Brief Research Proposal Assignment - Nikhil Vasani C

Brief Proposal of Research assignment. Name: Nikhil Vasani Course: MGMT-591 Professor: Nader Daee Devry University Date: 05/17/2017

Provide a comprehensive analysis of the impact of low wages and employee dissatisfaction on Walmart’s organizational behavior, specifically focusing on how these factors influence employee productivity, organizational performance, and management strategies.

Paper For Above instruction

Walmart, as one of the largest multinational retail corporations, has developed a reputation for its low-cost pricing strategy, which has significantly contributed to its growth and market dominance. Headquartered in Bentonville, Arkansas, Walmart operates in numerous countries and employs over 2 million workers worldwide, making it a pivotal player in the retail industry (Greenwald, 2005). The company’s core values emphasize customer service, respect, excellence, and integrity, with a focus on expanding growth opportunities while maintaining operational efficiency. However, recent organizational behavior challenges centered around employee wages and dissatisfaction have emerged as critical issues influencing overall productivity and organizational success.

The central concern is Walmart’s reputation for offering relatively low wages compared to its competitors. Such wage levels impact employee benefits, including pensions and health insurance, diminishing their overall job satisfaction. The company’s strategy to minimize operational costs at the expense of employee wages has led to widespread dissatisfaction, reflected in frequent labor unrest and strikes in various American cities (Greenwald, 2005). This dissatisfaction among employees is not merely a matter of morale but has tangible repercussions on Walmart’s operational efficiency.

Low wages directly influence employee motivation and productivity. Workers earning below competitive industry standards tend to exhibit decreased engagement and commitment, which adversely affects customer service quality and operational execution (Wagner & Hollenbeck, 2014). Employees often display reduced enthusiasm in fulfilling their roles, which can lead to poor merchandise display, lower sales, and diminished customer satisfaction—factors that crucially impact Walmart’s profitability.

Furthermore, employee dissatisfaction triggers increased absenteeism, turnover, and industrial actions, which escalate operational costs and disrupt store functioning. High turnover rates necessitate constant recruitment and training, draining valuable resources and leading to inconsistent service delivery. The diminished morale among staff hampers teamwork and a proactive customer-first approach, thus impairing the company's goal of providing excellent service. These issues collectively hinder Walmart’s capacity to sustain its competitive advantage.

Management's response to these issues has often been to cite high operational costs as a barrier to increasing wages. Labor unions and advocacy groups have long lobbied Walmart to improve employee compensation and working conditions, emphasizing the need for fair pay that reflects the workers’ hard work and long hours (Greenwald, 2005). Despite these pressures, management has resisted significant wage increases, arguing that such measures would threaten profitability and competitive positioning. This conflict between employee rights and corporate cost management reflects a fundamental organizational behavior challenge faced by Walmart.

Addressing low wages and employee dissatisfaction requires strategic interventions from Walmart’s human resources department. Implementing a motivational framework grounded in fair compensation, recognition, and career development opportunities can help boost morale, engagement, and productivity. Re-evaluating reward systems to include performance-based incentives and recognition programs can foster a positive organizational culture, encouraging employees to perform at their best (Wagner & Hollenbeck, 2014). Leadership commitment to employee well-being is essential for cultivating a motivated workforce aligned with organizational goals.

Additionally, adopting a participative management style that involves employees in decision-making processes can enhance their sense of value and ownership. Training managers to communicate effectively and foster a supportive work environment will help mitigate dissatisfaction and reduce turnover. These human resource initiatives are vital for transforming Walmart’s organizational behavior landscape from one dominated by cost-cutting at the expense of employee welfare to a more sustainable model emphasizing mutual benefit and performance (Greenwald, 2005).

In conclusion, Walmart’s low wages and resulting employee dissatisfaction pose significant challenges to its organizational effectiveness. The negative impact on productivity, customer service, and operational efficiency underscores the need for a strategic reevaluation of compensation policies and management practices. By fostering an organizational culture that values its employees through fair wages and development opportunities, Walmart can enhance employee satisfaction, reduce turnover, and sustain its competitive edge in the retail industry.

References

• Greenwald, R. (2005). Walmart. New York: Brave New Films.
• Wagner, A. J., & Hollenbeck, R. J. (2014). Organizational behavior: Securing competitive advantage. New York: Routledge.
• Greenwald, R. (2005). Walmart. New York: Brave New Films.
• Wagner, A. J., & Hollenbeck, R. J. (2014). Organizational behavior: Securing competitive advantage. New York: Routledge.
• Colvin, G. (2012). The low-wage trap: How Walmart’s wage policies hurt its workers—and its customers. Forbes.
• Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, Evidence, and Strategic Implications. Sage Publications.
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