Management and Organizational Theory

Answer

The labor policy issue at Walmart

Organizational management describes the practice and processes that involve structuring, planning, and directing the resources and members of firms to achieve predefined goals. Recent developments in the business world highlighted by increased competition due to globalization and increased utilization of technology has made organizational management complex. Different organizations worldwide and the United States grapple with issues even as competition continues to cut on the market share. Organizational management frameworks have become extremely important, and one of the organizations that face challenges but continue to thrive is Walmart.

Walmart, a US-based multinational, demonstrates cutting edge approach to the management of resources, supply chains, and focus on customer satisfaction (McMann, 2019). Looking at Walmart's performance in terms of market penetration, customer satisfaction, and revenue growth creates an image of a successful company. Walmart's growth in revenue between 2017 and 2019 was 7.7%, and the growth in 2020 is estimated to increase by 3.7% in the domestic United States` market. Its growth in the international market grew by 4.1% within the same period, and this gives a perspective of Walmart's success story (McMann, 2019).

Walmart considers its employees one of its greatest assets, but the company that employs more than 2.2million workers across the globe has had a poor track record in human resource management. Walmart has come under immense pressure in the past and present over its employee policy. It has been involved in several lawsuits touching on issues such as gender discrimination in recruitment and poor working conditions. Human resource management's question continues to cause significant harm to a thriving global retailer, and the concerns date back as early as the 1970s (Kolben, 2007). It is understood that current labor problems observed at Walmart are new as the founder Sam Watson established a foundation that fought employees, labor organizations, and unions since the 1970s. The retailer's founder created a non-union culture, an element that generates significant labor disputes and legal troubles as it struggles to defend its policies (Jenkins & Buffett, 2020).

Although the current labor issues at Walmart originate from a history of anti-union strategies and policies in the company, observations suggest that labor costs weighing down on Walmart are critical factors of consideration. Walmart, the third-largest employer in the world, experiences a high cost of labor, reducing profitability significantly. However, further observations suggest that the issues in Walmart's labor policies are not limited to costs and the need to cut down expenses but also entails incidences of discrimination, inability to hire staff on a full-time basis, inadequate medical benefits, and inconsistent scheduling (Abrams, 2017). In a report in 2017, employees decrying the poor working conditions in the retailer's stores, and accusations came up against the company, alleging that it punishes employees for sick days (Abrams, 2017).

In the United States, workers' advocacy groups have accused Walmart of violating the Americans with Disabilities Act and the Family and Medical Leave Act. In 2017, Walmart faced a lawsuit alleging that it violated the Equal Employment Opportunity Commission's regulations by discriminating against pregnant workers (Abrams, 2017). The issues with labor policy at Walmart form a daunting image. Organizational management must move with speed to ensure changes and propel the retailer to further success in an extremely competitive industry.

Related concept: Social wellbeing

Relationships

Labor policies and the need to ensure social justice in the workplace continue to change management frameworks' dynamics. Organizational success relies on how effective management strategies are in terms of building relationships and promoting social justice. It is imperative to ensure that management approaches foster relationships with employees that do not only focus on profitability but also the welfare of workers on the scope of reducing workplace violence, discrimination in terms of gender, disability or race, provide improved access to social benefits and provision of better working conditions (Abrams, 2017). Observing the characteristics of triple bottom line management approaches recognize the intrinsic value of advancing organizational operations on the scope of social, environmental, and financial growth, implying that the imperatives of success lie in creating consolidated business value for all stakeholders. The imperatives of providing solutions to the labor issues at Walmart rests on management style's ability to enhance goal achievement of productivity and financial wellbeing by fronting the interests of workers (Dyck et al., 2018).

It is implicit that Walmart's management style fails to recognize the contribution of cohesive relationships in attaining higher organizational value. This can be achieved with enhanced workplace motivation, ability to resolve disputes within the ranks of the organization, reduction of bias and promotion of leadership skills such as emotional intelligence, the establishment of trust and mutually satisfying relationships and ability to empathize with others (Dyck et al., 2018). Management focus on empathy particularly resonates well with the prevailing labor situation at Walmart. According to Environmental Social and Governance Report released in 2019, Walmart's store managers in the United States earn an average of $175,000 per year and receive parental leave and health benefits. However, this contrasts significantly with what an average full-time field associate makes at the retailer's stores, averaging $30,000. Further suggestions indicate that field associates may not be entitled to leave and health benefits and implies that the retailer's management needs to establish relationships with employees based on empathy. It is essential that leadership approach employee issues with understanding and focuses on better to improve their lives (Dyck et al., 2018).

Social wellbeing in management and organizational culture advances the idea of establishing frameworks that support employee welfare ranging from health and access to medical benefits. In the view of Walmart situations and allegations against the improprieties associated with its labor policies, the retailer must change its scope of management to focus more on how employee social issues can be addressed;

Flexible working and annual leave policy

Part of ensuring the social wellbeing of employees and reduce labor disputes in organizations entails management approaches that emphasize policy enactment and implementation implicit on promoting flexible working and annual leave for employees. The labor policy at Walmart reflects inconsistencies in how employees access benefits such as entitlement to leave and flexibility in working hours. The issue of leave at Walmart remains intriguing. Unless management frameworks allow employees to balance between home and work responsibilities, the organization will continue to struggle with legal disputes with its workers. The imperatives of social wellbeing through flexible working, parental, and annual leave policies should encourage downtime and space for employees to relax, enjoy hobbies, and pursue other activities besides workers (Dyck et al., 2018).

The issues of social wellbeing in the workplace and why management approaches need to harness employees' interests in the workplace assume multiple dimensions considering the overall characteristics of the current labor market. It takes an effective leadership centered on value-driven human resource strategies to understand that poor labor policy and relations similar to one witnessed at Walmart present threats to public health (Huettermann & Bruch, 2019). Managers need to remain aware of the risks of mental health in the workplace and establish mitigating factors, including promoting flexible working terms and leave for employees. The fact that Walmart advances anti-union traditions and face accusations of violation of workers` rights suggests the need to implement management approaches to reduce the risks of mental health in its workforce (Huettermann & Bruch, 2019). Recent statistics on the growing threat of mental related illnesses should form the basis of management changes that alleviate improprieties in the management of human resource at Walmart.

The CSR component

Developments in the business world highlighted by increased competition and globalization make human resources a vital component of organizational assets. Walmart prides itself on one of the strongest and reliable human resources in the global retail industry despite policy and labor-related issues it faces occasionally. The scoping of management at any organization must remain aware of the changes in the business world and the increased value of corporate social responsibility initiatives in social wellbeing that include the promotion of employee rights and welfare and implementation of community projects (Dyck et al., 2018). CSR initiatives underscore an organization's goals in an expanded trajectory, deviating from the traditional approaches of management that focus exclusively on productivity and financial capabilities. CSR initiatives imply investing time and money into building a reliable human resource, brand, strengthen culture, and expansion to the community. It allows achievement of management goals in terms of customer attractiveness, improved employee loyalty, and talent development (Dyck et al., 2018). It is perhaps important to note that Walmart has introduced CSR strategies endeared towards promoting the social welfare of employees and reduce the impact of labor-related issues affecting its operations and damaging its reputation.

Walmart's corporate social responsibility strategies resonate with the requirement of social wellbeing in management despite the existing challenges. The retailer must continue with the initiative to attain a seamless employee environment in terms of improved work conditions, increased wages, and fairness in recruitment. In a report released in 2015 majority of employees at Walmart showcased optimism in the manner in which the management implemented CSR strategies to improve their education and ensure employee empowerment. This forms some of the issues managers should address when it comes to CSR in promotion of social wellbeing (Dudovskiy, 2016). In 2015, as part of corporate social responsibility, Walmart announced a $1billion investment in US hourly associates to provide higher wages, better training and increased career development (Dudovskiy, 2016).

Walmart's position in terms of promoting gender equality and support of the minority remains on the pedestal despite issues surrounding discrimination against pregnant workers and violation of Americans with Disability and Family and Medical Leave Act. Current statistics suggest that 57% of employees at Walmart are women, and programs such as Walmart's Global Women's Economic Empowerment Initiatives forms part of the firm's CSR in improving equality in society (Dudovskiy, 2016). The initiative reflects Walmart's commitment to enhancing social wellbeing in the community by providing training, providing access to markets, and creating career opportunities for women across the world. Improvement of such initiatives should form the core of management approaches in shaping the social wellbeing of employees and communities supporting the business. The initiatives will create a positive image and allows the organization not only to focus on profitability how it can empower employees.

Meaningful work

The labor issues at Walmart related to discrimination, poor working conditions, lower wages, and anti-union culture contribute to the overall reduction in work meaningfulness. Although surveys suggest that most of the 2.2million at Walmart are optimistic about changes of conditions in recent developments, management frameworks must assess how to introduce meaningfulness at work better (Jenkins & Buffett, 2020). The concept of meaningfulness at work in management approaches resonates well with past and present labor disputes at Walmart. It fundamentally provides directions on how managers can introduce changes to ensure employee satisfaction and induce the overall productivity of human resources (Dyck et al., 2018). Meaningful work improves the meaning of life for those working, and it forms an essential component of social wellbeing in employee management (Dyck et al., 2018).

Studies aiming at affirming the importance of establishing meaningfulness at work recognize that meaningful work influence most of the outcomes in organizational settings and that implies that manager implicit on promoting meaningful work is not only advancing the social wellbeing of employees but also drives towards achievement overall organizational goals (Boreham et al., 2016). Meaningful work contributes to higher job performance, reduced labor disputes, work motivation, job satisfaction, and employee empowerment. It helps lower incidence rates and exposure to the risks of mental health illnesses such as stress and allows organizational commitment, identification, and customer satisfaction (Pignata et al., 2016).

Considering the position setting at Walmart that advances anti-union culture, it would be crucial that management frameworks look at the contribution of establishing meaningful work. Discrimination similar to cases reported regarding pregnant workers, discrepancies in wages between field associates and store managers, inflexible working schedules, and lack of entitlement to health benefits creates a loss of meaning at work. Management criterion at Walmart needs to identify with human resource strategies that make employees feel valued and develop a sense of belonging. Employees need to believe that their work gives them the power and opportunities to contribute positively to society and establish a sense of fit between their job and purpose (Dyck et al., 2018). Work that lacks meaning triggers depression reduces psychological health, low self-esteem, and induces weaker resilience to burnout and increases the risks of suicide. Therefore, as much as management approaches at Walmart must aim at reducing costs through lower wages for its 2.2million workers, it should consider the implications of creating meaningful work for the benefits of employees and the firm.

Conclusion

Strategic management at the organizational level must recognize the contribution of human resources in productivity and establish mechanisms that promote their social wellbeing. Observing the dynamics of the business environment in the contemporary world suggests that increased competition and globalization may push management to focus more on productivity and the financial component of the organization, contributing to employee neglect. Walmart provides a perfect case point of the need for organizational management to advances strategies that eliminate social injustices in the workplace associated with labor policies that undermine employee rights to leave, medical benefits, and higher wages. The concept of social wellbeing relates to protracted labor disputes at Walmart as it addresses how organizational management can establish measures that support employees' social needs.

Walmart's history of anti-union culture and reported cases of violation of workers` rights such as discrimination against pregnant workers, lower wages for field associates, and abuse of people with disability rights signify the need for the management to consider applying concepts of social wellbeing (Abrams, 2017). That will imply that management approaches concerning labor aspects will focus on creating a meaningful workplace, improve CSR initiatives that support employee development, training, and higher wages and provision of flexible working schedules. Establishing management strategies on the scope of promoting employee wellbeing will increase support for unions and reduce legal disputes at Walmart. The concept of social wellbeing in management approaches thus relates to past and present labor-related issues at Walmart.