Executive Summary
This report focuses on the international consumer goods retailer Walmart. The potential business problem faced by Walmart, namely internal conflict, which causes a decrease in employee morale and job satisfaction, is also identified. To solve this challenge, it is proposed to use management theories such as goal-setting, contingency, transformational leadership, and management by exception theory to increase efficiency and effectiveness.
In addition, it is determined that Walmart’s culture is a critical factor in employee engagement through teamwork, customer service, diversity, inclusion, continuous improvement, and training. Strategies for resolving conflict between managers and employees are provided, such as ensuring better training, improving work-life balance, and ensuring fair compensation and bonuses.
Introduction
It is essential to recognize that a business is an organization that produces goods or services for profit. Walmart is the world’s largest consumer retailer, with more than 11,700 stores in 28 countries (Pandey et al., 2021, p. 120). The corporation includes both hypermarkets and department stores selling food and industrial goods.
The chain’s strategy includes such components as maximum assortment and minimum prices, striving for wholesale prices. Internal business dynamics vary depending on company size, industry, and corporate culture. The company has business issues that are leading to a decline in staff motivation at Walmart, such as a shortage of career opportunities and incentives for better employee performance. Hence, it is important to examine the problem of declining employee morale at Walmart and provide solutions.
Internal Conflict
One of the potential internal conflicts that can cause a decrease of performance at Walmart is employee complaints about the lack of career opportunities and motivation. This is due to the fact that Walmart is a large organization with more than two million employees worldwide, which means that workers are hired for a specific task, such as sorting goods putting products on the right shelves (Li & Liu, 2018). As a result, employees have limited opportunities for career growth, which often leads to employee frustration and inaction by managers to improve their skills through training.
However, it should be considered that retail is a demanding industry with long working hours, which is why workers often sacrifice their personal lives for work. Accordingly, the team wants to receive certain incentives from managers, such as additional vacations and bonuses (Li & Liu, 2018). Since some managers at Walmart stores do not follow the company’s general policy on motivation, employees feel that the group is constantly working without proper appreciation, which gradually contributes to burnout, resentment, and decreased job satisfaction.
Theories of Management
Planning
A management theory that can be used in planning for Walmart is the theory of goal setting. This strategy involves establishing specific and challenging goals for employees to enhance their motivation and productivity (Griffin, 2021). Leaders can utilize this strategy by applying employees in the goal-setting process in order to receive feedback. Thus, the theory of goal setting is essential for workers to understand clear objectives and to realize that the team is valued.
Organizing
Nevertheless, contingency theory should be used to organize work in a company. Therefore, this concept emphasizes that there is no single way to manage an organization and that managers on the ground have to make important decisions (Griffin, 2021). Consequently, leaders at various levels can use this framework to address the unique needs and circumstances of their stores. As a result, it enables them to be flexible and utilize staffing changes to enhance performance and encourage staff.
Leading
In addition, the transformational leadership theory can be applied in an organization. This is due to the fact that this theory emphasizes the ability of a leader to inspire and motivate employees to reach their full potential (Griffin, 2021). Therefore, lower-level managers can develop the association’s vision by effectively communicating it to workers and providing support and encouragement. This way, workers will feel valued and have a clear sense of direction.
Controlling
A management theory that can be applied to monitoring is the theory of management by exception. This theory involves focusing on deviations from standard performance and taking corrective action when appropriate (Griffin, 2021). Managers in a company can use this theory by setting clear performance standards and intervening when performance drops below expectations. In this way, Walmart employees will achieve the expected work-life balance. This enables them to fulfill their work responsibilities with enthusiasm and productivity.
Organizational Culture
It is essential to note that Walmart’s culture can promote employee engagement because the company’s management has developed specific standards. Thus, Walmart has a strong culture of teamwork and cooperation. All staff members work as a team, fostering workers’ sense of belonging. Moreover, Walmart has a culture of customer service and satisfaction (Pandey et al., 2021). Employees are encouraged to prioritize customer needs and provide quality customer service. This helps them feel that workers are significantly impacting the company’s reputation. When workers feel that their work is valued and appreciated, their level of engagement increases.
Meanwhile, Walmart maintains a strong culture of diversity and inclusion. The organization values diversity in all its forms and aims to design a workplace where everyone feels included and respected. As such, the company’s organizational culture meets best practice management standards, despite some stores frequently operating below them (Pandey et al., 2021). In this case, local executives neglect to motivate and train employees, which leads to morale problems. In spite of the overall well-developed culture, this creates significant challenges in the local area.
Recommendations
Significantly, the main problems at Walmart stores stem from negative leadership traits, such as slow recognition of employees, expectations of overtime, and decision-making with limited information. This will decrease employees’ morale and job satisfaction (Loussararian, 2013). To resolve the conflict between management and employees, the following ways can be suggested to the owner.
First, Walmart could offer training programs for managers to help them recognize staff for their hard work and contributions, communicate effectively with employees, and make informed decisions. Alternatively, the problem of lack of career opportunities could be addressed by introducing a clear development plan for staff (Li & Liu, 2018). This may include offering training programs, promoting from within, and creating a culture of learning and development.
Meanwhile, work-life balance can be enhanced by offering additional vacation time and flexible working hours. It is also possible to ensure fair remuneration and bonuses in the form of competitive salaries and benefits (Li & Liu, 2018). Finally, it is crucial to create a culture of respect, recognition, and support for employees. By addressing these issues, Walmart can raise employee morale, job satisfaction, and overall productivity, leading to a more successful and sustainable business.
Conclusion
Hence, Walmart is a large multinational corporation that significantly impacts the global retail industry. One of Walmart’s most significant challenges is internal conflict, which can lead to declining employee morale and job satisfaction. Moreover, Walmart’s culture can contribute to employee engagement by emphasizing teamwork, customer service, diversity and inclusion, and continuous improvement and learning. By providing better training and support to managers and addressing the lack of career opportunities, Walmart can enhance worker morale and career satisfaction leading to a more successful and sustainable business.
References
Griffin, R. W. (2021). Management. Cengage Learning.
Li, C., & Liu, M. (2018). Overcoming collective action problems facing Chinese workers: Lessons from four protests against Walmart. ILR Review, 71(5), 1078-1105. Web.
Loussararian, E. (2013). When bosses go wild: Preventing employee morale knockouts. Eddie Loussararian.
Pandey, R., Dillip, D., Jayant, J., Vashishth, K., Nikhil, N., Qi, T. J., & Qhi, L. Y. (2021). Factors influencing organization success: A case study of Walmart. International Journal of Tourism and Hospitality in Asia Pacific, 4(2), 112-123. Web.