Walmart Case Study

Case Study # 3 - Wal-Mart

Motivation

The strategy for managing people is one of the three most important strategies that lead Wal-Mart to be the biggest company in the world with one of the highest amount of employees. These strategies vary by the type, size and location of which the businesses are based out of. Managing human resources at a financial company is different from government institution as well as managing human resource in mid-size firms is completely different and less complicated than managing human resource at a retail business. Effective human resource management will create a high perspective teamwork, fair competition, and respective employees. For one of the world's biggest retailers such as Wal-Mart, the success of managing this department is acquired through three basic activities which are:

* Motivation

* Internal Promotion

* External Recruitment

One of the basic activities that lead Wal-Mart to successfully manage its people is motivation. Motivating employees into the same culture is one of Shelly Broader (CEO of Wal-Mart Canada) goals. Wal-Mart takes all of its effort to make employees feel like they are part of the company because these employees are vital sources of new idea for Wal-Mart to develop. The company motivates employees in many different ways in order to show that the company's main direction isn't based around revenue. One of the facts proved about this motivation theory is the use of the term "association" instead of "employee". Wal-Mart had agreed with J.C Penny to referring to employees as associates because it helps make workers feel more engaged within company.

Beside their specialized way of treating workers, Wal-Mart also encourages their employees through health care benefit and financial benefit. All associations at Wal-Mart and their immediate family are eligible for health insurance at a very low price which includes a primary doctor, pharmaceutical needs, dental and vision care. In the field of financial benefit, Wal-Mart started to share profit to its people in 1971. Furthermore, Wal-Mart has enabled all associations an access to own company's shares by selling stock to them at a discounted price and without brokerage fee. In addition to these benefit plans; Wal-Mart also tries to get involved with association crises directly and indirectly. The program which is called "Doors Open" provides a direct access for all associations to express their problems to the store manager and if the manager isn't able to create a solution, the next level of management such as supervisors, CEO, or a member of the board of directors will be asked to step in. Wal-Mart also helps the associations' crises by hiring a special psychologist team to counsel and cater to staff issues.

As a result from all of these motivations, Wal-Mart has created an exciting environment in their workplace with attributes such as respect, prospective and value. Besides emotional motivation, Wal-Mart also provides educational motivation -- many training programs in different branches such as technology, leadership, and management to all of it associates. Another basic activity beside motivation employees is internal promotion that brings Wal-Mart to succeed in managing its human resource.

Wal-Mart also excels at external recruitment for both new associates and high-level managers. From Wal-Mart's history, the company had hired many small business owners when it first started. Those business owners were very important to the company because they possessed the entrepreneurial characteristics such as penny saving and being risky. Wal-Mart also hires external people who have experience in business management or expertise in a specific division to support the business. For example; Wal-Mart's pharmacy division.

"The pharmacy division was started by Clarence Archer, a pharmacist expertise. Based on Archer's background, he was the ideal candidate for pharmacy division of Wal-Mart because not only was he a pharmacist but he also had experience in running pharmacies for drugstore chain like Kroger and Zale's. Archer started his drugstore at Wal-Mart in 1981 in his forties when Paul Carter was the executive vice president. Pharmacy business at Wal-Mart at that time is very challenging. It moved very slowly for the first year because there are many well-known drugstores such as Kroger and Super."

Archer had started up with some philosophy strategies such as hiring the best pharmacists in town to attract customers, giving out dollars coupons to increase sales, and always having important medicine in stock. Due to Archer's competitive nature, now Wal-Mart has 3,535 pharmacies and is the fourth in the world of pharmacy business.

Standards

The Standards are utilized to evaluate employment practices and environmental compliance in facilities producing merchandise for sale by Wal-Mart. Suppliers must also comply with Wal-Mart's Gift and Gratuity and Conflicts of Interest policies and conduct their business in an ethical manner that is consistent with accepted auditing principles. The Standards must be visibly posted in English and in the local languages in a common area at all facilities that manufacture products for Wal-Mart and its members.

All Suppliers and their manufacturing facilities, including all subcontracting and packaging facilities, will be held to these standards. As a guide to help suppliers understand the expectations and obligations of the Standards for Suppliers, Wal-Mart has prepared the Standards for Suppliers Manual:

Compliance with Laws

o Suppliers and their designated manufacturing facilities must fully comply with all applicable national and/or local laws and regulations, including, but not limited to, those related to labor, immigration, health and safety, and the environment.

Voluntary Labor

o All labor must be voluntary. Slave, child, underage, forced, bonded, or indentured labor will not be tolerated. Suppliers shall not engage in or support trafficking in human beings. Suppliers will certify that they have implemented procedures to manage the materials, including all labor-related processes, incorporated into their products to ensure they comply with laws on slavery and human trafficking. Workers must be allowed to maintain control over their identity documents.

Labor Hours

o Suppliers must provide workers with rest days and must ensure that working hours are consistent