturation point for the consumer allows for
many more stores than the saturation point allowed by the
industry management, the term "saturation” is relative.
Naturally, the customer in seeking the greatest degree of
service and convenience that results from location considers
the saturation point in quite a different view than the food
chain management who are primarily interested in the relative
cost of sales.

TD

1

Responsibilities of Store Management

 

The responsibilities for which the store manager is
often held accountable run the gamut from staff selection
to net profit performance. His responsibilities may include
staffing the store, the discipline and scheduling of store
personnel for the most productive combination, analyzing
and meeting local competition, determining the number of
items to be stocked and where they are to be placed within
the store, planning displays and special promotions, and
planning and maintaining effective store operations.1

The chain store manager today should be proficient in
ordering merchandise, selling, finance, accounting, public
relations, customer relations, employee training, store
security, promotion, merchandising, budgets, expens control,
maintenance--in fact, virtually every phase of the business.

Behind the scenes there are many complex problems and
activities to be directed and controlled by the store
manager. Because offluctuation in wholesale markets, retail
price changes must often be made daily in order to maintain
and control desired mark-up margins. Merchandise has to be
received, unloaded, priced, and transferred to the shelves
or to special display spots. Stocks of merchandise must be
ordered daily in a large store. Incoming orders and invoices

must be checked, store cash properly controlled, and operating

 

1George E. Kline, ”The Super Market Manager-—The Growing
Power in Food Retailing,"Progressive Grocer (New York:
Progressive Grocer, October, chl). p. MY.

 

R)
h)

I

reco"ds maintained which makes a full—time job o: bookkeeping
in many large units. Personnel must be scheduled and directed
for the most efficient production. The store equipment must
be maintained and the store has to be kept clean. Advertis-
ing is another very vital task which the store manager has

to plan.

One of the most important aspects of managing a super—
market and one which requires a great deal of experience and
skill is the job of directing and coordinating the perishables
departmen s. The meat, produce, dairy, and bakery depart-
ments account for approximately one—half of the total sales
volume in most large supermarkets today.1 The gross profit
success of the store depends upon the performance of the
perishables department. Handling perishables in volume

great degree of risk for the firm. Customer

represents a
wants have to be anticipated and the merchandise must be
ordered and prepared very close to the point of sale. A

lot of time and labor are involved in breaking up large units

 

1According to Facts in Grocery Distribution, 19¢},F22,
by Progressive Grocer. if Mrs. Consumer spent $l00 in

 

 

 

 

edited
a typical supermarket her purchas s and gross profits would
be “llocated to each department in the following manner:
Gross Profit Realized from
Purchases $100.00 in Sales
$100.00 Total $2

0

21.90 Meat department
11.10 Dairy department
10.00 Produce department
6 20 Baked goods _
3.50 Frozen foods .9
£7.30 Grocery department A

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23
and large shipments of various perishable items into sizes
for indivi dual customer purchases.

The Supermarket Chain
Store TTanaIeI Todayl

 

 

The old methods of the bazaar, when the merchant sat
crosslegged in front of his store and enticed his customers
in, can no longer exist because the modern food merchant has
too many items aI Id too many types oi' merchandise to sell.”

D

For example, Kroger store manager, Nelson Apling, oi Toledo,
Ohio, today manages a supermarket of 28,000 square feet
which employs So people, has 9 checkout counters, caI Iies

approximately 7500 items, and has about 15,000 weekly cus-

'1’

tomer transactions.“
.sed on surveys of over 1300 chain store managers

and executives Robert W. Mueller, editor of Progressive

 

Grocer, summarized any chaIa cteristics of the 1900 store
manager. The profile of the men who were mara ging these

high volume, quick turnover operations revealed that 93 per

cent of them were married and 81 per cent owned their own

 

1Much more is to be said in dme cribing the modeIn super-
market chain store manager in Chapter V. The immeo.iate d
cussion is limited to statistical data in order to inef 1y
compare the chain store manager with his independent counter-
part.

(,0

’3 I . . .
LArnold and White, loc. cit., p. 23

MO

Robert W. Ptoe 11er, ”Meet Kroger's 1900 Store Ilanager:
The Executive in Chain StoIe 0peIation," Progressive GroceI'
(New York: Progressive GroceI, March, 19b07, p. e3.

 

24

homes values at an a eIage of $17,600. The average yearly

income of the 1960 store manager was $a¢75 and he had life
insurance amounting to $23,900. It is also interesting to

I.)

note that 32 per cent of them either attended college or

3 per cent owned stocks of some

“\-

were college gI acJIates and

type.1

The independent Operator

 

Until the early l930's the grocery industry was almost
entirely composed of independent opera “to s. With the
depression came the onslaught of chain stores with their low
price appeals for customers and their mass merchandising
techniques. Although the independent operators bitterly
fought the chains; self-service, mass merchandising, and
lower prices of food gave rir e to phenomenal growth of the

‘

chains an nd the m rket structure of food retailing changed

(3’)

A

dramatically.“

During World War ll expansion of the food chains was
sharply curtailed and the independent operators again began
to increase their relative share of the national sales.
Independent grocers and wholesalers Joined in associations
in order to acquire operational advantages for each. In

many cases, the wholesalers formed a voluntary chain of

 

 

lRobeIt w. Mueller, “The Chain Store Manager Today,"
Progressive Grocer (New York: Progressive Grocer, November,
IgniT, pp. jc-ia.

2Robert W. Mueller, HThe New Independent a Growing
Force in Food Distribution,” ProrIessiIe Grocer (New York:
Progressive Grocer, January, lacs), pp. 32—33.

 

2 .

\‘l

independent .roc rs by providing them with financial assis-
tance, merchandising specialists, and economies of scale in
buying and advertising. Other groups of retailers banded
together, formec cooperatives, and operated a group ware-
house in order to acquire the major advantages inherent in
i . . l
the chain system.
The independent operator through these group affili—

ations acquired the operational advantages of the corporate

chain but retained his freedom and flexibility. He con-

l—b

tinued to function quite ndependently while providing the
same services to society as the corporate chain. Through
the voluntary chains an: the cooperative groups the indepen-
dent operator became stronger and stronger and once again,
within less than a twenty-year period, the market structure
of food distribution changed. Consequently, the independent
grocer is now the predominant food retailer in the local
Imirketplacme in naruzzareas.
A

In 19e0, approximately 240,000 independent storesC
enjoyed 61 per cent of the grocery and oombination stores'
volume of $52.6 billion. An estimated 34,000 voluntary and

cooperative stores had estimatej sales of $2f.h billion, and

_— *

iVoluntary g_oup retailers and cooperative retailers
‘ 1 c ‘ — ‘ I _ ‘ H
are oeiineo on pagesé) anc l0oi the "lntroouction.

r o? ten or less

:An iniepeno o
H ~ . \ H
r e Introcuction.

Q
\4
retail sto es as is?

approximately 15C,000 unaffiliated stores did about

419
(TR
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\ 31

billion.1
A profile of the nation‘s 19c0 independent supermarket

operator was recently revealed in a survey by Progressive

 

D

Grocer Crawn from a national cross—section oi stores doing
a minimum of $500,000 per year. The typical independent

operator was 45 years old; he started to work in food re-

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2, and started his own busi-
ness when he was 29 years old. The average yearly income

of the independent operator was $30,700 in salary and net
profit, and he had life insurance amounting to $CY,€OO.
Forty-seven per cent of the nation's independent supermarket

owners and #1 per cent of their wives had attended or had

I

gr duated from college. He owned a house worth $33,000, had

1.7 late model automobiles, and held corporate stocks of

h‘)

some type. The profile of this typic l independent operator
also reveals that he operated 1.6 supermarkets averaging
over $l million per year and employed #4 people, two—thirds
. 2

of whom were full-time.

The independent operator is a permanent resident and
an active citisen in the community, which aids him in estab-
lishing better customer relations. His operation is flexible

and he is free to adjust prices and promotional efforts to

 

lMueller, Facts in GrocerygDistribution (lle ed.),
loc. cit., HSummary.'r

 

A
C11 .f'Y‘ - a ‘
Mueller, 'ihe New independent . . . . , loc. cit.,

pp. 32—36.

, 1

meet the competitive situation dail‘. In many instances

better organization

pa

the independent can build and retain

of store personnel since his employees often do not belong

to a union. The independ nt has complete freedom in selec-

tion of brands, perishables, and new items and he is often
e p to local neighborhood demand more quickly

able to r s ond

than his chain store competitor.

The Need for Strong leadership

 

There are very few strategies tha are not available
to all food retailers; therefore, good customer relations
have become a key to the success of a store. The responsi—
bility for creating good customer relationships rests almost
entirely upon the store manager. His ability to resolve
situations directly involving the customer can make a lasting
impression upon the customer and determine the final success
or failure of the store. The customer sees only her store
and the man who is manager of it as the company; consequently,
she expects the same treatment from the chain store manager
as she does from the independent who is operating his own
store.

it is quite apparent that strong leadership plays an
important role in the success of the highly competitive

business of managing a supermarket. Manuals can set down

 

2

U)

the company plans and policies, but the execution of them
depends solely upon the human element directing the unit
organization-—the store manager. Hence, putting up a brand
new store is not nearly so difficult as selecting and rearing
a strong store manager. Sometimes it takes years to develop
a manager to the point where he can direct the operations

.0 1
most efiectively.

Today, the squeeze is on profits and the battle for
supremacy is a contest among the management teams of every
company from the neighbozhood supermarket to the national
chain. The importance of a chain having a strong store

manager in every unit is further emphasized by Nathaniel

Schwartz, editor-in-chief of Superl Ma1'1et Merchandising, in

 

an editorial entitled, ”Hail, The Professional Manager,"

in which he stated, "There's more to running supermarkets

1

today than slashing prices and on ut- gi king the gimmi 0/ rs.

‘4

Those companies who desire to survive must be ledbmz the
pi o ess1wn 1 ma na ge:. '5
The need for strong leadership at the store level

appears to be readily recognized th1oughout the ihl‘StIy.

1

However at this point the question arises as to whether
strong unified administrative leadership and over-all on

the spot supervision imply that the upev'arket chain store

 

1"How to Manage the Mar
dising (New York: Super Marie
1959), p- Z*1-

, Supe r Marekt Merchan-
ublishil ng Co., In , February,

 

d0

’3 ~. . "‘1
‘Nathaniel achwartz, "Hail, ihe Professional Manager,”

Super Market Merchandising (New York: Super Market Merchan-

 

dising Publishing Co., lnc., February, 1959), p. 41.

f‘ k)

9

manager's job is one requiring executive talents or the line-
foreman type of supervision. it appears quite possible that
top management could very easily describe or refer to the
store manager as an executive on the one hand, and on the
other hand, associate him with the duties and status of a

shop foreman.

CHAPTER IV

CHAIN STORE MANAGEMENT: THE TASK OF AN

EXECUTIVE OR THE EUNCTION OF A FOREMAN

J

I
p

If a .iscrepancy does exist between what the super—
market chain store manager's Job is and what it is described
to be then perhaps the specific conditions of his relation—
ship can be determined by establishing which furction his

actual role more closely parallels——the line or the staff.

U)

ince no attempt is made to contrast the line superyisor's

job at one level with a staff job on another level the

terms ”foreman” and ”executive" are explicitly defined for

the purpose of evaluating the store manager's actual relatior-

ship to his organization. The duties and functions of the

"executiveH and the "foreman” are also outlined briefly to

Q3

id in propeilg'erhgluating the commMiijrmo of each with trme

"1

role oi the supermarket chain store manager.

:lxe'fiorerarl

 

 

For the purpose of this study a foreman is an individual
who constitutes the connecting link between what ls commonly

’\ 'y ‘ I M ‘y _‘ H c) r '1 o ., , . F‘ ’1 A‘ 'w ‘v' T ‘ O ' .-
called management oi a iirn and he WDLKG s. in this posi

employees. He participates in a portion of the physical work

31
and the actual routine of the productive work fora .1 He is
associated with the work rs themselves in the joint task of
doing the work in question. He is the iront line superviso1
who carries out the directives passed down by upper manage-

ment .

 

 

The Duties and Hespg.sibilities

 

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The for man must accept and carry out polic

directivesvdukfliikehas not formulated. The broad job of

‘

the foreman as an administrator may be broken down into the

[I

following iour 13in general tasks:

>-<
_)

f...)

M"int°ining efficient deoartment operations
within company policies.

7

2. Insuring the piope1 functi ni of his
department at all oiles

7. Maintaining eifective coordination betweer
his unit and lighe: naragement

(._A_)

+. Completing required adrinis strative details.
The duties and -esponsibi ities oi the foreman are now

The responsi—

(I)
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further defined and outlined in more det.

ty o1 coordination of his unit with the rest of the

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organ zation means specificaliy operating the department in
raccordance with company policies, scieounes, and specifica-

tions. It also implies working in cooperation with the staff

 

‘Elmore Petersen and E. Grosv eno Plownion, Business
Organization an‘ Manag men (3d ed.; Himemjgg, Illinois:
Richard D. Irwin, Inc., l} g), pp. Ely—Elb.

 

 

Q - 1“ fl fl 0 n 1
«hex1o1d Hersey, better roieconOIJp Ley to oniit b'
N N3gemsnt (2d. ed. rev.; Philadelphia: L‘hilton Co., In- ,

 

.8 ,
‘ at:
1.92/7, L). CL.

32
department and supervisors, and Keeping the immediate super—
visons informed as to the opeyation of the unit. Submitting
reports and initiating :ll necessarv paper work applicable
to the job are also duties expected of the foreman,
Maintaining efficient depo-tmen it operations includes
the indoctrination and training of new :nployees, placing

and oonsta ntl;\ stniving to

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the nigh
impiove the job peyfornance o” each man. Gaining employee
cooperation, and developing a slrowot} worwing relationShip

through the proper handling of discipline, grievances, and

l_J

abor relationships are important foreman duties also. Ii he

performs these responsibilities well he should have little

.5

depa mtrent consi.tent with ope atin* requirements.
Effective l7 usin a com any facilities, materials, and

L v

eqoipment involved in his unit function includes controlling

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supp-y expenses,ano_pianning :0? e

storing of supp ies and eqoipment. He is also chaiged with

J

tility if saintaini“
1

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he respons

within his unit.

The Ex dutive

 

v-

bo1tle pdipose of this pnoject an executive is defined

‘ Y -‘ - r I . ,'; ("N (“a - ‘» - ' . v‘ a ;‘ ,--. 1 r' 1 _-. ‘ ‘ \
one who conceives ioecs an: the plans to.& oi new. YGJdCeS

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the ideas to directives and orders, GiTthS them into the
proper cha.nels fox execution and appraises and inspects the
achieved results. He formulates policies and implements

ecisions dealing with both the present and the future

0..

activities of the firm.

The Pesponsitilities of the Executive

 

The main executive functions are performing the processes
of planning, directing, and cont3olling activities in the

organization, execution, coordination,

«L-

puplic relations, and evaluation oi achievements. His prin-

i. interpretting major policies and objectives
to {Mars ris lgwner iii raruc.

s andolrectives designed to
carry out p licies and achieve the objec-
tives of the fi m.

LU

. Pepresenting his iirm in the community.

I)

Actirg as the main center oi communication
within the oyganization.

.1:-

5. Formulating company policies.

The executive is principally a person who is cesponsible
for the tasxs of othens and the achievement of such tasks.
He must possess the personal dialities of leadership and auth—

ority commensurate with his responsibilitv.

 

Petersen and P;ownan, loc. cit.. p. ldl.

(A!)

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s
U]

 

The Difference in the Manageriai uncti'
of the Executive and the Po ens

7"
x-

 

The significant difference between a forema. and an

)1

executive exists in the'

L

egree and weight of responsibility

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apportioned among the sevevai functions setfoc

executive and the fo eman direct and contnoi various aspects

within the firm-~but with different scope. Both nake

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Briefly, it is the responsibilitv oi
conceive ideas. fogmuiate policies, and inpiement the
decisions necessary to achieve the objectives oi the firs.
On the other hand, the foreman does Less planning and more
impiementing tnan the executive. The foreman accepts and
carries out the detaiis of the policies and directives formu-
iated by the executive ieve; of managemeot, and supervises

he employees invo;ved in the actual routine physical woyx.

7." . ‘ 2 ' ‘ 7 Y‘ 1", 3‘: " !‘ ' ‘-' ‘ h. ‘r'. n .‘ . -~ 1 r .
.aoitionaiiy, tne ioieman is oiten i€§3-£€3 in our

S‘”i€UV as teins the higiest position within the physical

or ciass and the ficst level in the management hierarchv.

Peter F. D“Ucker points out that the foremcn's main pgotiem

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is almost excgusiveiy that of midoie ciass status a

I

The development oi the hierarchy of executives between

the foreman :nj the top management of the firm has taken away

 

Peter F. D ucker, Concept of the Conporation (New
York: The John Day Company, 194:). pp. icj—ifi.

J

 

 

most of his function and authority. The growth of Big Busi-

‘-~ -. ‘ .‘ -; -~ ,.: a <. an~ o. -
ness has tended to cep_ive him oi aii manage-iai ionction

by reducing him to a gang boss vnose jwc it is to see tLEt

xecutive orders ave carried out. sven this i”

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sup vmarket chain store m:n:qer the te~m status is now definej

 

 

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Status is used in this repovt as meaning the hierarenial

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ordering 33 ranking 3f pssitians within an aygan zation an a
society and the degree of imparten e athers ascribe t3 the
position or to the inditijuéi oeyupying it.’

One of the implicit sets 3: human relatisnsbips appear—
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status. Men are usuallv nst satisfied by simply recogniziug

the functian A? a pgsitivn s3 the pssitian is “anked in terms

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value be associated with the individual releting t3 hi

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is: measuvenent or abilities is reflected. The stznjaru

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stare manager end emplayees, custsmers. or higher supervision,

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eggally as unjust

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he the status scale of
the pose o; the stoye
infustices. Status

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prog_essive organi::tioh.
'fhe Lixltnn ijst-7 :i he itxoge 3hrnx~e71
A lasting Psywholngiu‘l lgprint
[lost o* the promotions: ei;ort ju1ing the ea-iier stages
of the irm31stry vmsa;li evteo txwwrzi selling a ‘:r;xa )lune of

food at the lowest po
facilities, an: highl
sidered necessaty for

managers were not nor-
op nation. Consejiently.

 

4i
supermarket Itzanagels wno came up tl'n'ough the ranks from the
school of hard—Knocks directed the unit opera ion and the

stores were sontvollej through a rigij chain of command by

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headquarter
During the very :spio expansion period of the industry
following World War II, top management oi man" grocery chains
encountered a serious pyoblem in s citing the stores. As a
result of the extreme shortage of trained and talented store
Inanage s many re-atively inexperienced men wene appointej to
- - l
the jop of manager.
The store manager was expected to follow through on

I

orders :rom headquarters as a part of the store work force.

LSinre he usually wore an apron he was often referred to as a

"glorified clerk.” The chain store ncnager was njt'especiglly
vwell paio or well informed.

_ated With

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synflbols of status in the minds of managers, employees, and

gsztoners. Consequently, history and events have created a

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l . ,
Kline, op. Cit., p. 3:.

THE FEED FOP lHPPQVlN? THE

STATUS OE THE JOE

Peter “. Drueker in the book The Pnactioe

 

. there is the fact that the mooern h

* se for its sunv v l
he ab.est, tes
u ounw men into i
and to i sueh men a p~om
lifixirug . fir .oi' ec*or:o:1'c s;
enterprise must live suvh men
and a sense of m qust be atle
their desire ion “ meaningfu; contnititio
community and s ety it must in other
embrace put to
live up to the a
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within an o.Tanization. A system oi s atus oiten a

 

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nsitility o: a high once?
haiuns tne managet-cm.‘tmnor:ow

 

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more rapid and more accurate comnuhications in the organiz-
ation by facilitating authentication. authoritativeness, and

intelligibility.l

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Maintenance an

;sential incentives to cooperation.

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status appear to b
Prestige is important to most inoivicuals; theceiore, a
properly balanced system oi status can provioe prestige as
an incentive for the chain store manager to work to achieve.
Personal satisfaction on the job is also very inpofi ant to
most indivixuals, and here again, a propev system of status
in an organization can provide a personal 'ncentive for

system :an c an indispensitle tool in the developm ht and

a

h)

fiXLns of respoisibility.
Loss of status is loss of presti:e to the iidifi dial.

Thus improvement oi status is important ano uesiraule for

en”occing the stability of an organization. If a store

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:sanage” is not reasonably ceitain that he will be able to

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retain the achieveu status the chances are that he will not

be spurreu to stri'

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To ., . ...,‘ H l', . ‘ , _ _ _. . . . .
E8?JJPQ, The Status Structure oi Maharement,
P ,

 

 

The Stone hanage? Hcoids One Key
to tile Ecu”1ival :of trma FiYh;

 

Many problems confronting the supevmarket chain store
:anager appear to result from the extremely rapid growth oi
the ihdlStTV. Chain companies have grown quickly with rapid
increases in the numbe? of stores and by building large: ano

largei'inoits. .mo an eiiiort to cxnitrol a Iharge Inmate? oi

scattered units more etfeCtively, branch oifices have been

*4.

established as serv ce and control centers. Some companies
operate branch o1 ices as ‘utDMJHQUL units within the company
lo an effort to cope with ove extended lines or communication
and to create more flexibiliW in meeting 0 mpetitio.n in the
ma-ketplace.

Today chains ans independents operate as equals in the

t be

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local market with strong capable people on the

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almost the only uniqu competiti e weapon PJSSG>S€4 by either
of them. Hence, the supeTm5”K€t manager's Jab emerges as

the “ocal pw>iit--tlie strategic Key to the servival of the

9.

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‘Yses the present image oi the supermsvket

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manager 18 not recognized by employees or customers as truly
representing the Scope of the responsibility that he now
JSQWlES. A regent stioy by Cornell Universitz reveals the

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oast to coas

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tzttitudes of more than l,OOO customers irom
toward superm: Vet chain store managers ano insepend nt owner
:narnagens. 'ihe 1ijxiings :fi] the ZWBSSSTKWU groupnirm;,cate tnxit

UTJCH can and shoals be d:u&3‘to improve the status of the

~ _ ‘ . 7 s _ ‘ v o 1
stare manager thh as a tuSinessmsn ans a Citizen.“

With the spectacular growth in the size 3f stares and

rf'

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the enormsus vsiuue 3i saies for whivh he is respans

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the is): stave man3ger's jab has grawn into a pasit

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quiring multiple managerial skiiis. The stgre manager is

xpected t3 make decisians end take actiars that wiii inure se

on

sales aid prafits ior his sta e and his company.
1e men;ger's Latitude i3? individuai decisisns and
his scope of autharity can heve a great bearing UDJH the effec-

‘iveness 3f the unit in meeting 3% testing its campetitian.

initiative snd the L a: rship respansibiiities which he

 

3f functions and responsibilities wouid still piste one stave

anythev in an nvgenizatisn. IUSlheSS is 3 hiersrehiTsi

soc1ety-—it cjn nst be classless. 3i sistin -

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derive from 3 function, but uisg beceise they fn~m tie raun-

3etisn 3: all persgnai diginity--st3tus--within the LJ:

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at :11 levels. Discipline and contrsi jeaenj uiin the resig-

 

 

 

n» .; 1 «A m a . . ,. w . .. n ‘. i H
wenseli isUie, what tustsmers _LinL 3i the Espei

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zévhet mahsier, PTOJVLSSiJB waver (new (obs: PCJQ”ESSLJ€

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(} Deer; .Qecen¢.:', iyti), ‘V‘, J;~p-I:,,

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important factors fecting the efficiency of the organiz-
ation because within business, as elsewhere, there is little
setisfection to be gained when rank ans status have no
iueaning.

Since status may affect the efficiency of the firm if
the store manager is ranked by society as being on the 183
step down the rung of the lajuer, the following postulates

Suoulo be given serious conSiserstions:

i-l

. Only a few men who ooc‘
chain store managev Li‘
l

ugy the role of supermarket
management stove the .e

,
1 rise in the echelons of
V’e :1 o

2. Assuming this to be true, how can the status
of those in these positions be W;de oi an im-
portance equal to the needs of top management?

3. in View of intensified competitior sispted to
the peculiarities of each lo :tion ens the ex—
panding size and scope of esch unit store,
does top mensgezn ent need to res -sess the kind
of man and the kiijs of responsibilities rec—
esssry to compete on a different basis itom
folflffi7 times?

4. If a higher cs
job of store nm
to achieve desire
scope, function

r'e Ina-n is required for he

e-, how can he test he helped

aims, 311 tenms :rfeauthocital
i responsibilities?

lf1.ordez'i:o

m

i e consideration to the questions set foyth,
the wuine* in which the store manegec is commonly des vibes

in the industry as well

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s the role wl‘iiagl; he actually fulfills

must be iwivestige ted

THE PROJECTED ROLE OF Th5 CHAIN STORE HAEAGER

' I

At this point the projected role oi the store manager

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is examined in an effort to determine the piss

manager within the chain organisation. it seems possible

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that, in the struggle to improve the pecfo‘z-I’nance and the

status of the store manager. tie preferred description o

him and hi :Mfixmi_iole may be entirehycfljterent.

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The Purpose of :Kamining the Projected Pole

 

Supermarket chains are made up of people who are con-
tinually trying to improve their own perf:ymance--people who
are fully aware that the store managep is in a uewy stwategic

spot in the ovganiaation, and that the life oi the firm de-
pends upon the im,rovement of his status and per-:‘oi-zr;ance.'I
rThe importance of the top corporate exeautive who sits behind
a2:desk and issues directives is readily accepted and recog—
nized. On the other hand, it is also veoognized that the
store manager is closer to the customer than any top execu-
tive could ever be. Often she Knows the manager personally

and it would seem hat through him is pcojected hev image

 

 

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, . - l . .

oi the company and the store.* The canoge- becomes important
to that cus tome:, and consequently, very ip>rta nt to his
company. in order to determine the real strength and status

W

o: his pos Miti)n it is necessary to find out how people within

U

.. ' .1. g‘.‘°‘ '.1 -
the industry destiibe him.

The Projected Ies criptiot of the Manager

 

The projected description of the chain stone manager
including his duties and responsibilities is revealed by the
typical comments contained herein.

Nathaniel Schwartz, the editor of Super Market Merchan—

 

 

dising, deso:ibes the pIoiessional manager as a man o? many
talents many of which are above merely carrying out the line
duties of the operation. He further describes the manager

as a man with the ability to develop teamwork from executives
and subordinated, a Icon who is skillful in public relations,
and a man with sound economic sense who is not aft: d to

‘

haze decisions.

N)

Many people in the industry express views Hi ilar to
those of Schwartz. For example, Bob Hari rison, the personnel

manager of Hinhy-Dinky. in an interview by Super Market

 

 

is not that of a
aoer. adJiset, problem

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l—‘ H

 

.-. '_ ~ 7 If ' s. ' ’- ‘ "I ' ‘ , 'l ‘ ‘ .' . . ~ .
73y hing, Shell falh, loos Fopics (Philadelphia:
iopi s sublishing Co., lnc., May, l9 0), p. E.

 

"3

S~L'r,‘.“lartg, l);j_ hit. 12. hi_

49

solver, and organizer. These are the essential J
things. if he can‘t handle them, he's not a manager."

The former President of Marsh Foodliners, lnc., Ermal
Harsh, projected the role of the store manager as that of a
king in his own little kingdom when he described the position
of the retail store in his organization by saying:

In our company we like to think of the retail store

as being the bull's eye in our operation. This is
reflected in the manner in which we have drawn an
organizational chart. You might say that the retail
manager is the king of his own little “ailwick. Of

course, it goes without saying that the higher caliber
of manager we have, the better this is going to work.‘

Joseph E. Hall, President of the Kroger Company, points
out that increasing volume has emphasized the importance of

the store manager and, although progress is measured in cash

’I 1')

register sales, it is as ured by strengthening the store

managers, realigning and strengthening the supporting elements,
and eliminating layers of management. He further stated:

These men are running a $1 to $6 million business.
They are executives directing the activities of a
sizable organization. They are leaders in their com—
munities and are among the higher-salaried men in their

area F .

An important concept of management is that decisions
should be made at the level where all the pertinent
facts are known. This has stimulated some interesting
discussions concerning what are "pertinent facts.” At
any rate, this concept has placed more decisions within
the division organization.3

1 .
"How to Manage the Manager,” op. cit., p. Sc.

2”SMI Speakers Explore Role of Store Manager,” op.cit.,
2
.2 -

l

k)»

p..

'2
“Hall, op. cit., pp. 27—31.

90

Roy King, former editor of Food Topics, indicated that

 

the store manager must be an executive when he said:

The brains, personality, know—how, dedication,
resourcefulness and enterprise--once the forte
only of the chain executive-~must be common attri-
butes of the store manager. '

There is no room for thinking that the store manager
is an errand boy or a clerk. It is of the utmost im—
portance that he be an articulate, well—trained,
integral part of each company's operation. He must
look like an executive, act like an executive, and,
it goes without saying, be paid like an executive.1

Robert W. Mueller, editor of Progressive Grocer, in

 

the article ”Meet Kroger's lQCO Store Manager: The New

Executive in Chain Store Operation," summarized the apparent

preferred description of the chain store manager's role as

follows:

of

Nelson Apling and store managers like him from
coast to coast are the new executives of the food
industry. They have grown into executive stature
with the spectacular growth of the stores they
operate, and in the vast volume for which they must
be held responsible. They have grown to this
stature because competition is for more intense,
more skillful. Correct decisions must be made
quickly at the store level if the modern super
market is to fully succeed. in the final analysis,
every super market is different from every other
super market, even those within the same company.
Each has different customers, with different income
levels, each has different competition, different
advantages and disadvantages requiring understanding
control and action that cannot be achieved but q
through a strong and responsible store executive.‘

The Authority of the Store Manager

 

1

The lattitude for individua decisions an« the degree

4.. \

authority possessed by the manager, the head man ol a

 

lKing, loc. cit.
2Mueller, ”Meet Kroger'

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store operation, can have a great bearing upon the effective-
ness of the unit. The authority given to the store manager
can also affect h's individual initiative and the leadership
responsibilities which he assumes.

The authority of Dillon Store managers was demonstrated
in a panel discussion by store manager Orin Pehrenbacher of
Salina, Kansas at the Natinal Association of Food Chains

n is, in Cctober, 1961. Fehren—

l .—J
’p—Jo
(J

Convention in Chicago, Il"
bacher described how he had completely reorganized the lay—
out of half of his store when he noticed that one side of
the store was not drawing enough traffic. Richard Dillon,
Vice-President of J. S. Dillon & Sons Stores, also indicated
that their store managers were left pretty much on their
own. At the same convention, George w. Jenkins, President
of Publix Super Markets of Florida stated that his theory

was to let the manager manage his store.1

Summary of the Projected Pole

 

In summary, the study indicates that the projected
Icole of the chain store manager very closely approximates the
(description and definition of the executive which were set
tforth in the report earlier.

The typical comments contained herein and many more

1

:wavealed by the study appear to ind cate a trend toward

 

1 ‘ ' I 0 Y 'N 1 -. r‘

Steve Weinstein, ”hAPt Talks ravor Strong store
Phanager,“ Supermarket News (New York: Pairchild Publications,
131c., October 23, lgcl),p. El.

 

u)

E_
thinsing in terms of more decentrrlization within the indus—
firy. Progress in this direction, however, is often the
result of extinguishing little competitive fires rather than
as a result of deliberate planning by top management. Appar-
ently people within the industry project the role of the
store manager as approaching the role of on executive since
the store manager is described as possessing the some

personal qualities of leadership and as having the authority

commensurate with executive responsibility.

CHA TER VIII
THE ACTUAL PO LE 0? THE CHAIN STOR R MANAGER

The duties which the store manager actually performs on
the job are investigated in order: (l) to determine the
true nature ofhis job; (2) to exami ne his latitude in
decision making; (3) to determ'ne whether or not he is molded
to a iob title r1ther than to the specific needs of the
organizatioo; and (A) to show that he may be a victim of
the organizational charts of the corporation. The comparison
of the manager's actual role with his projected role can then
be objectively evaluated in terms of the hypothesis. A frame

[u

oi reference may then be determined within which it may be

possible for top management to consider appropropriate

ppggwaug to improve the status of the store m’raaer

_he True Meaning of the Job Title
The study reveals that, wha ever their titles or their
jobs may be. both stole mzinegers and carry-out boys in many
cases may consider themselves as materials handlers, laborers,
or j hitors for the most par . Apparently store personoel

cons ioe: themselves and their jobs in this manner because

1

they think top “_narement loows upon them this way. crhcps

the nature of he job also makes the sto :e marzge: s look this

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way to themselves because: their spons sibilities are often
not clearly defined; their authority is frequently not com-

mensurate with their responsibilities; and the physical work

requirements, the salary scales, and the long hours have not

H)

improved over the years to ny great degree. They have very

little real ”selling” responsibility becau.s e they re": ll y con—

“! o 'v
nstead ol ale -

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s

sider themselves as materials h“ndleis

m

pe
sonnel; The chain store manager is associated with the joint

t

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O

f the store work :orce while assuming

(to

sk of being p.

in

full management responsibilities for the store perfo«h nce.

 

‘

Long hours and hard physical work appear to hrve made
a very lasting psychological imprint in the minds of manageis,
employees, and customers regardiog the status asso iated with
the job of store manager.‘ One of the biggest gripes of the
store manager is the number of hours he has to put in on the
job. Store managers generally find it necessarv to work long
hours because they do not have experienced managerial help

9
to back them up. ‘

The actual role fulfilled by the chain store manager
indicates that a prevalent weakness in store managers is

their inability to accomplish the best over—all responsibility

 

1

 

William c. Nigot, "Rigid Operating Programs Cze ates
Sterile Personnel,J Food Topics (Philsdelphlo: Topics Pub—
, , . -., . ., ,_r
.lishing to., lnc., May, 19 l). p. gd.

’7

‘Kline, op. cit., pf Ml.

CC
//

in the store beC'use tley have to spend far too much time on

1

D

hundreds ol details. The store manager in some companies

has to fill out or have access to as many as 100 forms.2
The pressure of paper work, details, and ever—present red-
tape takes much valuable time of the manager, thus reducing

his time available f3r supervision of the oaer— a.ll store

operation.

The Ea arv Scale

 

The salary sca le is another annoyance to most store

*0

managers. Findings of rsgressive Grocer's recent survey

 

indicates a difference sf slightly less than $3,000 per year

between the store manager's income in a class A store and in

30

the smaller mole ordinary store.“ The manager of a store with
a yea: ly volume 3f $3,000,000 or more per year receives only
(appcovin tely 53,000 more per year than the manager of store
with the volume of $500,000 per ye ear. This kind of a salary
differential does not act as an incentive to encourage a

mana ger to excel in his job bj p:3

.1

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£334.
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better ope:ating

 

0M1 Qpeaners Explore Role of the Store Mcna qe I.”
2:

o . cit., p. -

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L How to Manage the Manager,

op. cit., p. ,U.

4

JKline, 0 . cit., p. 44. According to the Pcogre ssive
Gr3cer Survey of over 1300 chain store managers those managers
of stores with sales under $500. 000 per yea I earned an average
salary of $C948 in 19;0, and hose who managed stores in the
$1,000.000 to $2,000, 000 cla ’ “

 

1 ,‘ .‘.'_\
=ss earned 333cc.

\ll
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The Dilemma of the Manager

 

Apparently in some Eases the store manager is being
held responsible foi the gross margin performance of the
store while he actually has virtually no control over the
,selection of the merchandise or the margins to be placed on
it. As pointed out by John Hertz, Director of the Genera
Management Division of the Super Market Institute, authority

should be clearly defined and matched with responsibility.

A sto: e maniger can properly be held resp o n.:ible only for

H

those things which he can control.

The manager must accept and c: rry oit poliCies and
directives which he has not formulated at all Hi success

depends on his ability.to act upon these policies and carry
them out instead of on the exercise of his own jutmgn nt.
He has no part in setting up the rules under which ye must'

‘8)”.

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operate. Host of the major activities con

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operations are di: ected from the neuu11a*ter° point and the
manager is really molded to a 33 b title rather han to the
needs of the st3 e opeiation.

The Discrepancy Between the Projected Pole
.of the Manager and His Actual Role

 

There is an apparent dis crepa-lc y between the lip ser-

vice being given to the projected role of the store n-1CPer

 

 

. “.4 . < . ‘ r: « Tic ~~
Bailey's ELLAQIDZ'E? Yale J the pal/3-63 ,=,_,V13l~- (-3.-
o
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/

7

and the jobs actually performed by him.

Although the super—

market chain store manager is 11equontlv referred to as an
executive, his actL al role seems to te th1t of proV1oing the

store with unified administ1ative lea
supervisor. Instead of conCe1V1og i
policies, and making decisions conce:
of the firm he is more often saddled
carrging out the details of policies
lated by higher management and
involvei in he actual routine phys1

This discrepancy between

the ma

1ormil"ting

ring the b11330 objectives

with accepting d

J

an

rectives formu—

supervising the employees

al wo: k.

nager's projected role

 

and his actual le can ha1dl y be interp reted as an expres-
sion of malic ious ness or bad faith on the pa1t of top manage-
ment but rather as to the dramatic impact which new social
foices pr duced by modern technology are having on the market
tiucture 01 food distribution.1
Suppression and Co nfo11ity
Quite naturally the store manager is bewildered because

 

 

 

he mus accept the responsibility of all aspects of the store
ope ezatio1 despite the fact that he cannot cont ol the condi—

tions or terms under which he must operate. The store manager
along with many of his associates conneC ed with the industry
feels that he is on the spot because all of the terms of

tFritz J. Poethlis bers er, HThe Foreman: Master and
Victim of Do'ble Talk, ” Human Fact1rs in Mana:ement. ed.
Schuyle1 Dean Ho slette (New York and London: Ha1per and
Ft:othe1s,l:fl+ ), p. 3“

58
Iéesponsibility ane established by the policie es and restric-
tzions of the organization.

At this point indiV1 dual initiative is suppressed

p)
3
£1.

c1on1or mity becomes a problem of enormous proportions.

1—4
}—+

reative thinking is supp: es. d the management function
sseriously hindeys the growth of the business. For example,
'tte idea of uppression may be of such a magnitude that it
sometimes suggests the possibility that much effort in sales
{Drouoti n may'not be for the public at all, but merely fon

. h

luigher management in the form of merchandise displays with

H

"window-dressing to please the eye of he supervisor nether

. . - Q 0
than actually sell1ng the product to the customer.‘ Crit1cs

of large scale business organizations 1ave often centered
critical 1commen s on the in pact of excessiv conformity

The Manager's Real P:oblem

 

Top management is fully aware that the store mane;

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is in a Key strateg'c spot in the or anisation and that the

E.
U

 

 

 

life of the firm depenis upon the improvement of” his status
and performance. In the constant effort to imp? ove the
performance and status of the manager, appsnently he is

*Fov King. "She: Tals." U330 lopics (Philsde pl a:
fopics Putl1 h1ng Co , inc . hay, 19117} p 5

2“ ' /\

baJid L. Yunich, ”Retail Ma nageme11t's wghe est comps—
tition: Self—Imprisonment,” The Toce' Lectu es in Retail

 

Distribution—~l957-1958, ed. Malcolm P. Humal‘ and Milton P.
Brown (Norwood, Mass.: The Plurnpton P ess, £6), p. 9c.

describe‘ and referred to as an executive while his actual
detailed duties and responsibilities have re e3i ly not been
changed very much. The dilemma oi the manager may stem from
the fact that his authority is not clearly defined and matched
with responsibility. The real problem may then be regarded

3s one of communications rather than 3 violation of the
responsibility principle. Perheps the problem is thst he

does not understsid whst is expected of him and the company

does not uidersta nd wh3t it wants.

The True Nature of the Job

 

Regardless of the lip service attributed to the prestige

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o nansser's job, it is apparent that it

regs rded 3s the arm which implements co:np3 ny planning in the
attempt to achieve the desired effectiveness in the loc3l
situation. The manager is tr3ined 3nd prompted to be tough,
to be fair, to us e consultation Wipe vision, and to retain
management rights in supervising the physi; 31 operstion of
the store. Restrictive co;r p3 .ny po

licv for the nmo t part is

the mansger‘s onl, authority for what

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passes for latitude in decision maxing. The findings of the

study indicate that the supermarket ch3in store manager is

i 4

"eally fulfilling 3 role similar to that of an ind striai
shop foreman. Yet. in the next chap er is seen one popular
approach to upgrading the manager's role through the prin~

ciples contained in the concept known as decentralization.

CHA 3? IX

THE ADMINISTPAIIV“ DECEIToQIIZA ION

CONCEPT OF DMA AGEIL ENT

Corporate food chains have been confronted with some

major problems in upgrading the status of the store manager
(1) internal problems 31Wi ins from venv rapid growth into
large firms difficult to cont: ol; and (2) external problems

arising from the eme1gence of severe competition from the

to1s and other chains.

to

in ependent ope1

f“'
O;

iruoi oved loca

n

Apparentlyr m1 ny top management tea1us have felt, that to a

great degree, the solution would be found in changing the11

H

inte nal organizational structure on at least in changing
the organizational ChflTtS. Within the supermarket industry
znuch attention has been oev oted to the problem of running

lange corporations with dem c1atlc rather than autocratic

311tho1ity in order to improve the effectiveness of company

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irected toward ivaoVing the eo“ectivene°° of the local

C).

e operation aid the efficiency of store management through

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ayiministnative ecert1o111 tior.

Decentralization

 

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The team 'oecentra tion ” has become very popular in

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‘the supermarket industry and appears to have been 1 ega
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ea cure—all philosophy of manogement. Decentralization is
<jefine d as the maximizing of Butt o: it;7 and the localizing

ies ons ibil it foi results at the lowest possible level
p y

}.b

1J1 the organizat;:nn7l hiez'a‘cchy.1 Zflnalxisic concept of de-
centralization implies that the organization be divided into
as number of autonomous units with mandates to ope:a te as
independent units. The principal sdvsn ntege of adn.inist:o-
tive decentralization is in decision m.;7King. Theoretically
capablec sdmi n Ht ators can solve problems by making decisions
{oromptly on th spot and the:eb3; initiate action without
delay.
Many companies appear to have hestily turned toward
ent::lizut ion of authority and restnucture of the firm's
cga n1_'tionol anatomy as a means of improving finst-line

znsnagenent and sto e op .:tions. Often top management seems

to have t: Ken these actions blirdly' without fully recognizing

i-_J

the coexistent need for contro and coordination. Conse-
quently, many misconceptions and much con usio on can be
aittributed to this theory of management.

Decentralization i

U)

often 'eg“: ed as a cure-all fon
management ills. Administrative decentyslizstion and its
effects upon the organization is many times prematurely

=cniticized or misjudged immediately Hi1 VJing the develop-

znent of new organizational manuals on charts and new company

McFarlund, oi. cit.

h)

p3licies. Often t3p management d3es n3t realize the c3mplex—
ity 3f dec entps li23ton; theref3re, the 3rg3nizsti3n is n3t
p33perly prepared t3 devel3p 3 decentralized 31g3niz3ti3nal

structure in the msnnev in which it can fune ti3n er tively.

F—i

It is 3ften implied that 3e0entrsiizati3n sh3u 3 be c3mp ete;

h3wever, extreme 3pplicati3ns 3f decentralization are both
i

ec3n3mically impractical and 13icui3ws.
Functi3n :l Decen t': Ml 3ti3n

 

Administrative decentralizati3n can be either 3f tW3
basic C3ncep s 3303rding t3 Peter F. Drusker. The first is

called functi3nal eecentraiizaticn whereby emphasis is

L

1’.

placed up3n 3 specialized functi3n inste d 31 the entire
c3m33ny 3pe33ti3n. The 33mp3ny 3rg3nizati3n is subdivided
int3 specialized functi3n3l departments. Managerial 33th3rity

is delegsted t3 an integrated unit and maximum resp3nsibility

is restricted within thst pa “ti ular unit. An exemple 3?

H.
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this meth3d 3f functi3nal subdivision 3f 3n 3: g: niz3t
w3u13 be departments within 3 supermarket Ch3in 3rg3nizati3n
1fb31v1 ed by 3 133::ti011131‘cxnm33dity gn3upg snufiizss meat,

(x «(1 .- "

se 1333, bakery etc.

LA

P

4".

Several weakness s are inherent in this type 31 de-

centralizati3n. It is virtually imp3ssible t3 evaluate

nesults 3; 3n ops ati3n when functi3n31 subdivisi3n exists

 

’1 ' ‘ ‘ Q 0 1
*Chavles l3uis Th3mas, Jr., "Decentrslizit13n ans Re-
entizlizat13n 3f the Merchgndising Functi3n" (unpiblis led
M3ster's thesis. Lepartment 3: Genie 3i Business, Michigan

St3te University, 1955), pp. i-

C‘
L)

l unit Of

zition

neny times acts

the individuals

The

T!)

GCOK

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‘red to a the

company activiti

with its

“DH f
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twenty yeans.

concept of

-luences the operations

often resui

\A

-‘ .
feoer

.nies,

Westinghouse,

Ge

manz‘ gement

a? ment often directly

of depantments. Anotner

“finnctions deventrali za ti is that a

on
soon develop within each of t

the organization. Very technical specie

.1

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C

ts in iv bet ween function?il units

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14

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l

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coordination o

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impossib

a

0'?

threat to the

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future develspment

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involved.

 

b ntrslisation is

F
OS

to

Q

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d‘ing concept

‘ n -. '.-‘ rfi 3 y? , ‘ 3 n l . , /\
e: cl gsniseo into :UtDano‘o

ket yofit and_

loss responsibilities.

Chrysler, General Elec-

Seays PerUtK, ans The Kroger Conpary
tni fo"m of ingenization Juring the pest
neral hotois and du Pont oevelopeu this

}.J

u: ing tie 1920's.

Peter F. Drucxer outlines the following moin reasons
for the emergence of fede:al ue(entralizstior:
i it focuses the V1 i>n ind efforts upon perform—
anue and result..

 

1 - . ‘I V c I . o I“ . f‘ ’
Drucner, Practice oi Hunugement, op. tit., pp. :CQ-sOt.

 

UL)

_.. ~ I 7“. n 'V ‘ ,1 ‘ (1 I ,5 ' r“. . . ‘1
Drttkei alto listed live buSit rules ess

c4
Because of this the danger of self-deception
spurs management of the decentralized unit to

exercise its capabilities more efi ic iently.

The number of people or units under one menoge-

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limited by me  negeI isl responsibility instead

3

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by span of control thus eliminating lryers

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management.

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it aids in developing future executives who are

st

P.

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EGHEL"

lists instead of special -.
It tests meniriindepe ndent command early at

low managerial level.

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ntial for the

uccessiul application of federal decentralization.

. . . any fee rel organization requires both
strong parts nd a strong center. The term
'deoentrsli on” is actually misleading--though

.fl.

:ar too comrn
that the cen

o
w
*1

13W to be discsrded. it ixnplies
er is being wesKened; but nothing
ouli b more i o rist:Ke.Fecers1 dece ent;c;i sation

€3Lll res :rtrorgrggiion .xoe it us the tfnoter 131 the
the setting of clear, neon'nrdu and high objec-
tives for he Whole. The objectives must cemend

bo h a high s sn‘srd oi conduct throughout the
enterprise and a high degree of business performance.

The federally decent:sli;e unit must be lsrg
enough to suppo: t tie or: -er ent it needs. T
s r t

O

0.) 0?; C).

aim should be to have as m- y autonomous UL
as possible and to have them as snali as po
but th s beconres absurdity when the unit ge
srsll to support Won°*enfot of t le neces s21? number
:nd quality.

 

H
CT

rm

Q.

F .
\jl

ch ledeially decentralized unit should have
potential for growth.

{ML}

M. There should be enough scope and challenge to
the job of the managers.

5. Federal units should exist sid’ by side, each
K t or product.

e
with its OVJN job, its own ma e
Where they touch it should b in corpetition
with each other--as are the au t WIObile divisions
of General M: to:rs or of Ford. But they should
not no1n lly be required to o anything jointly.
Their re ion should be cl e an‘ friendly——but
based strict y on bus in ss 1 sling rather than
on the inabi1.ity oi indi Vide l ‘
alor he.-

5

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The Decision to Decentralize

There are many important factors to be considered
o 1 r iaK'o 1 '-c sici . ' c i'raliz 1 ., xa ' 1.
be“o’e m“ irgg‘tre de i 1‘s to de e11; e tie ”16%“ tiors

factors are the

£%
(.1.

:of a congargz. some of‘tflm31nore impcii;a
ficance of a particular function, the number
of people involved in the oper aticn of a specific unit,

1d relationship 0? the function with other functions in the
organization with regard to the cont1ibution of earnings.

It is also recognized that decisions can be made closer to
the point of action. The nature of the business and the
<competitive atmosphe e in which the firm is operating are
{also important conside " ations Since pco spe ous conditions
rsay be more conducive to expansion and growth the type o:

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(Jompetition and the gene1al economic trends o1 a particular

1’1
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:2rea should be investigated.

 

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2Thomas, loc. cit., pp. 4*

 

Also to be consid

retail food chain it

degree of delegation

cc
ered is the fact that in the large
is very difficult to find the ri*ht

of authority which permits great

.-

illenitzi ity ll] the irmiiVL 'd al.1u1its arxi still_rm3intsirx3 an

efficient well co-01d1n3ted'"‘p°rv H>pe ation. Manv problems

are encountered in ii

iting the barriers o1 restriction from

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ved in duplicate functions witlmi the o1 gs niz—

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ation in order to gain the added flexibility in meeting loca

competition. Although decentcalization is initiated at the

store level, many ie
store manager if the

scale, such as centre

accounting, and tran

delegating aut ho~i ty

strictions nus still be placed upon the

company is to enjoy the economies of

l buyii 1g, w:3- -erousing advertising,

sportsticn.

be po1nted out here that Oletlfe.)

L2

to the stoxe renagec is reflly not a

simple p: ocess. Often delegation deals with people who

have been trained since infancy to look to those who are

more powenful and caps

I

afiecting them.

dignity, and the desire to be considered on de 1310 r1

ble for lead ship but In we indiV1oral

"3

The Degree :f Deoentielization

II:ny companieS'

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may consider themselves entirely decen-

lized; however, when allocation of authority is analyzed

 

 

Thomas D. Nottin. ”Food Fain,“ Foo FIe zwih rdisinE (St.
Louis: Food fie.«ncndi irg. lnc., July, 19 , a; p. 25.

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C{
71ey are found to be only partially decentralized. According
.;> the parameters set forth in this chapter a company is not
rritirely decentralized unless important decisions directly
iifecting operations one made at the lowest possible point
_r1 the hierarchy.

It is true that unless some degree of decentralization
-s followed the best laid piens of top management may not be
fiarried out; however, the success of any plan depends not
wily on how it is carried out but also in what spirit it is
executed. Hence, if top management of the firm only gives
lip sevvice to the concepts of being decentralized and does

not actually giant fir'st-lin

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management more authority to

noke important on-the-spot decisions the manager's lock of

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erst~nding, sympathy, and enthusiasm may hinden perform—

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at the lower echelon. The concept of decentralization

then must not only exist in the orf

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so in the actual communication system sud practice of top

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it is to aid in u~gv3dins the status of the

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so rement i

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supermagket chain store manager.

The decision to decentralize should be based on economic
lactors. Basically the economic issues between centralization
and decentralization is between lower total administrstive
costs and more effective perfocmence.l Centyeiizetion and

decentralization are always a motter of degree. Diife ent

 

 

Ernest Dale, The Greet Organizers (New Yo k: Mpg ow—
lull Book Company, lnc., 195g), p. 250.

63
elements in the local situation must be balanced against
corporate objectives and policies. Success in this balancing
process is much more important than the degcee of centrali-
zation or decentralization.
The need for balance is complicated greatly by certain
dilemmas facing top management. The need for maintaining

the integrity of the corporate personality on the one hand.

and on the other hand, the need for unique flexibility in
.he local marketplace often pcesent upper management with

its“

<cmaflicting organizational goals that aizarmot easy to

since decentralization can be applied in various
degrees the question becomes at what level on the hier—
rchical ladder does autonomy cease to exist? Naturally,
each firm has o answer this question in accordance with its

own needs; however, it should be p

(J

inted out that as a chain
becomes lacgec it inevitably reaches ”the point of diminishing
returns. Hence, the most efficient point of operation exists
at th level whece benefits can be realized from having rela-

tively centralized functions below and relatively decentral—

ized functions above. At that point the ext a costs sacrificed

x VI I. t;-

‘uplicate functions so not exceed the benefits

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den veo and the firm enjoys the benefits of being a in

chain as well as the benefits of localized autonomy.

 

Decentrali;n3tion if. HMiJCtTla
.iecseyt Pilinoetorilhiiveisz'ty Pi-

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Although the store manager has Pequ~ y her

zed the optimum

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participation in various functions libe al

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point of autonomy for a decentralized company operation is
not the store level. There is no need for high autonomy at
the store level; and if the need existed, there aye great,

to o'ercome. The question

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now arises as to how can the statts oi men in this position

p ‘1 v' i — f
eefs \1 top manage-

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CHAPTEn X

IMPLICATI’NS ENCOUNTEPED TN

UPGRADING THE JOB

(/3

ince decentralization can not be pushed all :f the
way to the stone level in the supermarket chain the store

manag r remains in a marginal JQSltiJD between the wanker

P

and upper management. It has been suggested that the store
manager can not function effectively unless top management
cecognizes and admits his dilemma and initiates action to
upgrade his status. Regardless of how astute and how will-

ing top management may be, however, these are sti

I _.J
k__|

r r} w x
dial :47

implications to be encountened in upgnading the job

 

The hot ie of the oa~-t v
in the :st tvo decades vast =rd signilicant o'cnses

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S in other parts
of the economy. These chances hs*e been stimulated by

technological and economic factors which in turn h ve

Ln

induced great changes in the industvial structure. Food
retailing occupies a s rategic position in the distribution

system between the producer on processor and the consumer.

Horizontal integration has taken place through increases

p—J-

in the sizes of ndividual stores and through increases in

71
the number of stores owned by individual firms
The transformation of the liou.t*v from many to rela-
tively fewer firms certainly affects the competitive conduct

ning grocery retailers. Assuming that all food

H.

of heme
stores co .pete with one another in the same market from an
a egate View, the market concentration has increased ap—

CC
C):

\

Pneciably since l9’O The tot:l nuzubei of foo” stores has

decreased from an estimated 4+”',9SO in 1940 to an es tirnnted

J u t
’3

2:0,050 in the year l9cl, or slightly mo: e than #0 per cent.

Since l9hl the total estimated retail
have increased fnom $10 2 billion to $52.t billion. In 19c c
the ?? Q00 chain and independent sope‘ma kLCtS accounted
C9 per cent of the total groceny cal s.

onta; mergers have contributed somewhat to thi

N

HOTi
increased maiket concent.: ation; however, vertical integration
by firms within the industcy has also signiiicantly affected
the conduct and performance of individual lirms as well as

the market structure. Oiten ph\s i :81 or technical reasons

' ‘ -‘ " ‘71" 2 I. 0 no ‘ ’ 3‘ > 0’.“ - i . ‘ r. 3 A!“ 7 o ' /-I T n ‘7”-
heve encouiageo iiims to meLge or integ ate vertically ioi
-: ‘ A'4,_ “ __“ 'j l.’ (.f ‘ 77f in E w." . I ’ A‘ ' U I (A. ‘ . r\ ‘"
inlieicei p_cilta. veiticcl integgation has yiie co many
i311. l 16‘ r: teTWO“\ “5‘ L."7 97;."‘*_ 1’5 0‘} l" H La. I’if“ ‘ " ‘.1’_’_‘;+‘ N '\‘| Y"

- -AIL \ - 2- .‘v ,. x. u ..— a I \_, J. 1.?" AI L; 1‘ - ’1.er £2 1A ll]—

4

nteo by the influences of price and othec c.mpetitive pe ils

fmuelle? and Garolan, 33. cit., pp. %-47.

 

2P - - - -1 . .
Robe 7;t W. l.ueller (ed.). racts in G oceny Distribution
(191218 8d. ), Op. Cit.
’2 .
'ibla.

Competition in the industry has reached an all-time
high and now a remaykable balance of power exists in food
retailing. Bo th chains and independents enjoy virtually the
some competitive advontages—-loyge efficient warerno1.sing
iacilities; economies in buying; midern stores with complete

rnerchandise lin s; excellent supplier relationships; and

rofessional ln>wleo ge for digection an“ control of the

"C5

organisation and operations. Today chains and independents
operate as eo als in the local marketplace with strong
capable people on the spot being almost the only valuable
competitive weapon possessed by either of them.

It seems entirely possible that p::tlens involving
the chain store manager personally may now be neglected
as a result of th s marketplace st1ug . le. Assuming that the
goals of each lirm are survival and growth, both of which
can be measured by profits, the pzoblem of the supermarket
chain store manager may stem from the rapidly changing

civiionment Top management te;ms of the supermarket chains

K.)

the struggle fob survival. The pcobiem solving

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lfILQNS

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are in the areas of conflict against the unknown. There is

a tendencr within an organization when the tu:

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status quo or under control to move from phoblem solving

decisions to routine d cisions. Perhaps then the p1oti ems

 

 

it the store manager level are being ‘owngrsded to a matter
if routine because new problem solvinf decisions re
sreas of conflict against the unknown are being inserted
at the staff level. if this is the case then apparently

the chain store manager is being downgraded end his problems

neglected in an attempt to upgrade the total organization

‘t___.

The Structure of the Organization

 

KL)
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An examination of the gene‘ -organizational structure
of most mass retailing firms presents another point to be

considered. In mass retailing 8 very large number of iront

1)

line people, such as clerks, department managers, and store
managers are required to :ovide customer service and product

P
vdistribution. The large body of front line employees can

be directed easily and efficiently hy to norogement with

_‘ .‘

a relatively EmBLL group oi specialists and supervisory

personnel. onsequently, the orsaniZa ional structure of

or v\ - w; n ' _. ’ N 0 ° -..‘ ‘
“shy letalilné lizms ap

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a pynsnnid
having 3 veny broad base representing front line personnel
and a narrow column rising very abruptly from the base
representing higher msnosenent.

Due to the organi

[\l

ational structure of most large

t°ss retailins.companies inherent dangers exist for the

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1 1
*Daniel M. 8

late. Class lectu e. Michigan Stste
L’Tn~i—“~7€T'Sl ti] 5 J3 7:1 L33 Jy l 3 9 l 9,2

 

fiym in which the stare manager's Job is regarded as an

inteemejiate step to a tettev :Sition. The Fenge: inherent

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“ping a yeserve of superviss“v t‘; Fent in advanee 3i
is

d . that more potential supe visors mav be trained

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than can ever be placed in positions above the level 3
store manaqers. The 1ee31t can aniv be dissatieiaeti3n,
dis ppginiuent and eventuaL loss of those who were identi—

fied and trained 13? highev positions. On the athev hand,

professional €033 chain store malzgers must be nectuited

Seam gaung men 3f vieian, competence, and embitizn ‘.N13.f33e-
eee the same wealth of oppuvtunity and rewards equsily 38

533d socifii 1y zndey p;e€ent canditions as they wuuij have

in 3the? companies for 33mpevahie :espsnsitilities.

itiee 3f the Jab

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N3 bus'ness taday can expett t3 succeea 3nd pvaqcess
any faster than the quality 35 the f Ant line management is
upgrfided. T3p management tMTDJgh ne; essity pieces in the

I R 3 D ‘— ~ - ’, —_l\ ' a‘ rm ' ' \ - , . ‘1 . ‘ . . ‘ "I". ‘A . ;
ngnes 3i the ”to;e meniie. the ”es Jns_tiiities oi the lhtET-

businesses are large and impersonal aha trainee unmpetent
managers are have to *epia:e. Alert uniane are reaav an;
eageh t3 trenrmute management's mirtsxee into castiv griev—

ances. A SUCCGSFLUL store manager must be a cepa; e persgnnei

 

T

, inC., lfijremeri'e Piiitgx
r.i Faremaifls:ihistitqte,

 

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rmxnageh unde? today's system. He

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gyrabiems as impertant as the mechanical problems inVJived

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firunning the business. If he is net 3 ieeder of men ani daes

twat know how to handie men he mSy can

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e an expensive indus—
trial relations problem “hat can involve the company n
severe isber rambles.“

A business must either dove ahead or perish, and the
-Jegree of fiexibiiity exeieised at the ”toye ievei can very

Ieii dete mine the Late at the odds ior survival for the

exibiiity not only imslies auth3rity

decision. The stone manager must possess the sciiity t3
{C8?Sfl31i aii of the relevant facts. to weigh and evaluate
times, to conceive the mist lasicei site natives and CJnCJu-

siens and base his leadership decisiens on these.

The store mensser is usueiiy gis:gej vith the respon-

sibility 35 making a smajtniy lIJNC tisning teem gut 3f the

sperstisn of s moiern supermarket. He must p[:2r, Organise,

-J

snv integrate in evezy situatian. He is responsible for

S

 

 

 

 

 

 

1Geei'ge Strauss and Lean“rd R beyies, Pezsonrei- T
IhimL. Prehflmaxs of Pbrigganent (Ekggiewvya L ‘iffs, N. gi.: Pren—
tice Bali, lnc., 1300), p. 732
2 T' a W n .~ .‘ ”rj‘. no , . i 5. H
hllteh m. isnueil, -he peiec iJn ei “Keeutiv s,
gelevti n oi'bn :i3a1e nt Fers3hnei, ed. P1,.I) seph Dash let 6.3
i.z be h Ma-ti n5 (New York: Ame“ican Management Assaciatien,

7 c
repvesenting the company oygonizotion, setting and maintain-

s and setting the entire tone for his sub-

Q.

work stander

:3
HQ

1
ordinates. The ocganizetion‘s survival depends as directly
upon strong store management as it ooes on stfiong midjle
and top management; therefore, opportunities to grow should
be‘provided for every man at every level. The question

”I

then arises as to how con the status oi the men who has

U)

little oppor unity to be promoted above the store men ger

level be upgraded even though his peyformsnce on h s present

I
goo ooec improve consioenebly.L

O

 

As pointed out previously the salary scale is another

important point to be consijered in regovo to upgrading the

status of the choin store monoger. The salary differential
between the smaller more orjjnary store and the levgev class

A store i often not sufficient to act as an incentive to

U)

encourage a manager to excel in his Job bv striving fon a
more efficient store operation.
The first question wh’ch arises in regard to the

saiezg';xi the store m3negxn* is whethe-*:n*rmot the monetstg’

fl

rewards are equal to thotc poij by firms in other industries

r;

ion comparable responsibiliti 3 3nd time spent on the job.
It is widely accepted that employees do not reec in the

“ they feel they are being paid under

v

|-—+.

most efficient manner 1

 

 

izne prevailing rates or being exploited by upper management.

sis:‘3 is also generallr regarded a

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(gompensations in salary help to maintain morale and make
lhe compaly salary policy is often directly related

to its recruitment and se

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ection pllicies and often higher

salaries attrac more job applicants from a wider reservoir
of talents penmitting marsgement to choose better potential
Inanagers to be ti'ained.:L Higher startin

m

salaries usually
estimulate the competition between firms for new men. This
bioding irequently leads a company to the point whereby a
new man is being paid a higher salary than one who has
‘workeo in the firm ior many years even though blth men are
doing the same job. Naturally bitterness and resentment
develop among the older members of the organization as a
result of the firm's attempt to upgrade the status of the

job througl‘lhigher salaries an?

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competent young men.

Theoretically, the problem can be solved by raising

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the salaries of the older men also. but this may ca
the reao'ustment upward of many other salary diffenentia

Inflationary pressures may increase too ano in all probfbility

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Ctto:"i1.y solve the problem

1“;

very few managements could satis

l

e Management and Supervision
i l, lnc., l9cl), p.

 

:y attacking it in this manner.
if a company attempts to rsise the status of the store
1anagen bv promoting men on the basis of their merits and

' : f.r the future then some younger men may receive

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1igher salaries than the o'oer men. and again dissatisiastion
isually results within the organization. ihe resentment by

or top manzge-

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the old guard p1esents additional problems

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1ent who must admit the squeeze in the narrowing or sa

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:iiie wentii Metveen the old and the new members of manage-
ment and state franxly th at the o
be maintained if the firm is to survive.

However, highe: salaries in themselves do not always
taise the status of the store manager or gusran nte his
motivation toward greater eifieieney. The store man: ge:
wo1r_ m1st aisr>lu3ve mearjju:;1 eoning, innit is, lcn' him as
a person, as great as the meuni ng in lor top management.

He must receive satisfactior from doing the job and prestige
from beiog identified with it. Upper mohirement is the-
faced vninizothec preblesm;ixiiflmsz:ttempt to 14)::21e the
status of the store mansser‘s job because complaints about
salazfixi3re often symgflomns oi othei- 1-1‘tisfaotior.1 H1141
E‘S working -Qnultl‘fiu, the number o? hours worked, or the
type of supervision. Pinley, the basic problem becomes:

How can the firm gain the advantages that some with size

I) ..

an upgrade the status or the store manager without paying

 

)

(

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a heavy price in terms of reduced employee and manogerial

"_‘|

eflectiveness?1

The Nature of Contvol imposedgby Headquarters
The retail store allows a concentration of cus omens

in an area to be conveniently served locally and it is there
that consumer demands are anticipated, supplied, and inter—
oreted. It is the final function in food distribution and
:he first, last, and only contact with the customer; there-
?ore, the store operation should be the local point in the
entire organization. Many elements of control .ver the
store are certainly necessary if the firm is to successfully
operate mass marketing, low margin retail institutions econ-
)mically and efficiently; howevec, the contnol functions of
:he organization must complement and aid the retail store
Ln every possible way to better serve the customer.

Organizational control at the headquartevs level ’s

aften separated into compartmented and isolated parts of

sales, ~urchasing, accounting, distribution, advertising,

fl

snaffle, and personnel. Frequently the proportions are also

'1

:ubdivided bv functions within the‘department. Each of the
iepartments peyform separate and distinct functions; however,
;he actions of each are naturally oriented primarily towavd
:ne fulfillment of the departmental responsibilities. With—

.1

Hit centralized control at the stafl level fr?

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omentarv

(a

 

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F'V \ ‘ "y ,
strauss and :avles, loc. cit., p. 3

So
zaction suited to the ends of the particular department
involved often results and the retail store-—the only direct

(customer contact—-becomes subservient to headquarters nd

0"-

‘the warehouse.

Presently the predominant practice of supernarket
chains seems to be that of having one specialist, or a
small group of specialists, at headquarters make certain

n
L

Kinds o; decisions and project them to all store managers.
requently concentration in their specialities tends to
blind the staff members of management to the realities of
the business as a whole, making coordination with store
operations difficult.
The lack of coordination and the self-centered actions

of various departments in the staff organization casts the
store manager into a dilemma. The manner in which staff

exercises its functional authority may discourage line

0"

action y destroying confidence and competence in decision

making by supervisors and store managers thus reducing them
_ l

to mere puppets.

At this point a discrepancy exists between the way

things are at the store level and the way top management

Cf-

thinks they are. Many other problems are crea ed also
which may affect the net asse s of the business in the end

because the store manager 's being held responsible for

mnething which he cannot control or because his authority

s not defined and matched with :espons ib lity. Alt} iou h

m

he store manager ma y be will in and capable of managing

(F4

he supermarlcet most efficiently how can he escape from his
ilemma until upper management intelligently plans flatter,
ess complex or gen ational structures with a max imum of
dministrative decentralization coordinated and entirely

riented toward customer service?

Communications

 

The growth and complexity of the supermarket inc lustry
lES forced management to develop effective means of trans-
iittirg info1wm tion to lower echelons efficiently. Since
;he passing on of onders,policies, and plans necessarily
Torm the backbone of efficient management cnumuni ation is

. . . ~ 1 .
Jhe life blood cf coordination and control. Communication

is a two—way street; however, participation in management

>1;

ecisions for the chain store manager may often consist
orincipally of communication downward rather than any upward
transmission of constructive ideas from the store level.
Effective upward communication can be very valuable

to top management because it reveals the degree to which

/" 1’

r_4

ideas and orders passed dtwn are accepted. ten individua
participation is stimulated and coordination and cooperation

insured by the upward flow of ideas. If upward D”Wufiip tion

 

LEarl G. P :nty and Ni. lantlhcficnuav. "Stimulati-
ward Communi - a '. . [‘“TTUhlnitlTTl n: the Job. ed.
Joseph M. Do) ihnififcrx: Ame;icarllfluuugement A s;wdj
95c), pp. 2

 

 

 

 

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t‘
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34
(u '-

 

+5

:3 efiective and the ideas of subordinates are gi

n<j s; mpathetic attention followed 3y desirable ac
synagement can avert many iay-to—day explosive sit
aiising ope ational diii icu lti 13 human 1ela tiuns
Many barriers to upward communication can-ex

Iisiness organization such as:
l. The complexity of the organization struc

2. The physical distance between the superv
and the stofz e manager.

3. The fact that movement of infom ation thr
many levels usually dilutes or istoits
information.

Supervisors oiten provolze b311iers to upwayd

-ation through their actions such as:

1. Their behavior while listening.

2. Erroneously thinking that no news from a
manager is good news.

3. Resistance to listening to personnel pro
of the store manager.

4. Failing to take action on previous reque
of the store managev.

Q. By being too quick to Chiticize the ma

actions before all of the facts are know.

Many b3“:iers to upward Communication :19 3 ex

Jolving the store manage1 directly because:

1. The superior is always free to talllmi i
will which is a piivilege not enjoyej by

echelon people.

2. Neither EjGQLl 1a fueilities o1 rewaros 3
available or oize ed to him fo“ expo oin

extra (affo rt :;>12;pwa:o (1.114Yix1 tion.

He can not tnnfiilly prep; e rs r" rnmunica
with as much care as those t-:ns1wlssions
down have had.

LA.)

ven prompt

uations
0 p1 Oblems.

iSt in the

tupe

isor

ough
the

communi-

store

biems

sts

nager's

Y1
" O

lSt 11’1-

n at
lower

1-e
g

tions
coming

K).

emantics bfili’ lE‘ exists between him
I msnogement.

A. Often 3

s
and hi igll le

5. He operates in 3 ver coloIful, busy, ever—
chsnging enViIonment :I:i hi feelings and
emotions msy often mix f.we ely with the i'3cts.

31 n3te often tends to temper bad

ILA

C. The sub 3
3 ures, or unrsvo ' able IepoIts.

I_‘
news, i'i
These baIIieIs to communication may affect the status

f the store manager as well as tle efiiciency of the organ-

l_\ I
0.

tion. The question posed 3t this point is: How can the
tstus of the stoIe msnsger be lifted and the efficiency

f the o1_3nization be improved unless 3 top-notch communi-
Etion system is opera tive 3t 3ll levels in the fiIm?
econdly, do not ststus 3nd co Wniction iln :overnent com-

oIg1nniz3tional efficiency

F5

lexnent one 3notheI in terms 3
ince both can recognize the unique contIibutions which
he indiv iduel stoIe msnsgeI m3y 33* to the 71mm?1

Time and costs’aIe mos t impoIt3nt limitation f3ctoIs
a communication. Day-to—day cooIdi n3 tion 3nd peIsonal
ontsct via telephone calls 3n3 field tIips as means of
Igsn zational control 3Ie expensive. Decisions often have
3 be msoe befoIe efforts to coordinate can take place. The
noblem at the store level is one of time versus the need
or action. M3ny times immediate action must be initisteo
efoIe information c3n be tIsnsmitted to he adqua te:s and

. . 2 A
onsultation receiveo 3C/ thI IgI: channels. once again

lBakeI'aruilfifinoce, loc.

*3
Ho
(.1.

\o

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{I‘
0
IL)

 

—\
/
>—

11313..) p. ji.

 

4.. ‘:

(I A)

3 not improvements in the communicotion ans status systems
) hand in hand since the firm's operations can not be most
ificient unless capable store ma hCESFS are given the nec-
ssaifivinformation about the business aions with the auth-

cit’ to handle decisions on the s*ot?
p

\

Another major problem arises concecning communicotion
"Ki the status of the stove wn I in that the nenagen
oparentiy often does not know exactly what to do, how to
o about it, or eéen the precise scope of his authority
1 dealing with his subordinates.l Consequently, he must
esort to doubie talk with subo dinetes because he does not
oierstand or does not accept higher management's concepts.

‘

ari the status of th -toce:n3ge1 be upgza‘ e0 unless

(D

uthority is commensurate with his responsibilities and
roternai communication of the firm are improved at every

evel?

 

 

 

 

 

lpallliPigDrs urw‘(fiminies A. r”fliers "lie norehmriz His
lace Emmi His Problems ,' Reggiygg iraEkxm Hmwel Anmlnjfitygti
3- P3“ P133333 3133 Chalvples A I‘dyer'? may} York: I~icG3-aw-— Hii
Sook Company, lnc., 1952) 331.

CHAPTER XI

CONCLUSIONS

Real life almost never yields to quick and
easy analysis. The facts in any situation
are hard to get, hard to assess, and hard
to interpret. Worse it is hard to know what
facts are relevant, how to classify the
facts, and how to relate them to each other.

“J3hn 3- Ellswarth, Factory Folkways

As John S. Ellsworth points out it is difficult to
each final conclusions which can apply in all situations.
n summation, however, it is possible to suggest some

eneral conclusions to which the study has given meaning.

Semantic Trickery

 

At the outset it was suggested that the supermarket
hain store manager cannot function effectively in his dual
pie in an organizational structure and management philosophy
ddch does not recognize and admit this twofold representa-
flon required by his Job. The essential point appears to
>e the need to recognize that semantic trickery cannot by
:ny stretch of the imagination upgrade the status of the
lood chain store manager or increase the efficiency of the
nganization. Apparently many top managments expect their

store managers to think and act like executives while in

inn final analysis thezmmunnavis regarded as an errand boy

,—
I

f.

VJ /

 

or clerk. Granting lip service to the preferred description

‘4

of the store manager's role-—using difierent languages to
suit the audiences—-does not ' .ult in added flexibility
Elt the store level nor does it give the firm any a oditional

advantages in the marketplace

The Gap Petwee Nana

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CT
73

management and the store nzna gez. Apparently there is a
discrepancy between the way things are at store level and
the way top management thinks they are. Consequently, there
may be a vast difference between what most firms are getting
out of their stores and what they could get. Certainly the
discrepancy between what the store manager should be and
what he is cannot fail to be discon~e tin and is most likely
to influence adve-sely who t he actually‘does or does not do.
The test oi“ a man is what he can do and what he is
worth to society; therefore, a man's search for growth may
be directed toward material pos sessiin;. social status, or
toward growth as a pers n. Apparently most firms in the
superm: ket industry have thus far neglected all three of
these has c motivation factors concerning the job of store
manager. Due to the organizational structure of most mass
retailing firms the pathways to advancement beyond the store
level for an individual m nna ge. are not well defined. Since

men can as U< anc in society eithev through a company or

C0
(+
h
C'-
(

\

tt ough a function it seem o g"ni:ational progress and

 

 

ossibly survival of manv firms may be better insured through

A 4‘"

he establishment o1 good can ore management positions.

(D
(D
'5
U)
(—1.

n

he crux of the situation nay not be so much the need 1o?
apable men or the scarcity o: pvoven leaders as it is the
ailure of top and mido e management generally to discover,

C78 nee?

B)

evelop, and assign professional stone managecs to

osition with status.1

itate of Transition

7 “.

fflme Psymliological

4‘)

Management at the helm of the :ood chains must realize
;he impact which has been m;de on the techniques of supen—
iarhet management at the store level by the sweeping changes
vhich have taken place in the industry during the past decade.
Fhere is little doubt that food retailing has reached the
Joint whereby the human resources are the only elements
which cannot be duplicated by competitors. Perhaps then many
the problems regarding the store manager and his status
faced by food chain retailers today stem from the fact that
the public and top management of many firms are still in a
state of transition psychologically that the industry passed

through physically long ago. The industry and its structure

have changed drastically. The titles assigned to people

[0

Within various firms have al o changed, but the social,psy—

chological, and pecsonol aspects of the stone management

apparently have changed very little.

r

1Edwand P. Stettlnus. Jr., A Speech given at Harvard
Tencenteuary Celebration at the Hayvacd Graduate School or
Business, September 17, 1930.

 

83

The Sarial Climate at Store level

 

Only top management, by victue of the fact that its
rectdve functions place it in authority, can change the
.0151 climate at the store level and upgrade the status of
le store manager. Top management can no longer rule by
wercion with puppets as stone managers--it must rule in

. _. . . . , _ . l - , _
1e future by superior wisdom and knowledge. in order to
.ve flexibility in decision making at the store level,

)per management should develop its people to the point which

; can assign as much authority to them as possible while

4

amaining in the background. This m'l call for changes a

Q}
r(

w

1e staf level because it requires more real managerial
{ill than merely giving orders or doing the job does.

Upper management must possess the ability to initiate
lanning procedures by permitting the neces.ary specialists
o be drawn upon in decision making without imposing problems
f coordination in the organ zation. in order to accomplish
his management must formulate and setfocth the parameters
f a plan for the behavior for all membecs of the organiza-
ion. Astute upper management must be able to integrate
very phase of the company operation while deliberately
ontcolling the environment of decision at each managerial
evel so that the individual store manager will apply judgment
n his decisions and select the alternatives most compatible

ith company objectives.

 

 

ll-loope'c, 313.-. cit., p. cl. Bible}... p. 87.

 

:jolvirm: tre Eh oblexi

 

Those who indicate that the chain store manager should
1e an.independent operatoh of an autonomous unit by asting
8 though he owned the business may be pursuing a very un-
'ealistic and impractical idea. The store manager can not
3e expected to buy or price merclan dise or perform other
Tunctions that can be handled more efficiently by a centrally

located he

0)

d1iarters sta: '1. Howe in attempting to
oombine the strengths of the cha n with the Ccvsfltcgec of
3n independent the chain store manager must be able to
supplement company planning and exercise flexibility if
effectiveness is to be achieved in the local .alvetpl
“on formity to the requirements o the oigan ationa l
activity is certainly one aspect of the store manager's
responsibilities The chain store manager must be organiz-
ation—minded. Upper ma.agement should make sure that he
understands and accepts the need for a hierarchv, the

p:ocedu1es,:ules, and controls that are necessan

{;
IV
(/4
1....
o
g,
L;

large organization. On the other hand, the men selected for

store managers should have the ability to understand over-all

corporate objectives and possess the ability to visualize

the intermeshing of the parts to accomplish these goals.
Organizational p og‘1ess requires the development of

ind i id uals who will caange to meet the dei and s of progress

When experience does not develop organizational—mindness it

is doubtful that additional training will overcooe laox of

interest, initiative, or ability on the part of the store

 

\\C)
O

anoagen and top manages ent should take the action nec essary
o rmaintain org. izdtiohdl efficiency. ”f the man does not
woke the system, the system will not re-ma he the man.

Good two—way c mmunicatlon conveying full and frank
-riformation is a basic necessity in order to develop mutual
aonfidence--both above and below in the hierarchy It is
lDt enough that the right thing be done-—it must be mani-

estly seen by all concerned to be done. The store should
oecome the hub of the organizational wheel and the chain

warehouse a sezvice organ ni2ation for the stores in order to
provide flexibility through custom services for each store.

Top management should recognize and accept the im—

portance of the store manager as well as the e”fects his

L)

’.

decisions may have upon the total ;-l1anv operation.
Organizational survival depends on long range investment
in management talent at the store level and calls for a
change in the philosophy of upper management in re-ard to
the store manager, Huma resources can not be wasted
because many talented men will not bmit themselves to a

wasteful machine if there a: e other careers av liable.

n;

Shorter working hours and better communication must
be projected to the store manager Level if the manager of
executive capacity is to be attracted to the job. As top
store managers are developed the 8'; la cry must be commensurate
with the responsibilities of the job. If the spread in
smlary is increased perl aps mo: e talented ranagers will be

Entisfied to ac/ar<e late Mi lly as career managens instead

 

1

9.;

1

nuying or

V

If ta‘ing the first opportunity to get into a
:uperyisory job. incentiJe pa yment m-y be an inpontaht
1ethod of att: acting tzlented men and encourage them to
excel in their jo bs by p‘WQLCih” better unit operations.

lion—nniter

i0

.i aspects conc ezning the job, such as

PJ-

sociai, psychoiogicai, and personal factors are also essen-
Lial in attracting arid keeping high quality s one managers.
These factors which are essentially the products of huma

velationships created by the interplay between upper manage-

ment and the store manager are most important in developing

iii

ager'. Once

\_4

the proper climate 3; work for the store L

a capable man is found he should be giyen all of the nec-
ass azy infornation about the business and the authority to

randle details on his own to inc .1'ease operating e iicien y.
ihe store manager‘s work should provide meaning, satisfaction,

and a sense of human dignity lo: him as a person.

Take the Store Manager Off of the Treadniil

 

The competitive battle for profitable saies--even for

survival--is sure to be won bv men with ideas and abilities

U

p A

-ather than with b: icks and moriniu iit is inde c unfortunate

(D

that the lingering prejudice against the grocery store as a
place of empl oyrewt--espe i the lasting psvchoiogical

bmxint of the chain store managen--has not long ago been

H.

erased iflcnn the minds 2d“ ety.
The fact;th:t thesupermarket chain store manager holds

r

1: gina l position necessitates that he be deprived of the

C7

 

utonomy and dignity that strengthen his status in society.
owever, the chain store manager's pnoblem can never be

olved by attempts at the man gerial level alone. His

tatus depends as mich on the status of the employee under

im as on his relation to the supervisor or members of uppec
anagement. Unless the employee also has status and function
n society the stone managen's status can neJ e1 be success-
‘ully upgraded. Finally, a Key to the solution of the prob-
em may lie in raising the entire industry——

1ime bag boy t the top rm.na g ement--into one tla t has a

k)

u
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to

Penhaps some pcogress is being Mlde in tie industry;
lowever, the following statement made by Don Parsons, the
.Xecutive Direc to of Supen Market Institute, at the Super
larket Institute Convention in lQEh-—eight years ago-—still

seems to contain some very opportune recommendations.

Our difficulty in attracting go personnel now
becomes clear. If \e haien' t ol‘ our customers——

8
the people we secve--on the dign
is it any wonc en that the Super
lem in attxacting the best of ou.
ten and women?

od
ty of oun service
lzanl ets ha Je a prob-

ni
I
1 career minded young

We've got to do the sum general thing in selling
the desirable future that exists in the retail food
field. We mus t impress all the people that we ace
the leaders in ou: 1ield and, id] tier that our field
is a mo s 31, most exciting retail

operation in the anti e wo

t impontant, most Vi
1nd at? y into one that ha.) a

t
d. We must raise ou:
n accepted socia status.

We must prove that ouc mechanical marvels of stones
have a heart and personality, as well as effi iency of
operation. We must pvove that there is ample oppor—
tunity ior ad*ancement; that the hard wo: k of providing
mone fogall in the food field 1e-;:y pays off in terms
of community Stature,and countless other employee

 

\O

43

benefits. We must prove that our industry in every
sense of the word--is just as progressive and up to
date as television. atomic energy, and any other new
growing industry.1

Tr“ I, -—:-n
.nl Fet1gu4nact

 

Obviously the last word has not been said on this
Jital subject concerning the status of the supermarket chain
store manager. This study cannot and does not claim to be

oamplete or conclusive because it touches upon far more

topics than could be adequately covered within such a short

kl
(l;

'per.
One cannot help but feel that the conclwsions reached

;n this paper have been recognised by many top management
)eople within the supermarket chains for several years. If
Jhe need for upgrading the status of the store manager las
oeen recognized and solving the problem has been deliberately
>ostponed then the problem will continue to return to plague
she food chains. There is no justification for postponing

problem as vital as this one concerning the store manager.
11 the long run if d fficulties of the moment are not dealt
Iith they quickly become permanent, cumulative maladies

knit result in deterioration, if not complete dissolution,

if“ the firnn

 

1M. M. Zimmerman, The super Market (New York: McGraw-
Hull Book Company, lnc., liifl, p- 233.

 

BIBLE 0G} APHY

 

White, Percival.

 

 

 

 

1u313, Pauline, and Fooo—- _a s g—
gest Busines s; New Yo:ml Hol day House, 1959.

ake: Helen, and F15 nce, Bobe t E. Central ation and
Tlecer.t1'c.lization in industiial lhahations. P irm eton
New Jersey: Princeton University Press, 193%.

 

 

aaznard, Chester I. The tio of the Executive.
Cambridge. Harvard Unive sity Press, l9:c.

kale, Ekfluast. The Great Chtmniize_s. New Ethic: McGraw Hill
Book Company, in». l9c0.

Y_‘l

 

)rucker, Peter 1'. Conc pt oi' the Cor-portion. New York:
The.JMUiIk5'Conpany, 195:.

The New Harper and Brother

Lo

 

 

 

. The Practice oi unalelent New York: Harper
1.1—1,

and B1. otte 1s, l99s.

. Landma-d1 of Tomotxow New York: Ha: pe: and
Brothers, 1959.

. The End of Econoni: Man. New Yolk: The John
Day Company, lUflND.

. Futu e of Industrial Men. New York: The John

1 mt

Da\ Coniany, l9a2.

g

“4

Wti

r!
.x..\

"E Hdll

,

Supervision.
Inc

v‘r—H
fi/V

 

 

 

 

 

 

1igni: i—

..
.

Q

 

 

 

 

PGLf3-d. Better To emanship: Key to on fitab
Nanagement. Ed edition revised. Philadelphia:
hilton Company, lnc., l933.
Frederick Collins. Management Survey: The
ance of flanagenent in the Mode n Community New
itman Publishing Corp :ation, 1943.

York

 

 

 

 

 

1- 1, Fc-pn W. (eo.)~ The Sto-y of Sea~s, Poetiok an; Clu
New YO'K: Eooa I“iv'sion. Eai Unlio Publi'ations,
13:14.. 1'21.

EYMS: Jodirey fl. Chaio Cto:er in A B'iee io;9-_9TJ.
Centennial eiition. New Yo w: Chiin itore Publishing,
C3?p.. 1959.

‘ ' .’ V A ' - 1‘ '. H ' 141* .. ' ' ""0 ,'.‘ : "ch ' ',7
.23n, James u., ans Simon, He_te.t A. oigoniiatir~is. new
-1 ‘ o _. A ~ _ 1" r—— :
Yark: John Wiley & 3on1, 1nU., 1)”u.

 

 

 

.- 1 R r‘ r a "‘1’!" n 5' . ’ . N (N , I ‘ , g " "‘c . 5‘:
PS'JJNU, Dalton o. HJLJCEWeflt P-1ntip1es tho Pijptlbes.
“I ‘ o m 'c . . l . , ~,'~. — 1 -."_‘;-_ D
New {31%. -he [aplfdi 16f! K 7 »t«"?r‘&7) *3/29“

 

— r‘ 1' 7 _" P ‘ o O r O C
:e1i x, Hetert w. (eo.) 311ts in G-ooe v Dist-it;tion.
‘ KW ,_‘ A o o r ' 5 . fl, I . - (1 .'—""
L‘Ll e1ition. New 1J1h: P o;:essige Gio1e_, 1 L1.

 

 

’nstitote, *noi F
n, Con.: Nationai

:ti. Fo1emsn'
New LL.
1931.

 

 

V m

(J;

3te1 sen

!

 

, Elmove , an: Ploy-111a.1 E. Grosvenofi. Buriness orgao
tio *e ent. 3:3 edition. Homewo ' i
.Srd D. Inwin, Ino.

' ‘ r; ,3 'Ir' w r
I"; oflo mg.

 

r. ‘
‘—. A

(":3
ljjv-

\o

 

 

 

:ytes. Pao'. ivoo Ha~keting. New York: NCGi a‘w—Hiil Book
Co mparv in;., 1C50.

Mon. He rte rt A. Aowiristwti' e Benai‘ioz. New Yo 1:: Tie
Maflclii 11% CDHLEIQJ. 19t1.

arauss. Geo1ge, ons :av es, i ooard E. Personnel: The
HJV’Y P*o'~eors oi‘Ivanaawanent. .21121-ev1ooo C1.i£fs, Fl. J

 

 

 

ingite. John N . an; Co in. Ainoio. Changing_ attegns in
Petaioini. Homewooo illinois: Rick" 3 I. Erwin, 19

 

"me~man, 9L Ii. TLe SuLe"hb1iuat. New Yo1kn I¢3C12w- Hi1

L
" c “M. " ‘:r
onL o"pefiv iLL., ij/J.

 

Articles and Peniogi“ is

('1)

 

1 - = _ - Hr— —‘ __ __ ._ -. 3n n 1'
rnaro, Cnester f. The Sta tus btyuotore oi Maxsgement,

 

inhist Iuan.131s.w.{_1oyo bk:1neT-znoo N1Y”HEJ EL
141:2'11tir“. New York: Ha1pe'rano E'Wot’ners, i959.

\W
“R

 

 

_, 1 ~ 1 m , , _, r7, ~3 —‘ ”if

_cie, WenoeLl. What C3st3mers 1hinfi 3f txe :1pe crliet
r . _ T -, 0. _. ,- - \ ‘,. ~-
Menagev,’ Pv3gress1ve G33eev. New Y31h: Pr3&:essive
G113 we , Decemte: 19C:

11, {J3seph E. ”Ev1 uti3n N3t Fe1313ti:»n: The Present
J3b 3f 1% negenent in E333 Eistsibuti3n,” The T3be'
Lectures in Retail Disthibuti3n--1§?X-LQE3. E3s

‘ T

i o
.‘la SS 0 I

 

‘M31c31m P. MCNeir she I1it3n Er3wn. N3rw333, '
. . ,— r
The Plumpt1n Press, 1933.

 

{3w 1:3 Manage the Ibrmggyéf'.1ure1 IE13xN311 :ehsni is 3g.
New Y3rk: Super Market Pubi is shi 1mg 53., Inc., JurIe,
1959.

H . -- r» . *1, r“, _‘ r71_ ‘01,) 7“ . 1 ,1: ..,\ 0,...
F3y. She11 T313. @333 13E1CC. fih1_a e1pI1i T3p1Cs
Publishing C3., lnc., May, 19C1.

 

. ”Sheif Talk.” F333 3pics. Philadelphia: T3pics
Pubiishing C3., Inc., May, 19CO.

 

 

line, Ge31ge E. ”The Super Mevket MaAEger—-The Gr3wing
P3wer in F333 Retailing,“ r3gressi e Gr3cer. New
Y3rk: Pr3g1ess 'e G‘: 3ce', Oct3be7 19Ci.

The Selecti3n 3f Executives,”
Tan

gement Pers3nnei. Eds. Jsseph M.
D33her enj Elizabeth Narting. New Y3rk: Auerioan
Marege.rrent Ass3cieti3n, 1957.

7-: IF.“
Au

 

r‘" . C1 0 _ _ a ‘ r1 TT
, James K. "1he ouperv133ry Dilemma,
3s. w. [11 1 Warner an3 N3rmsn H.

-‘y‘t
Ha: pe arI3 Br3thers, 19:9.

Ierg311us, 3135 y. Supe" Business 3? Supermaikets.”
New Y3rx Times Hag New Y3vk: The New Y3¢k
Times C3mpeny, H

 

3*-1/ '

 

Ievtine au Pierze. HTIe Pers m‘eiity 31' the Retail St3re,”
Harvari BusiIIess Fexiew. Hc_v,:3 University, Graduate
Seh33i 3; Eusiness Aeministrati3n, Januevy-February,
1958

 

. m \ " T "‘ ‘ —‘r\- H T- I“ ~ ,r‘ ~ - gym .‘
13ttin, 1h3m3s D. '1333 rare, E133 Merchsneis13g. Lt.
L3uis: F333 MerChandising, lnc., July, 19C1.

 

Jueller, R3bert W. Meet K113ger's 1160 St3re [13 neg we : The
New Executive in ChairI St3:e Opeieti n,‘ Pr3gre essiye
Gr3eer. New Y3rk: P11g ' ssive Gr3Cer March, 1930.

 

 

 

H 1 (fl 1 ' F Y a 1 ’4'” x H v; v.
., Tne Chain gt3re IGICpe’ Touuy, P 3g-ess
Gr3eer. New Y1.K: Pr3gtessiIe Gr3cer. N3vempe3, _9Ci.

 

\0

S;
‘J

ueller, Patert W. ”The New lnaepen; ent: A Grawing Farce
in F330 Distribution.H Ekzggwessive G“DP€T. New YOPK:
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\J

vams Create Sterile

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. '. ‘ ‘ >*‘ . , " ', ‘ .- r ‘ f“ "‘ ‘. . | 1 "5'7? -, :
istra 3n. u. snzs gUJ “La-ies A. “5615

.1 . l J
V A ' C .:‘ I ‘fc“ . I V C /‘I R 0
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_ n w. r‘
ureell, T. V e5 ance. T“ladstri l

 

I
Man EC

YDTK: ii

 

VAil . .L A l. .L
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oethliseerger, F. J. lhe F3 exam: Master and Victim of
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Schuvler Dean ha slette. New YQ-K and Lanaan: Harper

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,1
New YorK: larper and Erathe s, 19i9.

 

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. Persannel Aiministwatian: its Principles and
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einstein Steve. “NAFC Tale Eavav strong Manager,
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99

H

 

 

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m
i).
U)

 

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UngnMJlis hei Ffiiterialss

 

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n ger Ability.
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names

H (D H 0?

1 I - 1 '- '
Cliss Lectures

 

Hand, ana1d A. Class Lee ture, Michigan State University,
January 3 1992.

flate, Daniel M. Class Lecture, Michigan State University,
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Other-

speech given on September 17,

Business contained in
by M. Joseph H. Dooher
flew Yark: American Management

 

 

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