Walmart case study Example | Topics and Well Written Essays - 750 words

Walmart - Case Study ExampleThis together with the open door insurance states that management needed to consider the associates views in the decision making process. Walton was against worker unionization and he argues that it would lead to establishment of restrictive work regulations and dramatic reconcile hikes. Furthermore, he came up with the sun down rule which encouraged workers to complete their tasks on time (Hill and Jones, 2009). His policies were based on getting workers to perform to their level outmatch while paying the insufficient salaries. However, they would be rewarded in stock ownership plans and profit sharing schemes. This schema has worked for years nonetheless it has been facing issues in the new-fashioned times. Issues Facing This Strategy This strategy has led the company to great heights and sustained its exemplary financial performance over the years. Over the recent past, in that respect have been various issues emerging from the application of this strategy (Anthony, Kacmar and Perrewe, 2002). Wal-Mart is the private entity with the highest number of associates world over. This has created numerous problems with regards to human resource management. In the past, the company has been relying on the strategy of encouraging the employees to work hard with the presage of getting a promotion or incentives through stock ownership and profit sharing. This strategy has been regarded as cosmos highly unfair as workers are exploited to work for long hours and they are not duly compensated for their contribution. Furthermore, it has been observed that the company rarely fulfills its promise of sharing its employees through profit sharing. The company has been faced by several law suits over pressuring their employees to work for long hours without paying them overtime wages. Moreover, the company has been under attack for paying its employees peanuts and pressuring them to work too hard (Heskett, 2011). This has resulting to increasin g dissatisfaction among the workforce and can be attributed to the decline in the companys performance in the recent past. This policy is aimed at increasing the companys productivity while totally ignoring the associates plight and contribution towards the companys success. In to the highest degree competitive firms, worker remuneration is based on output and this should be the case for the giant retailer. Labor unions have attempted to intervene but to no avail. The companys associates are continually oppressed as its reputation and financial glory go down the drain. Labor unions have made concerted efforts to unionize the employees over the years but they have fallen on deaf ears. Wal-Mart has been noted to be one of the few companies that have strongly debate against unionization of the associates. The company management argues that labor unions champion for increased salaries and impose strict working regulations (Heskett, 2011). This move is regarded to be highly capitalist ic and aims at maximizing the companys profits at the workers expense. This has created negative publicity concerning the company and if no immediate action is taken, it could have further detrimental effects on its profitability. In addition to, the company has