Professional Documents
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A, R, I WM
A, R, I WM
diversion of staff and board members time and energy away from other
functions, and the cost of a consultant to help facilitate the process. Cost
savings may result if, and when, the organizations are consolidated, but these
costs must be balanced against the costs of the integration process itself.
The main aim of the company should be to reduce the variability in its internal
and external environment. The only solution to this problem is market
research, which will ensure a systematic progress to its goals after tackling
various obstacles.
Strategic compensation efforts, while potentially very beneficial to the overall
health of many organizations, do not typically save money in the short-term
for the nonprofits involved. While it is true that compensation may save some
staffing costs, or may result in achieving greater economies of scale in
administration, the compensation effort itself entails a variety of front-end
costs. Most of these are non-recurring and can be anticipated. They include
professional fees (for consultants, lawyers, accountants, etc), severance
costs, design/printing/signage costs, moving costs, and systems integration
costs. The actual costs will vary according to the type of partnership involved,
the level of change foreseen, and the availability of in-kind or reduced cost
alternatives for different services. Lack of funding will cause some
organizations to avoid some optional costs altogether.
The real benefits of strategic compensation are not short-term and tactical,
but medium- to long-term and strategic: better market positioning; a larger
market share; a higher public profile; greater political influence; better backoffice services; a larger staff, allowing specialization of functions; the creation
of a continuum of services under unified control; a potentially wider range of
funding options. These are the likely, and substantial, benefits of strategic
compensation, but they take time and planning to realize.
Advantages of Alternative 2:
Insurance of workers:
Research and first-hand experience both our own and that of others who
have worked in this area reveal that there are many potential benefits of
strategic compensation. These include a greater ability to pursue mission,
increased stability, reduced duplication, and less inappropriate competition.
This can translate into measurable, positive outcomes, such as increases in
services provided, administrative capacity and quality of services, and market
share. When the necessary readiness and success factors are in evidence,
and a sound process is in place, outcomes such as these are more likely to
be realized.
Workers compensation is insurance, the value of which is recognized by both
employer and employee as an important part of total compensation. Gainful
employment inevitably involves some risk of injury. Workers take this risk into
account in their labor market decisions: evidence supports the view that riskier
jobs have higher pay and fringe benefits. Workers compensation is insurance
against the costs of injury and forms part of the overall compensation received
by employees.
Economic Factors:
Employment inevitably introduces some risk of injury to a worker. Injuries are
costly to both the worker and society. Workers forgo income if required to be
off the job, endure pain and suffering, and may obtain less enjoyment from
their leisure activities. Society may lose a productive worker for some time,
may lose the overall contribution of a productive citizen, may pay part of the
costs of treatment, and may also experience problems that spring from the
disruption to the workers life. A Workers compensation system provides
partial insurance against these costs, thereby spreading the hardship of injury
among other workers and society.
Employee Welfare:
Basic economic principles suggest that the ability to opt-out would have
desirable consequences. First, participation in the organization would only
occur when assessments and compensation schedules presented a costeffective solution to the problem of safety at a given workplace. Also, the
organization would face competition which could both enhance their public
image (parties now choose the organization system over the available
alternatives) and improve the mix of services they provide to employers and
employees. To justify compulsion, this logic must somehow break down. We
now summarize some ways in which it might do so. The first and most
obvious concern is that the existing form of workers compensation is good for
employees but bad for employers, and absent compulsion employers would
simply refuse to join the system or to provide adequate substitutes. There is
an equally obvious response to this objection; workers compensation is
inevitably part of an employees overall remuneration. Employers should
provide accident insurance in order to attract and retain good employees if it
is a cost-effective form of compensation, and as we shall see in the next
section there is evidence that many employers have done exactly this. The
fundamental weakness with this reply is that compulsory workers
compensation does not increase the workers overall bargaining power. First,
workers in more hazardous lines of business receive higher wages and more
generous fringe benefits. Even more strikingly increased workers
compensation costs are almost always passed on to employees in the form of
lower wages.
Disadvantages
of Alternative-2:
Recommendation
We, as a group has proposed four alternatives to Wal-Mart Group to have a
sustainable growth in the upcoming years. After looking at the advantages
and disadvantages of the alternatives we are recommending the Group to go
for alternative 2.
Implementation
We, as a group has proposed four alternatives to Wal-Mart Group to have a
sustainable growth in the upcoming years. After looking at the advantages
and disadvantages of the alternatives we are recommending the Group to go
for alternative 2.
General Implementation
In this stage the company should give a look in some matters which can be
beneficial for them. By looking and analyze these things the company can get
a better result than they have. Management of Wall-mart will decide why it is
considering the alliance other company and decide whether the reasons make
a good argument to do so. After that Wall-Mart can go step by step in the
implementation process.
Workforce planning:
It is a systematic process for identifying the human capital required to meet
agency goals and developing the strategies to meet these requirements.
Workforce planning involves:
It allows for a more effective and efficient use of workers. This will
become increasingly important as some agencies find themselves
having to do the same amount of work or more with fewer staff
members.
Obtain support from senior leaders within the firm. It is important that
the CEO and other top leaders understand the value of workforce
planning-their commitment can determine its success or failure.
Understanding the factors that affect the firms future operations and
competition will help convince senior leaders of the need for workforce
planning.
Core Functional
Implementation:
promotional tools like bill boards, online marketing, public relation and
marketing collateral.
Economic Logic
This is the core of all element of strategy. It provides the reckoning how the
firm is going to obtain its returns. As, Wall-Mart has moderate competitors in
the market it is a great chance to get more profit by replacing the old
technology. Another thing to be considered here that is the product and
material is locally available and cheaper so that will allow the firm to reduce its
cost and generate more profits.
Internal analysis
The purpose of internal analysis is to pinpoint the strengths and weaknesses
of the organization. A firms strengths lead to superior performance whereas
weaknesses lead to inferior performance. It focuses on the quantity and
quality of the firms resources and capabilities and how to build unique skills
and company specific or distinctive competencies. Along with the external
Monitoring Techniques
Progress Reports
Timeline
Outcome Measurement
Operational
Implementation
Phase-1:
Phase-2
Workforce Planning Model - Conduct Workforce
Analysis
Analysis of workforce data is the key element in the workforce planning
process. Workforce analysis frequently considers information such as
occupations, skills and experience, retirement eligibility, diversity, turnover
rates, and trend data. Questions agencies should consider include:
Are there certain occupational groups with increasing worker turnover?
Can factors influencing turnover be identified?
Has turnover reduced the skill set of a certain occupational group?
Answering these questions should help agencies develop plans for stable
staffing levels, succession planning, and skill development. There are four key
steps to the workforce analysis phase of the planning model. These steps are
illustrated below:
Of the items above, all but the skill assessment should be readily available to
agencies through employee payroll records, employee files, and various
human resources databases.
Next, agencies should look at trend data, which provides a picture of what
occurred in the past. It can also help an agency predict the supply of skills that
may be available in the future. Examples of trend data include:
It may be helpful to break down the trend analysis by agency divisions or by
occupational groups. Looking at trend data will help an agency project future
workforce supply. It will also help an agency apply assumptions about how the
variables listed above will influence the future workforce. Trend information
combined with the current workforce profile is an essential building block for
forecasting workforce supply.
HR
Implementation
HR department should be implemented
according to the strategic HRM
framework:
In todays intensely competitive and global marketplace, maintaining a
competitive advantage by becoming a low cost leader or a differentiator puts a
heavy premium on having a highly committed or competent workforce.
Competitive advantage lies not just in differentiating a product or service or in
becoming the low cost leader but in also being able to tap the companys
special skills or core competencies and rapidly respond to customers needs
and competitors moves.
In a growing number of organizations human resources are now viewed as a
source of competitive advantage. There is greater recognition that distinctive
competencies are obtained through highly developed employee skills,
distinctive organizational cultures, management processes and systems. This
is in contrast to the traditional emphasis on transferable resources such as
equipment and technology.
The new HR role is to be viewed from the strategic perspective where in HR
plays an important and vital role whilst designing and delivering the HR
Job security:
The associates should be given more job security. If they are secured they
will be less worried about their job, and thus they will be able to give their level
best effort. Employees will be eligible after three years of service and,
Pay rates:
Profit sharing:
All business profits are split three ways: among the company, the
shareholders, and the employees as a year-end bonus. The company
receives seed money, the shareholders receive a dividend, and the
employees and workers receive a year-end profit sharing bonus. Profit
sharing plans enable employees to share in the profits. Wal-Mart must pay its
workforce a certain amount of bonus from its cumulative cash flow to all
employees. The amount should not be same for all level of employees,
unless they will become dissatisfied. Employees will get different amount
according to the hierarchy.
Pensions:
Give pensions to its employees after retiring from their work. But to get
pension they can add some pre-conditions. Like, employees will have to be in
Wal-Mart for at least 10 to 15 years. But if an employee gets terminated
before that specified period they will get a certain amount of their pension.
Life insurance:
This insurance will provide death benefits to beneficiaries and may also
provide accidental death and dismemberment benefits. So, keeping the
workers and all levels of employees is really very important. If any accident
happens and anyone dies than they will definitely get paid. The Group must
deposit a certain amount of money each month for its employees as life
insurance.
Medical allowance:
The work environment needs to be very safe and sound. There should be
adequate treatment facilities in every plant. Each employee should be given a
certain amount of money each month as medical allowance.
Legal services:
One of the fastest growing employee benefits is the prepaid legal service
plan. Wal-Mart can provide this facility as well. There are two general types
of legal services: access plans and comprehensive plans. Access plans
provide free telephone or office consultation, document review, and discounts
on legal fees for more complex matters. Comprehensive plans cover other
services such as representation in divorce cases, real estate transactions,
and civil and criminal trails.
Transportation pooling:
Daily transportation to and from work is often a major concern of employees.
The result may be considerable time and energy devoted to organizing car
pools and scrambling for parking spaces. Wal-Mart can offer transportation in
vans. Vanpooling can reduce tardiness and absenteeism.
Awards:
Wal-Mart can use awards to recognize productivity, special contributions, and
service to the organization. Top management at special meetings, banquets,
and other functions will present the awards where the honored employees will
receive wide recognition. A non-cash gift is often a more appropriate way to
recognize special achievement.
Review and approve corporate goals and objectives relevant to compensation
of the Sr. Joint Presidents evaluate their performance in light of those goals
and objectives, and, either as a committee or together with the other
independent directors (as directed by the Board), determine and approve their
compensation level based on this evaluation. Assure that the Companys
Training Methods:
There are two broad types of training available to small businesses: on-thejob and off-the-job techniques. Individual circumstances and the "who," "what"
and "why" of your training program determine which method to use.
On-the-job training:
It is delivered to employees while they perform their regular jobs. In this way,
they do not lose time while they are learning. After a plan is developed for
what should be taught, employees should be informed of the details. A
timetable should be established with periodic evaluations to inform employees
about their progress. On-the-job techniques include orientations, job
instruction training, apprenticeships, internships and assistantships, job
rotation and coaching.
Off-the-job techniques:
This technique includes lectures, special study, films, television conferences
or discussions, case studies, role-playing, simulation, programmed instruction
and laboratory training. Most of these techniques, can be used by small
businesses although, some may be too costly.
Orientations:
Orientations are for new employees. The first several days on the job are
crucial in the success of new employees. This point is illustrated by the fact
that 60 percent of all employees who quit do so in the first ten days. Some
companies use verbal presentations while others have written presentations.
Many small businesses convey these topics in one-on-one orientations. No
matter what method is used, it is important that the newcomer understand his
or her new place of employment.
Lectures:
These present training material verbally and are used when the goal is to
present a great deal of material to many people. It is more cost effective to
lecture to a group than to train people individually. Lecturing is one-way
communication and as such may not be the most effective way to train. Also,
it is hard to ensure that the entire audience understands a topic on the same
level; by targeting the average attendee you may under train some and lose
others. Despite these drawbacks, lecturing is the most cost-effective way of
reaching large audiences.
Audiovisual methods:
These methods are such as television; videotapes and films are the most
effective means of providing real world conditions and situations in a short
time. One advantage is that the presentation is the same no matter how many
times it's played. This is not true with lectures, which can change as the
speaker is changed or can be influenced by outside constraints. The major
flaw with the audiovisual method is that it does not allow for questions and
interactions with the speaker, nor does it allow for changes in the presentation
for different audiences.
Job rotation:
It involves moving an employee through a series of jobs so he or she can get
a good feel for the tasks that are associated with different jobs. It is usually
used in training for supervisory positions. The employee learns a little about
everything. This is a good strategy for small businesses because of the many
jobs an employee may be asked to do.
Apprenticeships:
These develop employees who can do many different tasks. They usually
involve several related groups of skills that allow the apprentice to practice a
particular trade, and they take place over a long period of time in which the
apprentice works for, and with, the senior skilled worker. Apprenticeships are
especially appropriate for jobs requiring production skills.
Programmed learning:
This computer-aided instruction and interactive video all have one thing in
common: they allow the trainee to learn at his or her own pace. Also, they
allow material already learned to be bypassed in favor of material with which a
trainee is having difficulty. After the introductory period, the instructor need not
be present, and the trainee can learn as his or her time allows. These
methods sound good, but may be beyond the resources of some small
businesses.
Financial
Implementation
The financial implementation of this recommended solution will be done in
several steps. This will increase the feasibility aspects of the recommended
alternative. For any company finance can't be undervalued and can be said
that it's the lifeline of a business and is required for its well-being. It can be
said to be a lubricant which keeps the business running. Whether we have a
small, medium or large business, we will always need finance, right from the
beginning to promoting and establishing our product, acquiring assets, employ
people, encouraging them to work for the development of our product and
create a brand name. In addition to that, a current business may need finance
for expansion or making changes to its products as per the market
requirements.
To ensure the proper functioning of the finance department, Wall-Mart need
dynamic and reliable financial managers. HR will help them to find the correct
person. After the necessary recruitment and needed shuffling the finance
department, it will be ready to go hand in hand with the other departments of
the company.
To execute every plan money is the primary requirement. Nothing can be
done without money. But at the same time we need to be careful about the
proper use of money. The finance department in a company is of utmost
importance as they are responsible for financial planning ensuring that
adequate funds are available for achieving the objectives of the organization.
Moreover, it is the finance department which makes sure that the prices are
controlled, besides looking after the cash flow and controlling profitability
levels.
Research costs,
Technology development costs,
Total cost
Total cost of ownership
Generally finance related issues are dealt by the Finance Department. So,
this time as well when it came to forecasting feasibility it would be up to the
financial department to do the job properly.
The recommendation is likely to be implemented in the facilities of the WallMart. But strategic alliance will be done with subsidiary companies.
This recommendation should be implemented within 6 to 8 months at
strategically suitable time when both investments and opportunities of
expansion are available.
Integration
Board of
Directors
Human
Resource
Marketing
Department
Process
Department
Finance
Department
Integrating Human
Integrating Human Resource department is the most important job for a
company, because the companies have identified the importance of retaining
a highly skilled employee or selecting and recruiting a huge number of
employees. The companies have seen that in todays highly competitive
business environment a firm can only achieve and sustain a competitive
advantage. And to achieve it all the departments of a company have to work
closely with HR and the integration level has to be very exclusive.
demotivates the employees on the whole since the scope for better
performance is very limited. This makes it very difficult for the employees of
Wall-Mart Corporation to perform better and get promoted.
Integrating
Finance
Wall-Mart would require an exclusive integration with the human resource
department, marketing department and the purchase department so that the
finance department could have more effect on overall strategy.
First Stage
Financial forecasts are predictions of future events relating strictly to expected
costs and revenue costs for future years. There are five major expenditures,
which include
Research costs,
Technology development costs,
Product costs,
Promotion costs and
Distribution costs.
Total cost
Total cost of ownership
Particular countrys Government alliance process
Second Stage
Generally finance related issues are dealt by the Finance Department. So,
this time as well when it came to forecasting feasibility it would be up to the
financial department to do the job properly.
Third Stage
The recommendation is likely to be implemented in the facilities of the WallMart. But strategic alliance will be done with local countries.
Fourth Stage
This recommendation should be implemented as soon as possible at
strategically suitable time when both investments and opportunities of
expansion are available. But it should be soon as competition is rising.
Total Integration