Preview

Wal-Mart and Human Resource Management

Powerful Essays
Open Document
Open Document
2762 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Wal-Mart and Human Resource Management
Human Resources and Wal-mart

Penicia Rooks

MGT490 Strategic Human Resources Planning

Instructor Stepheny Finnie

February 6th, 2012

Human Resources and Wal-mart

Wal-mart is the number one retail store in the U.S. and was founded by Sam Walton in 1962. Wal-mart has expanded to include the U.S., Mexico, Puerto Rico, Canada, Argentina, Brazil, China, and various other places. In 1988, Wal-mart developed the Supercenter concept to meet the growing demand for one stop family shopping. Supercenters combine grocery and general merchandise all under one roof. Their purpose is saving people money to help them live better (Wal-Mart, n.d). Even their success Wal-mart has still had many lawsuits for violating labor laws and discrimination.

In 2000, an internal audit was performed and it revealed that employees were not taking breaks that were required under policy of the company and state laws. Wal-mart ignored this audit and faced more than seventy lawsuits across the country that accused them of not allowing rest/meal breaks to their employees and for forcing them to work off the clock without getting paid (Friedman, 2008). Before the internal audit they had received complaints from employees and knew some managers’ had concerns that employees were not receiving required breaks. Many of the stores were understaffed so the employees were made to work through breaks to complete work tasks. Wal-mart denied all allegations of wrongdoing (Friedman, 2008).

These labor law violation lawsuits made it look like Wal-mart did not value their employees and as long as the work was getting done it did not matter if laws or employee rights were violated. Wal-marts spokeswoman Daphne Moore stated that “"Our policy is to pay every associate for every hour worked and to make rest and meal breaks available for our associates and any manager who violates either of these policies is subject to discipline - up to and including termination" (Friedman, 2008



References: Adam, (August 16, 2009). SWOT OR TOWS Analysis (TOWS Matrix). Retrieved January 16th, 2012 from http://www.mba-tutorials.com/strategy/96-swot-or-tows-analysis-tows-matrix.html David, P. (2007). Surge in wage suits has courts on overtime. Minneapolis: Star Tribune. Retrieved January 13th, 2012 from http://www.startribune.com/business/11244976.html Friedman, M., (July 28th, 2008). Wal-Mart’s Own Audit Documented Constant Violation of Labor Laws. Retrieved Jan7th, 2012 from http://reclaimdemocracy.org/walmart/2008/internal_audit_proved_violations.php Greenhouse, S., (July, 2nd, 2008) Wal-Mart Faces Fine in Minnesota Suit Involving Work Breaks. Retrieved Jan 7th, 2012 from http://www.nytimes.com/2008/07/02/business/02walmart.html?oref=slogin Holbeche, L., (2009) Aligning Human Resources and Business Strategy (2nd. Ed.) Ivancevich, J.M., (2010) Human Resource Management (11th Ed.) Kotler, P., Armstrong, G., (2008). Principles of Marketing (12th Ed.) Pearson Prentice Hall. Upper Saddle River, New Jersey SHRM. (2006, December 1). Training cost per employee. Retrieved January 13th, 2012 from http://www.shrm.org/Research/Articles/Articles/Pages/MetricoftheMonthTrainingCostPerEmployee.aspx Wal-Mart. (Nov, 13, 2008). Wal-Mart Reports Third Quarter Fiscal 2009 Earnings. Retrieved Jan. 13th, 2012 from walmartstores.com/download/3364.pdf Wood, L., (April 18, 2008). Research and Markets: Evaluate the Strengths, Weaknesses, Opportunities, and Threats of Wal-Mart Stores Inc. Retrieved from Westlaw on January 15th, 2012

You May Also Find These Documents Helpful

  • Good Essays

    In “Up Against Wal-Mart” by Karen Olsson, she finds the truth about how Wal-Mart treats its customers and more importantly how the million dollar company treats its employees. In this essay, Olsson strongly believes that Wal-Mart keeps its stores understaffed and their employees overworked and underpaid, with minimal options for reasonable benefits.…

    • 603 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The article “Up Against Wal-Mart” by Karen Olsson is the detailed explanation of how Wal-Mart treats their customers and more importantly how the million dollar company treats their employees. Olson kicks off the article by telling a story about Jennifer McLaughlin, who is a twenty-two year old Wal-Mart employee. She goes on to explain the daily work tasks that she completes. She complains how Wal-Mart runs their business, and also how terrible the company treats her as an employee. Jennifer is forced to work over time, is underpaid and also treated unfairly. Employees say that they cannot say no after being asked to work off the clock. The workers at Wal-Mart also started to try to create a union which highly concerned Wal-Mart. A union at Wal-Mart was never formed due to the company’s anti-union group that was started and created by Wal-Mart. In ten separate cases, Nation Labor Relations Board has ruled that Wal-Mart repeatedly broke the law by interrogation of workers, confiscating union literature, and firing union supporters (Olsson). The issue of creating a union was not the only concern of the Wal-Mart workers. They also were concerned with how they would pay for health insurance. In Jennifer’s case, for her to have Wal-Mart covered health insurance it would cost her a $85 dollar chunk out of her pay check. The work force does not understand how a company that is account for 2 percent of America’s domestic product and has had 200 billion dollars in sales cannot give their hard working employees good health insurance. This article does make Wal-Mart sound like the bad guy, but I do not think that is completely true. Wal-Mart is running a business, and sometimes running a business means cutting resources.…

    • 1287 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    According to “The Mounting Guerilla War against the Reign of Walmart” by John Logan and “Labor Takes Aim at Walmart – Again” by Spencer Woodman labor at Walmart is awful, employees in warehouses are working in bad working conditions and workers in the retail stores are not earning the wages they deserve. Woodman’s article talks about the different ways that Walmart workers are treated. The workers affected are not just associates in the stores but the ones who are working in the warehouses that Walmart contracts. This article also talks about the different organization out there that are trying to help the employees. For example, Untied Food and Commercial Workers (UFCW) was trying to help by organizing Walmart when it came to labor laws. There is also a group among the different Walmart’s called OUR Walmart, which is a way of employees to have their voice heard for only five dollars a month. The article also talks about a few different strikes that happen at a few different Walmart’s, and the strikes are generally over working conditions and wages.…

    • 622 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Wal-Mart Stores, Inc. is a discount variety business that began small and has grown into a worldwide multibillion dollar industry within the forty eight years of operation. Providing a brief history, analyzing the financial statements, performing an industrial comparison and trend analysis, this paper will evaluate the financial health of this corporation. (Walmart Corporate, 2010).…

    • 1737 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Labouring the Walmart Way

    • 326 Words
    • 2 Pages

    2 One of the most frequent complaints about Walmart, which employs 1.4 million people worldwide, is its failure to pay workers a living wage. Store employees are paid 20-30 percent less than the industry average, making many of them eligible for social assistance. It is estimated that American taxpayers fork out $2.5 billion a year in welfare payments to Walmart employees (Head, 2004). Because the retailer hires hard-to-place workers, like recent immigrants, seniors, and single mothers, its employees are often afraid they will not find work elsewhere. The kind of work Walmart does offer is gruelling: stores are intentionally understaffed-the strategy behind the company's legendary productivity gains-so that existing employees will work harder (Head, 2004). It is alleged that systemic discrimination against women within the corporation has denied the majority of Walmart workers the chance at promotion, a charge that is now the subject of the largest civil-rights suit in U.S.…

    • 326 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Ethic violations includes bribes, theft, personal conduct violations, and falsification of company assets, system hacking, or global trading malpractices. While Founder Sam Walton had a vision of employees of excellence. In the past 20 years Walmart’s ethics regarding employees has been questionable in the eyes of today’s workforce. It is evident by visiting several Walmart stores that customer service, excellence and engagement of Walmart employees is often inconsistent among locations and the individual leaders or Store Managers of each locations. It is not uncommon that the customer experience varies greatly from one Walmart location to the next. Walmart has long been criticized for low employee wages, unethical employment practices, which has resulted in thousands of employee related lawsuits. In a move to improve company image, culture and ethics, Walmart introduce new opportunities to employees, which included higher wages, flexible schedules, advancement opportunities, benefits and investment opportunities. Walmart also prides itself with by offering advancement opportunities for those stakeholders who practice dedication and commitment to the company. While these efforts appear to be long overdue by Walmart. Employers across the country are watching and measuring results as workforce challenges continue to plague industries throughout the…

    • 680 Words
    • 3 Pages
    Good Essays
  • Good Essays

    “The impact of Wal-Mart on the local economy” is an article based in a film released in 2005 called Wal-Mart: The High Cost of Low Prices. This article summarizes how Wal-Mart poor employment practices affect the local economy many ways in the United States with a great amount of controversy. According to statistics a typical Wal-Mart store hires anywhere from 150 to 350 new people but is estimated that more than half of Wal-Mart’s employees leave the company each year. One of the positive impacts of Wal-Mart is that it creates jobs but the quality of these jobs causes a big controversy. “An Article published in the New York Times by Steven Greenhouse states that that an internal audit of Wal-Mart in 2000 of 25,000 employees during a time period of one week found 60,767 missed breaks, 15,705 lost meal times, and 1,371 instances of minors working too late, too many hours in a day, or during the school day. Wal-Mart has undoubtedly created jobs, but the quality of the jobs has been reason for question”…

    • 747 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Walmart Business Ethics

    • 2244 Words
    • 9 Pages

    The complaint comes that Wal-Mart practices underpaying employees, but making them work even when they are clocked off. One of the employees says that she had to stay after work to…

    • 2244 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    The Title VII lawsuit by the Equal Employment Opportunity Commission (EEOC) was a justified result of sexual harassment and mismanagement by Wal-Mart. Wal-Mart could have taken several steps within Human Resource (HR) policy to help deal with this incident, prevent further incidents, and ensure the defendant was properly employed in a safe environment [ (EEOC v. Wal-Mart Stores, Inc., 2003) ].…

    • 1576 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The issues in this case revolve around social responsibility. Although the company’s initial ideals were based on providing a better alternative to price-fixing local businesses, Wal-Mart has taken the right to choose away from the consumer. Wal-Mart provides a very desirable situation for the consumer that is looking for the lowest prices. But for the employees of the company, which may have no other option but to be employed there, they are not receiving the same consideration. The reduced wages and lack of competitive benefits is a sign of negligence on social responsibility. Wal-Mart also has the power to strip a community of its independence and character. Not only do they strip the community of the businesses that have shaped the community for many years, they create structures that tower over the unique architecture of the community by erecting unsightly and value lowering structures. Can you imagine how hard it is to sell a house that is next door to a Wal-Mart? Wal-Mart attempts to tap into any market that is lacking one of their stores. Establishing stores in communities that lack the infrastructure, building in elite communities, and creating a need where the need is not desired are all examples of Wal-Mart’s socially irresponsible…

    • 1532 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    In California Wal-Mart would contract with temporary job agencies to fill jobs working in warehouses. These workers can be exposed to toxic chemicals and extreme heat conditions. They are also sometimes not given the wages that they were promised. Because Wal-Mart uses third party companies to supply the labor they have in the part denied any wrong doing in the situation. Of course in this case…

    • 1314 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Labor Laws and Unions

    • 778 Words
    • 4 Pages

    Walmart could encounter numerous legal issues and obstacles because of their status as non-unionized. In recent years, Walmart has been the target of hundreds of lawsuits by employees in dozens of states (Cascio, 2010). These employees are claiming that Walmart violated wage and hour laws…

    • 778 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Low Wage Work in America

    • 1031 Words
    • 5 Pages

    As well known to all Americans Wal-Mart pays low wages. They often hire people for 30 hours a week rather than 40 hours a week and provide minimal health care benefits. For the past few years, issues concerning the company have become important as well and have begun dominating the news. In particular, Wal-Mart treatment of its employees has raised many issues in public and business discussions. Wal-Mart refers to its employees as associates a term intended to bestow a more lofty status than the term employees. Many different employee-related issues with respect to Wal-Mart have been the focus of much news coverage, the company has been accused of hiring too man part-time workers; offering jobs that are actually dead-end jobs; paying low wages and poor benefits; forcing workers to work off the clock, that is to work overtime without overtime pay; and taking advantage of illegal immigrants. There are also issues with regards to gender discrimination against women, who occupy most jobs at the company. Coupled with these allegations of employee mistreatment, the company which currently is not unionised has fought unions and unionization everywhere it locates.…

    • 1031 Words
    • 5 Pages
    Good Essays
  • Best Essays

    Vrba, Sarah. “Walmart Accused of Illegally Firing Union Players.” Care2. 27 July 2012. Web. 4…

    • 2821 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Worker Compensation

    • 6750 Words
    • 27 Pages

    “Over the last seven years, Wal-Mart has “repeatedly and unreasonably” delayed giving injured workers the benefits they were owed under workers’ compensation laws, and, in some cases, WalMart employees were not allowed to file workers’ comp claims at all.”1 — Order issued by the Washington Department of Labor and Industries Our modern system of workers’ compensation laws is a result of the rapid industrial growth taking place within the United States during the 9th and early 20th centuries. With the industrial boom came a corresponding increase in work-related accidents; during that time, the only recourse for a worker seeking compensation for an on-the-job injury was to sue their employer for negligence. In the early 20th century, a gradual increase in state legislation geared towards compensating injured workers appeared.2 Wisconsin enacted the first workers’ compensation law in 9, and by 920 there were just eight states that had yet to enact similar statutes.3 These laws were supposed to benefit both workers and employers by allowing workers to receive prompt payment for work-related injuries, and by insulating employers from paying for pain and suffering or facing punitive damages.4 By 949, all states had adopted a workers’ compensation system of some sort.5 While there are federal workers’ compensation statutes covering longshoreman and harbor workers for example, for the most part workers’ compensation regulations are the jurisdiction of individual states.6 Workers’ compensation laws share many similarities, but important differences exist as well. In five states, the state is the sole provider of workers’ compensation insurance, while in 4 states, state funds compete with private insurers, giving the employer the option to use either.7 Over the years, the…

    • 6750 Words
    • 27 Pages
    Powerful Essays