Banking Industry Background

HRM-380.
2 CASE-3 GROUP- G
HRM-380.2
Compensation &Theory Practice
Case Write Up- 3
(Walmart)
Group-
G
Prepared By:
Name ID
Syeda Rabiya Altaf Alina 1722226630
Nafees Hafiz 1521711630
Nilima Rahman 1231073030
Md. Sadaf Kabir 1521300030

Prepared For:
Hon’ble Lecturer, Tajuddin Ahmed.

Department of Management, North South
University.
Date Of Submission- 06/01/2021
1
HRM-380.2 CASE-3 GROUP-G
HRM-380.2 CASE-3 GROUP- G
Letter of Transmittal
Date (06/1/2021)
Lecturer
Tajuddin Ahmed,
Department of Business Administration,
School of Business Studies,
North South University
Subject: Submission of Case Write up-3 on Walmart Retail Shop.
Dear Sir,
Here is the assignment that we assigned on the topic as per your request. The
assignment has been completed by the knowledge that we have gathered from the
course HRM 380, Compensation Theory and Practices.
We are thankful to all those people who provided us important information and gave us
valuable advices. We would be happy if you read the case analysis carefully and we will
be trying to answer all the questions that you have about the assignment.
We have tried our level best to complete this assignment meaningfully and correctly, as
much as possible. We do believe that our tiresome effort will help you to get ahead with
this sort of venture. In this case it will be meaningful to us. However, if you need any
assistance in interpreting this assignment please contact us without any kind of
hesitation.
Thanking you.
Yours obediently,
Group- G
MD. Sadaf Kabir
Syeda Rabiya Altaf Alina
Nafees Hafiz
Nilima Rahman
2
Executive Summary:
This case is about Walmart, one of the largest retail company which is
known globally. Here we have identified many human resource issues as
well as managerial issues faced by Walmart. The case analysis is divided
into six parts comprising of a background, theme, main issues, SWOT,
human resource issues and recommendation and implementation. In the
background we have talked about the inception of Walmart and its history.
There we have found that Walmart emerged through the concept of
discount retail shop and the first of its own. Retailing is a fairly new concept
and so was not very much coveted in the past by many companies, but
with the advent of Wal-Mart and other big players in the field of retail, this
business started to turn many heads and became a money-making
sensation in a very short period of time. The theme helped us accumulate
the major problem identified throughout the case of which mainly were
human resource based. Walmart has glass ceiling as they had huge
positional power in their top management, as a result they did not
recognize their female workers. They also were charged for paying lower
wages on top of that they forced them to work beyond their working hour
without any pay. Walmart’s human resource department had a poor
compensation plan which demotivated the employees as they did not have
an equitable pay. The agency reported that it was examining whether Wal-
Mart was hiring illegal immigrants by violating the law. They lacked diversity
in their workforce as they only recruited the locals. The main issues reflects
upon the overall problem of the case,“ “How can Walmart operate and
sustain in the market both nationally and globally with the rising HR and
managerial issues?”. The SWOT analysis states the strengths,
weaknesses, opportunities and threats that the company possesses.
Walmart was indeed sizable since 37% of all U.S. households earned less
than $25,000 per year. It was priced at an amazing 22% below what Toys
‘R’ Us was charging. Wal-Mart believed that its discounting approach would
help customers clearly see where the bargains were and help pull market
share from its toy store rivals. In the recommendation and implementation
section we have addressed the issues mostly compensation related and
have provided adequate. The suggestion have been given on entirely on
3
the basis of knowledge gained from this course. We have implemented

compensation theories we have learned in this course to resolve the issues
Table
Background 5-13
of Theme 14
ContenMain Issue 15
tSWOT Analysis 16-29
Human Resource Issues 30-36
Recommendation & 37-43

Implementation
4
Background
5
Wal-Mart taking over

Bragging rights were normal for Mr. Lee Scott as he had just discussed with the experts
of the finance department about the excellent results from Q2 of 2003. Even though the
world economy had suffered a few blows to the gut, Wal-Mart stood strong and boasted
a growth rate of about 11% in sales which is an astounding $6.4 billion.
The partners of the company were in full support of Wal-Mart and were cheering them
on from a distance. Over the span of 30 years, from humble beginnings as small store
in Arkansas to becoming one of the world’s largest companies, to even being dubbed as
a giant in the retailing industry.
Sustaining growth
Such phenomenal growth always had its fair share of obstacles and rivalries along the
way. Speculations always arose when people were discussing the rate at which Wal-
Mart was growing and had doubts whether or not this growth could be sustained. After
breaking the boundaries and crossing annual sales figures of over $200 billion, the
company knew then and there that growing further at a steady pace would be a
challenge.
From facing controversial claims all over the nation to being exposed to potentially
cumbersome rivals in retailing, namely the franchise of stores under Dollar General,
Wal-Mart was faced with adversity. They even got word that people would much gladly
visit smaller stores which belonged to the competition as they offered better prices even
though they had smaller assets.
Operational viewpoint
When it came to the suppliers of Wal-Mart, they were already in a tight situation owing
to the rates they had been doing business and supplying goods to Wal-Mart, but with
recent events taken into perspective, the company kept pressuring their suppliers into
providing them with goods with more discounts in their prices, leading to the suppliers
6
feeling cornered. This led to many of the suppliers opting out which then lead to Wal-
Mart signing contracts with smaller suppliers. This competition turned Wal-Mart
notorious in the eyes of the suppliers.
Internal issues
Wal-Mart was not through with these issues, they were facing more backlash from their
own employees as well as the U.S. government. Their workers went on strike due to the
fact they were underpaid and were not being paid properly even for their overtime
efforts. This escalated into several lawsuits in some states over the country and some
were even class-action lawsuits. The workers saw victories in some cases while others
were just swept under the rug.
Workplace discrimination
Moreover, allegations of gender discrimination were also brought into light and the
company was accused of such malpractices both in the hiring procedures and also
during promotions and pay raises. Although it has been noted that a large percentage of
the workforce operating under Wal-Mart is women, there were still issues with the
employer due to the inequalities experienced in the managerial positions.
It was observed that almost 15% of employees in the higher positions in the company,
name the management positions were women, which gave a clear indication of
malpractice in the promotions procedures in the company.
Illegal hiring procedures

Furthermore, Wal-Mart was also being investigated for illegal activities in their
employment operations when suspicions rose about them hiring immigrants who were
illegitimately residing in the U.S. and Wal-Mart was taking advantage of the situation
and including them into their workforce, blatantly breaking the law.
Treading these rough waters was a challenging task for the higher ups in the company
and they used their power, influence and resilience to push through it all and still get
7
Wal-Mart up to speed on the recent events. They did what they had to do to resolve
such issues that threatened the company’s ground as well as its growth and legacy, and
ensured that Wal-Mart would stay on the top as a retailing giant.
The rise of discount retailing

The business of retailing is a fairly new concept and so was not very much coveted in
the past by many companies, but with the advent of Wal-Mart and other big players in
the field of retail, this business started to turn many heads and became a money-
making sensation in a very short period of time.
These businesses expanded worldwide and grew immensely due to their perfectly
executed business strategies, be it scoring big with big manufacturers who were also
expanding to developing supply chain management practices which were being brought
to peak optimization just to lower all unnecessary costs.
Business strategies that always work

All of these changes can be attributed solely to Wal-Mart as they had the start to this
new venture and they perfected upon these practices so that other entrants into the
business could study and implement their methods and almost be guaranteed success.
Providing customers with a wide array of options to choose from in the every single
product section imaginable as well as giving them the best services, best offers, and
also the best possible prices with a discount became the norm of these companies
specializing in retail.
Expanding overseas
Moreover, these companies looked beyond their horizons and were actively expanding
their operations overseas and also experiencing huge profits there as well. Not only did
they figure out that the concept of retailing and providing good prices and discounts
could translate internationally, but they also were able to adjust their strategies to the
locals to ensure that they made the most out of their resources.
8
These expansions led the retail giants to make new connections with manufacturers in
those countries and were able to snag good deals that profited both the suppliers and
the retail companies, and the consumers were more than happy to receive affordable
prices and avail the best offers.
Establishing Wal-Mart’s supremacy
Wal-Mart was founded by Mr. Sam Walton in the year 1962 and was initially called Wal-
Mart Discount City. They began their operations with their first outlet which was located
in Rogers, Arkansas, a rural town with people who were low-budget consumers.
Wal-Mart’s idea came from the chain of Ben Franklin stores that Mr. Walton had run in
Arkansas and Missouri with his brother as franchisees. When Mr. Walton introduced the
idea of discount retailing to the management style of the Ben Franklin outlets, they were
not attracted by it, so he set out to pursue this concept on his own, and the results
speak for themselves.
Fine entrepreneurship
Mr. Walton was an astute entrepreneur beyond compare. He quickly realized that
volume and inventory-turn velocity were the defining elements of competitive advantage
in the discount retail business. He was convinced that the concept would work in small
towns with populations of 5,000 to 25,000 people, locations that often lacked viable
retail alternatives.
Armed with the conviction of a true entrepreneur, Mr. Walton and his brother had
opened 18 Wal-Mart stores by 1969 when the company was incorporated formally. In a
little over the three decades that followed, the company had 4750 stores in a variety of
formats across the globe, and sales had grown to roughly $245 billion. The company
was widely seen as the beacon of shareholder value, the darling of investors, and the
customer’s champion.
9
Taking the rural advantage

The company made the most out of its location for it was a potential money making
location for new companies. Many rural markets were characterized by populations that
were scratching a subsistence level of living with very few employment alternatives. Mr.
Walton saw this as a captive market that was tailor-made for a successful rollout of the
discount retail model. It also proved to be a recruiter’s paradise where a steady job at a
decent wage was all that was needed to attract employees to staff its stores.
Making all the right moves

Retail competition was minimal, and this allowed some flexibility in pricing merchandise,
since price wars were unlikely. Local labor and real estate costs were also much lower
compared to competitors who were focused on the larger cities. The stores were
decidedly austere in appearance.
They were essentially big boxes illuminated brightly with fluorescent lighting, stocked
with shelves that carried a wide range of merchandise. All of these advantages
translated into a superior operating cost structure and a veritable fortress of profitability
for Wal-Mart that its city rivals found impossible to duplicate.
Selling more wares

The company began expanding its collections to address all the needs of the rural
inhabitants who preferred budget friendly options, and Wal-Mart was able to provide
them with all they needed under one roof. The demand increased so much that they
had trouble replenishing their stocks as suppliers were not able to produce at that rate,
so they decided to build their own warehouses.
Wal-Mart started its own set of logistics operations to eliminate the problem of dwindling
stocks so that they would be able to order more and store more of these products to
avoid any shortages in the future and so maximize sales. They further expanded their
infrastructures and transport system and not only did this help them increase sales but
also save a lot of money on operational costs.
10
The way Wal-Mart ran things

The company kept their roots embedded in the rural community but also started
expanding to the suburbs of the United States. They already had outlets in all 50 states
by 2003, and they were slowly increasing their number of stores over the country. But
here, the local communities were against the big store idea and were thing of the
negative effects it would have in the community, so Wal-Mart introduced a format of
small scale stores that not only respected the community guidelines, but also raked in
the sales like before.
The new store format

Even though the ways the store was set up changed, they still adhered to their original
guidelines. Every prospective Wal-Mart shopper was greeted at the door by a cheerful
greeter. Most of the greeters were senior citizens from the local communities. The
company found that the greeters had the desirable effect of reducing pilferage as well,
and the cheerful welcome did help the courteous image.
The insides of the stores were fully stocked with a wide range of products—over
120,000 in standardized layouts. The stores did not carry any backroom inventory, and
this helped maximize retail selling space. Each store was broken down into smaller
departments such as housewares, pharmaceuticals, and horticulture—each with a
department manager in control.
Motivated employees
Furthermore, a substantial portion of employee bonuses was linked to departmental
level performance, thus motivating employees to do their best within their assigned
departments. Although centrally orchestrated, managers did have some leeway in
adjusting prices to factor in local realities. Wal-Mart did not necessarily price its products
below the lowest competitor price; instead, it aimed to set prices as low as possible.
11
Proper advertising
Moreover, this meant that the prices did vary from store to store to reflect the level of
competition that prevailed. The company did very little direct advertising. In contrast to
competitors such as Target, who regularly featured glossy advertisements, Wal-Mart
limited its advertising to 12 or 13 circulars a year.
The circulars reflected the same bare-bones approach that the stores had adopted.
There were no expensive models or glossy spreads. The company used its own
associates as models for the circulars, and even used it as a motivational tool by
choosing associates based on their performance.
Getting the goods
Wal-Mart operated its purchasing unit from Arkansas and all the people leading that
section would be tough a negotiator for any supplier. They intended to get the most out
of their contacts and get the best possible product at the best possible price otherwise
they would not bother at all. This strategy worked almost all the time as suppliers
wanted to get their products out to the public and Wal-Mart would be able to guarantee
the most coverage and sales.
Also, this meant that the big brands would more likely partner with Wal-Mart to sell their
most popular products as they would be able to expand their operations as well. Wal-
Mart took this on a serious note and still applied the same tough negotiation acts on
these big brands as well, and it worked with them too. The company envisioned to get
their consumers the best products from the biggest and most popular brands at the
most affordable prices and Wal-Mart successfully executed such a plan.
Launching in-house brands

As these stores started gaining more recognition, Mr. Walton launched the idea for in-
store brands, starting with a dog food named Ol’ Roy after his pet golden retriever.
Since then, the company leveraged its scale and shelf space to pit its own brands
against those that are nationally established. The bad news for its suppliers was that
Wal-Mart was winning big with its in-store brands. Ol’ Roy, for example, was the world’s
12
largest selling dog food, outstripping such established giants as Ralston Purina and
Nestle. Nationally, the trend toward store brands was gathering momentum.
In-house brand growth

A research conducted by A. C. Nielsen showed that national brands grew by 1.5% in
2001 and 2002, but store brands grew by 8.6%. The loss of share for the national
manufacturers had been so steep that many of them had shifted their manufacturing
capacity to produce store brands for the leading retailers such as Wal-Mart. One analyst
estimated that about 40% of Wal-Mart revenues were attributable to its in-store brands,
which ran the gamut from batteries to ibuprofen, from tuna to dog food, and most other
items in between.
13
Theme
In this case of Walmart there are plenty of human resource issue that has
been found. A glass ceiling has been found in the positional power and
women were not given promotion. They have faced lawsuits for paying
below the average pay and had to face the union. They also forced their
worker to work overtime without any pay. Walmart had a flat organizational
structure which tend to demotivate the employees, increasing the turnover
rate. The employees were not appreciated enough at Walmart as they
didn’t provide them proper accommodation for their workers overseas.
They were prudent in spending on their employees’ welfare. The agency
reported that it was examining whether Wal-Mart was hiring illegal
immigrants by violating the law. They lacked diversity in their workforce as
they only recruited the locals.
14
Main
Issue:
“How can Walmart operate and
sustain in the market both nationally
and globally with the rising HR and
managerial issues?”
15
SWOT
Analysis
16
Strengths:
1. In a little over the three decades that followed, the company had
4750 stores in a variety of formats across the globe, and sales had
grown to roughly $245 billion.Dominating Global Retailing, Wal-Mart
shows that the organization has attributes that advance strength
through growth and a worldwide distribution network.
2. It carried about 3,500 items on average, leaning more heavily on

hard goods and nonperishables. They had held this capacity for
excellent information system which helped them manage their goods
through high tech inventory management system.
3. The market was indeed sizable since 37% of all U.S. households
earned less than $25,000 per year.Wal-Mart superior process in
supply chain that was able to provide the customers with some
percentage of lower prices of its competitors.
4. The shelves were fully stocked with a wide range of products—over

120,000 in standardized layout.The organization has a worldwide
system of vendors that are purposely picked based on quality
requirements, such as raw materials, supply chain and supporting
operations.
17
5. It used an innovative pricing approach that comprised only 20 price

points, ranging from $1 to $35.Competitive advantage in this elite
group seemed to turn on deep pockets, innovative strategic thinking,
and faultless execution
6. China was especially promising since the company had been able to
roll out many of its core strategies successfully. It bought 95% of its
products locally, and even leveraged its Chinese supply network to
export products worth $12 billion12 to its U.S. operations and close
to $20 billion by mid2003.
7. The company was China’s eighth largest trading partner, ahead of

Russia and the U.K. After entering Shenzhen, the company moved
into Beijing through a separate joint-venture arrangement and also
expanded to the rural heartland of the country
18
8. Wal-Mart was the largest employer in private industry

worldwide,Wal-Mart superior process in supply chain that was able
to provide the customers with some percentage of lower prices of its
competitors.
9. It counted over 1.3 million associates amongst its ranks.Wal-Mart

superior process in supply chain that was able to provide the
customers with some percentage of lower prices of its competitors.
10. Around 30,000 suppliers depended on Walmart and they

always ensured that they were always in good terms with leading
retail company. Walmart had a hold of the supplier’s as well.
19
Weakness
1. Walmart has faced lawsuits filed by their employees. Walmart’s

associates nationwide have filed 40 cases against the company. This
is highly damaging for their brand image. In trying to keep the prices
low, they are making the workers work overtime without overtime pay.
This will create a negative impact in the long run.
2. Their huge and highly spaced stores have failed to attract some
customers as they feel they get lost in the stores. The Walmart
discount stores are 40,000-120,000 sq. ft. with 1,600 in operation.
The stores are very big with a variety of products and that is why
customers claimed that they feel like they are lost.
20
3. Walmart has been facing problems in maintaining incremental

growth. Their growth is very comparatively which will be very hard for
them to maintain. In 2003, when there was an economic crisis
worldwide, Walmart had a sales growth of 11%. The company once
even vaulted over the $200 billion levels in annual sales.
4. The competitors such as Tesco, the metro has more experience in

the international marketplace than Walmart. France, Poland, Spain,
Germany are the top international retailers with a global penetration
of 14, 13, 12, and 11 respectively. The lower experience will have a
negative impact on the competitiveness of Walmart.
5. Walmart has not been treating the suppliers the way they expect and
they are being asked to do more for less. If Walmart continues this
behavior or the suppliers continue to feel they are not being valued
enough, the strong relationship between them will get ruined which
will not be good for Walmart as they need loyal suppliers.
21
6. Despite being the largest, they have been discriminating against

women in job promotions mainly at supervisory and managerial
levels. 90% of the customer service managers are female but only
15% of them get promoted to the store manager position. This sort of
discrimination will have a negative impact on the company and the
female workers will feel demotivated. A demotivated workforce is
never good for any company.
7. Walmart had stores in all 50 states in the United States and since the
smaller communities were covered with stores, Walmart started
operating in the suburbs. The local people did not like the big
companies operating in their areas. The local activists even joined
together to use zoning laws against the big retailers.
8. Walmart’s code of conduct which also has to be followed by its

suppliers is seen as public relations ploy. Walmart has created a strict
code of conduct and all of its suppliers must follow it. This is a
positive thing but the critics assumed that it was just done for publicity
to improve the company’s image.
9. Walmart has been taking advantage of the fact that the suppliers
need them more than they need them which can affect Walmart
negatively. Wal-Mart in the U.S. was individually responsible for
selling 35% of all pet food, 24% of all toothpaste and Walmart buys
huge volumes of products. All these referred to that 30,000 suppliers
needed them more than the company needs them.
22
10. Walmart has been paying its employees very low wages and
they do not even pay for overtime. They have been paying sales
clerks $8.23/hr. according to Business Weeks, this amounted to
$13,861 per year which is 5.26% below the poverty line for a family of
three.
23
Opportunities
1. They would have been the first group in 41 years to bargain

collectively with Wal-Mart but for an operational change that was
instituted by the company. Wal-Mart announced that it would sell only
pre-cut meat in its stores, with immediate effect .
2. By 2003, Wal-Mart stores were located very close to major cities,

mostly along the outer edges in the suburbs. Given the fact that many
of the smaller communities had been blanketed with stores, the
company started driving into suburbs. It was, however, not met with
quite the same enthusiasm that it received in the rural settings. Local
community activists in various parts of the country were banding
together to use zoning laws to keep the big-box retailer out of their
backyard.
3. The rural network was still intact and the company had stores in all 50
states in the United States. . All stores were quite uniform, both in
their external and internal appearance. A substantial part of the real
estate was leased and custom-built by the property owners.
4. Wal-Mart limited its advertising to 12 or 13 circulars a year. The

circulars reflected the same bare-bones approach that the stores had
adopted. There were no expensive models or glossy spreads. The
24
company used its own associates as models for the circulars, and
even used it as a motivational tool by choosing associates based on
their performance.
5. By 2003, Wal-Mart accounted for 26% of Rayovac revenues in a

relationship that was very much similar to that between a vassal and
the king.
6. In September 2003, well ahead of the peak of the toy season, Wal-
Mart began discounting the price of a dancing toy, a sure winner
from Fisher Price, a unit of Mattel, the leader in toys. It was priced at
an amazing 22% below what Toys ‘R’ Us was charging. Wal-Mart
believed that its discounting approach would help customers clearly
see where the bargains were and help pull market share from its toy
store rivals
7. One analyst estimated that about 40% of Wal-Mart revenues were

attributable to its in-store brands, which ran the gamut from batteries
to ibuprofen, from tuna to dog food, and most other items in between.
8. Wal-Mart accounted for 16% of Newell’s sales in 2003. By 2003,

international operations accounted for close to 17% of total revenues.
It had started in textbook fashion, sticking close to home with forays
into countries of geographic proximity such as Mexico, Puerto Rico,
25
and Canada. After penetrating promising regions of South America,

the company had ventured into Europe.
9. By 2004, Wal-Mart was the largest employer in private industry

worldwide. It counted over 1.3 million associates amongst its ranks. Mr.
Walton had imparted a very strong sense of identity among his employees,
which was largely rural at the time. The company employed a flat
organizational structure with the store managers playing pivotal roles in
linking management personnel in Bentonville with field operations.
10.The company had almost doubled its sales revenue in the five-year
period from 1999 to 2003. Although with over $6 billion in sales (it was still
not anywhere comparable in size to Wal-Mart), it did seem to have the
ingredients of a disruptive innovator in the retailing world.
11.It bought 95% of its products locally, and even leveraged its Chinese
supply network to export products worth $12 billion12 to its U.S.
26
Threats:
1. Walmart has been going throughissues in preserving gradual

growth.Their increasecould be veryrelativelyto be very tough for them to
maintain. In 2003, whilstthere has been a financialdisaster worldwide,
Walmart had an incomeincrease of 11%. The employeras soon as even
vaulted over the $2 hundred billion tiers in annual income.
2. Walmart has now no longer been treating the providers the manner they
anticipate and they may be being requested to do greater for less. If
Walmart maintains this conduct or the providersretain to
experience,they may benow no longer being valued enough, the
robustcourtingamong them gets ruined tonow no longer be accurate for
Walmart as they wantdependableproviders
3. Walmart has confrontedproceedings filed via way of means of their
employees. Walmart’s friendsnational have filed fortyinstancestowards
the company. This is tremendouslyunfavorablefor his or heremblem
image. In seeking tohold the expenses low, they're making the
peoplepaintingsbeyond regular timewithoutbeyond regular time pay.
This will create a pooreffectwith inside thelengthy run. So, it’s a big
threat to them.
4. Despite being the largest, they had been discriminating in opposition
toladies in activity promotions, especially at supervisory and managerial
levels. 90% of the customer support managers are
ladyhoweversimplest 15% of them get promoted to the shopsupervisor
position. This form of discrimination could have a pooreffecton
27
thecorporationand the ladyemployees will experience demotivation. A

demotivated body of workers is by no meansexact for any corporation.
It decreases their reputation in the Market.
5. Walmart’s code of behavior which additionallyneeds to beobservedwith
the aid of using its providers is visible as public family members' ploy.
Walmart has created a strict code of behavior and all of its
providershave tocomply with it. This is a tremendousaspecthowever the
critics assumed that it changed intosimplyperformed for exposureto
enhance the company’s image. It may cause a customer to shift to
another service.
6. Small-scale on-line e-tradebusinesses – Many small-scale and
personon-linepromotingbusinesses have entered the
marketplacepresentingcomparablemerchandise at comparablecosts on
their websites. It may be a hazard to the company’s destiny standing.
7. Main Competition Target – Being the most important grocery retailer,
Walmart is difficult to be the principalgoal for competitors. One of its
direct competitors, Target affordsequalmerchandisethat can be of better
quality. Also, Costco affordsthe choice to buy bulk gadgets to its
customers. These agencies have terrificpopularity for workerpride that
Walmart. This is a massivechance for Walmart.
28
8. Website’s Technical Issues – Many instancesclients have

confrontedquite a few technical problems in Walmart’s internet site. The
internet site does now no longervicinitythe goods in an orderly manner,
and it has sluggish loading pages. This is likewise a massivechance to
the agencybecause itwon'tresult in conversions
9. Walmart has now no longer been treating the providers the manner
they assume and they're being requested to do extra for less. If
Walmart maintains this conduct or the providershold to sensethey'renow
no longer being valued enough, the sturdycourtingamong them gets
ruined as a way tonow no longer be suitable for Walmart as they
wantunswervingproviders
10. Stores are not restocking cabinetsspeedy enough. Walmart was

givenan excessive amount ofstockwithin side thereturned rooms and
their strategiesaren'tin which they need them to be and that’s inflictinga
few undue shrinkages and it causes a huge amount of food to go to
waste. It's not good for a big organization like if it goes like that then it
may cause
29
Human Resource
Issues
Human Resource Issues
30
1. High turnover rate is common for Walmart due to not rewarding the
employees with the right compensation plan.
The compensation plan for Walmart is not satisfying for the
employees of Walmart. The wage rates are very low, there is
discrimination, and employees do not get paid for working overtime.
All these contribute to employees living in the company not getting
rewarded for the effort they put into Walmart. The employees have
even filed lawsuits against Walmart. The poor compensation plan has
made employees leave the company and raising the employee
turnover rate. A high turnover rate is not good for the company and it
means that the company has failed to spend enough to retain its
employees and has been spending more on recruiting new
employees and training and development.
31
2. The company has been filling the senior positions from the internal
workforce.
Promoting internal employees is highly rewarding and motivating for
employees working in Walmart. This shows that the employees have
a scope to grow and do not have to move to other companies for
promotion. However, when companies only hire employees for a
senior position internally, the company falls behind on diversity and
lacks new ideas. Walmart is losing its opportunity to recruit a better
employee for the senior position who could contribute more to the
company. External hiring could be beneficial as the new employee
has seen the company as an outsider.
3. Walmart encounters overall performance issues, together with low

worker morale and tardiness. These HR issues lessen the firm's
monetary overall performance. Walmart can cope with low worker
morale via activity rotation and flexibility, incentives, and popularity for
employees' achievements, amongst different approaches.
4. One of the opposite HR problems is likewise their loss of blessings

for his or her employees, specifically for part-time people. A 0.33 of
the part-time people that aren't eligible for constrained to paintings no
extra than 28 hours a week. While people are certified for the
blessings frequently ought to pay a part of their medical insurance
and different blessings. The fitness gadget supplied via way of means
32
of Walmart changed into now no longer inexpensive in comparison to

the opposite companies.
5. A worker at Walmart by no means referred to as a partner, they
constantly deal with them as a worker, HR group would not inspire

them to carry out nicely and staying recognition to gain the goal.
Walmart HR group isn't clean approximately the recruitment
necessities it is the motive they cannot prioritize distinctive degree of
employees. The HR group isn't cooperative with some other branch it
is why they did not discover the crucial detail of the positions and do
not layout.
33
6. One of the major issue that the human resource department of
Walmart had was that it had a massive glass ceiling, even though
90% of the staff were female, only 15% of them were in the top
management. This difference was quite visible and they had to face
law suit as they had violated the gender discrimination act which is
amended under the fair labor acts. They had deprived the women off
positional power in the job, which is may taint their organization’s
reputation.
7. Walmart was also put into a trial for paying really low wages. They
paid only $8.23 hourly to its sales executives. All of this accumulated
was $13,861 annually which was even below the federal poverty line
rate which is $14,630. This income could not even suffice for a family
34
comprising of three members. The human resource team failed in

providing the employees with an equitable pay.
8. They were prudent in spending on their employees’ welfare. They
didn’t consider the comfort and appreciate their employees with
accommodation and their compensation plan lacked benefits. They
employees constantly felt frustrated at their workplace which caused
certain discrepancies in their performance and affected their
performance level. Walmart’s HR department did not entertain their
employees well enough rather they have caused demotivation.
9. Even to this date when most organizations are following democratic

leadership style or at least a mix of both to attend to the
progressiveness, Walmart follows a flat organizational structure. This
lengthy hierarchy confuses the employees as their jobs are not
specifically stated for which the employees at Walmart, struggles to
understand their duties which results in lots of errors which gradually
erodes the employees’ confidence level. This is a sign of poor
employee management at Walmart.
10. Walmart did not have a diversified staff team to cater to the
needs of different culture. This creates difficulty in handling
customers with varied language and culture. This results in a
communication gap among the staff, customers as well as the
management of the respective branch who may not be able to train or
instruct the employees due to this. A lack of proper training and
development among the staff member will avert their chances of
performing well leading to demoralization.
35
36
Recommendation &
Implementation
37
Recommendation & Implementation:
1.The recruitment at Walmart for senior position was done internally

and lacked fresh addition to the staff members.”
i. What is the problem?
Ans: Walmart has been filling the senior position by only promoting
employees from within and do not consider hiring external employees for
the senior position.
ii. What is the solution to the problem?
Ans: Walmart should start hiring employees externally as well. There
should be a balance between the ratio of hiring internally and hiring
externally for a senior position. When Walmart will have a balance between
external and internal hiring, the company will get benefitted more. It will
have a loyal employee base who will be working hard as they know they
have a chance to get promoted and also get new talented employees who
can generate new ideas and policies. On the other hand, the internal
employees will not feel deprived as there is a balance. The existing
employees will not take a promotion for granted and when faced with
competition, they will work harder to achieve their position at the top. All
these will eventually help Walmart to achieve its objectives.
iii. Why is this solution best suited for the problem?
Ans: This solution is best for Walmart only promoting external employees
will not allow Walmart to have a more suited and deserving candidate for
the senior positions. The internal employees also have a chance of getting
promoted. This will improve the image of Walmart and more skillful workers
will be able to work for them.
iv. How to implement the recommended solution?
Ans: The company has to change its policy for promotion and recruitment.
This has to be done by the head of departments. The new change in
promotion policy will have to implement in the HR department.
v. Who would implement the recommended solution?
38
Ans: Whenever there will be a vacant position, the HR department has to

advertise outside and inside the company. The recruiter has to take into
account external and internal candidates and choose the best candidate to
hire for the position.
vi. Where this recommended solution would be implemented?

Ans: The recommended solution is for employees who take care of
promotion and recruitment. These employees work in the HR department.
The HR specialists will have to keep a better track of the existing
employees’ skills, knowledge, and abilities so that it helps them to choose
between external and internal candidates.
39
2. “ Walmart is facing huge competition in retaining their staffs

against their rivals such as Target”

The employees have been leaving Walmart to work for its competitors and
this contributes to increasing the employee turnover rate.
A high turnover rate refers to Walmart being able to retain its existing
employees. They have to be provided with training which will make its
workforce motivated. A motivated workforce will not leave the company.
This is the best decision as the employee turnover rate means, the
company has not been spending enough on employees and more on
recruiting new employees. Recruiting new employees involves the cost of
recruiting and training the new employees which could easily be avoided if
they could retain their existing employees. While trying to keep the price
low, they are not rewarding their employees which in return is making them
spend more. If the wage rate is low, employees should be getting other
benefits that will compensate for the low wage. Therefore providing them
training will help them improve their KSAs which will be beneficial for their
growth.
The board of members and the top managerial employees will have to
allocate resources to arrange training and development for the employees.
These programs have to be interesting and have to add value to the
employees existing KSAs otherwise they will not feel interested to attend
the training program.
The HR department is responsible for the training and development of
employees. Hence the HR employees have to research their employees to
40
find out their interests and lacking so that they could arrange effective
training and development programs for the employees.
Where this recommended solution would be implemented?

The change has to be initiated by the HR department but this is for the
employees of all the departments in Walmart.
41
3. “The physical stores were not comprised of high technological

system.”

Ans: Digital services are not integrated with physical stores.
Ans: Walmart should combine both online and offline sales of their stores
to solve this problem. If they incorporate digital payments then customers
will be able to make payment seamlessly.
Ans: Introducing the options of digital services will make the customers
satisfied about Walmart’s services towards them. Customer will feel valued
and will be loyal towards Walmart. Implementation of digital service will
also allow Walmart to be more efficient and effective in their overall
management system.
Ans: The company has to bring in digital payment partners. Introduce
digital payment systems and train the storekeepers to serve the customers
appropriately using the new technologies.
Ans: Walmart can appoint third party companies to setup and install the
digital services. Trainers can be outsourced to train the employees so that
proper use of the devices and methods can be ensured. In this customer
service will also be safeguarded.
vi. Where this recommended solution would be implemented?
Ans:The recommended solution is for employees and payment methods of
Walmart stores.
42
4. “The company was accused of paying really low wages- $8.30 per
hour to its sales clerk.”
. What is the Problem?

Ans: Walmart was put on trial for paying their employee wages which was
accumulated to be below the federal poverty.
ii. What is your Recommended Solution?
Ans: The Human Resource Department must restructure their
compensation structure and raise their hourly wage rate or increase their
overall benefits.
iii. Why is your Recommended Solution Best?
Ans: The recommended solution is the best as raising wages or
restructuring their compensation structure will help them retain their staff
and this will also help them avoid allegations from the labor union.
Resolving these disputes will eventually allow them to have an incremental
growth.
iv. How would you implement your Recommended Solutions?
Ans: The finance and human resource department should readjust the
budget they have for their staffs and increase it.
v.Who would conduct the Implementation Process/Progress?
Ans: This will be conducted by the Human Resource department and the
board of directors. They will sit and consult with one another to form an
entirely new compensation plan which is equitable.
vi.Where would you implement?
Ans: It will be implemented within Walmart.
vii.When do you intend to begin and end your Implementation?
Ans: It will be a continuous process and should be implemented as soon
as possible to avoid further lawsuits by Walmart and refrain from tainting
their image anymore.
43
5. “Even though 90% of the staff of Walmart were women only 15%
were in the top management.”
i. What is the Problem?
Walmart separated women in promotions, job responsibilities and pay.
Although 90% of employees are women only 15% get the chance to be in
managerial positions or supervisory positions. Walmart disappoints to
provide genuine opportunities for women. Female employees are
disproportionately represented in low paying jobs.
ii. What is the recommended solution?
The recommended solution is training on gender discrimination and
educate the whole organization about the importance of women as they are
becoming more efficient and effective than before in an organization.
Through training the senior leaders of Walmart should be educated.
Besides more women should be hire and promoted
iii. Why this is the right solution?
The purpose of training is not to just help women rise in positions of power
and increase their income. It is also about teaching the value of women as
employees and how they should not be mistreated because of their gender.
Moreover, women are no less than men. So solving the issue will certainly
increase productivity for Walmart.
iv. How will it be implemented?
By conducting training on gender discrimination will push the organization
and its employees.
v. Where will it be implemented?
As the thinking of the existing employees and policies need to changed, so,
this will be implemented throughout the whole organization on every
departments.
vi. Who would conduct the implementation?
The HR department will conduct the training and if needed 3 rd party
agencies will be hired.
44

Banking Industry Background

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Banking Industry Background

Uploaded by

Copyright:

Available Formats

HRM-380.

Nafees Hafiz 1521711630

Nilima Rahman 1231073030

Md. Sadaf Kabir 1521300030

Hon’ble Lecturer, Tajuddin Ahmed.

Date Of Submission- 06/01/2021

MD. Sadaf Kabir

Syeda Rabiya Altaf Alina

the basis of knowledge gained from this course. We have implemented

tSWOT Analysis 16-29

Human Resource Issues 30-36

Recommendation & 37-43

Wal-Mart taking over

Illegal hiring procedures

The rise of discount retailing

Business strategies that always work

Establishing Wal-Mart’s supremacy

Taking the rural advantage

Making all the right moves

Selling more wares

The way Wal-Mart ran things

The new store format

Getting the goods

Launching in-house brands

In-house brand growth

2. It carried about 3,500 items on average, leaning more heavily on

4. The shelves were fully stocked with a wide range of products—over

5. It used an innovative pricing approach that comprised only 20 price

7. The company was China’s eighth largest trading partner, ahead of

8. Wal-Mart was the largest employer in private industry

9. It counted over 1.3 million associates amongst its ranks.Wal-Mart

10. Around 30,000 suppliers depended on Walmart and they

1. Walmart has faced lawsuits filed by their employees. Walmart’s

3. Walmart has been facing problems in maintaining incremental

4. The competitors such as Tesco, the metro has more experience in

6. Despite being the largest, they have been discriminating against

8. Walmart’s code of conduct which also has to be followed by its

1. They would have been the first group in 41 years to bargain

2. By 2003, Wal-Mart stores were located very close to major cities,

4. Wal-Mart limited its advertising to 12 or 13 circulars a year. The

5. By 2003, Wal-Mart accounted for 26% of Rayovac revenues in a

7. One analyst estimated that about 40% of Wal-Mart revenues were

8. Wal-Mart accounted for 16% of Newell’s sales in 2003. By 2003,

and Canada. After penetrating promising regions of South America,

9. By 2004, Wal-Mart was the largest employer in private industry

1. Walmart has been going throughissues in preserving gradual

thecorporationand the ladyemployees will experience demotivation. A

8. Website’s Technical Issues – Many instancesclients have

10. Stores are not restocking cabinetsspeedy enough. Walmart was

Human Resource Issues

3. Walmart encounters overall performance issues, together with low

4. One of the opposite HR problems is likewise their loss of blessings

of Walmart changed into now no longer inexpensive in comparison to

5. A worker at Walmart by no means referred to as a partner, they

constantly deal with them as a worker, HR group would not inspire

6. One of the major issue that the human resource department of

comprising of three members. The human resource team failed in

9. Even to this date when most organizations are following democratic

Recommendation & Implementation:

1.The recruitment at Walmart for senior position was done internally

Ans: Whenever there will be a vacant position, the HR department has to

vi. Where this recommended solution would be implemented?