NATIONAL ECONOMICS

UNIVERSITY
…...0O0……

GROUP ASSIGNMENT

COURSE: ORGANIZATIONAL BEHAVIOR

CLASS: Quản trị Nhân lực CLC 63
GROUP: 4

Hanoi – 4/2023
NUMBER NAME STUDENT ID

1 Mai Quang Anh 11219158

2 Khuất Hoàng Dương 11211558

3 Ngô Quang Khải 11212786

4 Đỗ Duy Khánh 11212821

5 Vũ Quang Minh 11213989

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 Table of Contents
1. Introduction..................................................................................................3
2. The Organizational Behavior Problems and Success of Walmart..........4
2.1. Problems:...................................................................................................................4
2.1.1. Employee Relations:............................................................................................4
2.1.2. Discrimination:...................................................................................................6
2.1.3. Supply chain management:.................................................................................7
2.2. SUCCESS.................................................................................................................10

3. Factors Affecting OB Problems and Success at Walmart......................11

3.1. Problems:.................................................................................................................11
3.1.1. Low-cost business model:..................................................................................11
3.1.2. Anti-union stance:.............................................................................................11
3.1.3. Gender and sexual orientation discrimination:..................................................12
3.1.4. Supply chain practices:.....................................................................................13
3.2. SUCCESS.................................................................................................................14
3.2.1. Emotional Intelligence.......................................................................................14
3.2.2. Virtual Organization.........................................................................................15

4. Management Tools.....................................................................................17
4.1. BLOCKCHAIN........................................................................................................17
4.2. Training and Development: Walmart offers various training and development
programs for its employees, including:................................................................................18
4.3. Benefits: Walmart offers a comprehensive benefits package to its employees,
including:............................................................................................................................18
4.4. Employee Engagement Programs: Walmart has various employee engagement
programs, including:...........................................................................................................18
4.5. Diversity and Inclusion Programs: Walmart has various programs and initiatives to
promote diversity and inclusion in the workplace, including:...............................................19

Reference list:....................................................................................................20

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 1. Introduction
Walmart is a multinational retail corporation that operates a chain of discount department
stores, grocery stores, and hypermarkets. Founded in 1962 by Sam Walton in Bentonville,
Arkansas, Walmart has grown to become one of the largest retailers in the world, with over
11,000 stores in 27 countries. The company is known for its "Everyday Low Prices" strategy,
which has made it a popular destination for budget-conscious consumers. Beyond retail,
Walmart has also made significant investments in e-commerce, technology, and
sustainability. Walmart's success has made it a highly influential player in the retail industry
and a significant force in the global economy.

+ Walmart's Mission: "Saving people money so they can live better."

The company aims to do this by offering low prices on a wide range of products, from
groceries to electronics, and by constantly seeking ways to increase efficiency and reduce
costs throughout its operations. Walmart also aims to provide a high level of customer service
and convenience, with features such as in-store pickup and delivery options, as well as a
focus on sustainability and social responsibility. In addition to its retail operations, Walmart's
mission includes a commitment to supporting local communities through charitable giving,
volunteerism, and other initiatives.

+ Walmart’s Vision: "Be the best retailer in the hearts and minds of consumers and
employees."
This vision emphasizes the company's focus on providing an exceptional customer
experience, as well as creating a positive and rewarding work environment for its employees.
To achieve this vision, Walmart aims to continually improve its operations, innovate through
technology and new business models, and invest in its employees through training and
development programs. Additionally, the company is committed to being a leader in
sustainability and social responsibility, working to reduce its environmental impact and
support communities around the world.

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 2. The Organizational Behavior Problems and Success
of Walmart
2.1. Problems:
2.1.1. Employee Relations:
The employee relations of Walmart, one of the world's largest retailers, have been a subject
of criticism and controversy for many years. Walmart has faced several organizational
behavior problems related to its treatment of employees, which has resulted in negative
publicity and damage to the company's reputation. Some of the issues that have contributed to
this problem include low wages, limited opportunities for advancement, a hostile work
environment, and anti-union policies. These issues have led to employee dissatisfaction, high
turnover rates, and a negative perception of Walmart among the public.

2.1.1.1. Low Wages

Low wages have been a persistent problem at Walmart throughout the years, with the
company facing criticism for paying its workers lower wages and offering limited benefits.
Walmart's business model was built on keeping prices low by keeping labor costs low, which
meant paying its workers lower wages than other retailers. This strategy helped the company
to become one of the largest retailers in the world, but it also contributed to the low-wage
problem.

In the 1990s and early 2000s, Walmart faced increasing criticism for its low-wage policies.
Labor unions and advocacy groups accused the company of exploiting its workers and
contributing to income inequality. Despite Walmart's argument that its low prices helped low-
income customers and that the company offered its workers many opportunities for
advancement and benefits such as health insurance, the criticism continued.

In 2005, a group of Walmart workers filed a class-action lawsuit alleging that the company
had violated wage and hour laws by failing to pay overtime and forcing workers to work off
the clock. The case was eventually settled for $640 million.

In 2011, Walmart faced another round of criticism when a study found that many of its
workers relied on public assistance programs like food stamps and Medicaid to make ends
meet. The study estimated that Walmart workers cost taxpayers $6.2 billion annually in
public assistance.

In response to this criticism, Walmart has taken some steps to address the low-wage problem.
The company announced in 2015 that it would raise wages for all of its U.S. employees to at
least $9 per hour, with a further increase to $10 per hour the following year. Walmart has also
implemented other measures, such as offering more training and development opportunities
for employees and improving scheduling practices.

However, many advocates argue that these measures do not go far enough to address the
underlying issue of low wages. Some have called for a minimum wage increase at the federal

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level, which could help to raise wages for workers across the country, including those at
Walmart. Others argue that Walmart should do more to share its profits with employees,
either through higher wages or through other forms of compensation, such as profit-sharing
or stock ownership programs. Despite these criticisms and debates, Walmart remains one of
the largest employers in the world, with a significant impact on the global economy and labor
market.

2.1.1.2. Labor Union Opposition:

Walmart has a long history of opposition to labor unions, and the company has been accused
of engaging in illegal union-busting tactics to prevent workers from organizing.

One of the main ways that Walmart has opposed labor unions is by intimidating and
retaliating against workers who attempt to organize. The company has been accused of
spying on employees, threatening to close stores if workers unionize, and firing employees
who support unionization efforts.

Walmart has also been accused of using various legal and technical tactics to prevent workers
from unionizing, such as challenging the legality of union elections and blocking workers
from accessing union representatives, such as:

 In 2000, meat cutters in Jacksonville, Texas, voted to unionize. Walmart subsequently

eliminated in-house meat-cutting jobs in favor of prepackaged meats, claiming that the
measure would cut costs and prevent lawsuits. Walmart said that the nationwide closing of
in-store meat packaging had been planned for many years and was not related to the
unionization. In June 2003, a National Labor Relations Board judge ordered Walmart to
restore the meat department to its prior structure, complete with meat-cutting, and to
recognize and bargain with the union over the effects of any change to case-ready meat
sales.

 Walmart's anti-union policies also extend beyond the United States. The documentary
Walmart: The High Cost of Low Price, shows one successful unionization of a Walmart
store in Jonquière, Quebec, Canada, in 2004, but Walmart closed the store five months
later because the company did not approve of the new "business plan" a union would
require. In September 2005, the Québec Labor Board ruled that the closing of a Walmart
store amounted to a reprisal against unionized workers and ordered additional hearings on
possible compensation for the employees, though it offered no details.

 In November 2012, the United Food & Commercial Workers joined with several Walmart
workers with a plan to go on strike on Black Friday at several stores nationwide in protest
to low pay, an increase in health insurance premiums, and not being given the option to
have the day off or having Thanksgiving off.\ Walmart has countered this by saying that
the strike is illegal due to the union not being sanctioned by the company, and that the

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 striking workers are a small minority of the company's workforce, with the vast majority
of workers willing and ready to work the retail industry's busiest day of the year.
 In July 2019, the Walmart subreddit was flooded with pro-union memes in a protest to the
firing of an employee who posted confidential material to the subreddit. Many of these
posts were angry with Walmart surveying its staff on the Internet. The posting of the union
content is in response to the aforementioned alleged anti-union position Walmart has taken
in the past.

The company's opposition to unions has led to several high-profile labor disputes and
protests, including strikes and boycotts by Walmart employees and their supporters. Walmart
workers have argued that the company's anti-union policies and practices make it difficult for
them to negotiate for better wages, benefits, and working conditions.

Walmart has defended its opposition to unions, arguing that unions are not necessary for its
employees because the company offers competitive wages, benefits, and opportunities for
advancement. The company has also argued that unions would be detrimental to its business
model and could lead to higher prices for customers.

However, labor advocates and worker organizations argue that Walmart's opposition to
unions is a violation of workers' rights and undermines their ability to advocate for
themselves in the workplace. These groups continue to push for changes in Walmart's
policies and practices to promote greater worker empowerment and protection.

2.1.2. Discrimination:
The issue of gender and sexual orientation discrimination at Walmart has been a contentious
one for many years. Despite the company's efforts to promote diversity and inclusion in the
workplace, there have been numerous allegations of discrimination and mistreatment of
employees based on their gender identity or sexual orientation.

One of the most significant issues has been the alleged discrimination against female
employees in pay and promotion. Walmart has faced multiple class-action lawsuits over the
years, accusing the company of paying women less than men in comparable positions and
denying them opportunities for advancement. In some cases, women have also reported
experiencing harassment and gender-based bias at work.

In addition, Walmart has faced accusations of discrimination against LGBTQ+ employees.

This has included denying health care coverage for gender reassignment surgery, as well as
mistreatment and harassment of LGBTQ+ employees in the workplace. Advocacy groups
have argued that Walmart needs to do more to provide a safe and inclusive work environment
for all employees, regardless of their gender identity or sexual orientation.

There have been several instances of gender and racial discrimination reported at Walmart
over the years. Here are a few examples:

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 In 2020, a class-action lawsuit was filed against Walmart alleging that the company
discriminated against female employees in pay and promotions. The lawsuit claims that
Walmart has a "pattern and practice" of paying women less than men for the same or
similar work and promoting men over equally qualified women.

 In 2019, a former Walmart employee filed a lawsuit alleging that he was fired from his job
because of his race. The employee, who is African American, claims that he was subjected
to racial slurs and discriminatory treatment by his supervisors and that he was eventually
terminated in retaliation for complaining about the discrimination.

 In 2018, a transgender former Walmart employee filed a lawsuit alleging that she was
discriminated against because of her gender identity. The employee claims that she was
subjected to harassment and discriminatory treatment by her coworkers and managers,
including being forced to use the men's restroom and being referred to by her birth name
instead of her chosen name.

To address these issues, Walmart has implemented policies and practices aimed at promoting
diversity and inclusion. The company has expanded its benefits to include coverage for same-
sex spouses and partners and has provided training for managers and employees on
unconscious bias and inclusive hiring practices. Walmart has also worked with advocacy
groups to develop programs and initiatives aimed at promoting diversity and inclusion in the
workplace.

Despite these efforts, there is still a long way to go to ensure that Walmart is a safe and
inclusive workplace for all employees. Some advocates argue that the company needs to take
more concrete steps, such as implementing stronger anti-discrimination policies and
increasing transparency around pay and promotion practices. Others have called for greater
representation of women and LGBTQ+ employees in leadership positions, to ensure that their
voices are heard, and their concerns are addressed. Ultimately, addressing issues of gender
and sexual orientation discrimination will require a sustained effort from both Walmart and
its employees, as well as broader societal changes to promote greater equality and inclusion.

2.1.3. Supply chain management:

2.1.3.1. Labor violations:

Walmart has been accused of a range of labor violations over the years, including wage theft
and unpaid overtime. Here are some examples of these violations:

● Wage theft:

Walmart has been criticized for engaging in wage theft practices, which involve employers
failing to pay workers for all the hours they have worked, such as off-the-clock work, not

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paying overtime, and misclassifying employees as exempt from overtime pay. These
practices have been documented at Walmart stores across the United States.
One of the most common forms of wage theft at Walmart is off-the-clock work. This occurs
when employees are asked to work before or after their scheduled shifts but are not
compensated for that time. In some cases, managers have pressured employees to work off
the clock in order to meet productivity goals or reduce labor costs. In 2012, Walmart settled a
class-action lawsuit for $50 million, which alleged that the company had forced employees to
work off the clock and had not paid them for overtime.

Another form of wage theft at Walmart is the misclassification of employees as exempt from
overtime pay. Under federal law, employees who are classified as exempt are not entitled to
receive overtime pay for hours worked over 40 hours in a workweek. However, to be
classified as exempt, employees must meet certain criteria, such as earning a salary of at least
$684 per week and performing specific job duties. Walmart has been accused of
misclassifying employees as exempt in order to avoid paying them overtime.

In 2020, Walmart was sued by a group of truck drivers who alleged that the company had
violated federal labor laws by failing to pay them for all the hours they had worked, including
pre-trip and post-trip inspections, and by failing to pay them overtime. The drivers also
alleged that Walmart had misclassified them as independent contractors instead of
employees, which allowed the company to avoid paying them benefits and complying with
labor laws.

Walmart has also been criticized for its use of on-call scheduling, which requires employees
to be available to work at any time but does not guarantee them a set number of hours per
week. This practice can make it difficult for employees to plan their lives and can result in
reduced pay. In 2015, Walmart ended its use of on-call scheduling in response to public
pressure and negative media coverage.

In addition to these specific forms of wage theft, Walmart has been criticized for its low
wages, which have been found to be below the living wage in many areas. This has resulted
in many Walmart employees living in poverty and relying on government assistance
programs to make ends meet. In 2015, Walmart announced that it would raise its minimum
wage to $9 per hour, and in 2020, it raised its minimum wage to $11 per hour. While these
wage increases have been welcomed by many employees, they are still below the living wage
in many areas.

● Unpaid overtime:

Unpaid overtime is another labor violation that has been reported at Walmart. According to
various reports and lawsuits filed against the company, Walmart has been accused of failing
to pay its employees for all the hours worked, including overtime hours. This violation
typically occurs when employees work more than 40 hours per week but are not compensated
for the additional hours worked.

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One of the common ways in which Walmart allegedly violates the overtime laws is by
misclassifying employees as exempt from overtime pay. Under the Fair Labor Standards Act
(FLSA), employees who are classified as exempt are not entitled to overtime pay. However,
the criteria for exemption are specific and must be met for an employee to be classified as
exempt.

Walmart has been accused of misclassifying employees, particularly assistant managers, as

exempt from overtime pay. In a class-action lawsuit filed in California in 2019, assistant
managers at Walmart alleged that the company had misclassified them as exempt and denied
them overtime pay. The lawsuit claimed that the assistant managers were primarily engaged
in non-exempt work, such as stocking shelves and working the cash register, and did not meet
the criteria for exemption.

Another way in which Walmart has been accused of unpaid overtime violations is through
off-the-clock work. Walmart employees have reported that they are often required to work off
the clock, meaning that they are not paid for the additional time worked. This violation can
occur when employees are required to perform job-related tasks before or after their
scheduled shift, during breaks, or during meal periods.

In a lawsuit filed in California in 2017, Walmart employees accused the company of

requiring them to work off the clock and failing to compensate them for the additional time
worked. The lawsuit claimed that Walmart had implemented a system that discouraged
employees from reporting their actual hours worked and required them to perform work-
related tasks off the clock.

2.1.3.2. Poor working conditions:

The issue of working conditions at Walmart has been a contentious issue for many years,
with allegations of labor violations and unsafe work environments. One of the major
criticisms of Walmart is the company's opposition to unionization, which has led to
accusations of illegal union-busting tactics and the intimidation of workers attempting to
organize. This has resulted in high-profile labor disputes and protests over the years, and has
contributed to the company's reputation for anti-worker practices.

Walmart has also been accused of discrimination against female employees in pay and
promotion, leading to several lawsuits over the years. Reports of undocumented workers
being exploited and threatened with deportation have also emerged, raising concerns about
the company's treatment of vulnerable workers.

In terms of working conditions, Walmart has faced criticism for providing unsafe and
unsanitary working environments. Workers have reported injuries on the job due to
hazardous working conditions, and the company has been accused of failing to provide
adequate safety training and equipment. Additionally, employees have reported long hours,

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erratic scheduling, and a lack of breaks or time off, making it difficult for many to support
themselves and their families.

While Walmart has taken steps to address some of these concerns in recent years, such as
implementing new safety policies and providing more training for workers, many advocates
argue that more needs to be done. Low wages, limited benefits, and instances of
discrimination and harassment continue to be reported by Walmart workers, highlighting the
need for further reforms.

As Walmart is one of the largest employers in the United States, these issues have far-
reaching implications for the wider workforce and the economy as a whole. Advocates for
workers' rights argue that companies like Walmart should be held to a higher standard when
it comes to providing fair and safe working conditions for their employees, and that greater
protections should be put in place to ensure that workers are not exploited or mistreated.

2.2. SUCCESS

Creating Employeees’ Motivation

The company uses intrinsic rewards to motivate its employees. Intrinsic rewards refer to
“psychological rewards that employees get by doing meaningful work and performing it
well”. The company uses this technique because the high competition in the global retail
industry has limited its capacity to use extrinsic rewards such as bonuses.

Using intrinsic rewards involves creating a sense of meaningfulness, choice, competence, and
progress. The sense of meaningfulness enables employees to believe that their work is of
great value, whereas the sense of choice enables them to decide the means of accomplishing
their work.

The sense of competence enables employees to feel confident in doing their work, whereas
the sense of progress encourages them to pursue high goals.

Intrinsic rewards have benefited Walmart in the following ways. First, the rewards have
improved the commitment and productivity of the employees. For instance, in 2011 the
company promoted more than 180,000 part-time employees who were ranked as more
effective by their managers (Walmart, 2013). Second, intrinsic rewards have reduced labor
turnover in the company.

For instance, over “250,000 employees have worked for the company for more than ten
years” (Walmart, 2013). Additionally, 75% of the management consists of employees who
joined as part-time associates but have since been offered fulltime contracts due to their
commitment to the company.

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Finally, intrinsic rewards minimize the occurrence of burnout because it enables employees
to develop positive feelings about their work.

3. Factors Affecting OB Problems and Success at

Walmart
3.1. Problems:
Organizational behavior problems can arise from various factors within an organization. In
the case of Walmart, a number of factors could contribute to these problems. Some of these
factors include:
3.1.1. Low-cost business model:
Walmart's low-cost business model has undoubtedly allowed the company to offer a wide
range of products at competitive prices, making it a popular shopping destination for many
consumers. However, this approach has come under fire from critics who argue that the
company's success is built on the exploitation of its workers and the destruction of small
businesses.

One of the main criticisms of Walmart is its low-wage policy, which is a key component of
its business model. By keeping labor costs low, the company is able to offer products at lower
prices than its competitors and maintain a healthy profit margin. However, this has led to
accusations that the company exploits its workers and contributes to income inequality.
Critics argue that Walmart's low wages make it difficult for employees to make ends meet
and can lead to high levels of employee turnover.

Furthermore, in order to maintain its low-cost business model, Walmart has been known to
cut costs in other areas as well, such as employee benefits, training, and safety standards.
This has raised concerns about the working conditions in Walmart stores, including issues
such as long working hours, understaffing, and inadequate health and safety measures. Many
workers have reported experiencing health problems as a result of their work at Walmart, and
some have even launched lawsuits against the company.

Another criticism of Walmart's business model is that it contributes to the decline of small
businesses, particularly in rural areas. The company's aggressive pricing strategies can make
it difficult for smaller competitors to compete, leading to the closure of many local
businesses. This has led to concerns about the impact of Walmart on local economies and the
loss of jobs and services in small towns and communities.

Despite these criticisms, Walmart continues to be one of the largest retailers in the world,
with a significant presence in many countries. The company has made some efforts to
improve working conditions and increase employee wages, but many critics argue that these
measures do not go far enough. As such, the debate over Walmart's business model is likely
to continue for the foreseeable future.

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 3.1.2. Anti-union stance:
Agency theory provides a lens through which we can understand the motivations behind
Walmart's anti-union stance. According to this theory, organizations are made up of various
groups with differing interests, and these groups may engage in strategic behavior to protect
their own interests. In the case of Walmart, the executives and shareholders may be motivated
to maintain the company's low-cost business model, which relies on keeping labor costs low,
to protect their financial interests. On the other hand, employees may be motivated to
unionize to improve their working conditions and increase their wages.

In this context, agency theory suggests that conflicts and tensions may arise between these
different groups within the organization. The executives and shareholders may see
unionization as a threat to their financial interests and may engage in strategic behavior to
prevent it, such as using their power to intimidate employees or launching propaganda
campaigns against unions. This can create a situation where the employees' desires to
unionize come into conflict with the company's interests in maintaining a low-cost business
model.

Moreover, agency theory emphasizes that the actions of organizations are often influenced by
the incentives and goals of the individuals within the organization. In the case of Walmart,
the executives and shareholders may be incentivized to maintain the company's low-cost
business model, which may come into conflict with the desires of employees to unionize.
This misalignment of incentives can lead to tensions and conflicts within the organization.

It is important to note that while agency theory provides a useful framework for
understanding Walmart's anti-union stance, it is not the only factor at play. Other factors,
such as political ideology and cultural attitudes towards unions, may also influence the
company's behavior. Nonetheless, agency theory provides a useful starting point for
understanding the complex dynamics at play in Walmart's relationship with unions and its
employees.

3.1.3. Gender and sexual orientation discrimination:

Social identity theory provides a framework for understanding the factors that contribute to
gender and sexual orientation discrimination at Walmart. This theory suggests that
individuals develop their sense of self through the groups they belong to, and that these
groups shape their attitudes and behaviors towards other groups. In the case of Walmart, the
organizational culture may promote or tolerate discrimination based on gender or sexual
orientation, which can create a hostile work environment for female and LGBTQ+
employees. This discrimination can be driven by biases and stereotypes about gender and
sexual orientation, which are often reinforced by the social norms and values within the
organization.

Moreover, social identity theory suggests that individuals may engage in discriminatory
behavior towards those who are different from them in order to enhance their own social
identity and status. In the case of Walmart, male employees or those who identify as

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heterosexual may engage in discriminatory behavior towards female or LGBTQ+ employees
to reinforce their own status within the organization and maintain the dominant social
hierarchy. This behavior can take many forms, including microaggressions, exclusion from
social events, and denial of opportunities for advancement.

Furthermore, social identity theory suggests that individuals are more likely to discriminate
against members of other groups when they perceive that there is competition or conflict
between groups. In the case of Walmart, male employees or those who identify as
heterosexual may perceive female or LGBTQ+ employees as a threat to their own social
status and engage in discriminatory behavior to maintain their position within the
organization. This dynamic can be particularly pronounced in industries that are traditionally
male dominated, such as retail, where women and LGBTQ+ individuals may face additional
barriers to success.

It is important to note that social identity theory is just one of many factors that contribute to
gender and sexual orientation discrimination at Walmart. Other factors, such as explicit bias,
cultural attitudes towards women and LGBTQ+ individuals, and the company's policies and
practices, may also play a role. Nonetheless, social identity theory provides a useful
framework for understanding the complex dynamics at play in Walmart's organizational
culture and its impact on female and LGBTQ+ employees.

3.1.4. Supply chain practices:

Walmart, the world's largest retailer, has a complex and extensive supply chain that involves
thousands of suppliers, distributors, and logistics providers around the world. Walmart's
supply chain practices have been the subject of criticism and controversy, with concerns
related to labor practices and environmental impact.

● Labor Practices:

Walmart's supply chain practices have faced criticism over the years due to the company's
sourcing of products from suppliers that engage in unethical labor practices. In 2019, a report
by the Worker Rights Consortium, an independent labor rights monitoring organization,
found that Walmart was sourcing from suppliers that violated labor laws in Bangladesh,
including paying workers less than the minimum wage and denying them legally required
benefits. The report also found that some of these suppliers were employing child labor.

To address these concerns, Walmart has implemented policies and procedures to promote
ethical labor practices among its suppliers. The company has a set of standards called the
"Standards for Suppliers," which outlines expectations for suppliers in areas such as labor
practices, human rights, and environmental sustainability. These standards require suppliers
to provide safe working conditions, fair wages, and benefits to their employees and prohibit
the use of forced labor, child labor, and other forms of exploitation.

Walmart has also established an auditing and monitoring program to ensure that suppliers
comply with these standards. The program includes on-site inspections by independent
auditors to assess compliance with labor standards, as well as regular monitoring of suppliers'

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performance. In addition, the company provides training and support to suppliers to help
them improve their labor practices.

In 2020, Walmart announced a new initiative called the "Beyond the Bag" program, which
aims to reduce the use of single-use plastic bags. The program includes a commitment to
source products from suppliers that meet the company's sustainability and social
responsibility standards. This includes standards related to labor practices, such as ensuring
that suppliers provide safe working conditions, fair wages, and benefits to their employees.
Walmart has also pledged to invest in recycling infrastructure and education to promote more
sustainable practices.

While these initiatives are a step in the right direction, Walmart still faces challenges in
promoting ethical labor practices throughout its supply chain. The company's supply chain is
complex and involves thousands of suppliers across the globe, making it difficult to monitor
and enforce compliance with ethical and sustainability standards. Additionally, the company
faces pressure from stakeholders to improve its labor practices, including consumers,
investors, and labor rights groups.

● Environmental Impact:

Walmart has faced criticism for its environmental impact, particularly in relation to the
carbon emissions associated with its transportation and supply chain activities. As one of the
largest retailers in the world, Walmart's operations have a significant impact on the
environment, and the company has acknowledged the need to address these concerns.

To mitigate its impact on the environment, Walmart has set a goal to be powered by 100%
renewable energy. The company has made progress towards this goal, with 29% of its
electricity coming from renewable sources in 2019. In 2020, Walmart announced that it had
achieved its goal of powering 50% of its operations with renewable energy, with plans to
continue increasing this percentage in the future.

In addition to its renewable energy initiatives, Walmart has implemented various programs to
reduce waste and promote circular economy practices. The company has launched a program
to reduce food waste in its supply chain, working with suppliers to improve inventory
management and reduce spoilage. As part of this program, Walmart has set a goal to achieve
zero food waste by 2025.

Walmart has also launched a recycling program to divert waste from landfills and promote
the use of recycled materials. The company's recycling program includes initiatives such as
collecting and recycling plastic bags and promoting the use of recycled content in its
packaging. Walmart has also worked with suppliers to reduce the use of packaging materials
and promote sustainable practices.

While these initiatives are a step in the right direction, Walmart still faces challenges in
reducing its environmental impact. As one of the largest retailers in the world, the company's
operations have a significant carbon footprint, and reducing this footprint will require

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ongoing efforts and investment. Additionally, Walmart must continue to work with suppliers
to reduce their emissions and promote sustainable practices throughout its supply chain.

3.2. SUCCESS
3.2.1. Emotional Intelligence
Emotional intelligence refers to the ability to “identify, use, understand, and manage
emotions in a positive way in order to relieve stress, communicate effectively, overcome
challenges, and to resolve conflicts”. The management of Walmart focuses on improving the
emotional intelligence of its workforce because it believes that the success of the company
depends on the well-being of its employees.

In this regard, the company focuses on improving their employees’ self-awareness, social
awareness, self-management, as well as their relationship with the management. This
involves implementing training programs in which employees acquire skills that enable them
to resolve conflicts, communicate effectively, and to manage stress.

Moreover, the company has invested in recreational facilities such as sports equipment. These
facilities enable employees to interact in activities such as sports, thereby reducing stress and
developing strong relationships.

High emotional intelligence has enabled Walmart to manage its multicultural workforce
effectively. Conflicts usually occur among employees due to their cultural differences. For
example, Walmart’s branch in China has always reported a large number of conflict cases
due to the differences between the American and the Chinese business culture.

However, the employees began to tolerate each other and to corporate in their work, after the
introduction of conflict resolution training programs (Walmart, 2013). Additionally, the
productivity of the employees has improved due to their ability to tolerate each other.

3.2.2. Virtual Organization

A virtual organization is a “flexible network of independent entities linked by information
technology to share skills and knowledge, as well as, to deliver products and services”.
Walmart uses the concept of virtual office to coordinate its activities in various parts of the
world from a centralized location.

The company has an effective information and communication infrastructure that links all its
branches to the head office, thereby negating the need to establish regional offices. The
company’s sales and supply chain activities are managed by virtual teams, which are located
in remote areas. The teams use internet technologies such as email and video conferencing to
coordinate the operations of the company.

It also uses the concept of mobile working to serve customers. This involves taking orders
from customers through cell phones and the company’s website. The company’s employees

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do the shopping and deliver it to the customer’s premises. Payments are done via cell phones
and smart cards.

The concept of virtual organization has enabled the firm to reduce its operating costs by
eliminating the need to setup multiple regional offices to manage its activities. Additionally,
the concept promotes efficiency by enabling the organization to manage its activities from a
centralized place.

For example, the sales in the UK branches can be monitored in real time from the head office
in the USA. This enables managers to make quick decisions because the information about
the company’s performance is readily available (Walmart, 2013).

One of the major challenges of the concept of virtual office is the security of information.
The company has occasionally suffered losses due to fraud or loss of data through online
transactions.

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 4. Management Tools
4.1. BLOCKCHAIN
Walmart has long been known as a leader in supply chain management. However, its prowess
could not insulate it from a problem plaguing the transportation industry for decades: vast
data discrepancies in the invoice and payment process for freight carriers, which required
costly reconciliation efforts and caused long payment delays. Then Walmart Canada
pioneered a solution: It employed blockchain, a distributed-ledger technology, to create an
automated system for managing invoices from and payments to its 70 third-party freight
carriers.

The initiative started when one of us (John Bayliss) and his Walmart Canada team began
thinking about new ways to solve the problem. The sheer magnitude of the data was
immense. Walmart Canada delivers over 500,000 shipments annually to distribution centers
and stores across Canada, using both its own trucking fleet and third-party carriers.

The essential service of moving a massive quantity of goods (many of which are perishable)
across borders, time zones, and different climates is an enormous operational challenge. For
example, each load shipped requires tracking data points such as stop locations, gallons of
fuel, and temperature updates that need to be independently calculated and incorporated into
each invoice. With over 200 data points that needed to be factored into invoices, it is easy to
see how the invoice and payment process could be fraught with data discrepancies. And with
70% of invoices requiring reconciliation efforts, there were increased transaction costs and
unhappy carriers waiting for payments.

An analysis identified the root cause of the problem: the use of multiple information systems
between Walmart Canada and its carriers that could not talk to each other. Consequently,
reconciliation had to be performed manually — a labor-intensive, time-consuming process
riddled with inconsistencies.

One of Walmart Canada’s tech leaders suggested automating the process by creating a
blockchain network, which would overcome the problem of incompatible enterprise systems
and would establish a shared single source of truth for all parties. But there were skeptics
because, at that point, blockchain technology had not been used in a substantial, business-
critical function. Plus, there were multiple flavors of blockchain. Would it be better to have a

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public blockchain network like those used for cryptocurrencies or a private blockchain
network?

To help it, Walmart Canada turned to DLT Labs, a leader in developing and deploying
innovative enterprise solutions using distributed ledger technology. A short time later, Bison
Transport, one of Walmart Canada’s carriers, joined the team charged with developing a
network. A pilot version, which initially just involved Walmart Canada and Bison Transport,
went live in January 2019 after being exhaustively tested. It was successful, and in March
2021, the network, known as DL Freight, was rolled out to the 69 other carriers. The system
continuously gathers information at every step — from the tender offer from the carrier to the
proof of delivery and the approval of payment. This information is automatically captured
and synchronized in real-time and is visible only to the parties involved in the transaction.

By all accounts the system has been a tremendous success. Prior to DL Freight over 70% of
invoices were disputed. Today less than 1% of invoices have discrepancies, and these
disputes are easily flagged and quickly resolved. Gone are the days of payments taking weeks
or months; carriers are now getting paid on time.

4.2. Training and Development: Walmart offers various training and development
programs for its employees, including:
 Pathways: A training program designed to help new hires learn about Walmart's
values, policies, and procedures, as well as develop the skills needed to succeed in
their roles.
 Leadership Academies: A leadership development program that offers training,
coaching, and mentorship to employees at all levels of the organization.
 Walmart Academy: A training program that provides advanced training in areas such
as customer service, leadership, and merchandising to employees who aspire to
management positions.
 Lifelong Learning: A tuition assistance program that provides financial support to
employees who want to pursue higher education or professional certifications.

4.3. Benefits: Walmart offers a comprehensive benefits package to its employees,

including:
 Health and Wellness Benefits: Walmart provides affordable health insurance plans,
including medical, dental, and vision coverage, as well as resources to support
employee well-being, such as a confidential counseling service and an online wellness
platform.
 Retirement Benefits: Walmart offers a 401(k) plan with company matching
contributions, as well as an Associate Stock Purchase Plan that allows employees to
purchase Walmart stock at a discounted price.
 Financial Benefits: Walmart provides financial planning resources, such as free
financial counseling and online tools to help employees manage their money and plan
for the future.

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 4.4. Employee Engagement Programs: Walmart has various employee engagement
programs, including:
 Spark: A recognition program that allows employees to recognize and reward their
colleagues for their contributions and hard work.
 Open Door: A communication channel that allows employees to provide feedback,
raise concerns, and make suggestions to their supervisors and management.
 Associate Opinion Survey: A survey that Walmart conducts annually to gather
feedback from employees about their job satisfaction, work environment, and overall
experience at Walmart.

4.5. Diversity and Inclusion Programs: Walmart has various programs and
initiatives to promote diversity and inclusion in the workplace, including:
 Resource Groups: Walmart has several employee resource groups that provide a
platform for employees to connect and support each other based on their shared
experiences, interests, and backgrounds. Examples include the African American
Resource Group, Women's Resource Group, and Veterans Welcome Home
Committee.
 Inclusion Councils: Walmart has several inclusion councils that provide guidance and
support to Walmart's diversity and inclusion efforts. Examples include the Disability
Inclusion Council and the LGBTQ+ Associate Resource Council.
 Diversity and Inclusion Training: Walmart offers various training programs and
resources to help employees understand different perspectives, cultures, and
experiences. Examples include unconscious bias training and cultural awareness
workshops.

=> Overall, Walmart's management tools have helped the company to address
organizational behavior problems and promote a more positive and inclusive workplace
culture. By focusing on employee engagement, diversity and inclusion, performance
management, training and development, and communication, Walmart has been able to
improve employee morale, reduce turnover, and create a more motivated and productive
workforce.

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Saltzman. Available at: https://marlinsaltzman.com/news/wal-mart-truck-drivers-win-54-
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Bianco, A. (2006) No union please, we're Wal-Mart, Bloomberg.com. Bloomberg. Available

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Colman, T. (2020) Walmart assistant manager overtime pay lawsuit dropped, Top Class
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