Wal-Mart: Motivation - Case Study Example

Wal-Mart: Motivation The essentials of success in the corporate environment entails several managerial and leadership techniques as employed in the organization in consideration. This case study covers factual findings from the Wal-Mart Inc Corporation on the factor of success relating to their motivational strategies for the employees. The company remains successful remarkably in motivating its employees via a vast strategic approaches and techniques, including consideration and personalization of various motivational theories to fit their context. The company leadership realizes the significance of employee motivation in its success, a factor that allows it to incorporate employee motivation as a strategic management practice. The company remains among the leading profitable organizations in time, and it attributes this to various factors. Thus, this discussion evaluates the strategic motivation theories and strategies as Wal-Mart applies in fostering its success in the competitive corporate environment. Introduction Wal-Mart Inc. Corporation is a brand name in the international platforms, from chains of stores to the online-based platforms for consumer engagement with the company. An American multination retail company has a vast chain of retail stores discounting departments and warehouse stores. According to recent rankings by various ranking authorities, the company ranks as the world’s largest public corporation, the biggest private employer and largest retailer in the world. These factors the company attributes to its tremendous success as it makes progress over the years since its establishment in 1962 by Sam Walton, and consequent incorporation in 1969 (Brunn, 2006). It went public in 1972 when it enrolled in the New York Stock Exchange. The Head quarters of the company are in Bentonville, Arkansas. The company operates with over two million employees today, making it the largest privately employing firm, and under the category of leading retail businesses. it is a family-owned company, under the control of the Walton Family, who still maintain a share of over 50% of the company despite trading it publicly (Brunn, 2006). The company has a vast network of its operations internationally, engaging in the various countries physically and from the online platforms. Case overview In the tardy 1980s to the timely 1990s, the company rose from being a regional business into a national trading giant, making it the most profitable retailer in the USA. It continued growing in geographical coverage and revenue, as well as, its management and workforce expanded (Schoenbaum, 2013). This factor necessitated the establishment of strategic and effective management procedures to combat the growing challenges of management and running the existing company. Wal-Mart as of date, apart from the various stores as it operates under the direct name of the company, it also has over 11, 000 stores in 27 countries all operating under different names (Brunn, 2006). This adds to the mix of the company with respect to the growing prospects of workforce management strategies. The company employs over 2 million employees within its various operations and stores, a factor that makes the workforce extremely challenging to manage effectively. Further, the leadership remains committed to employing structural and effective managerial skills in engaging the employees as it creates a working culture that fosters the development of the employees and company respectively. These factors of operation in the company lead to the establishment of a human resource department that remains vibrant in recruiting new workforce and maintaining the existing employee population (Wal-Mart Stores, Inc. SWOT Analysis, 2014). The recent developments in the economic and financial world saw an increased employee turnover rate for several existing companies. However, t Wal-Mart sought refuge in its employee motivation strategies in ensuring a near 100% employee retention rate. This factor shows the impact of the employee management strategies as employed by the company. The Wal-Mart employees cite remarkably investing and encouraging motivational structures that allow them remain loyal to the company. The case analysis features various issues and strategies of the Wal-Mart company in the efforts to motivate her employees and engage them accordingly (Brunn, 2006). The employees remain the heart and soul of any organization, irrespective of its leadership and strategic plans. The employees engage the company objectives and implement the strategic plan fostering the organization to success. Thus, with this realization, Wal-Mart notes the significance of employee motivation, repeatedly in leading the company to the success it enjoys today. Wal-Mart knows how significant the employees are to its operations. This forces the company to engage the employees strategically in operational procedures and policies that define the criteria for the human resource department in motivating the employees. The company, being huge, it continues to retain its crown of being a leading profitable organization from its policies and strategies across the world. The company seeks various theoretical approaches and employs them practically in engaging the employees for the success of both the company and her employees (Schoenbaum, 2013). This factor relates to the core managerial establishment structures of the company as a family-owned business. The workforce of Wal-Mart remains a family of vast populations from varied cultures, geographical and political jurisdictions across the globe. Nonetheless, the company still pursues employee engagement strategies that foster working environment that allows the company success and employees satisfaction in serving the company. Thus, the significance of employee motivation remains rooted in the success factor of the Wal-Mart Inc. Corporation. Literature review Motivation from the psychology perspective entails various definitions that depend on the ways a business or manager chooses to interpret the term. However, from the general understanding, motivation entails factors and actions that energize, maintain and control behavior of the employee towards achieving a certain desirable action. Motivation in essence results in goal directed behavior of the employees; hence, it is a stimulus for desirable actions and employee efforts. The significance of this professional approach to the employee retention rates and productivity is unequivocally describable, fostering the success of the organization accordingly (Jelencic, 2011). The significance of the motivation outcomes necessitated the creation of several motivation theories as applied in the context of business operations. Motivation in the workforce seems theoretical factor that makes it empirically difficult to measure. However, to ascertain the success of motivation, the criteria for establishing the effect is productivity (Jelencic, 2011). Thus, notably, motivation increases the productivity of the employees significantly, contributing to the success of the organization. Thus, with respect to the case of Wal-Mart, the factor of the significance of motivation is evident from the productivity level of the employees. The company remains among the top rankings within every category of its inclusion, showing the productivity level in the organization. Thus, the company attributes its high employee productivity to the structures and strategies of motivation. The human resources, when maximized, allow the organization achieve the full potential output as projected in the plan. Traditionally, the motivational approach that most organizations employ is the use of salaries. Most organizations use employee salary as the motivating aspect for the triumph of the company and capitalize on the potential of their workforce. The Herzberg theory as discussed, notes that while salary is essentially enough to eliminate aspects of employee dissatisfaction, it does not necessarily propel the employees to raise their morale towards achieving their optimum achievement levels in productivity (Jelencic, 2011). Further, the theory notes that motivation entails both intrinsic and external factors that focus on “needs” of the employee to motivate them accordingly. Thus, Wal-Mart notes the success factor underpinned in this theory, approaching the motivation of her employees from a varied perspective. This allows the incorporation of the theory and its essential factors in motivating the employees of the company towards achieving the optimum productivity. In motivating the employees, Wal-Mart notes the following three factors to develop the motivational factors for the success of the company. In motivating the employees, Wal-Mart gains the following benefits. Firstly, the company engages motivated employees in establishing and forging innovative developments in the company. The motivated employees easily find different and better ways of executing the job, increasing productivity and innovating for the organization. Thus, Wal-Mart gains by incorporating the motivational theories. Secondly, motivated employees have an orientation towards delivering quality. A motivated employee in the service industry produces service worth the morale he has in doing the activity. Thus, Wal-Mart creates the developmental procedure to orient its employees towards quality effort in the workforce (Brunn, 2006). Moreover, efficiency and productivity remain important in the success of Wal-Mart; hence, the company employs the various theoretical and motivational theories including, the goal setting theory, expectancy theory and the hierarchy of need theory among others in developing remarkably effective approaches to motivate her employees. The subscription of these theories all lead to establishment of a workforce with the interest of the organization in their actions, while the organization returns the favour by facilitating employee development and regarding platforms and incentives among other packages in the motivation theories. Motivational strategies by Wal-Mart Wal-Mart continues being successful in motivating their workers through different strategies (Schoenbaum, 2013). To begin with, the company engages in strategies that seek to make the employees part of the organization rather than as employees. This strategic approach is remarkably successful, considering that it originated from the founder of the company. According to the philosophy as employed in the company operations, Sam Walton noted that individuals do not win; rather, teams do win. Thus, in developing the working relations within his young company at the time of its exponential expansion, he employees that worked for him note that, working with him was such that it made them feel as though they were partners rather than he being the boss. Thus, from this strategic approach, it developed into a motivational structure for the company in developing the success remedy for its operations. When the employee feels as partner in the organization, they seek to deliver productivity in which they gain as partners (Lauby, 2009). Therefore, the company employs this strategic approach in motivating the workers towards productivity in which they grow the company to success. Therefore, to make the employees feel part of the organization Wal-Mart engaged the employees before going public as the first partners and stakeholders of the company. Walton offered the stock options and store discounts to the employees to show the respect he held for the employees as well as motivate their efforts in developing the company. This encouraged the workers as they realized their position in the organization and the added benefits they world gain working for the success of the company. Since this starting point, the company still offers such encouraging structures for her employees, motivating them as partners in the organization rather than being mere employees (Wal-Mart Stores, Inc. SWOT Analysis, 2014). The theory in play is that when the organization treats the employee as a partner, they perform beyond their expectations; hence, fostering the success of the organization. Secondly, another strategic approach and practical factor in the motivational strategy of the company relies on the foundation that the company is a family rather than a working entity. This strategy entails the policy that, the workers, managers and leadership, irrespective of their position in the company would call each other by their first name rather than the surname (Schoenbaum, 2013). This creates the orientation that it is a family and all people are equal. Equity is an essential theoretical motivating factor for employee development, as it creates the feeling of freedom and respect in the workplace. Thus, Wal-Mart employs this tactic to create a friendly working environment for her employees. This working environment facilitates the employees to work on grounds that there is respect and dignity in the working environment and the people value each other. Thus, through this approach, the company fosters strategic success in motivating employees towards delivering quality, efficiency and productivity in the workplace. Further, Walton realized that money and ownership are not enough in motivating the workforce towards delivering productivity. Thus, he sought further the approach of competition, goal setting and scorecards in managing the human resource effectively. He literally introduced competing grounds for the employees, creating healthy competitive environment for the employees within the confines of work. Wal-Mart, thus, employs the strategy of incorporating the employees in setting high goals for their delivery of work, competing towards presenting the perfect scorecard within the working place (Lauby, 2009). This the company achieves by creating bets and challenges for the staff to meet, while in return it offers outrageous payoffs for the winners. Further, for the managerial posts, the company employs ‘cross-pollination’ strategy in which managers from different departments and geographical positions switch jobs (Schoenbaum, 2013). This allows the managers to challenge themselves in conquering the new working conditions and platforms, thus, keeping them motivated and breaking the boredom from aspects of monotony of working within the same department or location. Thus, through these competitive strategies within the confines of the organization , the workforce remains focused on achieving higher goals in delivering quality’ hence, fostering Wal-Mart towards the success level it has today. Information flow is an essential factor in the working environment for employees (Lauby, 2009). This realization necessitated the establishment of communication channels in which the trade of information and thoughts between the workers and managers is free and open. Thus, through this strategy, the employees have the platform to share freely their findings and thoughts about the activities in the work place. This factor allows the management to development working plans that feature the personalized needs of the workers, motivating them as they work within plans that they participated in establishing (Lauby, 2009). Thus, the employees, through the communication facilitation, they can air their views and grievances and management address them accordingly, keeping them satisfied and ready to foster Wal-Mart towards further success in the highly competitive marketplace. Further, nothing substitutes well-timed and sincere words of appreciation and encouragement to the ego and intrinsic motivation of the employees. Thus, Walton established this factor from the start, encouraging the employees at every instance he interacted with them. Similarly, he passed this culture into the various managers in the organization, developing the practice into a culture for Wal-Mart (Schoenbaum, 2013). Thus, the company leadership highly motivates the employees accordingly using this free and worth mechanism, creating working relations with employees that foster the success of the company. Conclusion Through motivated and loyal employees, Walton established his secret weapon for success of Wal-Mart. This strategy the company employs to date in developing the company productivity to heights above the competitors in the marketplace. Thus, motivation, intrinsic and extrinsic, creates the leading strategy for the success of Wal-Mart. References Brunn, S. D. (2006). Wal-Mart: the World’s Biggest Corporation in the Global Economy. New York: Routledge Jelencic, M. (2011). Motivation theories - an overview. München: GRIN Verlag GmbH. Lauby, S. J. (2009). Motivating employees. Alexandria, Va: ASTD Press. Schoenbaum, N. (2013). The Family and the Market at Wal-Mart 1. Depaul Law Review, 62759 Wal-Mart Stores, Inc. SWOT Analysis. (2014). Wal-Mart Stores, Inc. SWOT Analaysis, 1-12. Business Soure Complete, Ipswich. Read More