What Is a Case Study?
When you’re performing research as part of your job or for a school assignment, you’ll probably come across case studies that help you to learn more about the topic at hand. But what is a case study and why are they helpful? Read on to learn all about case studies.
At face value, a case study is a deep dive into a topic. Case studies can be found in many fields, particularly across the social sciences and medicine. When you conduct a case study, you create a body of research based on an inquiry and related data from analysis of a group, individual or controlled research environment.
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Study a Pattern
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Case study of strategic human resource management in Walmart stores
Introduction Part 1: the analysis of corporate strategy and HR strategy at Wal-Mart. Part 2: The analysis of HR policies at Walmart and its integration with Corporate Strategy. Part 3: the role of the HR manager in this company? Part 4: some advices to improve the employment practices at Walmart. Conclusion Introduction: Michael E. Porter (1980) in his famous book said there are three basic competitive strategies for a company, which are overall cost leadership; differentiation and focus strategy. Companies use these competitive strategies to achieve competitive advantage. In this case, Walmart Company is obviously taking the cost leadership strategy, that is to say, it aims to become the low-cost leader in the retail industry. Walmart maintains its competitive advantage through its satellite-based distribution system, and by keeping store location costs to a minimum by placing stores on low-cost land outside small to medium-sized towns, no matter in the US or in its abroad affiliations. Part 1: the analysis of corporate strategy and HR strategy at Wal-Mart. From this case material we could also see that Walmart purchased massive quantities of items from its suppliers to form scale economy, and with the efficient stock control system helping make its operating costs lower than those of its competitors. It also imported many goods from China, " the world factory " for its low cost. So in a word the company-level strategy of Walmart is low cost and low cost, with little differentiation strategy. Managers engage in three levels of strategic planning (Gary Dessler, 2005): the corporate-level strategy; the business-level strategy and the function-level strategy. The functional strategy should serve the overall company strategy so the corporate strategy could be implemented more effectively and efficiently. As for Walmart, its corporate-level strategy and business-level strategy, as we analyzed above, is the low cost leadership. Then we'll focus on its functional strategy, especially its HR strategy. Besides the above factors, Walmart builds its low cost leader on employment policies that help it to achieve extraordinarily low employment costs. Through low-cost HR activities, Walmart tried to maintain its predominate competitive advantage. Part 2: The analysis of HR policies at Walmart and its integration with Corporate Strategy. The basic premise that underlying SHRM is that organizations adopting a particular strategy require HR practices that are different from those required by organizations adopting alternative strategies (Jackson&Schuler, 1995). Generally, there are three SHRM theoretical models in the study of this discipline: the universalistic best practices, the contingency perspective of " best fit " and the resource-based configuration perspective. Here I would not deliberate on all these three models to examine the HR practices at Walmart, but just choose the contingency perspective of " best fit ". With this view, the individual HR practices will be selected based on the contingency of
Strategic Human Resource Management (Strategic HRM), now in the globalised world is evolving as the fulcrum of modus operandi, in long term planning, adopted to achieve profitability for any kind of Organisation, be it production, service or even the charity organisation. SHRM operates primarily with two forms of resources. The first resource is an organization's human capital—the knowledge, skills, and abilities of its employees. The second resource is an organization's systems specifically HR policies and practices that serve to support the development of human capital. Core research in strategy is concerned with identifying both the external and internal factors that enable firms to shape a competitive advantage and achieve superior performance (Harrison & Enz, 2005). With the support of technological advancements SHRM is now a much sought after planning tool for any operating organisation in any corner of the world be it big or small.
… Journal of Human Resource Management
The strategic importance of human resources (HR) and their contribution to the organizational performance are receiving increasing recognition worldwide. In this study, we examined strategic human resource management (SHRM) and HR practices in Turkey to assess the impact ...
Human Resource Management Review
This paper aims to discuss differences between human resource management (HRM) and strategic human resource management (SHRM), and aims to discuss convergence or divergence between American and European HRM. Therefore, research question is what the similarities and differences are between European and American HRM. Research methodology is based on critical review of HRM literature. Therefore, this study aims to increase conceptual ability of human resource (HR) professionals. Major result is that HRM is related with employee performance, and SHRM is related with firm performance. Secondly, European HRM is becoming similar to American HRM. The difference between European and American HRM is social context and social partners. European HRM considers social partners in management of HR.
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Walmart Strategic Human Resource Management Case Study Solution
Question # 01 :.
How HR Strategy can be Walmart’s competitive advantages?? What is the importance of strategy setting with respect to Human Resources and how organizations can mobilize it??
Effective human resource management will create a high perspective teamwork, fair competition and respective environment. Especially in the large-size company, Walmart has more than 1.6 million associates to work, so human resource management plays the most important role in the organization. Furthermore, in Walmart, there is never called “employee” or “worker” while it is called “associate” since the founder believed that there is no boss and workers, as well as the people who work for War-Mart are partners to make profit together.
HR strategy is competitive advantages by followings ways:
- The HR strategy is to focus Walmart’s employees to do everything they possibly can to hold down cost and, they do. Whenever Walmart is successful in lowering its expenses, it passes those savings along to its customers in the form of lower prices putting even more pressure on its competitors.
- HR’s role is to focus Walmart’s leaders and employees on continuous learning, continuous improvement, superior execution, employee empowerment, and employee ownership all designed to create synergistic teamwork. Walmart teams are highly productive but at the same time the staffing levels are lean.
- For Walmart, its corporate-level strategy and business-level strategy, as I analyzed is the low cost leadership. Then I’ll focus on its HR strategy. Walmart builds its low cost leader on employment policies that help it to achieve extraordinarily low employment costs. Through low-cost HR activities, Walmart tried to maintain it’s predominate competitive advantage.
Importance of HR Strategy
The HR Strategy is a managerial decision making tool as the HR Strategy sets the way the management should approach to the particular HR project proposals. The HR Strategy helps to employees to decide common daily decisions as they can see, if the request is fully aligned with the HR Strategy and the organization will benefit from such a solution. The HR Strategy sets the vision, but it is fulfilled by many daily small decisions and the strategy helps to set the decision process.
QUESTION # 02:
Analyze the HR policies at Walmart & its integration with corporate strategy???
- Managers engage in three levels of strategic planning the corporate-level strategy; the business-level strategy and the function-level strategy. The functional strategy should serve the overall company strategy so the corporate strategy could be implemented more effectively and efficiently.
- There are three SHRM theoretical models in the WALMART case study: the universalistic best practices, the contingency perspective of “best fit” and the resource-based configuration perspective.
- The contingency perspective of “best fit” With this view, the individual HR practices will be selected based on the contingency of the specific context of a company. Like the Walmart has different corporate strategy with those retailers with differentiation strategy, which actually cultivates the primary contingency factor in the SHRM literature.The individual HR practices will interact with firm strategy to result in organizational performance, and just for this interaction effects make the “universal best practices”
- In the “fitness” part of HR practices in Walmart. There are the HR policies and activities such as how the company recruits, selects, and trains and rewards employees that comprise the HR system itself. From the recruitment Walmart has tried its best to reduce the cost considering so big number of its employees.
- From training perspective, Walmart refers to its employees as “associates”, and encourages managers to think of themselves as “servant leaders”, that is, to encourage them to serve others while staying focused on achieving results in line with the organization’s values and integrity.
- Through this training and encouragement, Walmart tried to adjust the employee behaviors and competencies to what the company’s strategy requires, that is to low down cost more.
- From the performance management perspective, Walmart made very high demanding standards and job designs.
- From the compensation management perspective, Walmart has also showed very aggressive HR policies and activities to fit the “low-cost” strategy. Walmart imported $15 billion worth of goods from china, not only for the strategic consideration of supplier chain economy, but also Walmart has some factories in china, whose products are branded with Walmart name.
- From the employee benefit and safety perspective, Walmart’s HR policies are also well aligned with the corporate-level strategy. At Walmart, workers eligible for benefits such as health insurance must pay over the odds for them.
QUESTION # 03:
What you advice to improve the employment practice at Walmart???
Actually from the above analysis we knew from different theoretical SHRM models, there are still many things to improve.
- Human capital resources include such things as the skills, judgment, and intelligence of the firm’s employees.
- Walmart exploited its workers by various HR policies to low down the cost to the minimum level, which would certainly reduce the loyalty and dedication of that human resource in the company. So Wall Mart needs to improve it
- Wall mart need to make little training and other activities to the employees taken to develop its valuable human resources, while human capital and learning could be a core source of sustainable competitive advantage.
- They should play more positive roles in training and using their human resources, and maybe cultivating better organization culture, all of which may prove more cost-saving.
Walmart SWOT Analysis
Walmart Organization Challenges And Organizational Change Analysis
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Walmart’s Human Resource Management
Walmart Inc. (formerly Wal-Mart Stores, Inc.) is an example of effective large-scale human resource management, considering the business has millions of employees worldwide. The company is one of the biggest in the world in terms of organizational size, business value, and financial performance. The firm ensures that its human resources are supported in satisfying business needs and expectations. Walmart considers how its activities, such as internal organizational processes, support its human resources. For example, the company addresses its human resource planning and job design, and how these aspects contribute to high performance among employees. Human resource managers also consider how Walmart’s corporate culture and organizational structure , recruitment and selection, retention and training, performance management, compensation, and career development contribute to the productivity of the firm’s workers. Effectiveness in addressing HR needs affects the company’s performance and growth potential. Walmart’s strategies must support the continuing development of its workforce and related managerial practices.
Walmart’s human resource managers optimize the business and its workforce, effectively addressing issues and criticisms. As the company faces challenges in the competitive landscape described in the Five Forces analysis of Walmart , human resource development can increase business resilience, especially in supporting growth despite pressure from competitors, like Amazon and its subsidiary, Whole Foods , as well as Costco and Home Depot . HRM factors, like reduced turnover and high employee morale can boost Walmart’s performance amid changes in the retail industry environment.
Walmart’s Human Resource Planning
( Main article: Walmart’s HRM: HR Planning, Job Analysis & Design ) Human resource planning at Walmart is stratified in terms of the programs and solutions developed and applied. For example, HR planning takes place at the top management level of the corporate human resources department. However, the company is a large organization. Each store has its own personnel responsible for HR management. As a result, each store translates the general human resource plan from the corporate HR department. The stores have varying interpretations of the corporate human resource plan. Such variations indicate that actual human resource planning occurs at different levels of Walmart’s organization.
In terms of forecasting, Walmart uses special software to automate the process of analyzing changes in the workforce. For example, the firm gets its employee or workforce data from its stores. The data is fed to the central database, and organized and processed to reveal trends in the company’s human resources and related operational needs. Through this forecasting system, Walmart forecasts possible future changes in the workforce, such as changes in HR demand per season or per region. This condition contributes to the company’s flexibility in the area of human resources.
In relation, in addressing the surplus or shortage of employees, Walmart uses its information system to determine which areas or aspects of the organization will face increased demand in human resources and which areas will have a surplus. The company’s HR management applies corresponding plans that stabilize the workforce. The HR plans specify the number of employees needed and the recommended schedules for increased recruitment, along with adjustments in related areas of the retail business. In this way, Walmart ensures adequate human resource support despite fluctuations in retail market conditions and corresponding business operations.
In balancing HR supply and HR demand, Walmart’s goal is to ensure adequate access to qualified workers. The company has a continuous process of hiring and training new employees. The continuity ensures that vacant positions are immediately filled. The nonstop recruitment activity helps Walmart access the labor market to maintain an adequate supply of human resources to match changes in demand for employees at its stores.
Job Analysis and Job Design at Walmart
( Main article: Walmart’s HRM: HR Planning, Job Analysis & Design ) Walmart uses the matching approach in job analysis. This method involves interviews and surveys of applicants, employees and supervisors to determine issues and needs. Walmart’s aim is to align actual needs with available human resources, and to determine possible gaps between the two. On the other hand, Walmart’s job descriptions are diverse. Nonetheless, the company’s human resource management develops job descriptions that mostly involve activities in sales because the majority of the company’s workers are directly involved in sales. Thus, job descriptions at Walmart include those for sales personnel, sales supervisors, sales managers, and store managers, among others. Also, Walmart’s job specifications are diverse, but most of the specifications require knowledge and skills in sales and marketing.
A recommendation in this case of Walmart Inc. is to improve the company’s job analysis and job design by implementing more channels of communication. Employees can use these channels to give feedback to managers. This change will benefit the company’s human resources through increased employee morale, along with more accurate job analysis. Such higher accuracy can improve the outcome of HR managerial decisions and related business strategies.
Walmart’s Recruitment Strategy
( Main article: Walmart’s HRM: Recruitment, Selection, Employee Retention ) Walmart’s recruitment strategy uses different sources of new hires. Considering the company’s large organizational size and diverse workforce, the recruitment aspect of the firm’s human resource management has a decentralized system that uses local information as a basis for recruitment processes. In relation, the actual sources of workers are typically the localities where the company’s stores operate. Walmart’s methods in its recruitment strategy include online recruitment, direct recruitment at localities, and recruitment through academic institutions. These HR management methods in the recruitment strategy ensure a diversity of applicants. For instance, the online method allows the firm to reach applicants who are not near Walmart stores. Referrals help the company get qualified applicants based on reliable referrers.
It is recommended that Walmart improve its recruitment process through new strategies for global competitiveness of human resources. The company’s workforce is already locally competitive. This recommendation for international competitiveness should allow the firm to address changes in the global business environment. Global competitiveness is critical because Walmart is a multinational business. Emphasis must include diversity and the ability of employees to deal with diverse populations of customers.
Selection: Steps in the Selection Process at Walmart
( Main article: Walmart’s HRM: Recruitment, Selection, Employee Retention ) The selection process at Walmart is based on the ability of applicants to handle sales transactions and human resource management. However, the following process is suited to the situation of the retail business:
- Background check. This includes educational background and work experience. This step determines the applicant’s potential to satisfy the demands of the job. The applicant must possess the qualities for achieving the expected job outcomes.
- Knowledge, skills, and abilities evaluation. The applicant’s knowledge, skills and abilities must allow for fulfilling the job position, based on Walmart’s standards.
- Person-organization fit evaluation. Employees must match the company’s organizational environment. For long-term career growth, the applicant’s values must match those of the company. The objective is to align the workforce and the organization.
- Assessment of the applicant’s willingness to work at the company. Among other considerations, the applicant must be flexible enough to contribute to the firm’s organizational flexibility.
The selection process steps outlined above are basic to the global retail business. Walmart’s human resource managers modify these steps to suit specific operational areas. For example, changes in some criteria are applied, based on the conditions of specific stores in some locations. A strategic objective is to maintain Walmart’s flexibility by aligning corporate measures with the management initiatives in individual retail stores.
Walmart’s Employee Retention Strategy
( Main article: Walmart’s HRM: Recruitment, Selection, Employee Retention ) Walmart maximizes employee retention to minimize financial loss linked to turnover. Higher turnover leads to higher financial loss, considering human resource expenditure for recruitment, selection and training. Employee retention at Walmart is achieved through a combination of approaches. The following employee retention strategies are applicable:
- Recognition based on the employee’s performance
- Benefits based on the employee’s status or position
- Incentives based on the employee’s status or position
Walmart Inc.’s Employee Training
( Main article: Walmart’s HRM: Training, Performance Management ) In this area, Walmart uses needs analysis to determine how jobs fit employees, and how these jobs fit the business environment. For example, needs analysis is used to determine how workers’ needs are satisfied. The company’s human resource managers also use needs analysis to check if employees satisfy business needs. Store managers conduct needs analyses. The results are relayed to the company’s corporate HR at the headquarters, where corporate managers determine the changes and strategies needed in the workforce. A needs analysis at Walmart would reveal at least the following information:
- The need for diversified human resources in all locations (stores and other facilities)
- The need for a more technologically savvy workforce
In this regard, technological knowledge and skills are included in the company’s program design for training employees. Such design typically focuses on the performance of sales personnel. Online delivery of training programs is included. However, the company’s human resource managers prefer traditional face-to-face training programs to ensure quality of service at Walmart stores. On the other hand, in evaluating the effectiveness of training programs, the company’s HR managers use sales performance as a criterion, as well as feedback from supervisors and employees on sales performance. Customer feedback further adds information that the company’s managers use to evaluate the success of employee training programs.
Performance Management at Walmart
( Main article: Walmart’s HRM: Training, Performance Management ) Performance management at Walmart involves a performance appraisal system. This system provides feedback to employees on their performance levels. The company also gives feedback to workers on how to improve their performance. In addition, the firm uses human resource management software that analyzes individual and team performance levels. In this business analysis case, an applicable recommendation is to use a micro-tailored appraisal system. Such a system allows variations based on the employee being appraised. The purpose of these activities is to enable Walmart’s human resource management to fine-tune job responsibilities, specifications, goals and objectives. The company’s career development plan is also based on performance plans.
Walmart’s corporate objectives are linked to performance management practices, standards and measures through sales performance. The firm is mainly concerned about maximizing sales revenues. Through its performance management activities, the company’s human resource management ensures support for sales performance through employee productivity, especially sales personnel productivity. Performance interviews are used at Walmart to provide more information for appraisals. These interviews are conducted so that the progress of employees is regularly monitored. The interviews also allow the company to obtain feedback from employees.
Measurements and standards are used to evaluate if the company’s human resource performance is satisfactory. For each performance measure, the company has a set of standards. Different HR standards are used for different areas of the business. The following performance measures are suitable in Walmart’s case:
- Effectiveness of processes
- Efficiency of processes
- Quality of customer service
- Timeliness of supply chain activities
- Productivity of sales personnel
Walmart encounters performance problems, such as low employee morale and tardiness. These HR problems reduce the firm’s financial performance. Walmart can address low employee morale through job rotation and flexibility, incentives, and recognition for employees’ achievements, among other approaches. The company can address tardiness through motivation strategies and new policies, such as rules imposing a maximum percentage of tardy days per number of workdays.
Career Development at Walmart
( Main article: Walmart’s HRM: Compensation, Career Development ) In addressing career development, Walmart’s human resource management uses training programs regularly conducted to increase knowledge, skills and abilities. Training provides the opportunity for employees to improve skills specific to the retail business. Also, the company supports employees in attending seminars and other programs outside the organization.
Walmart matches individual and organization needs through analysis of the person-organization fit. The person-organization fit ensures that each employee is aligned to the needs, demands and expectations of the organization. This fit also ensures that the organization is satisfactory to the worker. The person-organization fit is important in HR management because it helps the company minimize expenses on recruitment, selection and training of workers who do not fit the company. A higher person-organization fit leads to lower turnover.
Employee potential is assessed at Walmart through a number of ways. The following HR activities are suitable in this case:
- Appraisals matched with standards of the organization
- Feedback from managers, supervisors and colleagues
- Productivity based on records
- Individual employment record
- Personal interview results
Career opportunities and requirements are identified through Walmart’s internal business processes, job positions and expansion plans. When the company expands, more career opportunities are created. Also, anybody pursuing a career at the company must satisfy the firm’s job positions and business processes. On the other hand, career development initiatives are instituted at Walmart through personnel involved in human resource management at the store level. For example, managers and supervisors implement the HR initiatives, and adjust them to suit the unique conditions of the individual store.
Walmart’s Compensation Strategy
( Main article: Walmart’s HRM: Compensation, Career Development ) Walmart’s compensation strategy involves a stratified approach. Pay is based on the job level relative to the organizational structure. Compensation is also partly based on the worker’s performance. This combination involves pay grades and levels that correspond to different job positions in the company. The success of Walmart’s incentive plans is high. Sales performance is the core consideration in the business. The focus of these incentive plans is on sales productivity and performance. Thus, through these incentive plans, human resource management directly addresses such focus. These plans create a significant boost for the company’s business performance.
Walmart’s incentive pay is focused on managers. The company can improve the resulting imbalance by giving a more equitable emphasis on the incentives of managers, supervisors, and rank-and-file employees. An applicable recommendation is to use an incentive plan that gives better incentives for low-ranking employees. Instead of focusing on supervisors and managers, Walmart’s HR management can increase incentives for sales personnel, who are the bottom line and foundation of the retail business.
- Faisal, S. (2023). Twenty-Years Journey of Sustainable Human Resource Management Research: A Bibliometric Analysis. Administrative Sciences, 13 (6), 139.
- Kheng, L. (2023). Walmart: A Business Case Study in Knowledge Management, Walmart’s Secret Sauce–The Use of Machine Learning, Automation, and Virtual Reality. In Cases on Enhancing Business Sustainability Through Knowledge Management Systems (pp. 33-46). IGI Global.
- Kumar, A., Singh, R. K., & Modgil, S. (2023). Influence of data-driven supply chain quality management on organizational performance: Evidences from retail industry. The TQM Journal, 35 (1), 24-50.
- Walmart Inc. – Form 10-K .
- Walmart Inc. – Workplace Diversity and Inclusion .
- Working at Walmart .
- Zhang, J., & Chen, Z. (2023). Exploring human resource management digital transformation in the digital age. Journal of the Knowledge Economy , 1-17.
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Strategic Human Resource Management at Wal-Mart Stores Report
Strategic Human Resource Management (SHRM) is an indispensable element for the performance of the enterprise since it supports the activities of each departments or business division and helps the organization achieve its long-term objectives. The tasks of the human resource manager are focused on the continuous improvement of the labour force. His/her strategies should be in line with the needs of the organization, its mission, and vision.
Their responsibilities of the professionals include selection and recruitment, recognition and rewarding, appraisal, employee development, and succession planning. This paper is aimed at analyzing SHRM in such a company as Wal-Mart Stores, Inc. In particular, it is necessary to determine whether SHRM in this company is consistent with its overall business strategy and with its current needs. This paper will also discuss the impact of internal and external environment on HR polices, pursued by the management of Wal-Mart.
By doing that we will be able to single out strengths and weaknesses of SHRM and make recommendations that could improve it. Yet, at first it is vital to understand the overall business strategies at Wal-Mart, the structure of this company, its organizational culture, and most importantly the role of SHRM.
Overview of Wal-Mart
Wal-Mart is one of the largest retailers in United States and all over the world: the company handles operations through super centres, and discount stores. Currently it operates such as China, Canada, Brazil, Japan, and United Kingdom. Among its major strengths, we can single out effective distribution system, satellite information system, and effective inventory management (Cravens et al, 1998).
They enable the company to reduce operational expenses and subsequently pursue the policy of cost leadership. Overall, the current mission of the enterprise is to retain the status of the world’s leading chain store by “helping people save money so that they could leave better” (Wal-Mart, 2010, unpaged). SHRM is instrumental for the achievement of these objectives. One of the major characteristics of Wal-Mart is decentralized structure.
The Organizational Chart of Wall-Mart
Local and Foreign Suppliers
Overall, HR managers serve the needs of every division of the organization; the only exceptions are suppliers. It is an inherent part of every department. At the given moment, the company employs more than two million employees (Wal-Mart, 2010, unpaged), and it would not be an exaggeration to say that the role of SHRM becomes crucial.
We need to mention that the organizational Wal-Mart can be described as role culture, which means that each of the employees has clearly delineated duties and authorities. More importantly, there is a very distinct and complex hierarchy, for example, there are heads of departments, location managers, facility managers, technology managers, and so forth (Peterson, 2005).
To some extent, this complex hierarchy makes employees believe that they will be able to climb career ladder. As Coleman Peterson argues, this structure makes people believe that “true opportunity exists” (2005, 88). This argument can be better elaborated by means of chart.
As we can see, Wal-Mart cannot be called a flat organizations since there are many layers between top-management and front-line personnel. On the hand, the culture and structure of the company helps to retain employees; thus, Wal-Mart does not have to spend extra money on hiring and recruitment; however, this hierarchical culture may slow down the decision-making within the company.
Therefore, it can be viewed as both advantage and disadvantage. These are the key issues that a person should take into account while assessing strategic human resource management in the company.
The assessment of SHRM in Wal-Mart
The influence of external and external factors.
At this point, we need to describe those factors, which drive SHRM in this organization. At first, we need to speak about legal, political, and economic environment and their impact on HR policies in Wal-Mart. Over recent years, this company has recent years, this company has been often criticized by political activists, who believe that it does the company does not want to raise the wages of its employees, and does not offer health insurance to them (Spotts. 2005).
To some degree, it forced the company to increase the remuneration, offered by employees. More importantly, one should not overlook the increasing legal pressure, since the company has faced numerous lawsuits that were caused by poor working conditions and discriminatory policies toward the employees, supporting unionization (Spotts, 2005, p 87). This pressure induced the management to focus more in the needs of the workers.
It is possible to argue that the SHRM in the company is affected by two opposing forces: 1) willingness to be or at least to appear a responsible corporate citizen, and 2) the willingness to remain profitable. Yet, one should not overlook the importance of competition : the thing is that Wal-Mart’s major rivals, for example, Costco offers better health insurances to the workers. In turn, the management of Wal-Mart attempts to improve its work practices.
The objectives of SHRM in Wal-Mart
The importance of an active, healthy human resource management system is recognized throughout Wal-mart. At the business level the key human resource staff working to promote a culture supportive of the business strategy is the human resource director, although there are other staff groups that address particular aspects of the issue for example quality and management development. The human resources managers serves as internal consultants to the various operations within Wal-Mart.
The people perform the following functions: 1) raise awareness on issues of productivity, quality, and a quality work life; 2) facilitate information transfer among Wal-Mart’s operations; 3) conduct practical research related to productivity, a quality of work life, and team issues; and develop team and human resource management processes useful to line managers.
Other staff groups, which contribute to the effort, include quality centre, which promotes improved productivity through the organized teams. The corporate human resource staff has grown in recent years and its range of operations has broadened. The challenge is to tie together a large array of activities into a coherent well-aimed strategy (Anon, 2009, unpaged).
If we are speaking about the relation between SHRM and the strategic objectives of this enterprise, we may say it is aimed at recruitment and retention of the best candidates, which will subsequently enable the company to reduce operational costs, that inevitably arise when the company has a high turnover (Peterson, 2005).
The human resource practices in the organization, for example, development and training, selection and recruitment, performance appraisal, performance contracts among others improve HR efficiency. These traditions are not only used by Human Resource Managers but also used by line managers.
The use of HR practices by line managers has been increasing over years due to the complexity involved in HRM. They play a very crucial role in the development of the workforce since they contact directly with employees (Daft, 2009). Their work is to serve as a bridge between the HR managers and the work force. They are better placed to understand the employee’s performance and frequently experienced problems such as turnover rates and absenteeism which can be used by the HR managers.
At Wal-Mart it is the duty of line managers to introduce any new member of staff into the corporate organization. Shortly after the line managers are informed about the arrival of a new member of staff, they should ensure that the work place is suitable, fully effective and well equipped, notify team members about the new employee, assign one member to act as the employee’s adviser and inform him of the new employee’s duties.
On the whole, it is possible to single out the following areas of HRM to which Wal-Mart pays close attention:
- Recruitment of the personnel . Prior to hiring the person, the HR managers of Wal-Mart scrutinize the background of the candidate. They focus on his/her education, references, previous work experience, especially, if we are speaking about those applicants, who have already been selected among many others. The HR managers may focus on such issues as the reason why the person left the previous job. They do not rely solely on interview, since they believe that this form of selection process can be invalid (Peterson, 2005, p 87).
- Retention of the Employees. In order to retain new hires, the company usually undertakes the following steps: 1) it offers regular orientation programs to the new members of the personnel; 2) the HR managers clearly explain the employee’s opportunities for career growth. It should be noted that approximately 70 percent of the managerial staff in Wal-Mart were hourly workers at the beginning of their career in Wal-Mart (Peterson, 2005, p 88).In the previous section of this paper, we have noted that complex hierarchical structure of this company and it role culture enable the hourly workers to climb the career ladder.
- Training and development of the employees. Unfortunately, training and development of the personnel is one of those areas where Wal-Mart is not very successful. The company focuses on the so-called “orientation training” given to the employees at the initial stages of their career. However, scholars believe that such courses should be offered on a regular basis (Ollek, 2009).
- Remuneration. Wal-Mart workers have a fixed hourly wages, for example, 10 or 12 dollar per hour. In the majority of cases, such approach to the assessment and remuneration of performance overlooks the individual contribution of the front-line personnel.
This discussion shows that certain areas of SHRM in Wall-Mart do not fully contribute to the achievement of strategic objectives, set by this corporation. Namely we may mention the training, offered to the employees. It cannot be limited only to the orientation programs. In the next section of the paper we will try to single out ways of improving HRM in the company.
Recommendations for the improvement of SHRM in Wal-Mart
- One of the first measures that we can suggest to this company is to simplify its managerial hierarchy, and now it is very complex and there are too many barriers between the front-line personnel and the top-management. There are several rationales for this change: first, the duties of middle managers frequently overlap and essentially these people do the same work. Secondly, the complex hierarchy may lead to excessive supervision of the employees, malpractices, and abuse of power. For instance, one may mention those scandals which broke out to the facts that many employees, who supported unionization of labour force were dismissed (Spotts, 2005). Overall, such incident pose a great threat to the public image of the company and they may prevent it from remaining the world leading retailer.
- Secondly, it is vital that the company introduced different methods of performance assessment. As it has been mentioned before, the majority of employees have fixed salaries. This is the most inadequate way of performance remuneration. The management of this organization should focus on both quantitative and qualitative aspects of performance, and there are ways in which they can be measured. Overall, such compensational policies can be the leading factor that forces the employees leave Wal-Mart because they feel they are not valued by the company.
- Thirdly, Wal-Mart should pay more attention to the regular training of the personnel. Every representative of the service sector makes sure that their employees are able to use new technologies, especially solutions. Additionally, it is vital that they can find an approach to each of the customers and assist him in every possible way. These are one of those skills that should be continuously elaborated.
In this ways, SHRM will help Wal-Mart achieve three objectives:
- customer satisfaction;
- employee satisfaction;
- increased competitiveness.
Anon. (2009). Strategic Management: A Case Study of Wal-Mart Inc . Web.
Bianco, A., & Zellner, W. (2003). Is Wal-Mart Too Powerful? Business Week , (3852), p100.
Carolyn, B. (2010). Organizational Theory . Web.
Cravens D. Greenley G, Piercy P, & Stanley F Slater. (1998). Mapping the path to market leadership: Effectively combining various dimensions of strategy into an integrated process of strategic analysis and action maps the path to market leadeship. Marketing Management, 7(3), 28-39.
Daft, R.L. (2009). Organization Theory and Design . London: Cengage Learning.
Harvard Business School Press, (2006). Essentials of Strategy Harvard Business Literacy for HR Professionals’ Series . Boston: Harvard Business Press.
Holland, P., & De Cieri, H. (2006). Contemporary Issues in Human Resource Development . Sydney: Pearson Education.
Peterson. C. (2005) Employee Retention: The Secrets Behind Wal-Mart’s Successful Hiring Policies. Human Resource Management. (44), 1 pp 85-88.
Smith, A. S., & Mazin, A. R. (2004). The HR Answer Book: An Indispensable Guide for Managers and Human Resources Professionals . New York: Amacom Div American Mgmt Assn.
Storey, J. (1998). New Perspectives on Human Resource Management . London: Cengage Learning EMEA.
Spotts G. (2005). Wal-Mart: the high cost of low price. The Disinformation Company.
Zellner, W., et al (2001). How well does Wal-Mart Travel? Business Week, (3747), p82.
Wal-Mart (2010). The Official Website.
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IvyPanda. (2021, August 5). Strategic Human Resource Management at Wal-Mart Stores. https://ivypanda.com/essays/strategic-human-resource-management-at-wal-mart-stores/
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Case study of Human Resources Management at Walmart Published: 23, March 2015 1 Introduction Human resource managementÂ is process of managementÂ of people working in any company or organization. There is another term used instead of human resource management is personnel management All the human resource management models emphasizes on following important things: searching new ways of working role of manager in change making managing the activities of employees Human working capital is very important for success of the businesses especially in service sectors. Human resources are one of major costs part for any business, they always play very important role in development which path company is adopting for success in business. Correct and efficient management of resources and their utilization is necessary for success of all businesses. Practitioners of human resource management have developed a modern view related to work management rather than previously set of traditional philosophy. In current competitive business world that is always dynamic organizations have to keep them advance with the pace of development in this changing environment. The division of work inside organization aimed at completing tasks on time. Among all of the important organizational departments is the department of human resource management. According to some experts organizational success basically depends on the success of human resource department. This department has lot of value inside the organization. Human resource managementÂ is well set, properly designedÂ and rationalÂ approach to any of theÂ managementÂ work that contributes to the achievement of set business objectives. In all organizations human resource people have various functions. Professional Essay Writers Get your grade or your money back using our Essay Writing Service! ESSAY WRITING SERVICE In companies department of human resource play a crucial role as they are responsible for dealing with diversity of staff. Starting from the recruitment identification process to the identification of the benefits that each employee can bring to the organization, with a proper planning for this achievement. There is always a way that ensures functions of human resources will be different for different organizations according to the needs of that organization. The people in human resource always have the focus and responsibility to improve the performance of the employee. Mainly the staffing is a vital step related to this process, but results and outcome lies in performance management. This is directly result of internal control of the Human Resources to make more of the workforce. Human Resources Department mostly tries its good efforts to give benefits to employees cause it wants them to perform well with higher satisfaction, according to their job description. Improvement in the staff performance comes through a systematic approach adopted by human resource people. Current assignment will study the concept of human resource management, main responsibilities of the department, problems and issues faced by this department, workers incentive and appraisal, diverse approaches related to human resource management, and idea and administration of any change in origination. We also will try to find that how walmart making progress in current competitive business environment while managing all its Human Resources effectively to bring desired success. What are some critical features of walmart policy and strategy for its human resource management. 2 History of Walmart Date of Wal-Mart Most people know that most popular discount retailers started in 1962, K-Mart, flat and Wal-Mart opened its first store. (Company, 2010) actually started by Sam Walton of this work during the intense competition of the 1950s many of the regional discount stores. Before making the opening of its company Sam went to most of the parts of country to learn things about the discount retail business. He successfully convinced American consumers that he got the idea for a new and compared to the old. With confidence and vision, Sam with his wife Helen started the development of a major stake in the first store in Rogers, Kmart has expanded rapidly in the 1960s, while Sam was to get sufficient money for the development of 15 stores of WalMart. In 1972, business shares were offered to public in the New York. With this combination of money, the company made growth in business established its stores in 11 countries with number of 276 stores by the end of its first decade. In 1983, opened its first store Sam Club Members Gallery. The early Supercenter was opened by 1988, featuring grocery store and other 36 departments for general merchandise. By 1989, there were 1402 Wal-Mart Stores 0.123 Sam Club sites. Increased ten-fold work. Its sales grown to $ 26 billion from one billion dollar. (Milner, 2005) Today it have stores and sites numbered 8747 in more than 15 countries of the world that have 2.1 million Associates and provides service to at least 176 million customers in a year time. 3 Concept of Human Resources Management Human resource management Can be defined as "the sum of all these activities that are associated with management of staff and their relationship within the company." Or "And continue operations in the management of people and organizations in any way to achieve their goals and objectives." While an agent (2007) is defined as "all the decisions and strategies and the factors managers processes and practices, functions, activities and methods for the management of the peoples who work as employees in any organization. So, human resources management is essentially a study as well as management in any organization that stands on the ideas and techniques to improve the status of employee motivation, efficiency and performance. Based on the idea of managing people to believe that the staff is very important for the specific business and its continued success. The organization can gain a competitive advantage only by using its staff effectively, drawing plans on the basis of their expertise and skills in order to achieve well-defined objectives. In organizations, and human resources departments play a crucial role as they are responsible for dealing with diverse staff. Of the recruitment process and to identify the benefits that each employee is done through the Department of Human Resources. Could be that the functions of human resources are always different to cover the requirements of organizations, similarly they always focus and take responsibility to improve the performance of the employee. Mainly the process of staffing is very important step for this, but mostly the result lies in performance management. This is linked to internal control by the Department of Human Resources and more of the workforce. 4 Workforce Planning and the difficulties Work force planning and preparation of all your options before going into the real work set for the staff to get the organizational goals is very important issue. It is well understood principle that the people are organization's important asset. Because without the capable staff it is difficult for all organizations to reach towards their goals. The bulk of organizational improvement will come only after ensuring that the right staff with the right skills, knowledge and behaviors in the organization. Workforce planning related to achieving this outcome, and any serious link between business planning and development, recruitment and retention, and staff training. Wal-Mart is much concern about this issue, human resources and recruitment system and effective to deal with their needs for this purpose and put the plan always. They announced the vacancy correctly, a pre-assessment before engaging in the selection process. They provide benefits to its employees and facilities in spite of, is blamed for some time to Wal-Mart facilities discrimination and ill-especially low-paid. This layout is about the workforce and provides the opportunity to work on long-term thinking about the relevant services in the future, and needs, and explore all viable strategies. Thus, the central planning for company work becomes important for the organizations. 4.1 Employment Requirements Critical stage in the recruitment of human resources management. It should be well planned and structured so that the organization can recruit the right person for the right place instead of just making the availability of another person at work. There are many of the problems faced during this process and managers for some time and the inability to focus, time and financial resources necessary to make this process effective. Wal-Mart that they always take qualified personnel and according to it, and it makes employees with proper education and skils efficiency. 4.2 Development and Training Appointment comes after the development and training stage. Most the organizations unfortunately sometimes even for technical jobs do not provide adequate training for their employees before hiring and employment. There must be made sound system which can ensure that the Organization the necessary arrangements to work before and on the job training and development for their employees. The-job training is the main part in the field of human resources at Wal-Mart is now not only offers these courses for their employees, but in times of recession, they offer training courses for some people who are by this time of recession. (Wal-Mart, 2010) 5 Administration of human resources and staff performance This Essay is a Student's Work This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. EXAMPLES OF OUR WORK Human resources management are primarily responsible for the employee's performance in business administration (Jones, 2007). To achieve its purposes, which is responsible for dealing with staff from induction to work on and improve their commitment and reduce absenteeism and turnover, and improving skills levels and productivity, and improve the quality and efficiency of its work. 6 Century 20 key ways to manage human resources There are some key criteria developed that are in use from the days of the 20 century and developed later by some HR professionals to achieve the highest standards of performance and strongly recommend the organization to follow the rules of these standards for the performance of high-quality employees. These are the best practices, fit this view of resources. 6.1 Best practices Also called as "high commitment" human resource management to ensure that the realization of the best practices in human resources makes improvement to organizational performance. There are many best practices to keep the advantage using the employees for profits by giving due importance to staff at Wal-Mart. These practices are: - 1) job security, (2) recruitment of flour, 3) training and large-scale, 4) the exchange of information, 5) capable teams, 6) also paid a much higher according to the profit and reduce the inequalities in the position of the staff. 6.2 best fit, or approach of emergency Says that the management of human resources that can perform well when there was a suit involving the required vertical on the performance of human resources management and corporate strategy. There must be a unity between the process closely and human resources and policy with the policy of the foreign company. There are various theories related to vertical integration. For example is life cycle models, that argue in favor of the human resources which according to experts can be easily known in development stage of any organization by its policies and practices that it adopts at development or life cycle process. Some other models of competitive advantage that the idea of Porter on strategic choice. Maps a variety of human resources practices in the organization options for the development of competitive strategy. The third is configurationally models that provide a more accurate assessment depends safe from an organizational strategy to determine the appropriate human resources policies and practices. Wal-Mart is famous for this approach because it is conscious to get the best people to do their job, because they are not many offers, such as previous experiences of the application, it is also strict rules in the second performance evaluations. Showing 6.3 resources and building According to some is the basis for modern human resources management, and it focuses mostly on internal organizational resources, and considers how these resources contribute to competitive advantage. And the scarcity of resources is ideal for harmony and human resources management and its central role for the development of human resources organizational value, and this is rare, it is sometimes difficult to replace and organize effectively. Wal-Mart in the keyword in the field of human resources is a "valid" but the staff who works to meet these goals which are set by organization. 7 Academic theory It is based on the fundamental principle of human beings are not like machines, and therefore any organization needs to have multidisciplinary assessment at their workplace for all staff. Many areas of psychology, for example, sociology, industrial relations, economics, engineering, industrial and monetary theories play an important role and a key. Universities and colleges offer diverse courses in human resources management. Wal-Mart and a good learning approach to build capacity in the area of personnel. One commonly used way to explain the function of human resources management was developed by Dave Ulrich, which identifies four areas of the role of human resources management: collaborator and strategic businessï‚§ As a result of the change agentï‚§ a hero of the staffï‚§ and experts on Administrative. 8 Responsibilities of the Department of Human Resources Different companies and different departments working within the organization, and these departments including sales management to human resources management. Human Resources department staff muscles depends on size of staff in company. Job opportunities in this section includes human resources coordinator, human resources and assistant director of human resources management. Can the responsibilities of human resources management as follows: 1: Human resources management is doing all the planning, advertising, interviewing and selection of staff. 2: Department should know law at all levels from federal, state or provincial and local laws relevant to the work of staff. 3: This section helps companies on training and staff development. Companies train their staff to a variety of reasons, such as motivating staff to learn new things new. The length of hours of time for several weeks, depends on the nature of the exercises. Some time and include safety measures in the workplace. As mentioned by Derek, et al (2004) that "It shall be the duty of every employer to ensure, so far as is practicable, the health, safety and welfare at work of all staff." 4: should any private company to use the drive is able to attract staff, skilled and hard work. After the payment of these benefits are shared to keep on encouraging workers for a long time on the functions of the organization. These include the benefits for time of unemployment. Companies offer a variety of benefits, including dental insurance, and vision insurance and payments for a few days off. 8.1 Tasks performed And human resources in any company that requires kind of management, that involves several steps for this process. They look to achieve all these goals mentioned above. Cannot be performed by each of these activities in human resources management, but some tasks can be outsourced or cannot be performed by these executives, even by other departments. People at Wal-Mart human resources, efficient in their jobs, they provide significant benefits to employees who claim Associates. The following are the main tasks carried out by human resources departments at Wal-Mart: Employment-planned Employment Employee induction and orientation to make them on-board Employee skills of management Employee proper training Employee daily base management Compensation Time Management Travel arrangements Payroll (some companies give this task to the accounts) Employee benefits management Planning staff costs Annual Assessment Labour Relations 9 Human resources strategy when some human resources management and strategy for implementing the tasks set by the department of handling human resources management. Have human resources functions of the Organization include the recruitment and selection policies, and procedures related to disciplinary procedures, policies, rewards and prizes, and human resources plan and policies specific learning and development. But it should be aliened all these regulatory issues in the overall strategy for the business sector. Human resources management strategy and the comprehensive plan, with regard to human resources policy in the implementation process. Human resources management strategy usually consists of the following factors: Wal-Mart always gives priority to the strategies that best fit and best practices, which means there is a link between human resources management strategy and corporate strategy. Encountered some blam critic Wal-Mart to use this strategy against the employee benefits and fair pay, so many times waltmart cases of discrimination against them. But the people Wal-Mart's efficient in the field of continuous monitoring of the human resources strategy, through the study of the employee, feedback and surveys necessary for the organization. 10 Career Education There are a number of Universities and Colleges to study in the areas of human resources management and related benefits. It was the first Cornell University in the world who started their studies in human resources management and educational administration full. Wal-Mart and good training and education system for workers in the teaching profession and communicate with various projects and sectors that handle these projects in their human resources. There are many new careers at wallmart , which engaged things related to recruitment, employment, recruitment and the interviews done in general, equal opportunities in employment or professional employment organization. Training is conducted regularly with the development of specialization by the trainers. 11 case studies: critical analysis of the human resources approach Walmart Wal-Mart, which is famous for retail in the U.S. A and the top retailers in the U.S. market. Wal-Mart is the rapid growth in the awareness that you make. According to the site Wal-Mart (Company, 2010) Wal-Mart serves customers and members in more than 200 million times a week in more than 8747 retail units under the flags of different countries, 5515. With fiscal 2010 sales of 405 billion dollars, 2.1 million Wal-Mart is working partners all over the world. Leader in sustainability, charitable companies and jobs, in first place among retailers, Wal-Mart impressive in Fortune magazine as most companies in the survey for the year 2010. Wal-Mart has the status of these substances can also see that WalMart to buy large quantities of items from its suppliers to create economies of scale, and inventory control with an effective system to assist in making operating costs less than those of its competitors. It is also many goods imported from China, "factory of the world" for its low cost. In the word of the strategy at the level of the company from Wal-Mart, the low cost strategy with a little insulation. Wal-Mart managers and engage in three levels of strategic planning (Gary Dessler, 2005) in the business, and corporate-level strategic function. As for Wal-Mart, corporate and business level strategy to drive low-cost. From the perspective of performance management, to Wal-Mart has very high standards and strict job titles. In career management, WalMart and also goes great efforts to reduce costs, and there are many cases that women Su, Wal-Mart to its policy of discrimination against women by systematically denying them promotions and paying them less than men. There are women who have been paid to the departments to lower FEMALE complain about unequal treatment of male colleagues. From the perspective of compensation management, has also showed Wal-Mart human resources policies and activities of the very aggressive to fit the "low cost" strategy. Wal-Mart imported $ 15 billion worth of goods from China, but also Wal-Mart has some of the factories in China, which branded products with the name of Wal-Mart. We can see just how Wal-Mart's strategy of companies only extensively with integrated human resources policy. Wal-Mart workers in California to earn 31 percent less on average than workers in large retail as a whole. In fact, with other operating costs that put it on the highest level of inventory management, and managers must turn to the storage fees to increase profits, Wal-Mart is expected to reduce labor costs by two-tenths of a year. So, these aggressive policies of human resources, not just more, "the fittest". From the viewpoint of the employee and the interest of safety, as well as human resource policies at Wal-Mart, which aligned well with the strategy at the corporate level. Often accused of Wal-Mart failed to provide employees access to affordable health care, but the senior managers and HR managers know their focus was just trying to implement most of the "low cost" strategy. Wal-Mart strongly against the policy of the Union. It was reported in the United Kingdom's Guardian newspaper that Wal-Mart faces the prospect of a messy legal battle with the messy GMB bruises in a row about the rights of collective bargaining, to the Union does not accept the Wal-Mart has withdrawn its bid to pay 10% to more than 700 workers. (Milner, 2005) and here there may be some doubt as to why Wal-Mart has recently allowed trade unions in their stores in China, where trade unions are required. I tried Wal-Mart in China every possible effort to develop good relations with the Government of China and other groups of influence. So make this the exception of China and Wal-Mart unionizations except in accordance with the overall strategy and human resources strategy. If the company has ignored the rule of the Chinese government, the cost is more than just what would be saved by not allowing the Organization of Trade Unions. We may evaluate the various human resources practices and systems, Wal-Mart best fit the organization's strategy for competitive companies. Then here is the role of HR managers in this company who are professionals with strategic skills of human resources and other resources needed to build a human-oriented strategy. Human resource managers in one of the technical departments of Wal-Mart, and tried their best to "fit" the company's strategy to reduce the cost low. They made some rules and policies, for example, the implementation of the policy against the Union in its stores to reduce costs from outside the EU, but to assist in the implementation of the "lock in" policies; tried to resist the deficit in the loss of efficiency. Should encourage women to discrimination by giving them a far less chance of money, and workers in fact mentioned in the Wal-Mart has also received a salary much lower compared with the average level of the industry. Try Wal-Mart human resources managers and also to control the conduct of staff and competencies that require the company's strategy through the actions and policies of the company's strategy in support of human resources, some of which may be adduced. Wal-Mart human resources managers refers to its employees as "partners" and encourages managers to think of themselves as "servant leaders", and this is to encourage them to serve others while staying focused on achieving results in line with the organization's values and integrity. Wal-Mart also faces lawsuits alleging that the company's discrimination against disabled workers, to employ these men intended to provide more facilities for them and lost efficiency to some extent. They also faced charges of child labor. Also charges of discrimination of women. All of these types of human resources policies are not enough compared to international best practices approved by the Department of Human Resources in all good companies. Regardless of Wal-Mart to adopt low-cost strategy or differentiation strategy, and these policies and practices to achieve specific objectives to save any additional cost, but to motivate employees to increase their contribution in helping companies and even in shaping culture. 12 Conclusion and proposals With the update that brought the introduction of computers and mobile phones, information and technological advances robots to support human life and the work it is easy to be good performance in any business. Request Removal
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