Gm591 Walmart -Project Paper

3566 Words Aug 20th, 2012 15 Pages
Improving Wal-Mart’s Employee Relations

GM591: Leadership and Organizational Behavior

April 20, 2010

INTRODUCTION

The Organization that we selected as our topic of discussion in our Project Paper is the Wal-Mart Corporation. Sam Walton is the founder of Wal-Mart. He opened his first store called Wal-Mart Discount City in Rogers, Arkansas in July of 1962. Their corporate office is currently located in Bentonville, Arkansas. Wal-Mart Stores Inc. incorporated its stores on October 31, 1969. In 1972, they started selling stock on the New York Stock exchange. Although, though the company has had controversial operational business practices they have grown to be the largest Retail Corporations in the world. In 1997,
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These violations range from having employees clock out and continue to work without pay, denying them with lunch breaks that they are entitled to by law, non-payment for overtime worked. They have also had issues with discrimination against women, resulting, from denying them promotions and paying them less then their male counterpart even though they held the same position, and in some cases, women had seniority over the men (Associated 2008).

It is widely known that Wal-Mart pays its associates below the average retail wages. In 2008, the average full time Associate (34 hours per week) earns $10.84 hourly for an annual income of $19,165. That is $2,000 below the Federal Poverty Line for a family of four. In 2007, Wal-Mart CEO Lee Scott earned $29.7 million in total compensation, or 1,551 times the annual income of the average full time Wal-Mart Associate. Consequently, large portions of their employees qualify to receive Government Assistance to support their families. They are well aware that they pay their fulltime employees below the poverty level. In fact, Wal-Mart actually encourages their employees to take advantage of the Government Assistant Programs (Wake Up Wal-Mart, 2008).

Wal-Mart does not offer its associates affordable healthcare insurance benefits. According to Wal-Mart employees, when they complained about high the cost of the insurance and lack of coverage it

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