Working Condition of Wal-Mart. Abdul Motaleb
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Strategic Management “Working Condition at Wal-Mart” Case Study on Presented by- Abdul Motaleb Shobuj Roll- 1126 FBA, USTC
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Transcript of Working Condition of Wal-Mart. Abdul Motaleb
Strategic Management
“Working Condition at Wal-Mart”
Case Study on
Presented by-Abdul Motaleb ShobujRoll- 1126FBA, USTC
Company Background In 1950, Sam Walton purchased a
store from Luther E. Harrison in Bentonville, Arkansas, and opened Walton's 5 & 10. Thus, the Ozark Mountain town of 2,900 residents would become the headquarters for the world's largest retailer.
From the case study “Working condition at Wal-Mart” I have identified that the root causes of the problem related to working condition, discrimination and the hiring of illegal immigrants at Wal-Mart. In this working condition Wal-Mart has a strict “no overtime” policy, punishing employees who work more than 40 hours a week, yet the company also gives employees more work than can be completed in a 40-hour week.
o In the case of both undocumented overtime and discrimination, Wal-Mart did not pay female employees the same as their male counterparts and did not provide them with equal opportunities for promotion.
o The company hired hundreds of illegal immigrants at low pay to clean floors at sixty stores around the country. That’s why Wal-Mart also paid an $11 million fine in the early 2000s.
If the problem is going on it would be effect on whole management. In this level corporate level management occupy the apex of decision making within the organization. The role of corporate- level managers is to oversee the development of strategies for the whole organization. This role includes defining the goals of the organization, determining what businesses it should be in, allocating resources among the different businesses, formulating and implementing strategies that span individual businesses, and providing leadership for the entire organization.
The business- level manager is the head of the division. The strategic role
of these managers is to translate the general statements of direction and intent that come from the corporate level into concrete strategies for individual businesses.
Functional- level managers are responsible for the specific business
functions or operations that constitute a company or one of its divisions. Thus, a functional manager’s sphere of responsibility is generally confined to one organizational activity, whereas general managers oversee the operation of a whole company or division. Although they are not responsible for the overall performance of the organization, functional managers nevertheless have a major strategic role.
In future current problem damages whole structure of management (corporate image). Management maybe loses their formulation and implementation strategy. Management faces various problems and employee won’t be under control. Anyone doesn’t maintain chain of command.
There will be some problem that given below:
Productivity will be decrease People can be demotivated from their product Government withdraw their support They will be lose faith to their super shop association Lose their brand goodwill Profit will be decrease Company will be closed.
Over the last decade or so Wal-Mart has become involved in numerous lawsuits for a variety of reasons. The majority of the suits are class action lawsuits in which employees are suing for unpaid wages. They have also run into numerous discrimination cases in which employees are suing for being profiled out of money or out of jobs.Law suits claiming that Wal-Mart pressures hourly employees to work overtime without compensating them; systematically discriminates against women; and knowingly uses contractors who hire undocumented immigrant workers to clean its stores, paying them below minimum wage.
Problems related to poor working conditions started for
pressured hourly employees not to report all their time worked;
failed to keep true time records, sometimes shaving hours from employee logs;
failed to give employees full rest or meal breaks; threatened to fire or demote employees who
would not work off the clock; and Required workers to attend unpaid meetings and
computer training.
They didn’t arise when Wal-Mart was a smaller and faster growing because of their planning problem. When they formulate their planning they can’t think what will be in future. Even implementing strategy started after formulating strategy in the formulation of planning corporate level manager should think and take steps for implementation of planning. They should think what will be in future and which stage they will be. Another problem was that the company made virtue of promoting from within (two-thirds of managers at Wal-Mart started as hourly employees). They didn’t exercise ethic in their strategy. Managers were violated substandard working condition in ethical issue in strategy.
Wal-Mart needs to do to solve and deal with these problems.
Wal-Mart has taken steps to change its employment practices. For example, the company has created a director of diversity, a diversity compliance team, and restructured its pay scales to promote equal pay regardless of gender. Wal-Mart has also taken action to stop employees working overtime without pay. In this case study I found that they take action to stop employees working overtime without pay. For example, it programmed cash registers to shut down after an employee had exceeded a certain number of hours, and has told managers to make sure that employees take lunch and rest breaks.
Frequent focus of advocates for low-wage workers, is giving its lowest-paid workers a raise.
The company said 500,000 full-time and part-time associates, more than a third of its work force at Wal-Mart (WMT) U.S. stores and Sam's Clubs, will receive pay raises in April to at least $9 an hour. That will be $1.75 above the federal minimum wage. By next February 1, their pay will go to at least $10 an hour. The company said workers will also have more control over their schedules, but it declined to give details of those changes. And it said it would invest more in training to give entry-level workers greater chance for promotion and other career advancement. The wage scale and other improvement in work conditions will cost the company about $1 billion in this fiscal year. Wal-Mart's pay and employment policies have been the focus of protest by some workers and outside labor groups seeking to organize Wal-Mart employees.
