Inaddition to being one of the giant retailers in the world, Wal-Martis a global economic player and has a fascinating culture. It allbegan with a simple philosophy from Sam Walton, the founder. Theproducts of the company are sold to buyers at a low price. Jones,(2013), asserts that no other retail center offers the samecommodities at a lower price than Wal-Mart. That strategy shaped theculture of the firm and facilitated its growth. Mr. Walton alsoinstructed his employees not to be more than ten feet away from thecustomers, greet them and ask if they could be assisted.Additionally, he had a philosophy that the customers should not waitfor another day to be presented with any service or commodity. Thesephilosophies have been tampered with, and it is becoming extremelydifficult in recent times for the firm to regain its good reputationbecause the managers are business and growth minded rather than beingclient-oriented
Insteadof maintaining the original mantra, the current management hasinterfered with the philosophies citing that they want to makeeverybody happy. On their way to be unethical, the team began withcompeting with other retail outlets. They hired many employees,putting them under the part-time scheme so as to pay minimal wagesand deny medical allowances (Mun & Yazdanifard, 2012). Inaddition to this, the workers would only be entitled to benefits onlyif they worked for more than 30 hours. An example of the companybeing in an unethical situation is the way it treats its employees.The firm has been reproached for discriminating women workers denyingthem promotions and training opportunities. These members of staffhave also been underpaid.
Therehave been various lawsuits filed against the firm by some employees,and in June 2001, six Wal-Mart female workers sued the organizationfor sex discrimination. The group did this as it represented morethan half a million women employees worldwide (Mathew, 2014). Out ofthe seventy percent of them working in Wal-Mart, only five percentare in managerial positions. Despite it being on the front line asfar as the employment of female workers is concerned, the firm treatsthem with less respect and dignity.
Thehuman resource of the corporation is termed by many as a peopledivision. It hires more than two million workers across the globe.Mathew (2014) adds that the department encounters several businessrisks at any given time. It is viewed as a valued business partner inpreserving the culture of the organization, align the employees, andensure better performance as well as results.
Byaligning the business approaches with the department, the company canaccomplish the overriding strategies such as price, expenses,service, key products, talent, operations and culture (Roberts, &Berg, 2012). The idea of the enterprise department to lower prices ofcommodities was to try to create an emphasis on holding down theoperational cost. Additionally, to ensure a culture that is committedto the firm, the division aligns its policies and practices with thecompany’s philosophies. It is evidence since newly appointedmanagers are subjected to cultural orientation during their firstweek of practice. The orientation includes working serving thecustomers and witnessing firsthand the activities undertaken by theemployees. The team also attends cultural lessons at the Institute ofWalton. The Division of Human Resource Management coordinates suchactivities and subjects new entrants to cultural indoctrination in anattempt to acclimate these new workers to the organization’s way ofdoing things.
Thefirm closed the unionized outlet in Quebec citing economic reasonshowever there was some evidence that it could reopen. The courtclaimed that the closing of the store was not genuine as well asdefinitive according to the law. The corporation stated that it tookthe measures because it was not profitable. The management assertedthat the move was not due to excess pressure presented by United Foodand Commercial Workers-Canada to intervene and look into thegrievances of the employees (Mathew, 2014). Due to the companyclaiming that it was temporary, it was ordered by the Quebec lawenforcers to compensate the affected individuals as a result of theunfair dismissal. There were cases of employees being relieved oftheir duties as they attempted to be unionized.
Accordingto Mathew (2014), there were class-action lawsuits filed against thisorganization from the International Labor Rights Group. First, it wasaccused of issuing minimum remunerations to the workers and failureto compensate for overtimes. In addition, Wal-Mart failed to providesafe working environments for its staff members. The employees havecomplained of working long hours without being given flexible shifts.
Arguably,the founder of the firm had intentions of establishing outlets thatwould also accommodate the less fortunate with an emphasis on goodcustomer service. However, as Wal-Mart grew in revenue, some of theold philosophies were wiped out. With a new team of managers, thecorporation took a huge turnaround from the family-friendly kind of astore to a monopolizing organization (Mun & Yazdanifard, 2012).It has ensured that most companies that are competing are out of therace by reducing the prices of the commodities. Nevertheless, asWal-Mart went global, it experienced many challenges like lack ofsafe and secure working environments as well as zoning bids. Roberts& Berg (2012) states that the current decisions made are morebusiness minded. The company is trying to rebuild its reputation, butskeptics are always hesitant to trust the claim that it is a goodindustry. It is always difficult to reduce the risk factorsassociated with such a huge firm with massive revenues.
Basedon the idea of making people believe that the workers are vital forcertain business tasks and its continued success, Wal-Mart cansucceed by using the members of staff effectively. It can designplans based on the expertise and skills of these employees toaccomplish well-defined goals and objectives.
Thehuman resource department habituates the workers with the company`sculture. The division should focus on improving employees’performance. It should also ensure compliance is maintained as wellas the code of conduct. An audit committee should be set up tooversee them and authorized to take stiff actions against the staffmembers who do not comply. The department should hire managers andallow them to face external auditors. The team should abide by thepolicies and the laws of the company and those outlined by regulatorybodies. Roberts & Berg (2012), argue that the organization shouldalso be careful on who they are employing as it attempts to restoreits reputation.
The has been accused of a myriad of unethicalpractices. It has been sued by current and former employees for poorworking conditions and unjustified dismissals. However, it has triedto repair its tarnished name for the last few years with littlesuccess, and in its effort to do so, it has started workingindustriously, but in my opinion, I do not think they can fullyrecover. Nonetheless, there is room for improvement and given timeand following the current strategies they can regain some lost trustfrom their customers, business partners and employees too.
ReferencesTopof Form Bottom of Form
Jones,B. (2013). Wal-Mart. In Encyclopediaof corporate social responsibility(pp. 2689-2691). Berlin: Springer Berlin Heidelberg.
Mathew,M. (2014). Wal-Mart: Case study. Docs.school publications.
Mun,L. Y., & Yazdanifard, R. (2012). Walmartsuccess in Mexico, Canada and China: global expansion, strategies,entry modes, threats and opportunities.
Roberts,B. R., & Berg, N. (2012). Walmart:Key insights and practical lessons from the world`s largest retailer.London: Kogan Page.