Final Paper
As the global marketplace becomes increasingly more competitive, it is incumbent upon human resources to broaden its strategic mission and become a strategic partner with executive staff. This requires human resources to have a detailed understanding of not only the human resources field, but the strengths and challenges of its organization, and the complexities of its industry. Through these units of knowledge, human resources can maximize its value by providing competent advice and counsel to its organization as it strives to achieve its strategic objectives.
Focus of the Final Paper
In your final project, you are to choose a major problem/issue affecting an organization of your choice, and then utilize your detailed knowledge of human resources and strategic planning to develop a comprehensive plan that minimizes, and hopefully eliminates, this threat to your chosen organization’s ability to meet its long-range organizational goals and objectives. The components of this comprehensive project are as follows:
Part 1 – Overview of Organization/Problem: In a 2–3-page paper, provide an overview of the organization and the problem/issue that challenges that organization. Next, detail how the problem/issue affects (or can affect) the future viability of the organization. Finally, discuss the principal role of human resources in an organization and how human resources can provide critical advice and counsel to the organization in addressing this challenge.
Part 2 – Environment Analysis: Optimal solutions are determined when a researcher has a thorough understanding of a company and its industry, along with the strengths and weaknesses that impact its future viability. In the second part of your plan, perform a SWOT Analysis (Strengths, Weaknesses, Opportunity, and Threats) on your chosen organization and provide an analysis of these results in light of the problem or issue under study. Be attentive to identifying how the problem or issue impacts the organization and its competitive position within the industry. The paper should be 2-3 pages.
Part 3 – Financial Analysis: Nearly every problem or issue confronting an organization has a financial or budgetary impact. For instance, staff turnover has not only a direct cost on recruitment expenses, training costs, and productivity, but also an indirect cost related to the loss of organizational learning. In Part 3, detail the financial implications to the organization related to your problem or issue, including the additional costs that may arise if the problem or issue is not resolved effectively. The paper should be 1-2 pages.
Part 4 – Recommendations: The final part of your comprehensive project incorporates your recommendations. Based on your work in Parts 1, 2, and 3, provide 2-3 recommendations to organizational leadership that would resolve the problem/issue in question. Be sure to detail any challenges the organization should consider in implementing your recommendations (culture, motivation, etc.) and your strategy to overcome these challenges. The recommendations section should be 2-3 pages.
Executive Summary
Walmart, a prominent retail chain, is struggling in implementing the best human resource policies. The employee turnover has increased in this retail organization due to poor employee policy and traditional approaches to dealing with employees. After introducing the company and problem, it has been revealed that the future viability of the company is at a big risk. The future viability regarding productivity, growth, and the sustainable competitive advantage is not up to the mark, and immediately, there is a need to revisit the human resource process and shape better strategies. Top recommendations to overcome this problem are best HR practices, offering competitive benefits, and creating employee-management relations. Along with these approaches, the management has to face many challenges like employee resistance, motivation and culture and tough targets to meet. In the competitive market, Walmart has to contain perfect internal business intelligence when implementing these recommendations. Improvising in the implementation process is required to gain success. Walmart, being a top retail chain, is looking to take responsibility for employees by eliminating the employee turnover, which has occurred due to the impaired HR process. Penalizing and punishing employees for taking sick leave is a prominent example.
Introduction
Human resource management is a key process for an organization, especially when competing in the competitive market. Global firms intend to create a strong employee force that can meet organizational goals and objectives. Despite implementing key principles of human resource management, the company may face different issues or challenges. To gain and sustain success along with business sustainability, the most important thing for the company is to overcome these issues or challenges. The management of the company wants to eliminate all prominent threats to meet long-term objectives in the competitive industry.
Thesis Statement
“The human resource management of Walmart Company needs to change the human resource policy for the betterment of employees to increase the employee retention and reduce the employee turnover.”
Part 1: Overview of Walmart Problem
Overview of Walmart
Walmartis a prominent retail corporation of the United States of America. This firm was founded in 1962 by Sam Walton. The main products of the company are Clothing, Electronics, Footwear, Movies and music Home, Home improvement, furniture, Jewelry, Health and beauty, Toys, Sporting goods and fitness, Pet supplies, Auto, Craft supplies, Party supplies, Photofinishing, and Grocery. The company operates worldwide. The revenue of the company, according to 2018 reports, is $500.34 billion. This firm deals with 2.3 million people around the globe.
Overview of the Problem (Employee turnover due to the poor employee or HR policy)
Despite providing immense employee benefits, this company is still struggling to gain employee satisfaction. Walmart managers usually contain conflicts with employees, as they are penalized for taking sick leave. People working in the company are filing lawsuits against this retail giant. The management is punishing people who are willing to take benefits of family and medical leave act. Based on the survey of 1000 employees, it has been revealed that the company refused medical reports and doctor notes (Abrams, 2017). It is a violation of the Americans with disabilities act (ADA) and family and medical leave act (FMLA). For Instance, discrimination against pregnant women in this company is in the limelight, and it is increasing the employee turnover as well. Especially for women in Walmart, the sick leave policy is terrible, as the company consistently punishes women for taking sick leaves. They often miss scheduled shifts due to illness, and they have to face immense resistances, termination and salary cuts. On the other hand, the top management still claims that the company depicts care for its employees. It may be a communication gap or poor implementation of the employee or HR policy, which is decreasing the employee efficiency, retention, motivation, and satisfaction (Lamarque, 2017).
Impact on Future Viability of Walmart
The impact on the future possibility of the organization is negative. It creates the perception that the company is not good for workers, especially for women workers. The poor employee policy of the company may decrease the best talent and willingness of people to work in the organization. It creates the biggest hurdle in the growth process of the company. The future viability of the organization depends on the employee motivation, efficiency, and productivity. Through punishing or penalizing sick leave, the company cannot meet these objectives. Comparatively, other competitors such as Amazon, Target, and many others are demonstrating future viability due to better employee policy. In an organization, employees are the business resources, and through managing them, the difference can be made in the workplace (Arokiasamy, 2013).
Principle Role of Human Resources in Walmart
The principal role of human resources in the company is strategically managing people. Concerning this issue or problem, the principle of human resources is coordinating the employee benefit and suggesting the training and development process. For Instance, through coordinating employee benefits, the company can manage the workspace and provide paid leave. On the other hand, training and development of employees can increase the assertiveness of employees to work in the company and avoid false medical and doctor reports. Employee benefit and training shape the behavior of employees. Working ethically and getting rights from the company are two main benefits for both, employee and the organization.
HR’s Critical Advice and Counsel to Walmart
Human resources can give significant suggestions and directions to the organization. In terms of this particular issue, the principal role of human resources in an organization has been elaborated. Human resource managers can identify this issue in different departments and provide critical advice and counsel to the organization. Human resource management can maintain the record of employees. The human resource can differentiate sick leaves and normal leaves. Through integra7ng with different lawsuits and other employee complaints, critical advice can be provided in the form of a better employee policy (Vermeeren, et al., 2014).
Part 2: Environmental Analysis-Walmart
Strengths and Weaknesses Impacting its Future Viability-Walmart
Walmart is a global organization, and it is the biggest strength. The immense range of retail stores in different parts of the world is generating extraordinary revenues for the company. Furthermore, it has been revealed that the company managed to sustain the brand image in the competitive retail market, and of course, it has created a positive impact on future growth. Due to the high brand image and financial capability, successful business expansion can be depicted.
Relative to weakness, despite containing the high revenues, profit margins are less than expectations. There are many brands of Walmart Company, which are weaker than other retail giants in the industry. Due to weak human resource records, it seems tough for the company to manage people effectively. In the future, the company may face different issues regarding employee sustainability.
SWOT Analysis of Walmart
· Strengths of Walmart
The most prominent strength of the company is its sharp growth in recent years. Strong information technology infrastructure, brand image, high reputation, strong financial position, and large customer base are some prominent strengths of the company in the competitive retail industry.
· Weakness of Walmart
The biggest weakness of this retail company is weak human resource policies. Furthermore, employees lack efficiency and retention in the company, which is increasing the cost of hiring or recruitment process.
· Opportunity for Walmart
Expansion in Asian countries is not up to the mark as compared to other companies. Thus, it is a great opportunity for this company to expand the business, especially in Asian countries. The strategic alliance with the local brand is also a big opportunity, which can be utilized effectively.
· Threats for Walmart
In today’s business, employees want a livable salary and work-life balance. Penalizing or punishing the employee for taking sick leave can make the whole company worse for work and it is the biggest threat in the competitive industry. Lacking long-term employee growth, IT infrastructure, and new retail arrivals are big threats to this company.
Result Analysis in Light of Problem
Thus, the main issue that has been derived from the SWOT analysis can be analyzed. The main issue is the poor employee policy, and employee growth is comparatively low due to controversial employee benefits. For instance, if the company aims to expand in Asian countries, it has to implement the local law regarding the medical and family activities to make a good reputation. It seems the strongest element of the business expansion when integrating with the local employee force. The company has sustained a brand image and reputation due to sales and a better distribution system. Regarding employee growth and future viability, the company is far behind. Penalizing or punishing is not a solution to shape the behavior of the employee in this modern business era, it has increased the employee turnover, as they are looking to work for the organization that is triggered by the attractive and workable employee benefits and human resource policy. Thus, strategically, the human resource or employee policy is not working well.
Impact on Walmart and Competitive Position
This problem creates an impact on the growth and sustainability of the organization. Employees are not motivated in the workplace. They do not contain creative and innovative ideas in both, production, and sales process. At many stores, employees do not well treat customers due to frustration. Thus, it is to be said that this issue also hits customer and employee relations, which shows a big dent in the future growth of the company. Regarding the competitive position of the company, it looks difficult for this company to gain a sustainable competitive advantage due to the impaired employee process. Comparatively, other companies have a stronger employee force than Walmart that leads towards higher profitability. Of course, in different firms, employee policies and implementation are based on employee needs (Al Mamun & Hasan, 2017).
Part 3: Financial Analysis of Walmart
Staff Turnover in Walmart
The staff turnover has increased due to this problem. For Instance, people who are willing to get paid leaves to increase the employee cost. When dealing with the immense range of employees, the employee turnover can also be increased if the employee policy is controversial.
Direct Cost (Recruitment Expenses, Training costs, and Productivity)
Due to this issue or problem, Walmart has increased the direct cost regarding recruitment expenses, training, and productivity. The employee turnover due to poor employee management relations is quite visible. It increases the recruitment cost, as from job advertisements in the selection process, the company has to bear the cost. Moreover, after recruiting employees, the management has to train new employees to shape their behaviors and take work according to expectation. The skill development in the company is quite costly, and with low-profit margins, the financial capability is at the biggest risk. The productivity in the organization is good so far. However, employee turnover reduces productivity in different regions. As far as the future viability of the company is concerned, the employee turnover, lack of motivation, employee lawsuits, and disrupted productivity are different negative elements. Terminating and hiring employees reduces productivity and increases the overall cost of the whole process (Networld Media, 2018).
Indirect Cost (Loss of Organizational Learning)
The indirect cost for Walmart is the loss of organizational learning. Employees’ turnover is a big barrier for employees, and all key stakeholders of the company learn different things. Comparatively, the tenure of employees in the company, especially in the retail stores, is quite less, and it seems tough to utilize learning opportunities. It is quite tough for the company to evolve with the passage of time. In organizational learning, the role of strategic human resources is vital. However, this retail company has failed to integrate into the strategic human resource effectively to enhance the visibility of organizational learning (Peterson, 2015).
Financial Implications Related to Problem in Walmart
Related to the problem, there are many financial implications. For Instance, due to employee lawsuits against the company, the company has to invest to clear its position on the issue. Also, the financial capability of the company has been reduced, especially in the expansion process. The cost of employee benefits, turnover, recruitments, and lawsuits have restricted the company regarding financial capability (Slavianska, 2012).
Additional Costs if Issue is Not Resolved
If the issue is not resolved, the additional cost, which can occur, is the cost of sales. In different retail stores, the sales force is to be trained by the company to manage the sales process and effectively interact with customers. However, due to employee turnover, the cost of sales has also increased. It can also hit the low-cost strategy of this retain company in the presence of other retail companies.
Part 4: Recommendations for Walmart
The first recommendation to reduce the employee turnover in Walmart is to create or encourage employee benefits. It has been revealed that employee lawsuits against the company depict the frustration of employees. Walmart can create a culture where management and employees may work as a family. For Instance, the emotional intimacy can help in implementing the family and medical leave act. Creating a friendly environment is good to implement the employee policy in an effective manner (Quinn, 2010).
Another recommendation for this company is to offer some competitive employee benefits. For better implementation, this is necessary for the management to enable the work-life balance approach to keep the balance between work and social life. It is necessary for this company to make a policy which can be integrated with the family and medical leave act. Focusing on health insurances and salary is not enough to retain people, as granting paid leave without any resistance is a good approach to make the difference (Staley, 2017).
The third recommendation to reduce the employee turnover is to improve human resource practices. For Instance, the management has to conduct the effective employee reviews. The human resource management should review all applications or employees to get leaves. Based on facts, employee behavior, and work commitment, equal opportunities must be provided for employees. It seems a glimpse of the best HR practice that can reduce the employee turnover and frustration.
Challenges in Implementing Recommendations
The big challenge in the implementation process is the cost. New investments are needed to create good relations with employees. However, there are also some challenges, which are as under along with some insights.
Culture: The current culture of the company may create resistance in the implementation process. However, through some amendments, the company may create a culture which can absorb these changes.
Motivation: Employees’ motivation is a big challenge for the management of the company. Motivation can be derived through competitive benefits, support, and training process. It is tough for the company to combine all these elements and increase employee motivation (Pearson, 2017).
Strategy to Overcome these Challenges
Instead of making drastic changes, the steady process is an effective strategy to make the difference. In the change process, the company has to evolve with time through integrating the needs of employees. It is the best approach to overcome these challenges. Coming up with a clear vision and determination is better for overcoming employee turnover and challenges.
Conclusion
In the end, it is to conclude that Walmart needs some improvisation when implementing different recommendations. The role of human resource management in the whole process is worthy. Penalizing or punishing is a traditional approach to deal with employees. From the perspective of the management, competitive benefits, modern HR practices, and work-life balance are key approaches to make outputs quite predictable.
References
Abrams, R. (2017, June 1). Walmart Is Accused of Punishing Workers for Sick Days. Retrieved from https://www.nytimes.com/2017/06/01/business/walmart-workers-sick-days.html
Al Mamun, C. A., & Hasan, N. (2017). Factors affecting employee turnover and sound retention strategies in business organization: a conceptual view. Problems and Perspectives in Management, 15(1), 63-71.
Arokiasamy, A. R. (2013). A Qualitative Study on Causes and Effects of Employee Turnover in the Private Sector in Malaysia. Middle-East Journal of Scientific Research, 16(11), 1532-1541.
Lamarque, K. (2017, June 3). Walmart uses ‘brutally unfair’ system to punish employees for illnesses ‒ report. Retrieved from https://www.rt.com/usa/390680-walmart-absence-policy-racism/
Networld Media. (2018, December 3). Wal Mart Stores : Escaping the vicious cycle of employee turnover. Retrieved from http://www.4-traders.com/WAL-MART-STORES-4841/news/Wal-Mart-Stores-Escaping-the-vicious-cycle-of-employee-turnover-26151478/
Pearson, B. (2017, January 24). Wal-Mart’s Employment Deployment And 6 Ways To Curb Retail Turnover. Retrieved from https://www.forbes.com/sites/bryanpearson/2017/01/24/wal-marts-employment-deployment-and-6-ways-to-curb-retail-turnover/#4f9be4371008
Peterson, H. (2015, October 23). Walmart, Target, and TJ Maxx are facing a worker crisis. Retrieved from https://www.businessinsider.com/walmart-target-and-tj-maxx-are-facing-a-worker-crisis-2015-10
Quinn, M. (2010, June 30). Wal-Mart Gets Creative on Employee Retention. Retrieved from https://www.inc.com/news/articles/2010/06/wal-mart-worker-retention.html
Slavianska, V. (2012). Measuring the Impact of Human Resource Management Practices on Employee Turnover. Problems of Management in the 21st Century, 4(2012), 63-73.
Staley, O. (2017, October 16). Walmart—yes, Walmart—is making changes that could help solve America’s wealth inequality problem. Retrieved from https://work.qz.com/1094309/walmart-yes-walmart-is-making-changes-that-could-help-reduce-income-inequality-in-america/
Vermeeren, B., Steijn, B., Tummers, L., Lankhaar, M., Poerstamper, R. J., & Beek, S. v. (2014). HRM and its effect on employee, organizational and financial outcomes in health care organizations. Human Resources for Health, 12(36), 1-9.
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