Organizational Analysis of Wal-Mart - Case Study Example

Organizational Analysis on Wal-Mart 22.5 Describe the organization, what it does, the customers it serves, and its size. Wal-Mart is recognized as one of the American multinational retail organization, established in the year 1962 by Walten Brothers. It is first opened in region of Bentonville of Arkansas of United States and very soon captured the entire global market. It mainly operates in retail supermarket industry presenting varied types of products such as apparels, footwear, food products, grocery products etc. Due to which, its revenue and total assets increased by US$ 476.294 billion and US$ 204.751 billion in the year 2013. So, it is considered as the most valuable organization in the nation of United States among many others (Wal-Mart, 2014). The prime intention of the organization of Wal-Mart is to offer best products at lowest price so as to make its customers happy and contended. It mainly targets the customers of modest incomes rates but desiring to live a better life. Due to which, the organization expanded its operation by opening numerous stores in different countries. Wal-Mart comprises of almost 11,000 stores in more than 27 countries that helped the organization to amplify its customer base and distinctiveness in the market among others (Wal-Mart, 2014). 2. Research the organization’s mission statement. Discuss the role HR will play (or does play) in fostering the organization’s mission statement The organization of Wal-Mart always desires to offer best quality of products to its customers in order to amplify their reliability and uniqueness in the market among many other rival players. This is done, in order to save the revenue of its target customers that may amplify its brand image and reputation. Moreover, by offering the products at a competitive price, the organization of Wal-Mart desires to enhance their life style and living standard to a significant extent. By doing so, the level of dependency and switchover costs of the customers might get reduced thereby amplifying their profitability and productivity of the organization of Wal-Mart among others. However, in order to become the leader in the segment of retailing, the organization of Wal-Mart need to offer best products at an effective price. Only then, it might become successful in amplifying its dominance and position in the market among others. But in order to fulfill the mission statement of the organization in an effective way, the human resource management offer significant concentration over certain areas such as planning, staffing, human resource development, compensation, employee relations, safety, security and risk management. This means, in order to offer best products, the organization tries to satisfy all the needs and demands of its employees effectively such as presenting proper working condition, proper compensation, maintaining proper employee relationship, enhancing the knowledge through training, implementation of advanced machines etc. So that the level of satisfaction and motivation of the employees gets enhanced that may amplify their level of devotion and commitment towards work. Only then, the organization of Wal-Mart might become successful in offering highly advanced as well as best quality of products to its customers at a quite lowest price in order to amplify the standard of living. Such a strategy might prove effective for the organization in amplifying its reputation and portfolio in the market among many other rival players. In addition, prior implementing any new policy or strategy, the HR of Wal-Mart tries to make a discussion with its employees in order to know their inner desires. This helps the organization to act as per their desires so as to amplify their devotion and performance towards the work so as to improve the reliability of the customers. 3. Assess the common HR challenges facing this organization (e.g., high turnover, low wages, lack of skilled workers, etc.). Recommend an HR strategy you would implement to overcome the challenges assessed The sustainability and competitiveness of the organization of Wal-Mart is reducing day by day mainly due to various HR challenges. In-spite of being a reputed organization, Wal-Mart fails to offer proper wages to its employees and so the level of confidence and motivation of the employees declines significantly. As a result of which, the rate of devotion and commitment of the employees towards their assigned tasks reduces that hinders the productivity and profitability of the organization to a considerable extent (Forbes, 2013). In addition to this, due to payment of low wages, the rate of retention of the employees also reduces that hampers the efficiency of the organization in the market among other rival players. Moreover, due to attrition of the experienced staffs, the organization failed to present satisfactory products and services to its customers that hindered the reliability and dependency of the customers. Due to lack of presentation of satisfactory products and services, the rate of switchover costs of the customers increased that declined the total sale and revenue of the organization (Business Week, 2007). Other than this, the organization of Wal-Mart also does not offer health-insurance policies to a certain extent of the employees. Due to which the rate of interpersonal relationship of the employees with the employer declines that affects his or her dedication or commitment power (Business Week, 2007). As a result of which, the rate of job satisfaction declines resulting in amplification of turnover rates. However, due to enhancement of turnover rates of the employees, the rate of prosperity and reputation of the organization reduces significantly in the market among others. In order to improve the prosperity and popularity of the organization of Wal-Mart, the management might try to implement the strategy of performance related pay systems. By doing so, the organization might become successful in presenting the best performing employees with best wage rates (Chamberlain & et. al., 2002). This strategy might attain the motivation and confidence level of the employees resulting in improvement of their performance. As a result of improvement of the level of performance, the rate of productivity and profitability of the organization might get enhanced that may increase its efficiency and position in the market among others. Other than this, due to implementation of performance related pay systems, the rate of retention of the employees might get enhanced that may prove effective for the organization in presenting highly advanced and best quality products and services. As a result, the level of reliability and trust of the customers might get enhanced resulting in amplification of their inner confidence and satisfaction. Hence, it might be stated that in order to improve the profit margin and reputation of the organization of Wal-Mart in the market, performance related pay system is the best HR strategy among others. 4. Determine how effective your recommendation above will be to making the organization more competitive The employees are recognized as the prime requirement of an organization that fosters its growth and competitiveness in the market. However, it might be possible only if the organization tries to satisfy the primary or basic needs and requirements of the employees such as wages, bonuses, incentives, proper working condition, advanced techniques, advanced machineries etc. Only then, the inner morale and devotion of the employees towards their assigned tasks might get enhanced. But among these above mentioned needs, the most essential need is wage, so the organization might try to offer proper wage to its employees. Along with this, in order to amplify their level of performance and commitment towards the organizational goals, performance related pay systems such as bonuses, incentives etc need to be offered. Then, the employees might try to offer qualitative work that may amplify the profitability and demand of the organization. Along with this, reputation and dominance of the organization might also get enhanced by presenting best quality of products or services to its customers at a competitive cost. In addition to this, the level of trust and loyalty of the customers over the products and services of the organization of Wal-Mart might get enhanced resulting in amplification of its sustainability and competitiveness in the market among others. Furthermore, the range of customers of the organization might also get enhanced that may increase its prosperity and brand image to a considerable extent. Moreover, due to implementation of performance related pay system, the rate of turnover of the employees might also get reduced that may prove extremely effective for the organization of Wal-Mart in long run. Hence, it might be depicted that, in order to amplify the reputation and portfolio of the organization, performance related pay system is the best human resource strategy for Wal-Mart. Conclusion Conclusively, it might be depicted that in order to amplify the sustainability of the organization of Wal-Mart, the most essential requirement is employees. Therefore, best wage rates as well as incentive or bonuses need to be offered to the employees so as to retain them for longer period of time as compared to others. Only then, it might become successful in presenting varied types of inventive products and services to its customers at a competitive rate. However, by attainment of best quality of products at lowest price, the rate of reliability and dependency of the customers might get enhanced to a significant extent. This is extremely worthy for the organization of Wal-Mart to retain its dominance in this aggressive market. References Business Week, (2007). Stop Bullying Wal-Mart. Retrieved from : http://www.businessweek.com/debateroom/archives/2007/04/stop_the_bullying_wal-mart.html. Chamberlain, R & et.al. (2002). Performance Related Pay and the teaching profession: A review of the literature. Research Papers in Education, Vol. 17(1), pp. 31–49. Forbes, (2013). Why 1.4 million workers working in Wal-Mart trying to switchover. Retrieved from : http://www.forbes.com/sites/realspin/2013/11/27/why-do-1-4-million-americans-work-at-walmart-with-many-more-trying-to/. Wal-Mart, (2014). About Wal-Mart. Retrieved from : http://www.walmart.com/. Read More