Walmart: Organizational Analysis - Research Paper Example

Walmart: Organizational Analysis Walmart: Organizational Analysis Organizational OverviewWalmart is one of the largest retailer companies in the world with significantly high annual revenue and a large expansion of operations. Walmart runs chains of large discount department stores and warehouse stores in a number of countries. The company is continuously expanding its operations all around the globe. According to Forbes Global 2000 list, Walmart is the world’s 18th largest corporation in accordance with the revenue. Walmart is also said to be the biggest private employer in the world with over 2 million employees. Walmart operates retail stores all around the globe and apart from retail stores, there are other specialized stores that deal with certain specific items which are feasible for both individual buyers and professional buyers. Initially Walmart was merely a retail store but due to its growth and expansion all around the globe, it has become an industry standard. The company has developed its business in such a manner that it provides value to its buyers for their money and this is the reason behind the popularity of the company among buyers. The style of business conducted by the company is reflected by its mission statement very nicely which is, “To help people save money so they can live a better live”. The company advertises itself with the slogan “Save Money Live Better” and it also lives up to the expectations created by its slogan. Information Required for Informed Human Resource Decisions Since Walmart is said to be the biggest employer in the world, the decision making process is bound to be complex for the company. There are a number of decisions that would be made by the company with regard to human resources and in order to make informed decisions, the company would require significant information. The types of information that would be required by the company would be regarding; the efficiency of the workforce, the level of motivation of the employees, and the need for additional workforce. This information is regarding the workforce already present in the company and it can be acquired by the company in a number of ways. In case of recruitment of new workforce, the company would need information regarding the requirement of employees and the department in which the employees are required, the qualification and experience that should be held by the employees to be recruited for the jobs, the background information of the employees to be recruited such as their previous employers and the information regarding their integrity and ethical values. The types of information identified above can be acquired by the company in a number of ways. For information regarding the efficiency of workforce, the human resource department would consider the quantum of work performed as compared to the number of employees assigned on the job. Since Walmart operates retail stores, most of the employees of the company are the sales personnel who are positioned at different departments. The human resource department can determine the efficiency of employees by considering the performance of each department. Information regarding efficiency can also help the company acquire information regarding the level of motivation of the employees. If the employees are not motivated enough, they would not be efficient. In order to assess whether new workforce is needed, the human resource department acquires feedback from the heads of other departments regarding the need for any new employees. If the heads of departments raise requirements for new employees, the human resource department proceeds with the process of induction of new employees. In order to acquire information regarding the experience and the background of employees to be recruitment, the human resource department verifies the references given by the candidates and also the previous employers are contacted by the human resource department to ensure the integrity of the candidate. Organization’s Recruitment and Selection Process The recruitment process of Walmart is not different from any other organization of the same reputation. Initially, the human resource department assesses the need for new employees and acquires feedback from the heads of departments in this regard. If the heads of departments assert to the requirement of new employees, the human resource department initiates the recruitment process. The job positions are advertised through different sources such as newspapers and the website of the company. The human resource department proceeds by going through the information provided by the interested candidates and the department calls the selected candidates for the interview. The interview is highly important part of the recruitment process therefore it is conducted with due diligence and the candidate is assessed with regard to his/her qualification and experience. It is then assessed whether the candidate is suitable for the position or not. After the selection of successful candidates, all the new recruits go through a process of orientation. The orientation is highly important for all the newly recruited employees as it helps the new employees understand the policies and procedures that are followed at Walmart. The new employees are given an overview of the organization at the start of the orientation and they are provided with the information that would help them understand their jobs. A number of activities are conducted in orientation session including role play in order to train the employees before sending them out in the field. Due to the nature of business of Walmart, the interaction of employees and customers is very high therefore it is highly important that all the employees understand the importance of communication with the customers. In order to understand how to communicate with the customers, the employees are required to put themselves in the shoes of the customers during role plays in order to understand the kind of behavior that is expected from the employees at their jobs. After the initial orientation, the new associates go through an advanced that is specialized in accordance with their job descriptions. In order to improve the recruitment process of the company, the company should include the policy of recruiting sales people with fair communication skills and experience in different sales departments. This will also help the company establish better relations with the customers and in improving the overall culture of the organization. Organization’s Stance on Diversity Walmart recruits employees notwithstanding the fact whether the employee belongs to a specific ethnicity. The company employs individuals in accordance with their experience and suitability to the position and it does not put any restriction on the employment of people belonging to a specific religion or ethnic background. Therefore, it can be said that Walmart promotes diversity in the organization. The company realizes that diversity is highly important in the current competitive environment. An organization with diversity tends to develop a constructive culture and it is also perceived to be a fair organization. With a diverse workforce, the organization develops a culture that broadens the possibilities of the organization to grow. With employees from different backgrounds, the organization may have so many strategic options. Diversity is also important for Walmart because of its nature of business. Due to the nature of the business of the organization, most of the employees of the organization have continuous interaction with the customers. The customers of the organization belong to a different of religious and social backgrounds and in order to entertain the requirements of the customers belonging to different ethnicities, a diverse workforce would be highly feasible for the organization. It can be observed in retail stores that some customers find it difficult to communicate their requirements to the sales persons and as a result they leave the store unsatisfied. However, in the presence of a diverse workforce, the organization would be able to provide the right sales person to the customer who would understand the requirements of the customer. In this manner the overall satisfaction of the customers would also increase and the organization would grow even more. Therefore it can be inferred that the policy of the company for diversity in the workforce is suitable for the business of the company and it would help the company perform its operations in an effective manner. Organization’s Compensation and Benefits Policy The compensation policy of the organization is suitable because the wages are based on the experience, skills, job accountability and problem solving skills of the employees. The average hourly wage for Associates in the U.S. stores of Walmart is $10.76. The organization aims at keeping its wages competitive in the industry by providing extra benefits. The jobs at Walmart are mostly entry level therefore the average wage may not be as high as other organizations. The organization provides performance bonuses to its employees and all the employees are eligible to receive performance bonuses. In the past year, 813,579 hourly Associates at Walmart were awarded performance bonuses amounting to $529.8 million. A full time hourly Associate at Walmart can receive bonuses of up to $1,800. The organization also offers a long term service awards which is exclusively for those Associates and assistant managers who have been working with the organization for 20 years of more. Apart from wages and bonuses, there are a number of benefits provided by the organization to its employees. Those benefits include; health benefits, retirement savings, profit sharing, and stock purchase programs that allow the employees of the organization to plan for their future. It also helps the organization keep the motivation of the employees high and such long term benefits also increase the commitment of the employees to the organization. According to the profit sharing plan of the organization, every Associate who has worked with the organization for a period of 12 months or more becomes eligible to receive a contribution from the profits of the company up to 2% of their wages to a profit sharing account. The organization makes the contributions to the profit sharing account even if the Associate does not add their own contributions. Thus, it can be inferred that the bonuses and benefits provided by Walmart to its employees makes it competitive with the other organizations in the industry. Organization’s Training Program Walmart conducts extensive training programs for its employees in order to ensure that the employees of the organization completely understand their responsibilities. The trainings take place from time to time in accordance with the experience gained by the employee at the organization. For new employees, the organization conducts orientation in which the employees are given an overview of the organization and they are told about the importance the organization holds for the development of their career. The initial training consists of different phases and it is conducted following a specific pattern. The initial phase of the training is regarding business simulation in which the employees play the role of the customers in order to understand the customers empathetically. By playing the role of the customers, the employees understand the requirements of the customers and thus they would be able to entertain the customers in a better and more efficient manner. Apart from the initial training, the organization conducts other trainings from time to time. In the employee appraisal, the human resource department of the organization acquires feedback from department heads regarding the need for training. Training of employees is also conducted if the organization makes a technological shift. Employees are given training regarding the new system employed at the organization so that they may be able to run the new system properly. Thus, it can be inferred that the training program of the organization is effective however, for further improvement the organization should conduct trainings periodically. References WalmartStores.com. (2011). About Us. Retrieved October 26, 2011, from http://walmartstores.com/AboutUs/ WalmartStores.com. (2011). Wages and Benefits. Retrieved October 27, 2011, from http://walmartstores.com/sites/sustainabilityreport/2007/associatesWages.html WalmartStores.com. (2011). Stores Training and Development. Retrieved October 28, 2011, from http://walmartstores.com/careers/7740.aspx Read More