Recruiting, selecting and training entrepreneurial managers 01_Introduction The Arcadia Group Limited is one of the UK’s largest fashion retail companies with over 25,000 employees, 2,000 outlets throughout the UK and a growing number of international stores. In 2002 Arcadia changed from a Plc to a private company when Philip Green acquired the business for £800 million. Under Philip Green’s ownership the group has been very successful, growing in profit and repaying the loan used to buy the company in record time. In 2004 the group’s turnover was over £1.6 billion, with operating profits of 02_The importance of good over £290 million. The group includes management eight major high street brands; Burton, Dorothy Perkins, Evans, Miss The success of any business depends heavily on the effectiveness Selfridge, Outfit, Topshop, Topman, of its managers. Good managers need to make the right decisions and Wallis. Each brand targets its own and ensure the business is able to exploit any opportunities open to specific group of customers and it. At the same time, good managers protect the business by maintains a leading position within its anticipating and acting against any threats to its welfare. According respective market segment. to Frenchman Henri Fayol (1841-1925), managers have to: • forecast and plan to determine where the business is going Philip Green • organise the resources necessary to achieve these objectives There are, of course, other management styles too. Philip Green’s • command people to do things style is probably best described as being firmly entrepreneurial. He • coordinate the different activities sees opportunities and is willing to take risks but only after he has • control the activities to make sure they are completed as planned. examined relevant data carefully. Green says of himself: “I am brave but I take a view. It is an educated view. I am careful; I am not reckless” He constantly seeks new ideas and better ways of Plan doing things. He also encourages others to use their initiative and Control is renowned for his energy and for his attention to detail. He focuses on every aspect of retailing from what stores actually stock Organise to how the products are laid out and displayed. Co-ordinate Within his chosen field of expertise, Green has an excellent grasp of Command what customers want and are willing to pay for. He is passionate about retailing and has a hands-on approach. In this way he ensures that he understands every aspect of the business. He started in shoe Managers in an organisation have to decide on its priorities and wholesaling at age 16 and set up his own business at 21. He has made allocate resources within it. They must decide what needs doing a career by identifying and acquiring undervalued assets, buying left and how best to do it. A good manager should push the business over stock and turning around under performing retail chains. forward, as new challenges arise, and take responsibility for their decisions. 03_Types of Management style There are several different management styles. For example, managers may be: • Authoritarian (or autocratic). This type of manager tells subordinates what to do. An authoritarian approach may be necessary if tasks have to be completed quickly or if subordinates lack the experience or skills required for the job. This style of management may de-motivate employees, if they do not feel they have an input into what happens in the business. Supporters of an authoritarian style of management can point to some outstanding successes. Equally, critics can cite some spectacular failures. • Democratic. This type of manager adopts more of a listening approach. Employees have an input into the decision-making and managers can benefit from their ideas. Greater involvement may motivate employees by meeting their esteem needs but also Green bought the department store Bhs in 2000 before buying the delay decision making. Arcadia Group two years later. His success with both Bhs and Arcadia has clearly established him as one of the UK’s most successful retail The Tannenbaum Schmidt Continuum shows different styles of management entrepreneurs. He bought Arcadia for £800m and just two years later, it was valued at £2.3bn. One of his strengths is an ability to make decisions quickly. In such a fast moving and competitive environment Superior’s authority as fashion retailing, rapid decision-making is vital. If you get it wrong, or are slow to react to a changing environment, competitors are equally fast to catch up to your business. Green appreciates the value of having good managers around him. Subordinates’ authority He likes to give them the space to make their own decisions. His employees are set demanding targets but have the authority to TELL SELL CONSULT DELEGATE decide for themselves how best to achieve them. Superior To sell the Superior asks Superior tells idea to subordinates gives the employees subordinates, for their ideas subordinate Working for Green is demanding because there are always new what to do the Superior but makes the authority challenges within such a fast paced environment. It is also and may not explains why final to decide. feel a need to the plan is a decisions fulfilling because there is a sense of achievement when targets are explain why. good one. him/herself. hit. For those that are successful there are very good rewards and excellent promotion opportunities. 04_Recruitment and selection The Selection Process The Retail Management Trainee Programme has a two-stage Given the Arcadia Group’s growth in recent years, as well as its selection process: plans for further expansion (more and bigger stores), the company 1. Online application form is busy recruiting new staff. 2. Assessment centre. Recruitment occurs both at store level (with each store recruiting its The online application form own sales advisors) and centrally. Arcadia’s Head Office is using has questions structured around specially designed management development programmes to target the competencies required of two groups: school leavers and newly qualified graduates. With Retail Management Trainees. these programmes Arcadia is looking to recruit the next generation Candidates who demonstrate of students who are passionate about a career in retailing and able to these competencies in their become future leaders in the business. The Retail Management answers and are successful at Trainee Programme (MTP) targets students with 2 ‘A’ levels or the application form stage are equivalent. The Graduate Retail Management Programme and entry invited to an assessment centre. level Graduate opportunities in Head Office roles target students who have University degrees. Assessment centres feature a combination of exercises that several candidates participate in and a number of assessors attend. The Applicants for these programmes and other jobs within Arcadia are Arcadia assessment centre takes place over one day and involves a attracted via: structured interview and group exercises. Group exercises are a • career fairs and presentations popular recruitment tool, recommended on the basis that their • advertisements and posters format allows a close analysis of social interaction. Assessors at • the group’s website: www.arcadiagroup.co.uk/recruitment Arcadia assessment centres are able to view the candidates’ ability to get on with and influence others, to display their understanding of customer service and to reach conclusions. Candidates careers that successful at the assessment centre are offered a position on the Retail Management Trainee Programme. set the trend The Arcadia Group is one of the UK’s largest fashion retail companies with over 25,000 employees, 2,000 outlets throughout the UK and a growing number of international stores. The group includes eight celebrated high street brands – 05_Training Burton, Dorothy Perkins, Evans, Outfit, Miss Selfridge, Topshop, Topman and Wallis. The size of Arcadia, the number of leading fashion brands and the culture of the company combine to offer exciting and challenging career opportunities for school leavers with A-Level or equivalent qualifications. As University is not suitable for everyone, The Arcadia Group regards training as vital to the company’s Arcadia’s Retail Management Trainee Programme offers an attractive alternative for those who wish to begin a long term career in the retail industry, learning and training whilst in full time employment. Arcadia’s Retail Management Trainee Programme, for students continuing success. The Group believes that high quality training with 2 A-Levels or equivalent, is specially designed to offer structured on the job learning complimented with development workshops covering management skills. Arcadia are looking to recruit the next generation will provide the company with its future managers. The Group of students for the 2005 Retail Management Trainee Programme to be the future leaders of the business. For detailed information on Arcadia’s opportunities and to apply online please visit the website: provides new recruits with a structured training and career programme. This develops their portfolio of skills and builds on their potential. Recruits experience both informal and formal training. For example: on the job training - working alongside established and When selecting potential employees, Arcadia is looking for people • experienced managers in the branches. Approximately 90% of a who can demonstrate the following competencies: trainee’s time is spent on the shop floor so on the job training is • working with people very important. • putting the customer first • maximising own impact • workshops - in the training year there are six group workshops. • inspiring performance Each focuses on a particular issue e.g. team motivation, planning • driving the business for future success, developing others. • making the right choices. • formal training courses • coaching and mentoring These competencies are all enterprise related. They refer to an • placements - in the first year, each trainee works in a particular individuals’ ability to satisfy customers and move the business branch.