Solutions First, Walmart needs to treat its employees better. As previously mentioned, those employed by Walmart are costing the American people, not just its workers; taxpayers subsidize Walmart’s bad employment policies with $2.6 billion each year, and it’s time to change that (Strachan). Walmart could start by utilizing a very simple strategy brought to the managerial in 1932 by the Hawthorne study. In this study, employees who manufactured lightbulbs at Western Electric in Chicago were treated with varied working conditions; the experimenters manipulated the temperature, lighting, and many other factors to see what would make employees work more productively. Shockingly, the experimenters noticed that no matter the working conditions,
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Similar stores to Walmart pay employees an average of $40,000 a year, “allowing their employees to live above the poverty line”, which is better for employees, managers, and customers (Dubinsky). Many of these stores, like QuikTrip, Trader Joe’s, and Costco, have found that paying employees a higher wage provides a “competitive advantage…decreases employee turnover, increases morale, and improves customer satisfaction ratings”, thus increasing sales and profitability for the retailers (Strachan). Also, many of these employees qualify for health benefits, a positive for taxpayers. The CEOs and managers of these companies still have immense wealth, but they have a better relationship with their employees, and customers like the positive atmosphere more. Though Walmart has made plans to create a “job [structure] with wages that reflect the market”, it still fears an increase in expenses and a hit to the low-cost advantage that Walmart has used to succeed …show more content…
Father than focusing on an ethnocentric culture when it expands into a new country, Walmart should focus on a poly- or geocentric world view, and admit that there are many ways that culture and social structure impact the operations of a business. It needs to look at the cultural differences of each of its locations, compared to the United States. The degree of masculinity or femininity of a country, its people’s long term orientation, distance from power, and uncertainty avoidance, and whether it is an individual or collectivist society, are all aspect that play a huge role in how a country views Walmart. Many countries do not house masculine, short-term oriented, confident and empowered individuals like the United States does, and approaching a market with the thought that they do is what will make Walmart fail in expansion. This is where diversity will come to Walmart’s advantage, and will keep it as a competitive business in the global
Similar stores to Walmart pay employees an average of $40,000 a year, “allowing their employees to live above the poverty line”, which is better for employees, managers, and customers (Dubinsky). Many of these stores, like QuikTrip, Trader Joe’s, and Costco, have found that paying employees a higher wage provides a “competitive advantage…decreases employee turnover, increases morale, and improves customer satisfaction ratings”, thus increasing sales and profitability for the retailers (Strachan). Also, many of these employees qualify for health benefits, a positive for taxpayers. The CEOs and managers of these companies still have immense wealth, but they have a better relationship with their employees, and customers like the positive atmosphere more. Though Walmart has made plans to create a “job [structure] with wages that reflect the market”, it still fears an increase in expenses and a hit to the low-cost advantage that Walmart has used to succeed …show more content…
Father than focusing on an ethnocentric culture when it expands into a new country, Walmart should focus on a poly- or geocentric world view, and admit that there are many ways that culture and social structure impact the operations of a business. It needs to look at the cultural differences of each of its locations, compared to the United States. The degree of masculinity or femininity of a country, its people’s long term orientation, distance from power, and uncertainty avoidance, and whether it is an individual or collectivist society, are all aspect that play a huge role in how a country views Walmart. Many countries do not house masculine, short-term oriented, confident and empowered individuals like the United States does, and approaching a market with the thought that they do is what will make Walmart fail in expansion. This is where diversity will come to Walmart’s advantage, and will keep it as a competitive business in the global