Walmarts Performance Management Practices

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Performance Planning. Walmarts performance planning is based on three main dimensions
that relate with the needs of its retail business:

1. Customer service orientation

2. Decision-making and results orientation
3. Analysis and problem-solving

Walmart uses the customer service orientation to directly address its human resource
management concerns in the context of retail. Retail is a service business. Thus, Walmart
emphasizes the customer service orientation in performance planning, to ensure that its services
satisfy customers. On the other hand, the decision-making and results orientation is applied for
all positions, although it is emphasized in planning for managerial and supervisory positions.
Walmarts human resource management objective in using this orientation is to optimize
organizational resilience through effective decision-making. In addition, analysis and problem
solving is also used for performance planning, but more so for managerial positions. Walmart
expects managers to effectively analyze and solve problems in the workplace. These dimensions
are included in the performance appraisals conducted at the company. Walmarts human
resource management considers these dimensions as essential for planning for adequate
workforce performance.

Measurements and Standards. Walmart has different standards for different types of jobs and
at different levels of the organizational structure. For instance, the company has productivity
standards emphasized for warehouse personnel. Decision-making and financial performance
standards are usually emphasized in managerial positions. For frontline hourly sales employees,
Walmarts human resource management puts more emphasis on salesmanship. In contrast,
standards for problem solving and planning have more weight in managerial and supervisory
positions.

Performance Problems. Walmart experiences a variety of performance problems. However,

some of the most significant are as follows:

1. Lost productivity because of tardiness and absenteeism

2. Inaccuracies or errors in recording or reporting
3. Negativism or hostility in customer relations or workplace relations

Some productivity issues are linked to tardiness or absenteeism, which Walmart uses as grounds
for termination. On the other hand, inaccuracies in recording and reporting can lead to bigger
problems, such as the bullwhip effect in the supply chain and related aspects of the company.
Walmarts human resource management provides training programs to minimize errors and
inaccuracies. The company also changes its processes and procedures to address possible
contributors to such errors and inaccuracies. In addition, negativism is a frequent human resource
management problem in many organizations. At Walmart, negativism leads to lower productivity
of sales teams and reduced effectiveness of managerial or supervisory staff. To address this
problem, Walmart encourages employees to participate in organizational activities, including
socials. Also, the firm provides benefits and incentives to help reduce negativity in the
workplace. Walmarts human resource management is always on the lookout for other
performance problems that can be solved through HR training, compensation, and related
approaches.

Performance Management at Walmart

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(Main article: Walmarts HRM: Training, Performance Management) Performance planning in
Walmarts HR management involves a performance appraisal system. This system provides
feedback to employees on their performance levels. The company also gives feedback to
employees on how to improve their performance. In addition, the firm uses an HR software
product that analyzes individual and team performance levels. As a recommendation, Walmart
can use a micro-tailored appraisal system. The features of this system vary based on the
employee being appraised. The purpose of these activities is to allow Walmart human resource
management to establish job responsibilities, specifications, goals and objectives. The
companys career development plan is also based on performance plans.

Walmarts corporate objectives are linked to the performance management practices, standards
and measures through sales performance. The firm is mainly concerned about maximizing sales
revenues. Through its performance management activities, Walmarts human resource
management ensures support for sales performance through employee productivity, especially
sales personnel productivity.

Measurements and standards are used to evaluate if Walmarts human resource performance is
satisfactory. For each performance measure, the company has a set of standards. Different HR
standards are used for different areas of the business. The following performance measures are
used at Walmart:

1. Effectiveness of processes
2. Efficiency of processes
3. Quality of customer service
4. Timeliness of supply chain activities
5. Productivity of sales personnel

Performance interviews are used at Walmart to provide more information for appraisals.
Performance interviews are conducted at least twice a year, so that the progress of employees is
regularly monitored. These performance interviews also allow Walmarts human resource
managers to obtain feedback from employees.

Walmart encounters performance problems like low employee morale and tardiness. These HR
problems reduce the firms financial performance. Walmart can address low employee morale
through job rotation and flexibility, incentives, and recognition for employees high
performance. The company can address tardiness through motivation strategies and new policies,
such as rules imposing a maximum percentage of tardy days per number of workdays.