Organizational behavior and employee motivation at Walmart

Organizational Behavior -- Walmart

Organizational Behavior - Wal-Mart

Organizational behavior is critical components in a company in order help to determine the effectiveness and efficiency. When we look at organizational behavior, we are looking at how an individual acts or relates to each in a working environment. There are certain key components that as we look at this organization that we focus on, such as this organization's culture and their communication and their diversity. In addition, their efficiency or effectiveness or lack thereof is observed. The organizational structure and OB theories at Wal-Mart are shown as the key success factors influencing employee performance and commitment. Even with the frequent visits by the labor officials in relation to the way it treats employees has not watered down the company's efforts of remaining competitive in the industry. This study has offered some succinct measures that the company has implemented in terms of reward systems aimed at fostering employee commitment and productivity.

I. Introduction

Wal-Mart has gained massive popularity following their always low cost leadership technique. However, along with this achievement has come criticism on the value of their products and the ethics behind their techniques. Wal-Mart Inc. was established on concepts designed by Sam Walton. These concepts demonstrated every day by hard-working and helpful affiliates have designed an exclusive organizational culture that is the key to Wal-Mart's advantage against their competitors. The primary values directing Wal-Mart Inc. are:

a.

Respect for the Individual- opinions of each associate is highly respected. Managers are regarded "servant leaders" who help new affiliates recognize their potential through coaching, compliment and beneficial feedback.

b.

Service to the Customer- The client is always right. Everything possible is done to ensure shopping at Wal-Mart a pleasant and friendly affair.

II. Key issues

Since 2007, worker motivation at Wal-Mart has not enhanced. A few months ago, Business Expert revealed that working at Wal-Mart "is worse than Costco or Target." Employees also belittled Wal-Mart for making more money at the expense of its employee's well-being. Discrimination is rampant in the company. Wal-Mart discriminates against women in job assignments, promotions, training and pay. Activists and lawyers say that more than 70% of Wal-Mart's sales affiliates are females while only a third of managers are women (Carrigan, 2010).

Critics claim that Wal-Mart is generating profits at the expense of associates' benefits and salaries. Two-thirds of employees do not have medical insurance because they cannot afford it or are eligible. Employee earnings average is about 30% less than union members in the retail food store industry. So the organization is also experiencing legal cases from employees who were forced to work off time, in some cases claiming they were locked in stores. Wal-Mart's interest in the lives of its employees has plunged the company into trouble because of electronic eavesdropping. The company has been illegally recording private conversations of its employees. The company is well-known for opposing labor unions. As such, it has been labeled the "reigning enemy of organized labor unions." The company is a resolute anti-union in the country. Because it has defeated all union organizations at its facilities, Wal-Mart has evolved into a bully, holding onto the rule of employment-at-will. This prerogative has seen the company fire employees for no legal reason. This rule permits the company to withdraw lawsuits based on the employment-at-will rule (Silver, 1987).

Defining the central issues

Regardless of Wal-Mart's size, their groups of stakeholders match those of any other publicly traded organization. There are two types of individuals with an interest in the activities of the organization, inner stakeholders and exterior stakeholders. Internal, stakeholders include the owners (stockholders), workers and the board of directors. Externally, there are many stakeholders that range from clients, lenders and creditors to the government and the opponents affected by Wal-Mart's existence.

The company's mission and vision will always match the objectives of the stakeholders. To do otherwise would be to invite problems. How the organization functions confirms how well the goals fit. Wal-Mart's objective and mission statements focus completely on the client. The company's mission fits well with the most obvious objectives and goals of this stakeholder, better living for less by concentrating on saving people's money so to support better living standards.

Another important Wal-Mart stakeholder is its workers. While mentioning of workers is clearly missing from the company's mission, their web page spends several WebPages to the topic of worker interaction. These WebPages explain a positive employee culture where the affiliate is a respected and valued member of the team. The web page describes that workers can depend on an open door policy, which demands that employees be handled with regard, and paid a reasonable salary. The site also informs some of the many benefits, such as medical care, available to Wal-Mart workers. These mentioned policies are according to what the common working person would see as being arranged with their personal objectives and goals, employment with reasonable treatment and a good salary and benefit program (Lefcoe, 2005-2006).

ii. Outline the values of Wal-Mart

Wal-Mart workers have been demonstrating in demand of better working conditions and a living wage at the organization where the lowest-paid workers make an average wage of $18,720 before taxation. Due to their low salaries, many Wal-Mart workers depend on SNAP benefits for a living, amounting to what is described as a company subsidy funded by taxpayers. Wal-Mart has an interest in acting according to a moral standard higher than what is expected or required by law is challenging. The very nature of organizations as profit-accumulating systems opposes and undermines their ability to control themselves. In this case, it is challenging because Wal-Mart not only derives profits through the impoverishment of its own workers, but extracts a large part of its sales from a continuing platform of impoverished customers.

According to Sam Walton, the Wal-Mart hero started the organization in 1962 with an objective to "raise the quality of life by providing affordable goods" to an incredible number of People in America, especially low-income family members and the poor. However, the very substance of Wal-Mart appears in direct contradiction with its objective to "raise the quality of life." Persistent cost-cutting and competitive market share expansion to keep its rate of profit forms the primary dogma of its religion. Following this dogma, its "army of priests" emphasizes on practices that seem to do anything but increase the quality of life for its workers and people in the larger society (Harris & Kleiner, 1993).

iv. Organizational Design

Wal-Mart's organizational design is a tight masterpiece of detailed reporting and task. Such allows the company to control, motivate and organize workers to obtain one common goal. It has a unique way of drawing the elements into one organized outline to reveal the necessary connections. The coordinating of connections to get the highest standards allows applying the solution. The business is designed into three product divisional designs. Wal-Mart is one of the successful retail business worldwide that yields approximately 20% overall company income. Also, the company is accountable for different kinds of divisional designs. Individual departments are open to paying attention to the initiatives of particular objectives. Wal-Mart objectives involve excellent, products, customer care and services. This concentration allows Wal-Mart to succeed effectively to separate particular areas in need of change (Bianco, 2003).

v. Reward Systems

Wal-Mart has publicized its reward system. Highly belittled for poor worker salaries and benefits, the Wal-Mart organization has now made public the fact that workers will share at least half a billion dollars, in the bonus annually. The amount will be based on part-time or full working status, and the total turnover the independent stores made annually. Supervisors have stated that some workers have obtained checks considerably higher than previous years. Sam Walton launched the worker bonus system to reward the company's "associates" for their effort and offers them shareholding opportunities. It gives workers a motivation to drive revenue and enhance customer fulfillment. Managers often motivate employees to help reach the desired monthly revenue objectives and have profit maps, erected in rooms as visible reminders of the position of the individual stores.

The company is driven by hardworking employees. Front line employees are more often under compensated and have poor medical insurance rewards. They also are hardly ever permitted over time and for some of their work hours are cut as a way of saving cash for the organization. One good change is the intended division of the yearly bonus rewards into quarterly expenses so that workers will not have to wait a whole year. Another new system will compensate workers based on years of service at the organization an extra bonus annually. Client fulfillment will also mean financial compensation as this year; Wal-Mart will start providing financial compensation for workers that go above and beyond when helping customers in their shop.

OB theories

There are various organizational behavior theories applicable for the success or failure of Wal-Mart. Employees and management will determine the success or failure of these theories within the company. According to Herzberg's hierarchy of needs, power, motivation and communication can cause Wal-Mart to fail or succeed. The company must be competitive to survive in the industry, or else it will deteriorate and die. Communication is a prerequisite between people and companies for the establishment of a relationship. Wal-Mart emphasizes the criticalness of listening to clients as a way of identifying their wants and needs. Competitors are trying to emulate Wal-Mart's concepts and ideas.

As Herzberg puts it, communication stimulates motivation in people. Wal-Mart demonstrates this idea by referring to its employees as "associates." The managers inspire the subordinates to voice their opinions to the upper management. Because employees engage in daily activities of the business, they know the changes that can be made to improve the working conditions, the business environment and productivity. Associates give the best recommendations, suggestions and ideas to improve technology. Associates obtain the self-satisfaction when their opinions are considered and implemented by the company. The company recognizes its employees and rewards them for ideas, suggestions and recommendations for business improvements (Cascio, 2006)

Besides motivation and communication, power assumes a crucial role in the organization. Power tends to be very helpful or damaging to the company in terms of healthcare. Everyone needs healthcare. Wal-Mart has a derogatory reputation because of its healthcare system. Drawing from the negative publicity Wal-Mart has attracted over the years about poor healthcare benefits and low wages, the company has turned into a product of unbridled capitalism. However, its growth in both expansion and profits illustrates that the company offers a valuable service to its consumers and employees. The company is depicted as a villain for successfully navigating the national, political and economic obstacles to becoming the leading retailer worldwide. The company competes in areas where benefits and wages must be kept low to remain globally competitive (Adams & Neumark, 2005).

Recommendations

The low cost leadership strategy adopted by Wal-Mart has proven to be effective. In the future, the company should maintain and focus on this same strategy. To maintain its achievements, Wal-Mart should take advantage of its present strong points, reduce weak points, catch opportunities, and restrict risks. The company's adopting of innovative technology to learn about client's requirement and needs, while accomplishing high function performance should be conducted on a frequent and continuing foundation. Upholding the company's strategy and culture is vital for marinating its success. The trademark morning meetings should be started again because it helps enhance Wal-Mart's associates' motivation. The organization can get bigger and bigger, but the company's originality should not be diminished or being changed. Currently, Wal-Mart only draws price oriented clients, the quality oriented or brand focused customers does not shop at Wal-Mart. The company should not dance to this tune because its technique is to drive the industry via cost leadership; hence, satisfying all the market segments is impossible. Companies that expand into different markets can easily be trapped into a corner, lacking a target market.

By maintaining its strong points, Wal-Mart can keep defeating the competitors and reduce its risks. Wal-Mart has responded favorably to external, like children and women's rights lobbyists. Although these demands do not currently impact Wal-Mart's operations, responding to them with success have assisted in the formation and maintaining of a positive company image. Regarding the issue of low wages, it should maintain its present pay techniques. First, the rates are a little bit above the average retail store business. Second, Wal-Mart provides other benefits besides basic wage, such as stock purchase plan, profit incentives and promotion opportunities.

Implementation

It is essential for the management to join in planning at all stages within the organization. The stages of planning that Wal-Mart is constantly participating in are operational, strategies, contingency and tactical. Two techniques that the management must deploy to devise and maintain a healthy organizational culture are to follow the same three primary values and beliefs that Sam Walton started the organization within 1962 and also to keep believing in open interaction. The three primary principles and values -- strive for excellence, regard for people and service to customers forms the basis of Wal-Mart culture. These values and principles are what make the organization the most admired in the world.

Another area that management can build upon is that of the recent lawsuits that have impacted the organization. By continuing to pay attention to all affiliates problems and voicing those problems to top leadership, this can relieve a lot of the discriminatory problems that many workers experience. It is essential for management to step up and be a voice in each unit of the organization. Allowing the affiliates know that sexual discrimination will not be accepted and that all affiliates will have a reasonable chance at qualified jobs.

VII. Conclusion

The organizational culture is not a static commodity which is introduced and implemented from above. Within the company there is an ongoing meta-discussion among workers, especially management, about enhancing and mastering the information and practices of the culture -- increasing visibility among workers and between workers and clients as a means of monitoring workers' actions. Couched with regards to enhancing performance, competition or rewarding workers identified for innovations -- such as a customer care benefits or through "good job" cards that increase the level of cultural policing. The information is always being modified, edited, enhanced, and reworked in a process seen to improve its effectiveness. Even store managers are not immune, but "imprisoned" by a culture that subjects them to both the expectations of company heads and subordinates. Because of its discursive focus on egalitarianism among co-workers, the culture puts managers in a noticeable place as role models at the top. It makes for them a place as "cadres" of the business culture who must reflect its content. Failure to achieve this makes them susceptible to critique by subordinates or clients. In this way, the culture functions as a monitoring mechanism for the structural power they have as the supervisors in the official organizational structure.