Introduction
Walmart Inc. is one of the world’s largest and most successful retailers. It has a global presence spanning over 24 countries with more than 10,500 stores (Batista, 2021). Human resource management is an essential factor that Walmart pays close attention to, as they strive to ensure their employees are provided with favorable working conditions that promote productivity and help achieve company goals. To establish a better HR management system, Walmart Inc. should develop creative strategies and solutions, including adopting cutting-edge technologies, better job design, superior employee training programs, and increased employee engagement.
Organizational Strategies of Walmart Inc.
Walmart’s low-cost strategy has been one of the key factors contributing to the company’s success. By leveraging economies of scale, Walmart can take full advantage of its size and buying power, negotiating favorable prices with suppliers on bulk orders. Furthermore, Walmart has fine-tuned its supply chain management over the years to ensure that it can deliver goods efficiently while keeping operating costs down. Additionally, through careful human resource management, Walmart has maintained labor costs at a minimum while maximizing productivity and efficiency (Bahramimianrood & Bathaei, 2021). All of these measures combined have enabled Walmart to offer an unparalleled value proposition to customers, offering items at the lowest possible prices without sacrificing quality. This competitive edge has been a significant driver in Walmart’s sustained growth over the past years and will continue for many more.
Efficient human resource management is another critical component of Walmart’s low-cost strategy. The company has made great strides in reducing labor costs by employing part-time and seasonal workers and investing heavily in employee training and development programs. To ensure it is making the most out of its HR practices, Walmart utilizes data analytics to identify where the turnover rate could be reduced and how employee engagement can be improved (Kale et al., 2022). In particular, Walmart focuses on providing employees with comprehensive training sessions, which helps them become more knowledgeable about their job and allows them to gain valuable knowledge for their future career paths. Additionally, Walmart frequently evaluates its HR performance metrics, such as productivity and absenteeism, to determine if any changes need to be made (Kale et al., 2022). Furthermore, Walmart has implemented an effective rewards system to encourage good performance from its employees by offering bonuses and promotions. Overall, this combination of cost-cutting measures with smart investments in its employees helps Walmart remain a low-cost leader in the retail industry.
In addition to its low-cost strategy, Walmart has also adopted a differentiation strategy, which aims to provide a unique value proposition to its customers. This ranges from groceries, pharmacy, and financial services, all available in one place (Liu et al., 2020). This strategy saves customers time and money as they can do all their shopping in one trip. Walmart has also invested heavily in its e-commerce platform, which allows customers to shop online without leaving their homes. Its online presence offers customers an easy-to-use platform where they can easily browse items and make purchases with secure payment processing systems while enjoying the same low prices that Walmart is known for providing (Liu et al., 2020). Furthermore, Walmart’s online presence gives customers special offers, discounts, and other incentives such as free delivery and cashback rewards. By leveraging technology and offering unique value propositions, Walmart can build customer brand loyalty.
Walmart’s focus on sustainability and corporate social responsibility is another critical component of its strategy. Walmart has concerted efforts to become a leader in sustainability and corporate social responsibility. To that end, the company has established ambitious objectives to reduce its environmental impact, such as investing in renewable energy sources to achieve 100% renewable electricity by 2035 and relying on zero-waste operations by 2025 (Matta, 2022). Walmart’s efforts to make sustainability and corporate social responsibility central to its overall business strategy have yielded dividends. The company’s commitment to green initiatives has improved public perception of the brand, resulting in increased customer loyalty and trust. This is particularly evidenced by a survey conducted by the Harvard Business Review, which found that over 70% of customers believe that corporate social responsibility affects their purchasing decisions, with an even higher percentage among millennials (Zhang & Ahmad, 2021). Moreover, Walmart’s sustainability initiatives have helped them reduce operational costs, improve their supply chain efficiency, and increase profits over time.
Evaluation of Organizational Strategies
Walmart’s low-cost strategy has been instrumental in allowing the company to maintain its position as a market leader and provide customers with goods and services at lower prices than its competitors. This success is due to Walmart’s ability to manage costs carefully through various measures, including economies of scale, efficient supply chain management, and effective human resource management. By leveraging economies of scale, the company can purchase goods in bulk from vendors at discounted prices, thus helping to reduce overall costs (Snell & Morris, 2022). Walmart has invested heavily in developing an efficient supply chain network to deliver products quickly and efficiently. This enables the company to keep its costs low without sacrificing delivery times or quality of service. Furthermore, Walmart’s focus on efficient human resource management has allowed the company to hire and retain qualified employees while providing competitive wages and benefits packages. It helps ensure that goods are delivered promptly while keeping labor costs down.
Walmart’s differentiation strategy has also successfully provided a unique value proposition to its customers. The company has developed an extensive collection of products, services, and solutions, from grocery items to pharmacy and financial services (Walmart, 2022). Through this variety of offerings, Walmart is uniquely positioned to provide customers with convenience, options, and choices regarding their shopping needs. Additionally, the company has invested significantly in its digital infrastructure, allowing for a user-friendly virtual shopping platform that rivals traditional brick-and-mortar locations. With intelligent search capability for specific product categories, personalized product recommendations based on customer preferences, and contactless delivery or pick-up options, Walmart provides shoppers with a comprehensive and streamlined shopping experience. Furthermore, Walmart continues to stand out among its competitors with its competitive prices, loyalty programs, and rewards like free shipping on specific orders and discounts on select products within certain price brackets.
Walmart’s focus on sustainability and corporate social responsibility has also successfully enhanced the company’s reputation and attracted customers concerned about the environment and social issues. Walmart has already made significant strides in reducing its greenhouse gas emissions and promoting more sustainable practices in the agricultural industry. To further reduce its environmental impact, Walmart has implemented several programs, such as water conservation initiatives and sustainable packaging solutions. In addition to its environmental goals, Walmart also focuses on corporate social responsibility initiatives aimed at helping communities worldwide, including providing disaster relief aid, creating economic opportunities for families living in poverty, supporting small businesses, and investing in local causes. By integrating these sustainability and corporate social responsibility efforts into its business model, Walmart has attracted customers concerned about the environment and social issues while enhancing its public reputation as a responsible business.
However, some concerns exist about Walmart’s human resource management practices, particularly regarding low-paid employees. Walmart has been repeatedly accused of treating their low-paid employees poorly and discriminating against them (Alimahomed-Wilson & Reece, 2021). For example, in 2020, Walmart workers in California filed a lawsuit alleging that the company had failed to provide them with proper wages and benefits, including breaks and overtime pay (Deutsch et al., 2020). Additionally, Walmart has been subject to numerous lawsuits over the years due to its alleged discrimination against disabled workers and its practice of requiring minors to work too many hours without proper compensation or legal protections. In 2018, the United States Supreme Court ruled that the Equal Employment Opportunity Commission had grounds to charge Walmart for violating Title VII of the Civil Rights Act for discriminating against disabled individuals (Berning-O’Neill, 2022). These occurrences demonstrate how Walmart’s human resource management practices have often fallen short when protecting the rights of its lowest-paid employees.
Generally, Walmart’s HR strategies demonstrate a clear commitment to providing quality employment opportunities for all individuals while fostering an engaging working environment where everyone can thrive. However, the company is yet to exhaust its potential and solidify its competitive edge. Consequently, there is a need for the company to adjust and adopt new strategies so that the work environment optimally functions, strengthening its market control.
Recommendations for Organizational Strategies
To address the concerns about its human resource management practices, Walmart should review its policies and procedures to ensure they are ethical, transparent, and compliant with legal obligations. The company should also assess whether its HR practices align with its commitment to sustainability and corporate social responsibility (Nankervis et al., 2022). This would involve utilizing organizational planning tools such as a SWOT analysis to identify potential areas of improvement. Additionally, Walmart should conduct employee surveys or focus groups to gain insights into how effective current HR policies and processes are in creating an equitable workplace environment. It is essential to provide employees with the necessary resources, such as training, development opportunities, and support for career growth. Furthermore, Walmart should have clear guidelines for proper recruitment procedures so that all job candidates receive equal consideration. Additionally, labor laws must be respected, and compensation packages must recognize individuals’ contributions and provide benefits commensurate with performance. Lastly, Walmart should ensure that their employees are treated fairly and that their rights are respected, including giving appropriate grievance mechanisms and avenues of recourse when issues arise.
Walmart should also invest in creating a high-performance work system, which involves designing processes and structures conducive to creating an environment of employee engagement and motivation. This involves developing processes that make it easier for employees to contribute their best ideas and efforts toward the company’s success. This system makes workers more likely to be satisfied with their jobs, resulting in lower turnover rates and better performance outcomes. Additionally, research has shown that when high-performance work systems are implemented, there is an increase in productivity levels since employees feel supported and valued by their employers (Nankervis et al., 2022). Additionally, it can lead to improved communication between workers and management and a higher level of collaboration across teams and departments. With these benefits, Walmart can create a culture of trust within its organization, resulting in even higher outputs from its staff members due to increased loyalty and commitment.
To further bolster the effects of this system, Walmart should also consider investing in employee training and development initiatives. This initiative equips employees with the skills they need to tackle specific tasks with greater efficiency and effectiveness and provides them with opportunities for growth within the organization (Snell & Morris, 2022). Furthermore, these programs can create a sense of loyalty among employees that will further drive engagement and performance outcomes. Finally, ongoing investment into these systems will provide long-term benefits as they will continuously empower employees’ relationships with the company while simultaneously driving results.
Additionally, Walmart should consider adopting a talent management strategy, which involves identifying and developing employees with high potential. Attracting and retaining such individuals can provide an influx of new ideas, skills, and knowledge that can motivate existing team members and spark innovative solutions. With data analytics, Walmart can better evaluate its current workforce to assess its existing capabilities and determine which areas would benefit from additional training or development opportunities (Snell & Morris, 2022). Furthermore, data analytics can help Walmart make more informed decisions about which employees are best suited to fill specific organizational roles. This process would involve assessing individual skillsets and aptitudes to build teams with complementary talents and skill sets. Through this approach, Walmart can set up a talent management system that helps facilitate growth and development for existing personnel and incoming staff.
Walmart should consider providing its employees with attractive compensation packages that are competitive and comprehensive. These packages should include competitive salaries based on the median wage of the industry, along with benefits such as healthcare plans, retirement plans, and even perks such as employee discounts or free meals. Offering employees a comprehensive compensation package tailored to their specific needs will show them that Walmart values their contributions and encourages them to stay on board for a more extended period (Snell & Morris, 2022). It can also incentivize high-potential personnel to remain engaged in the company by motivating them to continue contributing and performing up to standards. Offering attractive compensation packages can also help with employee retention, as employees feel secure knowing their work is acknowledged and rewarded with appropriate financial recognition (Snell & Morris, 2022). This helps keep current employees happy and can serve as a valuable recruitment tool when looking for new talent.
Furthermore, Walmart could use modern technologies such as artificial intelligence and machine learning to automate HR processes such as performance reviews and recruitment campaigns. AI technology can help Walmart quickly identify potential employees and match them with suitable job openings by analyzing vast amounts of data from their profiles, productivity metrics, and job requirements. AI-powered recruitment applications can save time manually sifting through hundreds of resumes (Snell & Morris, 2022). In addition, AI can help streamline performance review processes, ensuring that all employee appraisals are fair and consistent across the board. Machine Learning algorithms can also be used to mine valuable insights from employee data, allowing Walmart to gain a deeper understanding of the needs of its staff members and make decisions that best reflect those needs. This could ultimately increase employee morale since they would feel valued and appreciated by their employer.
In addition to the recommendations, other new strategies that would benefit Walmart are Employer Branding and employee engagement. Walmart could focus on building a strong employer brand that attracts top talent and enhances its reputation as a great workplace. This could involve highlighting the company’s commitment to sustainability, its efforts to provide a positive work environment, and opportunities for career advancement and professional development (Snell & Morris, 2022). Walmart could focus on increasing employee engagement by providing opportunities to share their ideas and feedback, recognize their contributions, and build a sense of community and purpose in the workplace (Nankervis et al., 2022). This could involve implementing employee feedback programs, creating employee resource groups, and investing in team-building and leadership development programs.
Walmart also could prioritize creating a more diverse, equitable, and inclusive workplace by setting measurable DEI goals. These goals should focus on creating a more racially, ethnically, culturally, and gender-diverse workforce. Walmart could commit to making specific organizational changes, such as establishing an executive sponsor for DEI initiatives, creating a diversity council comprising members from all levels, and gathering data to measure progress against set goals (Snell & Morris, 2022). Additionally, Walmart should provide unconscious bias training for managers and employees to foster greater understanding between different backgrounds in the workplace. Moreover, Walmart should support underrepresented groups through initiatives such as developing mentoring programs for those from underrepresented backgrounds, offering career development opportunities specifically for these groups, recruiting from minority-owned businesses or organizations representing diverse communities, and providing special recognition awards for employees who have made significant contributions towards promoting diversity (Snell & Morris, 2022). Finally, Walmart should have an open dialogue with its employees about issues related to DEI and create a safe environment where everyone can share their opinions freely without fear of judgment or retribution.
Walmart could invest in programs and policies prioritizing employee wellbeing and work-life balance. It could include schedules and telecommuting options that allow employees to manage better. Walmart could also provide benefits such as childcare assistance or elder care support, which would minimize the financial burden of dependents while allowing employees more time to focus on responsibilities inside and outside the workplace. Additionally, Walmart could explore ways to reduce stress levels among its employees by providing resources such as mental health support, meditation classes, or access to a subsidized gym membership. Such investments in employee wellbeing demonstrate a commitment to their wellbeing, which can result in greater job satisfaction and improved productivity.
Conclusion
In conclusion, Walmart’s organizational strategies have been highly effective in allowing the retailer to offer customers lower prices and an unparalleled value proposition. Its low-cost model has enabled it to become one of the world’s largest and most profitable companies. However, despite its success, there remain criticisms of how Walmart treats its employees, particularly those at the bottom of the wage scale. To address these issues, Walmart must review its policies and practices to ensure they align with modern labor standards. Additionally, by investing in employee training and development opportunities, Walmart can help them grow professionally while increasing customer satisfaction. Such measures would also go a long way toward showing that Walmart is committed to treating all its employees with respect and dignity.
References
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