...Wal-Mart’s Compensation and Benefits Challenges Written by Alanna Warren April 22, 2007 HRM-430 Table of Contents Overview of Wal-Mart 3 Background 3 Retail Divisions 3 Awards and Recognitions 4 Challenges and Problems 5 Pay Gap 5 Health Benefits 6 Problems and Affects 8 High turnover rate 8 Lawsuits 8 Solutions 9 Lowes 9 Wendy’s 9 Recommended Strategy 10 Impediments 11 Impact on Wal-Mart and employees 11 Conclusion 11 Works cited 13 Overview of Wal-Mart Background Wal-Mart is currently the world’s largest retailer and largest corporation. Sam Walton founded the company in 1962 with the opening of the first store in Rogers, Arkansas (Time Line, 2007). Wal-Mart stores provide a variety of services and products for consumers. You can find anything and everything you need from a Wal-Mart store for your house. Today you can even get groceries from Wal-Mart Supercenters. It is like a one-stop shop for all the daily essentials. This makes it easier for consumers to get everything they need without having to go to more than one store. In 1969 the company became Wal-Mart Stores, Inc. (Time Line, 2007). Perhaps the most important year for Wal-Mart Stores, Inc was in 1970 because it was the first year their company stock was traded (Time Line, 2007). Another important turning point for them was in 1972 when they were added to list of companies on the New York...
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...Case Study: Wal-Mart DeLeon A. Rich Management and Strategy Webster University May 15, 2013 Table of Contents Table of Contents 1 Introduction 2 Wal-Mart’s Threats and Challenges 2 Priorities of Wal-Mart CEO during the October Address 2 Wal-Mart Board’s Strategic Initiatives 3 Recent Wal-Mart Initiatives 4 Recent Initiatives 4 Comment: Strategy 5 Comment: Personal Relations 5 Wal-Mart’s Social Challenges 5 Conclusion 5 References 5 Introduction Every business organization in the contemporary world continues to face serious challenges and turbulences. Such challenges and turbulences have called on to business enterprises to re-structure and re-engineer their strategic plan in order to establish effective strategic initiatives. Dynamisms and increased competition are some of the challenges that business enterprises continue to face. One example of a business enterprise that has had to re-structure and re-engineer its strategic plan amidst increased dynamisms and competition with Wal-Mart. Late in 2005, Wal-Mart announced a series of sweeping new strategic initiatives. Such strategic initiatives are aimed at enhancing the position of the business within the industry and the market as well as performances. This case study provides an in-depth analysis of Wal-Mart in respect to its current strategy and challenges. Analysis of the threats and challenges coupled with priorities that Wal-Mart CEO, Lee Scott set in the address on “Twenty-first...
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...Organizational Culture at Wal-Mart Explain how viable employee relations’ practices have contributed to Wal-Mart success as an employer. Employees and managers are charged with continuous improvement, continuous learning, and employee ownership. Wal-Mart fosters an environment to promote superior execution and, employee empowerment in an effort to unify employees as a team. “Wal-Mart teams are highly productive but at the same time the staffing levels are lean. HR insures employees are held operationally accountable for keeping a balanced focus on customer service, expense control (theft prevention) and keeping products in stock” (Bergdahl, 2010). Wal-Marts spend a considerable amount of effort trying to make employees feel like they are part the company because they are valuable assets to solicit new ideas. Wal-Mart is continuously expanding that is why they are on the look-out for the best candidates, as a result of their global reach; there are a lot of job openings worldwide. There are two ways in which Wal-Mart recruit, internal and external recruitment. Wal-Mart recruitment uses both of them depending on the situation. When using external recruitment Applicants can apply in any local or foreign offices and stores by simply sending their resume via mail or email and they will call their applicants for an initial interview or examination depending on the position they apply for. Every applicant for a job at Wal-Mart regardless of religion, race, gender or age is provided...
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... Organizational Culture at Wal-Mart Abstract Wal-Mart is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. It is also the largest private employer in the world with over two million employees, and is the largest retailer in the world. This paper assesses how viable employee relations practices contributed to Wal-Mart’s success as an employer. It also identifies how benefits may contribute to the success of Wal-Mart’s employment practices. Lastly, it describes how the organizational culture and the use of performance criteria could affect the introduction of a union and why Wal-Mart has not been effectively unionized over the years. Wal-Mart is one of the biggest retailers in the world (Wexley, 2011). Its business is the result of Sam Walton's visionary leadership, along with generations of associates focused on helping customers and communities save money and live better. Based on the ideals of Sam Walton, Wal-Mart founder, respect for the individual is the key to success. That individual respect is expected to be given to customers as well as employees every time. Wal-Mart believes that everyone matters and the strength of diversity increases when every associate is encouraged to meet his or her potential. In 2006 Wal-Mart created the Employment Practices Advisory Panel to evaluate and guide employment practices and diversity ad inclusion initiatives. Wal-Mart empowers their employees to...
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...Walmart Strategic Analysis of Wal-Mart Fan Yang Professor Richard Linowes MGMT-458-002H May 1, 2009 Yang 2 Executive Summary Wal-Mart is the biggest retailer in U.S. and also one of the biggest multinational companies in the world. It is well-known for its low-cost structure and has been doing very well despite of the current market instability. However, it still faces threats from competitors in the retail industry and has weaknesses to be improved in the future. To help Wal-Mart achieve greater success and sustain its competency, this paper will cover an all-rounded and detailed business analysis on Wal-Mart and the industry it is currently in. The analysis will touch on different perspectives, such as Wal-Mart’s strength, opportunities, weaknesses and threats. Moreover, a brief overview of the retail industry and Wal-Mart’s history are provided to facilitate a deeper and better understanding of the analysis on Wal-Mart. To help Wal-Mart better exploit its strength and opportunities and reduce threats and weaknesses, recommendations are provided for each of the four sections. I hope the recommendations will be carefully considered for proper implementation. Yang 3 Overview of Retail Industry The overall retail industry is currently experiencing a sale slowdown due to the widely spread economic crisis in US because consumers reduce their spending during weak economic time. According to an article on BusinessWeek, the real consumer spending declined by 3.7% in the...
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...Salford Salford Business School Course: MSC Management Module title: Human Resource Management TITLE OF ASSIGNMENT: Human Resouce Strategy of Wal-Mart inc Name: Agbasimelo E. Ifeanyi Roll no: @00316215 Instructed by: Abdoulie SALLAH Table of Contents Table of Contents (This page) ------------------------------------------------------------------------2 1.0 Introduction ------------------------------------------------------------------------3 2.0 Wal-Mart Human resource strategy ------------------------------------------------------------------------4 2.1 Recruitment and selection ------------------------------------------------------------------------4 2.2 Training and development ------------------------------------------------------------------------6 2.3 Employee motivation and Reward / benefits ---------------------------------------------------------7 2.3.1 Financial benefits ------------------------------------------------------------------------8 2.3.2 Health and awareness benefits ------------------------------------------------------------------------8 2.4 Performance management --------------------------------------------------------------------------9 3.0 Challenges faced by the human resources ...
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...coming across the organization process of Wal-Mart, Sam Walton was the creator in 1962 in Rogers, Arkansas (Wal-Mart Corporate, 2012). The organizing process is described as the management function of pulling together and synchronizing human financial, physical information and other assets required to accomplish goals (Bateman & Snell, 2009). In 1972 discount sores such as Kmart expanded. Sam Walton at that point in time had 15 Wal-Mart stores and did not have the funds to increase the amount of stores, so he offered Wal-Mart stock to the New York Stock Exchange. For the reason of the large profit that toke place from the sales of stock, Wal-Mart was able to expand. By the 80s hit Wal-Mart had 276 stores Wal-Mart Corporate, 2012). Organizing contains numerous organizational resources, physical assets, knowledge, funds, and human resources. In this paper we will talk about human resources and monetary of Wal-Mart. Human Resources of Wal-Mart Managing and upholding of the human resources section is imperative while assessing how effective the organizing function is. “People are assets not commodities” (Bateman & Snell, 2009). The supervisors as well as the businesses have to work collectively to take into service the correct people for the occupation. Human resource management is in charge of recruiting, training, performance evaluations, rewards, labor relations, earnings, and benefits (Bateman & Snell, 2009). Wal-Mart provides work for about 2.1 million associates...
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...Assignment 1– Organizational Culture at Wal-Mart Casandra Reynolds Dr. Tonya D. Moore HRM 534 Employee and Labor Relations July 25, 2013 Explain How Viable Employee Relations Practices Have Contributed to Wal-Mart’s Success as an Employer. Wal-Mart is one of the largest retailers and employers in the world. It currently has over 2 million employees (www.statisticbrain.com). This is mainly due to the tenets Sam Walton introduced to the company. Associates of Wal-Mart focus on respect for the customer as well as respect for the employee. There are three values that associates live by which retains employees and grows Wal-Mart’s business: * Service to customers * Respect for the individuals * Striving for excellence Wal-Mart’s culture is one of integrity, service and respect. This culture ensures customers are a priority, employees are valued and integrity is at the forefront of every interaction. This makes it a very attractive employer of choice. Wal-Mart has a history of advancement and provides many opportunities to succeed within the corporation. About 75% of store management teams started as hourly associates (www.walmart.com). This is an important retention practice for the multinational organization. It allows people with limited resources to come in at an entry-level and work their way up. Wal-Mart is a diverse workplace because of its dedication to diversity and inclusion. In 2006, Wal-Mart created the Employment Practices Advisory...
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...SAVE MONEY. LIVE BETTER. WAL-MART'S POETENTIAL IMPACT ON NEW YORK CITY Management 520: Legal, Political Ethical Dimensions of Business Professor Pamela Aurelien Lena Alston lenaaalston@aol.com (516) 425-0814 Francisco Lazaro franciscolazaraojr@yahoo.com (347) 494-8147 Tajuna L. Sharpe tajuna629@gmail.com (347) 659-7010 Group Presentation Outline Interstate Commerce: The of Walmartization of New York City 1. Introduction A. Briefly introduce the topic and group B. Defining Interstate Commerce i. Conditions of interstate commerce ii. Wal-mart's current operations within New York State 2. History A. Company Overview i. Humble beginnings B. Employment Conditions i. Low wages ii. Medical Benefits & Fringe Benefits (sick leave, vacation pay, personal days) 3. Economic Impact A . Wal-mart customers i. The ideal Wal-mart shopper ii. Wal-mart's Competitors B. Economic Impact i. Urban (Chicago) ii. Rural/Suburban 4. The of Walmarization of New York City A. Potential Locations B. Potential Economic Impact in New York City C. Political Support/Opposition . Wal-mart's Potential Impact on New York City The Commerce Clause which is found in the United States Constitution, Article I, Section 8, Part 3 provides Congress with the power to regulate Commerce with foreign Nations and among several States...
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...largest retailers in the world Wal-Mart has grown right before our very eyes. As America’s largest employer, Wal-Mart employs over “1.6 million employees” (Wakeup Wal-Mart, 2010). With that said one would assume that this Fortune 500 Company would have a respectable compensation and or benefit plan for their hard working employees, but sadly this is not the case. Unfortunately although Wal-Mart is famously known for their ridiculously price they are also well known for providing disastrous healthcare coverage plans to their employees. For instance Wal-Mart offers low premiums to their employees for their family coverage. Even though this may seem like a dream come true for many, the fact of the matter is that their high annual deductable cancels low premiums out. In fact, theses annual deductibles are so high that most employees find themselves having to pay thousands of dollars before Wal-Mart’s insurance decides to kick in to pay. Regrettably because of this many employees are forced to seek government help in the form of Medicaid and other subsidized care in order to obtain and afford their medical needs. What is even more alarming though is the way Wal-Mart plans to right their employee healthcare wrongs. To offset their current health care plans, Wal-mart executive are proposing the cutting of “retirement benefits by at least $200 million (by eliminating flat 401(k) retirement contributions, which would cut the company’s retirement benefit cost from four to three percent...
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...Wal-Mart, as the largest global retailer, has 6,000 global suppliers. And eighty percent of those suppliers locate in China. It is definitely that Wal-Mart heavy relies on Chinese suppliers. To a certain degree, it has a negative effect on American economy, I think. Firstly, Wal-Mart alone is responsible for a loss of nearly a million U.S. jobs since the early 1990s due to its own growing trade deficits with China. The manufacturing sector and its workers were hardest hit by the growth of Wal-Mart's imports. According to a survey, Wal-Mart's increased trade deficit with China eliminated approximately 130 thousands manufacturing jobs, 68% of all job lost in 2006 (Robert E. Scott). Wal-Mart's huge reliance on Chinese imports clarifies that many powerful economic actors in the U.S. benefit from China's policy of maintaining an undervalued Yuan and its abuse of labor rights. Although Wal-Mart gets the great benefits, it is not the country's gain. These policies have contributed directly to growing trade deficit that endangers future economic growth. In addition to, when Wal-Mart's entry into a new market, it does not increase overall retail activities or employment opportunities and has a negative effect on existing retailers. The upshot of this is that stores near a new Wal-Mart are at increased risk going out of business because Wal-Mart's is dependent on low-cost China's imports. An investigation shows that 82 of the 306 small business had gone out of their business by March 2008...
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...Wal-Mart Case Study Dr. Tonya D. Moore MNGT 5650 November 24, 2013 Introduction Wal-Mart can be defined as Goliath in the biblical story of David and Goliath (only he doesn’t fall), the “strategic Corporal,” a self-licking ice-cream cone, the industry benchmark, labor exploiter, cost cutting surgeons with chain-saws, and America’s company. Wal-Mart perceptions are across the board and in essence reflect all of our societal issues and problems in one massive company. They survive and thrive on their ability to shape perceptions of their business model to consumers while exploiting their workforce. Goliath was perceived to be too big of a giant to fall or loose in battle until David succeeded. Wal-Mart is perceived that they are too big to fall by their competitors, society, and the country. They are the largest employer in the country, they own massive supply chain networks, and stores in every town across the country. However, in the case of Wal-Mart, there is no David out there to knock them down. Arguably they are no true competitors in their industry. Because of being this perceived giant, Wal-Mart is able to be a bully with vendors, associates, and competitors. Further, because of being a giant everyone is watching them. Threats and Challenges The simple answer of what threats and challenges Wal-Mart currently faces centers around their associates wages and health care. However, why do they face this challenge instead of what they are doing to...
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...Battling Wal-Mart by Neal Peirce The Wal-Mart Watch campaign, a labor-environmental group highly critical of America's mega-mega retailer, recently launched more than 1,000 events nationwide for its "Higher Expectations Week." "Wal-Mart: The High Cost of Low Price," a scathing documentary by independent filmmaker Robert Greenwald with a focus on Wal-Mart's business tactics and treatment of workers, began to play to audiences across the country. Wal-Mart is fighting its critics with waves of television ads celebrating happy workers and the company's gifts to local charities. But the action goes much further. Across state capitals, legislators are into spirited debates over whether Wal-Mart should be forced to pay adequate health benefits or leave it to the states to subsidize its low-paid workers through Medicaid and other public benefits. Scene of the biggest current fight: Maryland, where Gov. Robert Ehrlich vetoed a measure to require any company with more than 10,000 workers -only Wal-Mart qualifies -- to spend at least 8 percent of payroll on health benefits. Or, alternatively, to contribute significantly to the state's health insurance program. An override vote on Ehrlich's veto is set for January. Wal-Mart has deployed at least a dozen lobbyists to Annapolis, offering goodies such as a $10,000 gift to underwrite a conference of black legislators. In one sense, all of this is predictable: With annual sales of $288 billion and 1.6 million employees, Wal-Mart is now the world's...
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...Some threats and challenges Wal-Mart faces include increased competition, slow market growth, entry of new competitors, loss of sales to substitutes, growing bargaining power of suppliers, growing bargaining power of customers, adverse demographic changes, restrictive trade policies, and new regulatory requirements. Wal-Mart faces competition from general merchandise retailers, warehouse clubs, and supermarket retailers. They are also facing challenges from the discount retail industry. These challenges are coming from both inside the United States and internationally. The top competitors are Target, Kmart, Circuit City, and Bed Bath and Beyond to name a few. Even Sam’s Club is facing stiff competition from Costco. On the supermarket side of the industry, Wal-Mart is facing competition from Kroger’s, Albertson’s, and Safeway, even though these stores are finding it difficult to compete with Wal-Mart’s low prices. Some of the current challenges Wal-Mart is facing is the ability to expand in areas previously they have not been able to. Currently Wal-Mart really doesn’t have any more room in the United States to grow. Additionally, if they add more stores in the United States they will potentially face an issue with taking sales away from each other. An area in the United States that they could expand into where they have failed in the past is larger cities like New York City. The possible reason behind this is Wal-Marts opposition to unionized labor. Another possible...
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...WAL-MART’S CURRENT STRATEGY INTRODUCTION Wal-Mart operates more than 11,000 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries. (Wal-Mart.com) They employ 2.2 million associates around the world; 1.3 million in the U.S. alone. Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.Wal-Mart.com). When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: respect for the individual, service to customers, and striving for excellence (www.Wal-Mart.com). Wal-Mart's corporate management strategy involves selling high quality and brand name products at the lowest price. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman. This paper will analyze Wal-Mart's current strategy and challenges. In addition, I will discuss the threats and challenges facing Wal-Mart currently, priorities set by Wal-Mart CEO Lee Scott. I will also discuss the proposals outlined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06,”the result of the Board Benefits Strategy document leak, Wal-Mart initiatives from...
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