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While close competitors such as Costco remunerated its employees well above the minimum wage, Wal-Mart pays its employees a crummy wage that limits the employees’ ability to afford a decent living. Moreover, layoffs at the company are rampant making most employees feel insecure in their jobs, and the few available workers unable to handle the workload. For instance, in 2013, the company sought to cut its employment roster by 1.4% while increasing store count by 13% (Ungar, 2013). Consequently, Wal-Mart’s merchandise remained in the warehouse, while shelves remain unfilled, instead of being brought to the store where customers can pick their desired products.
Similarly, the overall shopping experience deteriorated as customers detested the long and annoying wait time at the stores. Hard hit by the low wages offered to the employees was Sam’s Club warehouse stores where sales dropped sharply (Ungar, 2013). The few remaining employees felt that the store managers and the company’s CEO were playing politics with the matter of remuneration while at the same time failing to communicate with employees on the stores future strategies or plans. The misuse of power made many employees seek voluntary early retirement and seek for alternative ways of making a living (Ungar, 2013).
While the organization’s dominant culture was to engross the employees in decision-making, the scenario at the stores has recently been different with many feeling unwanted in the work environment as the top management hardly requests their contribution. From Maslow’s pre-potency pyramid of needs, individuals are motivated b varying needs which must be satisfied for an individual to feel complete. While Wal-Mart’s management believed that it was offering its staff the best remuneration, the lousy wages were a predominant factor that led to the employees’ low
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