Walmart

Walmart Inc. is an example of effective large-scale human resource management,

considering the business has millions of employees worldwide. The company is one of the
biggest in the world in terms of organizational size, business value and financial performance.
The firm ensures that its human resources are supported in satisfying business needs and
expectations. Walmart considers how its activities, such as internal organizational processes,
support its human resources. For example, the company addresses its human resource
planning and job design, and how these aspects contribute to high performance among
employees. Human resource managers also consider how Walmart’s corporate culture and
organizational structure, recruitment and selection, retention and training, performance
management, compensation, and career development contribute to the productivity of the
firm’s workers. Effectiveness in addressing HR needs affects the company’s performance and
growth potential. Walmart’s strategies must support the continuing development of its
workforce and related managerial practices.
HR Training
 Walmart’s employee training and performance management are determinants of the
company’s human resource management capability in supporting global expansion.
As the company expands, so do its HR needs for specific knowledge, skills and abilities
for a truly global workforce. Walmart’s training programs are designed to ensure
effectiveness in handling daily job tasks, and capacity to adjust to emergent
conditions in the retail industry. The firm’s human resource management goals
include cost-effective high performance training to maximize employee productivity.
 Needs Analysis: There are different types of training needs analysis available. The
applicability of each depends on the human resource management objectives of the
organization. In Walmart’s case, the following types of training needs analysis apply:
o Work/task analysis.
o Cost-benefit analysis.
o Organizational analysis.
 Program Design: Walmart uses two main approaches for training program design.
Each approach addresses certain qualities prioritized in different job positions in the
organization. The approaches applied at Walmart are as follows:
o Results-oriented program design
o Process-oriented program design
 Delivery: The delivery of training programs depends on the job positions and tasks
involved. Walmart delivers its training programs through the following methods:
o Discussions
o On-the-job training
o Coaching
Career Development
 Walmart’s human resource management approaches for compensation and career
development are centered on minimizing costs. For instance, as part of the cost
leadership generic strategy, the company always aims to minimize spending for
human resources. As such, Walmart’s human resource management is focused on
ensuring that its compensation packages are minimized, but not to the point that it
compromises performance. The company also has career development strategies that
aim to minimize turnover by maximizing the level of fit between employees and their
jobs. These human resource management considerations are of critical importance in
ensuring that Walmart’s employees are always sufficient in supporting the company’s
continued global growth.
 Individual-Organization Matching. Walmart uses direct and indirect methods in
evaluating individual-organization match. The human resource management goal is to
ensure that every employee fits his job and the organization. In the direct method,
Walmart collects information from employees regarding their perceptions about the
company. Such information represents employees’ point of view about the
appropriateness of their jobs and Walmart’s strategies. The company relies mainly on
the direct method for individual-organization matching. On the other hand, the
indirect method involving organizational variables as indicators of person-
organization fit is less significant in Walmart’s efforts to match employees to their
jobs and the organization. The human resource management goal of using the
indirect method is to determine the overall person-organization match throughout
the global organization of Walmart. Still, the direct method is more readily applied
because it is easier to implement, such as through the involvement of store
managers.

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 Career Opportunities and Requirements. Walmart’s human resource management
determines career opportunities and requirements based on different variables,
including:
o Job analysis results.
o Employee selection criteria.
o Employee interests.
o Employee knowledge, skills and abilities (KSAs).
 Assessing Employee Potential. Walmart assesses employee potential through
different variables. Store managers may use different criteria and methods of
assessment. However, in general, the following are the most significant criteria used
for assessing employee potential at Walmart:
o Employee knowledge, skills, and abilities
o Results of performance appraisals
 Instituting Career Development Initiatives. Career development initiatives support
the human resource management goal of improving the workforce, especially in
filling leadership or managerial positions. Walmart’s approaches in instituting its
career development initiatives are:
o Coaching.
o Training.
o APU partnership.
Compensation Strategy
 Basic Pay. Walmart is known for low prices and low wages. These low wages are
frequently criticized for inadequacy in supporting employees’ needs. At present, the
company’s minimum hourly wage is $7.25, which is significantly below the national
average of $9.93. However, Walmart is reforming its human resource management.
As such, the firm plans to increase its minimum hourly wage to $10.00. This new
minimum hourly wage will set Walmart at the level of other retailers, such as Gap,
which currently uses a minimum hourly wage of $10.00. Also, Walmart plans to
increase managers’ minimum hourly pay to $10.90 in 2015. The company’s human
resource management expects that these changes will improve the workforce,
especially with regard to employee retention.

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 Benefits. Walmart maintains employee motivation through a considerable list of
benefits. These include:
o Company-matched 401(k) contributions, up to 6% of salary
o Associate stock purchase plan with company match
o Associate discounts
o Comprehensive health insurance plans
 Incentives. Walmart offers many incentives for its workers. For example, the
company gives recognition to high-performance employees. The optional APU credits
are also incentives to motivate workers to improve their knowledge, skills and
abilities. Walmart employees can improve their performance and plan a long-term
career though continuing education with APU. These incentives address the human
resource management objective of motivating workers, especially in aiming for
promotion and contributing more to Walmart’s success.
 because
 stakeholders
o philosophy
o to all its members.

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