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Wal Mart And It's Organizational Behavior Issues

3009 words - 13 pages


This paper will discuss the structure of Wal-Mart's corporate culture and how it influences their employees. In order to understand an Organization Behavior there are different elements that will create the employees perspective of the organization’s culture such as the management’s philosophy, vision, values, and goals. The driving force of these elements will create the culture of the organization. An organization’s culture will define the leadership, and dynamics of the organization. With each element listed the employees of the organization will identify this as work life that will guide their level of motivation. Depending on which level of motivation the ...view middle of the document...

You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you're invisible." This strategy helped to build the foundation of Wal-Mart and by the 1980s Sam Walton was labeled one of the richest man in the United States. ("History,”)
With the low cost being the drive of the business, comes a price to employees’ benefits and pay. Walton believed in order to maintain low cost for his customers, he would have to control payroll. When Walton passed away in 1992, this issue was shed to light to the public in the way Wal-Mart treated their employees with unequal pay and benefits. The negative press created a negative image of Wal-Mart and caused them to lose 8 percent of their customers. The new leaders of Wal-Mart took on one philosophy of Walton and that was reducing cost, but left out the key element of making their employees feel as if they had a stake in the company. The pressures of reducing cost created unrealistic demands for Wal-Mart’s managers, specifically dealing with payroll. The high cost of low price began to have an effect causing Washington to get involved of the turmoil. The state of Maryland followed suit by creating a bill for large employers such as Wal-Mart to spend at least 8 percent of their payroll on health benefits. Thirty others states are soon to follow with similar bills. (Frank, 2006)
Wal-Mart stated as a defense their company offers the lowest cost in healthcare benefits within their industry along with competitive wages. Wal-Mart’s associates have mixed reactions to how satisfied they are with their company’s benefits and wages. Some employees have resigned because of their dissatisfaction while other employees feel their needs are being met within the organization. (Armour, 2003) In the case of Wal-Mart the value theory of job satisfaction comes into play. This theory comes from the question what makes people satisfied and what do they value. Wal-Mart’s employees express their dissatisfied with their pay and benefits package. Most employees can’t afford or aren’t eligible to receive their healthcare package. Wal-Mart continues to feel the effects and consequences by having a high turnover rate with employees. Most of Wal-Mart’s turnovers are voluntary, leaving the cost to be substantial to Wal-Mart. Wal-Mart’s turnover rate is absolutely appalling. Approximately 70% of Wal-Mart employees quit outright within the first 12 months. This could be that Wal-Mart is openly against any kind of labor union within their organization and will stop at nothing to keep collective bargaining away. (Keil, 2005)
While researching this topic, so many things were found to be eye opening. One in which is the way that Wal-Mart conducted themselves when they had to manage their employees. How they dealt with promoting them and demoting them. Last year Wal-Mart started a new management style and wanted to promote more family time and create a less...

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