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With the many challenges facing retailers, continued attention should be given to the effective and efficient performance of retail personnel. It is unknown how various organisational strutures which result from reorganisation affect psychological climate beliefs and individual's motivation among retail managers. Among the antecedents of motivation, psychological climate has been regarded as one of the most significant contributors to an individual's motivation. The conceptual framework was the Vroom Expectancy Theory (VIE) of Work Motivation (1964). The purpose of the study was to examine the effect of management group structure and demographic characteristics on psychological climate and work motivation of management personnel within the retail industry as illustrated by the experience of a department store with substantial apparel interests. Results confirmed that three subscales of psychological climate (Job Importance, Leader Goal Emphasis, Organisational Identification) in the presence of management group structure and age were significant in predicting work motivation. Results from ANOVA provided evidence that six of the 13 psychological climate subscales were significantly different across management groups. Contrast statements provided evidence that there was a difference between management groups on the six significant psychological climate subscales. Work motivation did not appear to differ significantly across retail management groups. This suggests that human resource strategies for the retail environment can be developed by analysing the store's work environment, examining the reward structure, and examining each management group structure to determine how retail organisations can encourage employee retention.