The department store as a retail format created special demands on the organization of staff and the creation of a harmonious and productive workplace. Despite a lack of theoretical knowledge of human resource management strategy, early 20th century department store owners used the business strategy to guide strategic decisions about internal communication and staff training. The most obvious area of training was in selling. However, the more innovative department stores also recognized the need for management development programs. This study examines how the business strategy which embraced business growth, efficiency and effectiveness, building the firm's image and creating a supporting culture, strategically guided selected human resource management policies and practices in an Australian department store.
There are several implications that flow from this research. The first is that that twenty-first century retailers could use the findings as a catalyst to reviewing their business strategies which may or may not be articulated explicitly.
Second, retailers should take a strategic approach to human resource management. Retailers and shareholders must understand that strategic human resource management goes beyond recruitment, selection, and personnel administration, to deal the entire range of human resource management functions. Strategic human resource managers in contemporary retailing can evaluate the extent to which there is synergy between the organization's business strategy and human resource policies and practices. An evaluation of any gap in alignment would indicate where suitable adjustments could be made.
Third, within strategic human resource management, there are likely to be special benefits of evaluating two sophisticated components, training and staff communications. Complex issues such as staff retention can be addressed in part through staff development.
In conclusion, this paper contributes to knowledge about strategic dimensions of human resource management in department stores in several ways. First, it has identified that in the case of David Jones, the business strategy strongly and directly influenced the human resource management role, as illustrated by two of its key functions, staff communication and training. Thus, human resources practices were strategic for the department store studied.
Paradoxically, the strategic influences flourished because of the continuity (or ‘sameness’) of leaders on the one hand, and on the other the willingness of those leaders to take on innovations from elsewhere or to create their own. Another contributor could be termed generational employment, where the leader and other senior staff were descendents of the firm's founder. Many employees had very long service, and several generations of some families were employed. Where employees did not enjoy permanent employment, many were regular or repeat casual staff, employed year after year for peak periods such as Christmas and sales. The employees’ continuity of connection with the firm and the visibility and longevity of the leadership of the firm and the human resources function assisted in creating an aura of ‘family’ within the firm.
In summary, modern retailers should place more emphasis on the policies and practices that could contribute to enhanced staff retention, rather than on the immediacy of recruitment and selection. Twenty-first century retailers could use the findings to strategically review their internal communications strategies and training policies. Moreover, strategic human resource managers need to align human resource activities with the organization's strategic goals. Finally, studies using contemporary department stores as the focus could investigate the human resources roles and functions including staff communication and training. A qualitative textual study of company documents could be used as a precursor to a quantitative study.
David Jones, like other department stores, pioneered distinctive solutions to the unique challenges of the large-scale retail format. The success of their human resource management activities can be measured in part by the ongoing business growth, which required effective and efficient staff practices, and by the positive reputation that the firm enjoyed in the broader community.
