The strategy that Walmart takes in managing people is among the most significant approaches that direct Walmart’s success and for it to be known as one of the largest companies in the world with the most number of employees. By definition, human resource is a scarce reserve to all companies. Various companies and organization have varied approaches in handling their employees.
These approaches differ in size, location, and type of businesses. Handling human resources at a banking institution is different compared to handling human resource in a government institution and in handling human resource in mid-size businesses. Effective management of human resource creates positive teamwork, respect among employees, and fair competition. For Walmart, the effectiveness of handling the human resource department is obtained through motivation, internal promotion, and as well external recruitment.
The way workers are managed at work is a crucial part of the management procedure. In a work setting in which the management handles a lower-level job, compensation and motivation are two of the factors that must be implemented by the company in order to obtain the workers’ loyalty and commitment. To obtain understanding of the critical importance of workers in the organization is to determine that the human element and the organization are similar.
A well-managed organization usually perceives an average worker as the primary source of output gains. These organizations do not look to principal investment, but to workers, as the fundamental source of growth. An effective organization will guarantee that there is a sense of collaboration and spirit of dedication as well as fulfillment in the sphere of its influence.
For Walmart, motivation is one of its most basic undertakings that results to the company’s success. Walmart considers all attempts to make their workers feel as though they are part of the business because they are the one of the sources of new concepts for Walmart to create. Motivation is present in all aspects of Walmart. The company ensures that employees are motivated in diverse ways so as to prove that the business is not merely about profit that they may obtain from laborers but also on crises that the employees may likely encounter. Hence, Walmart addresses its employees as the company’s associates because this makes the employees feel more committed and involved in the company.
Further, Walmart ensures that all its associates wear their ID badge with only their first name on it. Hence, from hourly associates to managers in top position and even to the company’s founder, everybody addresses each other by their first name. This does not only create harmonious and friendly working relationship but also a family oriented one. Walmart also renamed its human resource as a people department.
This may be simple in its context but the deeper meaning of it can be heartwarming. In addition, associates of Walmart respect each other regardless of the level of position. In Soderquist’s experience when he visited Walmart, he could not believe to see all associates and managers of every department standing up to a cleaner lady of the area. Other than the way employees are treated, Walmart likewise motivates its associates by way of financial benefit as well as health care benefit.
Every single association at Walmart including the immediate members of their family acquire a health insurance at a low cost which encompasses pharmacies, primary doctor, dental, and vision. For financial compensation, Walmart began sharing profit to its associates in 1971. Following that, the company has allowed all associates with easy access to the shares of the company through selling stocks at a discounted cost and without having to give brokerage fee. Walmart also adapted the incentive plan in terms of monetary basis for its associates to obtain added income according to the performance of the company. In addition, Walmart attempts to urge active participation with its associates crisis be it indirectly or directly.
This scheme opened the door which offers a direct admission for all associates to state their issues to the store manager and if the management fails to seek solution, the next management level handles the case. This can be the supervisors, the board of directors, the CEO, and even the founder. Walmart likewise assists with the problems of its associates by hiring special team of psychologist to provide counsel where counseling is needed. As an outcome of all these motivations, the company has established an exciting working atmosphere with value, respect, and prospective.
No matter how automated and advanced a company may be, increased productivity is dependent on the level of efficiency and drive of the workforce. Staff training is an essential approach for motivating workers. Companies should have excellent training programme. This has the advantage of providing the workers opportunities to promote and enhance their skills and improve oneself through achievement of new techniques and new equipment needed in conducting tasks. Therefore, other than emotional motivation, Walmart offers educational motivation through various training programs such as leadership, management, and technology.
Internal promotion also motivates employees. Since Walmart aimed at the workers’ involvement for all levels of position, it has created various learning programs to equip them to be great leaders. Walmart also hires people from outside to have experience or become an expert in business management.
Another approach by which Walmart promotes motivation is by providing pertinent information on the result of its associates’ actions. Improvement in collaboration, communication, and cooperation with one another is greatly recommended. Information convenience delivers to bear a robust peer pressure in which two individuals or groups of individuals working interactively will work faster than those who are working alone or working but do not have the awareness of the stride taken by other workers.
By sharing information and knowledge, subordinates are able to contend with each other. Job satisfaction or dissatisfaction is “an emotional response to a value judgment”. If the worker feels that the job is able to meet the values intrinsic to them, the job practice becomes enjoyable or highly acceptable. A worker can be somewhat content with one aspect of the job and unsatisfied with one or more other aspects.
Most workers wish to have a motivating job that would enable growth, success, and progress. In addition, they wish to be employed in an organization that will promote responsibility, autonomy, role clarity, criticism from managers, and devoid of any role conflict. Workers wish to work in an environment where other workers have the same values with them and this is what Walmart provides.
Although Walmart does not offer big salary to its associates, it gives back in other aspects such as insurance and other fringe benefits.