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

Walmart - Case Study Example This together with the ‘open door policy’ states that management needed to consider the â€Å"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 pay hikes. Furthermore, he came up with the â€Å"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 best while paying the insufficient salaries. However, they would be rewarded in stock ownership plans and profit sharing schemes. This strategy has worked for years nonetheless; it has been facing issues in the recent 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, there 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 â€Å"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 promise of getting a promotion or incentives through stock ownership and profit sharing. This strategy has been regarded as being 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 increasing dissa tisfaction among the workforce and can be attributed to the decline in the company’s performance in the recent past. This policy is aimed at increasing the company’s productivity while totally ignoring the â€Å"associates† plight and contribution towards the company’s success. In most 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 company’s â€Å"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 opposed against unionization of the â€Å"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 capitalistic and aims at maximizing the company’s 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