Wednesday, February 1, 2012
Persuasive Essay on Wal-Mart - Human Resource Management Essay
Persuasive Essay on Wal-Mart
As a consultant for Wal-Mart, my recommendations will have to be based on the analysis of its strengths and weaknesses. Some of its strengths are: it is a very famous brand; it has one of the largest net sales in the world; it has a strong global presence; it has an efficient logistics system; it efficiently uses technology to its advantage; it practices corporate culture of frugality; and its “Everyday Low Prices” campaign is great for consumers. Among its weaknesses however as an organization are: its reputation of being anti-union; its policy of “Everyday Low Wages and Benefits”; it is known for discriminating against women employees; its growth has slowed down; it lacks effective communication with consumers; and it is exposed to risks of litigation.
My recommendations as a consultant for Wal-Mart will have to address its present weaknesses. The company has gained notoriety for paying its employees or “associates” below the minimum wages. According to A. Bianco (2003), in 2001 Wal-Mart’s sales clerks earned an average of $8.23 an hour or $13,861 a year compared to the federal poverty line of $14,630 for a family of three. Also, despite existing laws protecting the right of female employees, Wal-Mart is known for its policy of discrimination against female employees. Compared to male employees, its female employees are less likely to be promoted and to receive increase in wages. Because of these employment policies, Wal-Mart has been involved in a number of suits. It is also known for its policy against unions. It has been reported to close its shops once they discover that the employees have formed unions.
One way is to change the company’s corporate image from being anti-union to a union-friendly and employee-friendly company. It must be stressed that the company is not saving anything from its present policies. Presently it is involved in what is considered as the largest class-action law suit involving its past and present female employees. Losing in this case will mean millions of dollars the company may be forced to settle millions of dollars. Also, because of its employment policies, a small percentage of the population has started to boycott Wal-Mart and its stores. They have refused to patronize Wal-Mart stores. Although at present their number is very small to affect Wal-Mart, they may in the future increase in number.
It is therefore important for the company to change its corporate image. This could be done by increasing the present salary of its employees, giving its female employees equal opportunity for promotion, increase in pay and allowing the entry of unions in its company. Those who have served the company for a long time should be given the rightful salary raise. The female employees who are skilled and qualified should be promoted. It may appear that this corporate move is a serious business decision which may significantly reduce the company’s income. It must however be stressed that giving its employees the rightful salary that they deserve, giving women employees opportunity to grow with the company, prohibiting discrimination inside the workplace and improving the terms and conditions of the employment for its employees will give happiness to its employees. This creates a chain reaction that will not only affect the employees but the customers as well.
For one, well compensated employees will be motivated to improve their service and performance. This will result to greater customer satisfaction and loyalty. It will result to well-motivated and loyal employees leading to lesser turnover. Once these things are done, Wal-Mart will have a positive corporate image and avoid being dragged to into expensive litigations leading to more savings.
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