week-5

Running head: MGMT-591 Brief Proposal of Research assignment. 6

Brief Proposal of Research assignment.

Name: Nikhil Vasani

Course: MGMT-591

Professor:  Nader Daee

Devry University

Date: 05/17/2017

Brief Proposal of Research assignment.

1. Overview: Walmart Stores

Wal-Mart Stores is an American based multinational retail chain stores which operate through large discount departmental stores. The company was established by Sam Walton in early 1960s, headquartered in Bentonville, Arkansas. In the last five decades, the company has been operating in about 27 countries with thousands of outlets worldwide. Wal-Mart is one of the largest company through its large revenue based classification. Moreover, Fortune has rated the company as one of the largest employers among industries (Greenwald, 2005).

Pricing strategy and generation management of the company. The company for a very long time has remained a family business mainly owned by Walton family. Competitive lower prices have contributed immensely towards the growth of the company. The low price strategy has enabled the company to emerge as the market leader in cereal stores industry. The main core values of the organization include; service to its customers, respect for every individual, achieving excellence and action which aims to maintain integrity. Currently, Wal-Mart organization is focusing on improving business performance through exploring new growth opportunities and integrating its core values and purpose to every aspect of the business through the inclusion of their employees as far as business operations and strategies. However, there has been some challenges related to organizational behavior which has and continue to impact negatively on employees’ productivity. Therefore, this paper will comprehensively analyze the impact of low wage and employee dissatisfaction as the main organizational behavior faced by the company (Greenwald, 2005).

1. Low Wage and Employee Dissatisfaction

The competitive business environment characterized by dynamic labor market is a major challenge to most firms operating in such environment. Attracting and retaining employees in order to enhance the organizational performance has been a major challenge for the multinational companies. For instance, Walmart has been facing some issues regarding organizational behavior. Payment of low wages and ensuring employee dissatisfaction is such an example of organization behavior. The large number of employees in Walmart has magnified this challenge (Greenwald, 2005).

The company has more than 2 million employees, making it one of the largest employers in the in private sector and the world. However, the employee remuneration by Walmart has been considerably low as compared to other company in the same industry; this has been the part of the larger plan by management to cut operation costs as they maximize profits. The low pay has affected most of the employment benefits of employees such as pension plan, health insurance, and low rates in their earnable wages (Greenwald, 2005).

Payable wages and dissatisfaction of employees. The wages of employees working for about 40 hours are generally low compared to the wages offered by rival companies in the same industry. The impact has been manifesting itself through less productive workforce as a result of poor payment leading to dissatisfaction by employees. There has been many incidences of the industrial strike in many cities in America. Such labor unrest has been majorly occasioned by the low wage rate at Walmart departmental stores (Greenwald, 2005).

1. How does Walmart’s low wage and employee dissatisfaction behavior towards their employees affect the productivity of their workforce?

The impacts of those above organizational behavioral challenge on operation and management of the organization. The frequent labor unrest and absenteeism increases employee turnover thus impacting negatively on the profitability of the company. Moreover, proper display needed by customers has been a big issue at Walmart, again this has resulted in reduced sales volume and low stock turnover thus negatively affecting the organization’s profit margin. The low level of morale by employees at Walmart has significantly reduced their general productivity (Wagner III & Hollenbeck, 2014).

1. TCO: No. G

There has been a call by labor unions for the Walmart to improve the payment of their employees. Employees have also been in the forefront to champion for their rights regarding what they perceived to be better waged for the long hours they work for the organization. However, the management has been keen on sabotaging the efforts made toward better payment to employees citing high operational cost challenges (Wagner III & Hollenbeck, 2014).

Management of employees regarding pay and job satisfaction. It is imperative for the human resource departments to motivate its employees in order to enhance workforce. In order to solve the behavioral issue, the management must focus on re-orientation of the management structure which will adopt a positive culture. Similarly, reward and recognition program must be re-designed for encouraging the workers in improving their performance (Wagner III & Hollenbeck, 2014).

Greenwald, R. (2005). Walmart. New York: Brave New Films.

Wagner III, A. J., & Hollenbeck, R. J. (2014). Organizational behavior: Securing competitive advantage. New York: Routledge.