Employment Essay Example
Employment Essay Example

Employment Essay Example

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  • Pages: 11 (2875 words)
  • Published: September 18, 2017
  • Type: Case Study
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The organization selected for our project is Wal-Mart Corporation, established by Sam Walton. The first store he launched was called Wal-Mart Discount City and situated in Rogers.

Wal-Mart Stores Inc. was founded in July 1962 in Arkansas, and its corporate office is currently situated in Bentonville, Arkansas. The company incorporated its shops on October 31.

1969. In 1972, they began trading stock on the New York Stock Exchange and, despite operational concerns that sparked controversy, they have since become the largest Retail Corporation in the universe. In 1997.

Wal-Mart became the largest private employer in the United States with annual sales exceeding $105 billion in 2010.

According to Wal-Mart About Us (2010), Wal-Mart, which has a global workforce of over 2.1 million employees, had gross sales surpassing $400 billion dollars in the 2010 financial yea


r. As someone who has been a loyal customer of Wal-Mart for numerous years, this information is significant to me.

By speaking to friends and family members with past or current employment at Wal-Mart, I have learned about some surprising informal practices. For instance, my mother, who worked there between 2006 and 2008, often had to work full 8-hour shifts without receiving a lunch break.

My cousin had to clock out because he was nearing overtime and the company wanted to reduce labor expenses. Intrigued by others' encounters with this unjust situation, I decided to research Wal-Mart. I was astonished to uncover certain trends of unfair treatment within a company that I had always backed. As stated in an article published on 12/24/08 by the Associated Press titled "Wal-Mart to Pay Workers Up to $640 Million," the company will be providing a settlement of $640 million for

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resolving 63 cases involving wage and hour violations.

Wal-Mart has encountered 76 category action cases in tribunals nationwide as of March 31, 2008, which involve various violations such as employees clocking out but continuing to work without receiving pay, denial of legally entitled lunch breaks, and non-payment for overtime work.

Wal-Mart has encountered gender discrimination problems such as denying women promotions and paying them lower salaries compared to men in similar positions (Associated 2008). Nonetheless, there have been instances where women held higher positions than men. It is widely acknowledged that Wal-Mart pays its associates below-average salaries for the retail industry.

In 2008, a full-time Associate working 34 hours per week and earning $10.84 per hour had an average annual income of $19,165.

For a household of four, the amount is $2,000 less than the Federal Poverty Line. In 2007, Lee Scott, the CEO of Wal-Mart, earned $29.

The total compensation is 7 million, which is 1.551 times greater than the one-year income of an average full-time Wal-Mart Associate.

Several employees at Wal-Mart depend on Government Assistance to sustain their households because they are aware that the wages they receive from the company, as full-time workers, are below the poverty level. In fact, Wal-Mart actively promotes the utilization of Government Assistant Programs among its employees (Wake Up Wal-Mart).

Wal-Mart employees claim that in 2008, the company did not provide affordable health care insurance benefits. When associates raised concerns about the expensive cost and inadequate coverage of the insurance, their managers suggested looking into eligibility for Medicaid or Medicare.

Based on data from Wal-Mart Facts.com, a regular full-time employee at Wal-Mart would need to allocate more than 20% of their earnings before being eligible

for reimbursement if they opt for the most economical family health insurance scheme. Furthermore, a typical full-time Wal-Mart Associate is accountable for covering the entire maximum out-of-pocket expense associated with the least costly health plan.

According to Wake Up Wal-Mart (2008), more than half of one's income is usually spent at Wal-Mart. As a customer, I serve as a comptroller by prioritizing effective budgeting while also seeking out great deals.

However, when observing this organization and its behavior, I only perceive greed. Consequently, as a customer, I have to question whether I should continue supporting this business if they continue to engage in actions that are clearly unfair to their employees. This is not a principled organization.

Despite Wal-Mart's annual revenue exceeding $100 billion, their commitment to addressing employee needs remains in question. Although I want to believe they are genuinely committed to making necessary changes, unethical behavior towards employees is demonstrated by Wal-Mart's management.

Wal-Mart disregards the needs, rights, and labor laws of its employees, which the US has implemented to safeguard them. What distinguishes Wal-Mart from other discount retailers is its low pricing on everyday household products. Its employees play a crucial role in enabling Wal-Mart to dominate the discount retail industry and maintain their competitive edge.

It is crucial for employees to perceive that their employing company offers a moral organizational culture in order to feel secure in their jobs and be motivated to be productive. What exactly is Organizational Culture? What kind of OC does Wal-Mart embody? How does their OC impact employee job satisfaction, morale, and performance? What measures can management take to enhance employee relations? According to our text, Organizational Behavior.

11th Edition: A company's

organizational culture refers to the shared beliefs and values within the organization. This culture is represented by the behaviors that employees believe they need to adopt in order to meet their organization's expectations (Schermerhorn, Hunt).

According to Osborn and Uhl-Bien (2010, p. 12), one of the Organizational Culture Inventories (OCI) discussed in the Human Synergistic Study focuses on the Aggressive/Defensive Culture.

The cultural norms revolve around a value system in which a company prioritizes its own interests above those of its key constituents such as clients, employees, suppliers, and even shareholders. The members of the company prioritize their personal gains rather than considering what is best for the organization in the long term. This behavior is a result of previous successful leadership.

Technological patents or good concern schemes fuel the haughtiness and short-run orientation of direction and allow Aggressive/Defensive organisations to continue to appear effective—at least for a while. However, according to John Kotter and James Heskett’s survey of 207 organisations (and consistent with research based on the OCI), this type of value construction prevents organisations from effectively adapting to changes in their environments and ultimately has a negative impact on their financial performance (Human Synergistic 2006). Your concern strategies shift; your organization’s values should not.

Organizational values shape employee behavior and impact attitude patterns, offering employees a sense of purpose and emotional connection to their work every day. Referred to as ground rules or operating principles, values are effective directives rather than mere abstract beliefs that are only displayed or verbally embraced (Organizational Values, 2008).

"In an Aggressive/Defensive Culture, people place minimal importance on direction. Their primary focus is establishing goals and attaining them through any means necessary.

They possess a strong competitive drive and are enthusiastically driven to surpass their rivals. A few characteristics of this culture encompass oppositional behavior and a spirit of competition."

Directors may oppose things indirectly and have an obstinate nature, motivated by power and flawlessness, always needing to be right.

These individuals have a tendency to avoid admitting mistakes, reject others' suggestions, and have a strong desire to be victorious or dominant. The members of this group lack job security and commonly feel the need to conform in order to keep their job and avoid being labeled as a "troublemaker".

According to Human Synergistic (2006), employees often feel like they are working in a hostile environment and fear retaliation from management. Many companies are currently experiencing high staff turnover rates, reaching the highest levels in almost 20 years. In an effort to address this issue, Walker Information and Hudson Institute collaborated on a nationwide employee loyalty survey, which confirmed that loyalty among employees is scarce.

Only a mere 24% of employees identify themselves as truly loyal, showing commitment to their organization, its goals, and intending to remain for at least two years. Additionally, 33% of employees were classified as high risk.

39% of individuals reported feeling trapped, lacking commitment, and having no intention to stay with their current employer. Despite this, they still plan to continue working for the company, although their loyalty is uncertain. Furthermore, among those who believed they were employed by an ethical organization, 55% demonstrated genuine loyalty.

According to Lowenstein (2006), if an individual does not view their organization as ethical, only 9 percent of them will stay faithful. Therefore, it is vital to create a culture that encourages

loyalty, commitment, advocacy, and productivity within the organization from the moment a new employee is recruited until they depart. The positive aspect is that employees have a significant impact on molding this procedure.

Specifically, those in client service possess a particular interest in seeking trust and reliability, as well as the desire to actively contribute to this endeavor (Lowenstein 2006). Embracing ethical human resource management practices and recognizing employees as valuable assets to be developed can provide a competitive edge in the market. This approach can be incorporated into a corporate social responsibility strategy, which entails not only minimizing harm to the environment but also reaping the benefits for businesses.

A company must be aware of the societal effects of its operations and ensure that they do not harm human stakeholders (Tracey Lloyd 2009). The significance of health insurance as an employee perk is also demonstrated by the fact that over a quarter of Americans state that they or a close family member have experienced job lock, missed out on a job opportunity, stayed at a job they would have otherwise quit, or delayed retirement solely because they needed to maintain the health insurance coverage they were receiving. According to another survey.

According to Reddick (2009), the satisfaction level of employees with benefits has improved over time. In 2003, only 32% of full-time workers expressed satisfaction, while in a more recent study, conducted by Reddick in an unspecified year, this number increased to 39%. The provision of satisfactory benefits is essential for employers as it helps in retaining their workforce.

In Thompson's (2010) view, diligent employees should be ready to offer more than just a salary by providing basic

employee benefits. These benefits not only foster a positive employer-employee relationship but also promote good work habits and financial practices. Wal-Mart's leadership style reflects an Aggressive/Defensive Culture that prioritizes their own interests over the needs of their members.

The text expresses that Wal-Mart does not perceive its employees as valuable human capital, but rather just another resource used to achieve the company's objectives. While Wal-Mart leadership prioritizes decision-making and strategies that benefit customers and maintain a competitive edge, they do not dedicate enough time and effort into training managers on how to properly manage their human capital. Consequently, this causes negative outcomes.

Directors' insufficient training in specific roles leads to them either avoiding problems or making inferior choices. It is difficult to envision that a reputable organization like Wal-Mart would make these errors without recognizing and correcting them over an extended period. Many individuals are likely to have filed complaints about these mistakes before resorting to legal action. Based on the evidence presented during the trial investigation, it is reasonable to assume that if Wal-Mart had conducted comprehensive research prior to the trial, they would have addressed the wage issue in question.

With its significant resources, Wal-Mart should have been able to identify and resolve the dispute before it became a legal issue. The situation raises questions about whether this was intentional or if employee concerns are not valued by the company. Engaging in unethical behavior like this ultimately causes employees to lose trust in the company.

Low morale, lack of motivation, and high turnover are the consequences of these distinct features that drive a company's decisions, patterns, and policies.

Process and organizational outcomes impact the company's atmosphere. The primary

influences stem from the visions and standards set by the senior leaders of the company. Employees at Wal-Mart do not experience any emotional connection or sense of value within their organization.

Unfortunately, this leads to a lack of job satisfaction, loyalty, and commitment.

This is a demonstration of how employees treat clients when traveling. Wal-Mart's main selling point is their low prices, but they provide very little customer service. For example.

When I visited customerservicescoreboard.com, I found a negative comment about Wal-Mart's customer service. The commenter mentioned that the company ignores inquiries and dishonestly claims to value them. As a result of these bad experiences, they have chosen not to shop at Wal-Mart anymore. The problems they mentioned include long lines and unhelpful, slow cashiers who don't even help with bagging items into carts.

Their customers refuse to purchase carts and show their frustration. The state of the bathrooms is messy. The shelves are devoid of products. I hope they receive what they deserve - a decrease in the number of clients and a decline in profits. Today, I made another attempt and was not let down.

Wal-Mart is facing a multitude of issues, including the absence of carts and excessive queues. Moreover, customer service revealed the absence of both a director on duty and complaint forms for customers, exacerbating the frustration. Consequently, my anger towards Wal-Mart intensifies. In order to rectify these problems, it is imperative for Wal-Mart to devise strategies that entice and retain efficient employees (Customer 2009). Additionally, there is a deficiency in emphasis on teamwork.

Employees' concerns and suggestions hold no significance as they are not incorporated in any aspect of the final decision-making process at the

individual store retail level. The management's inflexible attitude of "my way or no way" is ineffective and there needs to be a compromise. Wal-Mart must alter their leadership style.

The CEO and other leaders must play a more active role in establishing acceptable managerial codes of conduct and regulations to oversee the organization. Instead of merely reacting to negative press about employee relations, they should take a proactive approach in addressing the company's negative reputation. For example, they can start by sending out a corporate communication to inform managers and employees that the company is about to undergo major changes and will prioritize taking care of the employees and valued customers. Wal-Mart may continue to enjoy success for now without considering the long-term consequences of avoiding change, but these consequences should not be ignored.

Change will be imposed on them through two means. Firstly, the cases will progress, and the tribunals will impose high penalties on Wal-Mart due to their unethical conduct. Secondly, their sales will decline significantly as a result of the inadequate customer service provided by their untrustworthy actions.

The low morale and lack of motivation of associates at Wal-Mart indicate a need for a major organizational change. While the company is large, it is capable of handling this task internally. However, hiring an external consulting firm to oversee the process could bring in fresh ideas and strategies.

Of course, they would be collaborating with Wal-Mart's project team to determine the deliverables needed to complete the project. Wal-Mart's leaders must ensure full commitment by providing the necessary financial and staff resources to the project team. The first step is to conduct an analysis of training needs and

identify where there are discrepancies in patterns and policies. Then, take action to resolve the issue.

By establishing a new uniform policy, updating the employee handbook, providing training to managers and employees on the new policies, and eventually implementing it.

It will take approximately twelve months to prepare, review, and implement this project. The prioritization will be based on the most critical needs, such as ensuring proper employee wage protocol.

Preparation for anti-favoritism policy and squad edifice plans includes establishing a workplace diversity class to educate managers on fostering diversity and preventing discrimination. It is necessary for directors to attend an annual comprehensive training class. Promptly address and investigate all complaints of discrimination.

The company requires written certification for allegations of favoritism, including the investigation and steps taken for resolution. The companies' policies on this matter are crucial to ensuring employees' perception of organizational justice.

Consequently, if an employee is found guilty of the allegation, an immediate penalty is required. It is important to send out a corporate communication advising employees of the company's commitment to improving employee relations.

Use email to communicate and display it in countries with high traffic. Express a desire to involve employees in decisions that directly impact them by creating an Employee Involvement Team for the project. This will help management and employees address concerns and grievances, such as fair and competitive rewards and a comprehensive health insurance package.

Allowing employees to be part of the decision-making process will help management receive feedback on the most effective strategies to achieve future goals, while fostering team commitment, loyalty, and morale. Annual policies will be reviewed and modified if needed. Both managers and employees will undergo yearly skill assessment


Skill-training categories will be established to teach directors how to improve their communication and leadership skills. The outcome of the training will be the issuance of development results to department heads and certificates of completion to participants. Lastly, feedback from both directors and employees will be collected for evaluation purposes.

Discuss the effects and emotions regarding the improvements made in the procedure. Create a comment section to gather their feelings about the companies' efforts to enhance employee relations. Identify any remaining issues and collaborate with the In-house Project Team and the Employee Involvement Team to address them.

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