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PARTICULARS
Introduction Human Resource Planning
Human Resource Planning
Recruitment
About Wal-Mart
Organizational Structure and Culture
Human Resource Management
Recruitment, Selection, Employee Retention
Training, Performance Management
Appraisal, Compensation, Career Development
Conclusion
Bibliography

INDEX

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PAGE NUMBER
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4
6
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16
20
24
29
32
34

I.

INTRODUCTION
Recruitment and Performance Appraisals are two primary mediums for the firm employers to
identify essential competencies and monitor the performance of employees. These processes
make bigger contribution in business development and improvement. An organisation cannot
build a good team of working professionals without good Human Resources. The key
functions of the Human Resources Management (HRM) team include recruiting people,
training them, performance appraisals, motivating employees as well as workplace
communication, workplace safety, and much more. The beneficial effects of these functions
are discussed here:
Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR managers come
up with plans and strategies for hiring the right kind of people. They design the criteria which
is best suited for a specific job description. Their other tasks related to recruitment include
formulating the obligations of an employee and the scope of tasks assigned to him or her.
Based on these two factors, the contract of an employee with the company is prepared. When
needed, they also provide training to the employees according to the requirements of the
organisation. Thus, the staff members get the opportunity to sharpen their existing skills or
develop specialised skills which in turn, will help them to take up some new roles.
Performance Appraisals
HRM encourages the people working in an organisation, to work according to their potential
and gives them suggestions that can help them to bring about improvement in it. The team
communicates with the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their respective roles. This is
beneficial as it enables them to form an outline of their anticipated goals in much clearer
terms and thereby, helps them execute the goals with best possible efforts. Performance
appraisals, when taken on a regular basis, motivate the employees.
Maintaining Work Atmosphere

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This is a vital aspect of HRM because the performance of an individual in an organisation is

largely driven by the work atmosphere or work culture that prevails at the workplace. A good
working condition is one of the benefits that the employees can expect from an efficient
human resource team. A safe, clean and healthy environment can bring out the best in an
employee. A friendly atmosphere gives the staff members job satisfaction as well.
Managing Disputes
In an organisation, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a scenario,
it is the human resource department which acts as a consultant and mediator to sort out those
issues in an effective manner. They first hear the grievances of the employees. Then they
come up with suitable solutions to sort them out. In other words, they take timely action and
prevent things from going out of hands.
Developing Public Relations
The responsibility of establishing good public relations lies with the HRM to a great extent.
They organise business meetings, seminars and various official gatherings on behalf of the
company in order to build up relationships with other business sectors. Sometimes, the HR
department plays an active role in preparing the business and marketing plans for the
organisation too.
Any organisation, without a proper setup for HRM is bound to suffer from serious problems
while managing its regular activities. For this reason, today, companies must put a lot of
effort and energy into setting up a strong and effective HRM.
Walmart, just like every other company executes its own set method of the Recruitment,
Selection and Performance Appraisals. This company along with its subsidiaries follows a
disciplined framework in order to maintain the status and reputation it holds in the market. It
takes into consideration both, the quality and quantity.

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II.

HUMAN RESOURCE PLANNING

Human resource is the most important asset of an organisation. Human resources planning
are the important managerial function. It ensures the right type of people, in the right number,
at the right time and place, who are trained and motivated to do the right kind of work at the
right time, there is generally a shortage of suitable persons.
The enterprise will estimate its manpower requirements and then find out the sources from
which the needs will be met. If required manpower is not available then the work will suffer.
Developing countries are suffering from the shortage of trained managers. Job opportunities
are available in these countries but properly trained personnel are not available. These
countries try to import trained skill from other countries.
In order to cope with human resource requirements, an enterprise will have to plan in advance
its needs and the sources. The terms human resource planning and manpower planning are
generally used interchangeably. Human resource planning is not a substitute for manpower
planning. Rather the latter is a part of the former i.e., manpower planning is integrated with
human resource planning.
According to E.W. Vetter, human resource planning is the process by which a management
determines how an organisation should make from its current manpower position to its
desired manpower position.
Through planning a management strives to have the right number and the right kind of people
at the right places, at the right time to do things which result in both the organisation and the
individual receiving the maximum long range benefit.
Dale S. Beach has defined it as a process of determining and assuring that the organisation
will have an adequate number of qualified persons available at the proper times, performing
jobs which meet the needs of the enterprise and which provide satisfaction for the individuals
involved.
In the words of Leon C. Megginson, human resource planning is an integration approach to
performing the planning aspects of the personnel function in order to have a sufficient supply
of adequately developed and motivated people to perform the duties and tasks required to
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meet organisational objectives and satisfy the individuals needs and goals of organisational
members.
On the analysis of above definitions, human resource planning may be viewed as foreseeing
the human resource requirements of an organisation and the future supply of human resources
and making necessary adjustments between these two and organisation plans, and foreseeing
the possibility of developing the supply of human resources in order to match it with
requirements by introducing necessary changes in the functions of human resource
management.
Here, human resource means skill, knowledge, values, ability, commitment, motivation etc.,
in addition to the number of employees. Though accomplishment of organisational objectives
and goals is the primary concern of the human resource planning, concern for the aspirations
of the people and their well-being has equal importance in it. In fact, the human resources
planning must result in humanisation of work environment.

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III.

RECRUITMENT
Recruitment refers to the overall process of attracting, selecting and appointing suitable
candidates for jobs (either permanent or temporary) within an organization. Recruitment can
also refer to processes involved in choosing individuals for unpaid positions, such as
voluntary roles or unpaid trainee roles. Managers, human resource generalists and
recruitment specialists may be tasked with carrying out recruitment, but in some cases publicsector employment agencies, commercial recruitment agencies, or specialist search
consultancies are used to undertake parts of the process. Internet-based technologies to
support all aspects of recruitment have become widespread.
Recruitment is the first step in procurement function. The importance of manpower planning
in every business is increasing due to increase in global competitiveness and increase in
labour market flexibility. Recruitment function is one of the important parts of an
organizations Human Resource Planning. It serves fulfilling organisations need by enabling
it to have a set of competitive, motivated, flexible and more adoptable Human Resources
which can ensure continued operation for fulfilment of organisations objective. Competent
Human Resources at the right positions are crucial for the organisation and constitute core
competency. The organisation reaps strategic advantage out of it. Recruitment helps in
creating a pool of prospective employees for the organisations, so that the right candidates for
the right jobs can be selected from this pool. The objective of recruitment process is to get the
required number of employees with proper quality that can be selected to help the
organisation to attain its goals. Recruitment establishes a link between the job seekers and
employers. By which, it ensures the placement of right candidates at the right place at the
right time. Following the right recruitment processes and practices facilitate the selection of
the suitable candidates for the organisation.
a) PURPOSE OF RECRUITMENT
Attract and encourage a good number of candidates to apply for the organisational
vacancies.
Create a talent pool of prospective candidates that enables the selection of best candidates
to suit for the organisational need.

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 Determine present and future organisational requirement taking into consideration of

personnel planning and job analysis activities.
Links the employers with the potential employees.
Increase potential candidates pool at less cost.
Increases success rate of selection process by reducing the number of under qualified or
overqualified job applicants.
Reduce the probability of leaving the organisation only after a short period of time, once
recruited and selected.
Meet the organizations legal and social obligations maintaining its workforce
composition.
Determine the appropriateness of the candidates by identifying and preparing potential
job applicants.
Increase organizational and individual effectiveness regarding application of various
recruitment techniques and taping different sources of recruitment concerned.
b) SOURCES OF RECRUITMENT
INTERNAL RECRUITMENT
Internal sources are the most obvious and most likely sources of recruitment. Before an
organisation actively begins recruiting applicants, it ought to consider internal sources to
choose the type of employees it needs. Different types of internal sources are as follows.

Present employees:

Former employees:

Employee referrals:

Previous applicants:

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EXTERNAL RECRUITMENT
All organisations have to use external sources for recruitment to higher positions when
existing employees are not suitable. More persons are needed when expansions are
undertaken.
1. Advertisement:
2. Employment Exchanges:
3. Schools, Colleges and Universities:
4. Recommendation of Existing Employees:
5. Factory Gates:
6. Casual Callers:
7. Central Application File:
8. Labour Unions:
9. Labour Contractors:
10. Former Employees:

c) MERITR & DEMERITS OF INTERNAL AND EXTERNAL RECRUITMENT

MERITS OF INTERNTAL RECRUITMENT

- It improves the morale of employess, for they are assured of the fact that they would be
preferred over outsiders when vacancies occur. They can prepare themselves to be
-

promoted to higher levels of job.

The emplyer is in a better position to evaluate those presently emplyed than outside
candidates. This is because the company maintains a record of the progress, experience

and service of its employees.

It promotes loyalty among the employees, for it gives them a sense of job security and
oppurtunities for advancement.

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As the person in the employments of the company are fully aware of, and well acquainted
with, its polivies and know its operating procedures, they require little training, and teh
chances are that they would stay longer in the employment of the organiztion than a new

outsider would.
They are tried people and can, therefore, be relied upon.
It is less costly than going outside to recruit.

DEMERITS OF INTERNAL RECRUITMENT

- It often leads to inbreeding, and discourages new blood from entering an organiztion. It
-

blocks divers work ideas from germinating in the organization.

There are possibilities that internal sources may dry up and it may be diffciult to find

the requisite personnel from within an organization.

Since the subordinate will not know more than the superior, no innovations wothy the
name will be made. Therefore, on jobs which require original thinking and creativity this

practice is not followed.

As internal promotion is generally based on seniority, the danger os that really capable
hands may not be chosen. The likes and dislikes of the management may also play an
important role in the selection of personnel.

MERITS OF EXTERNAL RECRUITMENT

- External sources provide the requisite type of personnel for an organization, having skill,
-

training and education up to the required standard.

Since persons are recruited from a large market, the best selection can be made without

any distinctions of caste, gender or colour.

In the long run, this source proves economical because potential employees do not need

extra training for their jobs.

It allows companies to target specific competencies that current employees may not

possess.
It is an oppurtunity to bring in employees with fresh perspectives.
Outsiders may help the company to see a new way of doing business.
New technologies may many times require fresh faces and young minds.

DEMERITS OF EXTERNAL RECRUITMENT

- However, this systme suffers from what is called brain drain, especially when
-

experienced persons are raided or hunted by sisters concerns.

It may result in low morale among existing employees.

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d) PROCESS OF RECRUITMENT
The Recruitment Process:
The recruitment process begins when you know you need someone new in the Department,
either because an existing staff member has left, or because there is new work to be done. It
doesnt finish until after the appointment has been made.
The main stages are identified in the below flow chart

IV.

Identify Vacancy

Prepare Job Description and person Specification

Advertise

Managing the Response

Short-listing

References

Arrange Interviews

Conduct The Interview

Decision Making

Convey The Decision

Appointment Action

ABOUT WALMART

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Wal-Mart Stores, Inc. or Walmart is an American multinational retail corporation that

operates a chain of discount department stores and warehouse stores. Headquartered
in Bentonville, Arkansas, United States, the company was founded by Sam Walton in 1962
and incorporated on October 31, 1969. It has over 11,000 stores in 28 countries, under a total
of 65 banners. The company operates under the Walmart name in the United States and
Canada. It operates as Walmart de Mxico y Centroamrica in Mexico, as Asda in the United
Kingdom, as Seiyu in Japan, and as Best Price in India. It has wholly owned operations in
Argentina, Brazil, and Canada. It also owns and operates the Sam's Club retail warehouses.
Walmart is the world's largest company by revenue, according to the Fortune Global 500 list
in 2014, as well as the biggest private employer in the world with 2.2 million employees.
Walmart is a family-owned business, as the company is controlled by the Walton family. Sam
Walton's heirs own over 50 percent of Walmart through their holding company, Walton
Enterprises, and through their individual holdings. It is also one of the world's most valuable
companies by market value, and is also the largest grocery retailer in the U.S. In 2009, it
generated 51 percent of its US$258 billion (equivalent to $284 billion in 2015) sales in the
U.S. from its grocery business
WALMARTS VISION, MISSION, GENERIC & INTENSIVE STRATEGIES
Walmart follows its vision statement and mission statement through the cost-leadership
generic strategy, based on Porters model, and the market penetration and market
development intensive growth strategies. Walmarts mission and vision are used as bases for
these strategic choices.
WALMARTS MISSION AND VISION STATEMENTS
Walmarts Vision Statement. The company traces its success to the ideals of its founder,
Sam Walton. These ideals are emphasized in Walmarts vision statement: To be the best
retailer in the hearts and minds of consumers and employees. The company aims to achieve
a top position in the retail industry. Based on its current situation, the firm has already
fulfilled the best retailer part of the vision. Walmarts vision statement also points to the
minds and hearts of the people that matter most to the business, i.e. consumers and
employees. The company has realistically influenced the minds of consumers and employees
on the basis of financial benefits. Employees earn wages, while consumers save money
through Walmarts low prices. However, the heartcomponent of the vision statement remains
to be proven.
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Walmarts Mission Statement. The companys strategic decisions are also a direct
manifestation of its mission. Walmarts mission statement is Saving people money so they
can live better. This statement is synonymous to the companys slogan, Save money. Live
better. The firm follows and succeeds in fulfilling the saving people moneycomponent of the
mission statement. Consumers save money through Walmarts low selling prices. However, it
is not yet clear if the company satisfies the live bettercomponent of the mission statement.
There are criticisms on Walmarts very low wages that are barely enough for employees to
make ends meet. There are also criticisms about the long-term effects of the firms continued
large-scale sales of cheap and sometimes hazardous imported goods.
WALMARTS GENERIC STRATEGY (PORTERS MODEL)
Based on Porters Model, Walmarts generic strategy is cost leadership. In cost leadership, the
firms focus is on maintaining low prices of goods and services. Walmart is known for low
prices, which is the main selling point of the business. The company keeps its prices low
through cost reduction in operations. For example, the firm uses information technology to
maximize operational efficiency. Walmart also minimizes employees wages for this purpose.
This generic strategy determines the other strategies used in the company. One of the
strategic objectives of Walmart is to keep operating costs low. As mentioned, the firm
minimizes wages and spending in other areas of the business for this objective. Another
strategic objective of Walmart is to achieve economies of scale to support the cost-leadership
generic strategy. To minimize prices, the firm must maintain high sales volume and largescale operations.
WALMARTS INTENSIVE STRATEGIES (INTENSIVE GROWTH STRATEGIES)
Market Penetration. Walmart uses market penetration as its main intensive strategy for
growth. Market penetration involves selling more goods or services to the current target
market. Walmart sells more goods and services to its current consumers by offering
discounts, promotions, and special packages. For example, the company offers discounted
wholesale packages of various goods.
Market Development. Walmart uses market development as its secondary intensive strategy
for growth. This intensive growth strategy involves entering new markets to sell to consumers
other than those that the company currently has. For example, Walmart establishes new stores

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to achieve market development. The company opens new stores in overseas locations to tap
consumers in those markets.
Product Development. Walmart only minimally uses product development as an intensive
strategy for growth. In this intensive strategy, the focus is on offering new products to the
market. Understandably, Walmart does not invest much in new product development. Instead,
the companys efforts are on sales and marketing. Thus, product development is not a
significant intensive strategy in the firms growth.

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V.

ORGANIZATIONAL STRUCTURE & CULTURE

Walmarts organizational structure determines the companys business activities. Its
organizational structure also imposes limits on how the business addresses its problems. In
relation, Walmarts organizational culture determines the way people respond to challenges in
the workplace. The resilience of the human resources of the company partly depends on the
mindset supported through the organizational culture. Nonetheless, the long history of
Walmart in succeeding and continually growing internationally shows that the firms
organizational structure and organizational culture have been helpful in bringing competitive
advantage and success. Such organizational structure interacts with the organizational culture
to maintain the significant competitive advantage of Walmart.
Walmarts leadership position in the retail industry and its potential long-term success are
linked to the beneficial combination of the companys organizational structure and
organizational culture.
ORGANIZATIONAL STRUCTURE
Walmart has a hierarchical functional organizational structure. This structure has two
features: hierarchy and function-based definition. The hierarchy feature pertains to the
vertical lines of command and authority throughout the organizational structure. For example,
except for the CEO, every employee has a superior. Directives and mandates coming from the
top levels of Walmarts management are implemented through middle managers down to the
rank-and-file employees in the Walmart stores. On the other hand, the function-based
definition feature of the companys organizational structure involves groups of employees
fulfilling certain functions. For example, Walmart has a department for the function of human
resource management. The company also has a department for the function of information
technology, and another department for the function of marketing. These are just some of the
numerous function-based departments in Walmarts organizational structure.
The main effect of Walmarts hierarchical functional organizational structure is the ability of
corporate managers to easily influence the entire organization. For example, new policies and
strategies developed at Walmarts corporate headquarters are directly passed on to regional
managers down to the store managers. In this way, effective monitoring and control are
achieved through Walmarts hierarchical functional organizational structure. However, a
downside of this organizational structure is that it has minimal support for organizational
flexibility. The lower levels of the organizational structure cannot easily adjust business
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practices because of the lengthy communications and approval process involving the middle
managers and corporate managers at Walmarts headquarters.
ORGANIZATIONAL CULTURE
Walmarts organizational culture has four main components. These components guide
employees behaviors. The components are also identified as Walmarts beliefs:
1.

Service to customers

2.

Respect for the individual

3.

Strive for excellence

4.

Action with integrity

In terms of service to customers, the company prioritizes customers in its operations. Walmart
also recognizes the contributions of each employee to the success of the business. In addition,
the firm strives for excellence in the performance of individuals, teams, and the entire
organization. In terms of maintaining integrity, Walmart promotes the virtues of honesty,
fairness, and impartiality in decision-making.

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VI.

HUMAN RESOURCE MANAGEMENT

Walmarts human resource management is a critical success factor for the business. The
companys retail service offers goods in a way that is convenient and efficient for shoppers.
In this service context, Walmarts human resources directly determine business output. The
companys human resource management aims to maximize employee performance to
correspondingly maximize capacity for sales. Human resource planning and job analysis and
design are some of the major components of Walmarts human resource management
strategy. Through human resource planning, the firm develops an adequate workforce.
Through effective job analysis and design, Walmart ensures that job descriptions and
specifications relate with the HR needs of the organization. These components of human
resource management influence how Walmart maintains its more than 2 million employees to
provide adequate service to an expanding population of target consumers.
WALMARTS HUMAN RESOURCE PLANNING
Forecasting. Walmarts human resource management forecasts its workforce needs to ensure
capacity to address changes in consumer demand. While other forecasting methods and
techniques are also used, these three are the most notable at Walmart:
1.

Bottom-up approach

2.

Trend analysis

3.

Delphi method

The bottom-up approach analyzes human resource needs starting at the lowest level of the
organizational structure. Walmarts human resource management objective for this approach
is to ensure that all levels of the organization have adequate employees based on HR needs at
the frontline (e.g. hourly sales employees). The company starts forecasting HR needs of
frontline employees. Walmarts HR managers then proceed to analyze HR needs at the next
higher level of the organizational structure. This human resource management approach
ensures that all human resource needs at the lowest levels of Walmarts organizational
structure are supported through an adequate number of employees at the upper levels of the
organizational structure. On the other hand, trend analysis is used in human resource
management to predict future HR needs based on current needs. For example, Walmart
analyzes the series of recent HR changes and uses this information to extrapolate future HR
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needs. A current trend that shows an increasing demand for human resources indicates a
larger workforce requirement in the future. Walmarts human resource management uses
trend analysis to determine HR needs along with the companys global expansion. In
addition, the Delphi method forecasts future HR needs based on expert opinion. Walmarts
human resource management uses the Delphi method to ensure adequate human resources in
establishing new brands, stores or other facilities. For example, HR experts can opine about
the HR needs in opening a new Walmart store of a certain size. The companys human
resource management applies the Delphi method to estimate the number of employees needed
in each type of job, such as supply chain jobs, inventory jobs, and sales jobs.
Surplus & Shortage of Employees. Walmart faces minimal concerns about the shortage of
employees, especially sales personnel. The company receives a continuous influx of
applicants for sales positions. However, Walmart experiences HR surplus when aggregate
consumption declines. Such surplus is a challenge to human resource management because it
translates to lower HR cost-effectiveness. Walmart uses the following approaches to
determine HR needs and prevent surpluses or shortages:
1.

Sales performance analysis

2.

Turnover rate analysis

3.

Gap analysis

Walmarts human resource management changes recruitment efforts based on changes in

sales performance, which is an indicator of HR needs. Turnover is the rate at which
Walmarts human resources leave and/or are replaced. Turnover, together with the rate of
recruitment, is an indicator of changes in the size of the companys workforce. Walmarts
human resource management ensures that the recruitment rate is commensurate to the
turnover rate. If the turnover rate is lower than the recruitment rate, Walmarts workforce
increases in size. An increase in workforce size usually happens when the company expands
or opens new stores. In addition, Walmarts human resource management uses gap analysis to
determine the gap between HR needs and actual HR capacity. A significant gap means
reduced HR cost-effectiveness or inadequacy in meeting organizational needs. Walmart uses
gap analysis to decide on changing recruitment efforts. The company has a gap allowance or
threshold. When the HR gap exceeds the threshold, Walmarts human resource management
increases or decreases recruitment efforts.

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Balancing Supply and Demand. Walmart balances HR supply and demand by adjusting the
compensation strategy and recruitment efforts. These adjustments are based on trends in
internal human resource demand and the rate of applicant entry. Thus, the firms human
resource management uses the following approaches to balance HR supply and demand:
1.

Changes in recruitment

2.

Changes in compensation

Changes in recruitment are Walmarts main approach to balance HR supply and demand. The
companys human resource management changes the recruitment rate to address workforce
requirements. Walmart can easily adjust its recruitment efforts without significantly
impacting financial performance. In prioritizing changes in recruitment to balance HR supply
and demand, Walmarts human resource management minimizes changes in the firms
compensation strategy. On the other hand, changes in compensation are also used to prevent
an imbalance in HR supply and demand.Walmarts compensation strategy is designed to
minimize HR expenditure. This strategy agrees with the companys cost leadership generic
strategy. When HR supply becomes inadequate, Walmarts last resort is to increase wages.
Theoretically, higher wages attract more applicants. Walmarts human resource management
uses this second approach to effectively compete in the labor market.
JOB ANALYSIS AND DESIGN AT WALMART
Organizational Design. Job analysis and design are successfully implemented in Walmarts
human resource management through the companys organizational structure, which is a
hierarchical functional structure. This organizational structure makes it easy to specify
distinct characteristics for each job. The structure has clear lines of authority, lines of
communication, and lines of command. Walmart has clear and distinct definitions for every
job position and level of the structure. In effect, the firms human resource management
minimizes uncertainty in job analysis and design.
Methods of Job Analysis. Walmart uses work-oriented job analysis and worker-oriented job
analysis. The company applies work-oriented job analysis for sales positions. The purpose of
this method is to provide information about tasks and outcomes. Walmart applies this method
in the form of interviews and direct observations. The companys human resource
management uses direct observation of sales personnels activities. Interviews are conducted
to analyze the jobs of team leaders and supervisors. This method enables Walmarts human

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resource management to establish expectable job outcomes. On the other hand, the workeroriented job analysis method provides information on interpersonal, cognitive and perceptual
abilities. Walmart uses this method to analyze managerial jobs. A specific application of this
method is through the Work Profiling System (WPS), which is designed for managerial
positions. This method enables Walmarts human resource management to pinpoint the
necessary capabilities of managers, such as store managers and corporate managers.
Job descriptions. As the largest retailer in the world, Walmart has a wide variety of job
descriptions. Nonetheless, the firms human resource management uses the following
variables as criteria for job descriptions:
1.

Position

2.

Functions

3.

Duties

4.

Performance standards

5.

Job factors

6.

Job knowledge

For managerial positions, Walmart emphasizes analytical and problem solving knowledge,
skills and abilities (KSAs). In contrast, for sales personnel, the company emphasizes job
knowledge and interpersonal skills. Walmarts human resource management considers
interpersonal skills essential in sales personnel, who directly communicate with customers.
Job specification. The company has a wide array of job specifications. However, in general,
there are essential attributes and desirable attributes included in all job descriptions. For sales
positions, Walmarts human resource management specifiesessential attributes as follows:
1.

Communication skills

2.

Knowledge of the business

3.

Knowledge of products

These essential attributes are necessary in all sales employees throughout the organization.
However, there are also some attributes classified as desirable. These attributes are preferred
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but not necessary for a sales employee to effectively fulfill his job. Walmarts human resource
management specifies desirable attributes as follows:
1.

Likeable and sociable qualities

2.

Multi-tasking skills

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VII.

RECRUITMENT, SELECTION, EMPLOYEE RETENTION

Walmarts human resource management addresses recruitment needs using different recruitment
sources and methods suited to different positions in the organization. The company also uses retail
industry-specific criteria in its selection process. To optimize employee retention, Walmarts human
resource management strategy includes a continually evolving compensation program, together with
employee-relations management and career development. The firms HR managers also use other
approaches to improve morale and motivation in the workforce. Through this combination of
approaches and strategies to address business needs in recruitment, selection and retention, Walmarts
human resource management effectively maintains adequate human resources to support the firm
current retail operations and planned future global expansion.

WALMART RECRUITMENT PRACTICES

Recruitment Sources. Walmarts human resource management uses internal and external
recruitment sources for various positions. The use of internal recruitment sources focuses on
current employees to fill open or new positions at Walmart. External recruitment sources
have the benefit of accessing the labor market to address the human resource management
objectives of the firm. This combination helps ensure that Walmart is flexible enough in
satisfying its HR needs.
Walmarts uses different types of internal recruitment sources. The following are the most
significant in the company:
1.

Current employees

2.

Trainees

3.

Transfers

Current employees are a recruitment source especially for supervisory and managerial
positions. For example, Walmarts human resource management supports the promotion of
hourly sales employees to managerial positions. About 70% of the companys managers
started as hourly sales employees and were promoted to their current positions. Walmart uses
current employees as the biggest internal recruitment source. The companys human resource
management also uses on-the-job trainees as an internal recruitment source. There is only a
small population of trainees working for Walmart, such as in positions in sales and marketing.
Occasionally, the firm absorbs trainees in the positions for which they trained. This approach
has the advantage of minimizing additional human resource management spending and
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ensuring person-job fit. In addition, transfers are used to temporarily fill positions at Walmart,
based on current short-term HR needs. In this human resource management approach to
recruitment, some current employees are transferred to other positions or locations to fill gaps
in the workforce. Walmart sometimes uses transfers to satisfy high HR needs during Black
Friday.
Walmarts human resource management uses various external recruitment sources. The
following are the most significant for the firm:
1.

Respondents to job advertisements

2.

Campuses

3.

Previous applicants

Respondents to job advertisements are the biggest external recruitment source used at
Walmart. The companys website is the main human resource management portal for this
recruitment source. Job openings are regularly posted on Walmarts corporate website for
interested applicants. This recruitment source has the benefit of minimizing costs in reaching
applicants. In addition, the firms human resource management has recently emphasized
campuses as a significant external recruitment source. In particular, American Public
University (APU) entered an agreement with Walmart to give academic credits to the
companys employees, based on duration of employment and performance reviews. This
strategy promotes APU, while also improving Walmarts human resource management ability
to reach out to APU students interested in working at the company. Thus, this external
recruitment source increases the firms reach into the labor market. Previous applicants are a
less significant external recruitment source used at Walmart. The companys human resource
management objective in using this source is to maximize cost-effectiveness of recruitment.
Many of these previous applicants were already evaluated but were not hired or did not
pursue employment at Walmart. Thus, in using previous applicants as an external recruitment
source, the company does not need to perform another extensive evaluation of these workers,
thereby helping to maximize the cost-effectiveness of human resource management.
Recruitment Methods. Based on the recruitment sources used at Walmart, the corresponding
recruitment methods are direct and indirect. In using direct methods, the company directly
contacts prospective employees. For example, Walmart occasionally recruits at/through
campuses. The firms human resource management contacts students who might be interested
to apply for job openings. The benefit of this method is that it allows Walmart to speed up the
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recruitment process instead of waiting for applicants. The method also enables the company
to apply certain criteria in selecting students to contact. For example, representatives of
Walmarts human resource management can contact students in business-related degree
programs for supervisory or managerial job openings. However, the direct method of
recruitment is disadvantageous because it limits the population of potential recruits.
In using indirect methods of recruitment, Walmarts human resource management objective is
to reach out to a larger population of workers. These methods include advertisements on the
companys website and on other media. Indirect methods of recruitment provide the majority
of Walmarts human resources. These advertisements have a global reach, thereby providing
large-scale support for the companys HR needs. Also, indirect methods can be cost-effective.
In using its corporate website for the job advertisements, Walmart minimizes human resource
management costs in the aspect of recruitment.
SELECTION PROCESS AT WALMART
Selection Criteria. Walmarts selection criteria depend on the job position. Basic criteria
include education and training background and results of criminal background checks. For
hourly sales positions, Walmart uses knowledge retention (e.g. on product details) and
interpersonal skills. Interpersonal skills are essential for these positions because sales
personnel directly communicate with customers. Walmarts human resource management also
uses analytical and problem-solving abilities and conflict management skills for supervisory
and managerial positions. Supervisors and managers are expected to analyze and solve
problems, and resolve conflicts in the workplace.
Methods & Techniques. Walmarts human resource management uses structured interviews
and job knowledge evaluation for most job positions in the organization. Structured
interviews are used to determine details like the applicants perspective and expectations
about Walmart. This information determines the person-job and person-organization fit.
Walmart also uses personality tests and situational judgment tests for many positions,
although these tests are typically used for managerial positions, especially for positions in
human resource management, finance and others. Personality tests help in deciding whether
the applicant could function well in the context of the companys culture and nature of
business. Situational judgment tests determine analytical and problem-solving abilities. These
different tests ensure a comprehensive human resource management approach for the
selection of workers throughout the global structure of Walmart.

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WALMARTS EMPLOYEE RETENTION PROGRAMS

Employee retention is a critical concern for Walmart because the company suffers from
relatively high turnover, especially among hourly sales employees. To address this situation,
the companys human resource management uses the following retention strategies:
1.

Recognition

2.

Bonuses

3.

Training and development

4.

Promotions

5.

Academic credit

Walmart gives non-financial recognition for excellent employees, such as top-performing

employees in each store. Bonuses are based on business performance, although this strategy
is usually used for managerial positions. Walmarts human resource management includes
promotions and training & development to support the companys HR needs and increase
employee morale. The company promotes hourly sales employees to supervisory, then to
managerial positions. The firms agreement with American Public University to give
academic credit for work experience at Walmart is a long-term retention strategy for
employees pursuing a career to climb the companys corporate ladder.

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VIII. TRAINING, PERFORMANCE MANAGEMENT

Walmarts employee training and performance management are determinants of the companys human
resource management capability in supporting global expansion. As the company expands, so do its
HR needs for specific knowledge, skills and abilities for a truly global workforce. Walmarts training
programs are designed to ensure effectiveness in handling daily job tasks, and capacity to adjust to
emergent conditions in the retail industry. The firms human resource management goals include costeffective high performance training to maximize employee productivity. These training programs and
performance management efforts address some of Walmarts performance problems and challenges in
human resource management.

EMPLOYEE TRAINING AT WALMART

Needs Analysis. There are different types of training needs analysis available. The
applicability of each depends on the human resource management objectives of the
organization. In Walmarts case, the following types of training needs analysis apply:
1.

Work/task analysis

2.

Cost-benefit analysis

3.

Organizational analysis

Work analysis is typically used for understanding specific knowledge, skills, and abilities
required to fulfill jobs. For this purpose, Walmarts human resource management applies
work/task analysis as the main type of training needs analysis for most positions in the
organization. For example, work analysis is used to identify specific task requirements for
certain sales personnel and supervisors. In addition, Walmart uses cost-benefit analysis to
optimize training and human resource management costs. Cost-benefit analysis helps identify
which kind of training programs yields the best results with minimal costs. This needs
analysis method addresses Walmarts goal of cost-minimization, which is linked to the firms
cost leadership generic strategy. On the other hand, organizational analysis helps identify new
or emerging human resource management concerns that can be integrated in training
programs. These concerns include new HR needs for new Walmart stores, new products or
changes in store layouts, among others.

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Program Design. Walmart uses two main approaches for training program design. Each
approach addresses certain qualities prioritized in different job positions in the organization.
The approaches applied at Walmart are as follows:
1.

Results-oriented program design

2.

Process-oriented program design

Results-oriented training program design is the main approach used for designing training
programs at Walmart. The companys human resource management goal in using this
approach is to satisfy the required knowledge, skills and abilities for each job. This approach
is most important for sales positions in Walmart stores, as well as jobs in the firms
warehouses. On the other hand, process-oriented training program design addresses the
human resource management objective of maintaining proper performance of standard
procedures. This approach is most suited for standardized processes. Walmart uses processoriented program design for developing training programs for employees involved in
inventory and supply chain management.
Delivery. The delivery of training programs depends on the job positions and tasks involved.
Walmart delivers its training programs through the following methods:
1.

Discussions

2.

On-the-job training

3.

Coaching

Discussions are the most frequently used in Walmarts training programs. In discussions, the
human resource management objective is to deliver basic knowledge to employees. For
example, trainers and trainees discuss details of Walmarts new strategies and products. The
company also usually uses on-the-job training. This method is especially applicable for
hourly sales employees, supervisors and some managerial positions. Walmarts human
resource management objective in using on-the-job training is to deliver first-hand experience
in performing tasks specific to the jobs involved. In addition, the company uses coaching
mostly for supervisory and managerial positions. Walmarts senior managers coach newly
promoted managers or supervisors to orient them to their new positions. The human resource
management objective of using coaching is to pass on personal insights and knowledge from
the coaches to the trainees.
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Evaluation. Walmarts summative purpose for evaluating its training programs is to

determine training effectiveness to guide human resource management in improving these
programs. This purpose applies to all training programs at the company. Walmarts
descriptive purpose for evaluating its training programs is to determine changes among the
trainees upon completion of the program. This purpose of evaluation applies to all training
programs, although the firm emphasizes it more for positions in sales and supply chain
operations.
Walmarts human resource management is result-oriented. As such, the company typically
applies the Kirkpatrick Hierarchical Model for evaluating training programs. In this model,
Walmart collects information like reactions and learning of the trainees, as well as changes in
behaviors. Ultimately, the firm evaluates the results of training, such as new knowledge and
skills and the rate of learning.
WALMARTS PERFORMANCE MANAGEMENT PRACTICES
Performance Planning. Walmarts performance planning is based on three main dimensions
that relate with the needs of its retail business:
1.

Customer service orientation

2.

Decision-making and results orientation

3.

Analysis and problem-solving

Walmart uses the customer service orientation to directly address its human resource
management concerns in the context of retail. Retail is a service business. Thus, Walmart
emphasizes the customer service orientation in performance planning, to ensure that its
services satisfy customers. On the other hand, the decision-making and results orientation is
applied for all positions, although it is emphasized in planning for managerial and
supervisory positions. Walmarts human resource management objective in using this
orientation is to optimize organizational resilience through effective decision-making. In
addition, analysis and problem solving is also used for performance planning, but more so for
managerial positions. Walmart expects managers to effectively analyze and solve problems in
the workplace. These dimensions are included in the performance appraisals conducted at the
company. Walmarts human resource management considers these dimensions as essential for
planning for adequate workforce performance.

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Measurements and Standards. Walmart has different standards for different types of jobs
and at different levels of the organizational structure. For instance, the company has
productivity standards emphasized for warehouse personnel. Decision-making and financial
performance standards are usually emphasized in managerial positions. For frontline hourly
sales employees, Walmarts human resource management puts more emphasis on
salesmanship. In contrast, standards for problem solving and planning have more weight in
managerial and supervisory positions.
Performance Problems. Walmart experiences a variety of performance problems. However,
some of the most significant are as follows:
1.

Lost productivity because of tardiness and absenteeism

2.

Inaccuracies or errors in recording or reporting

3.

Negativism or hostility in customer relations or workplace relations

Some productivity issues are linked to tardiness or absenteeism, which Walmart uses as
grounds for termination. On the other hand, inaccuracies in recording and reporting can lead
to bigger problems, such as the bullwhip effect in the supply chain and related aspects of the
company. Walmarts human resource management provides training programs to minimize
errors and inaccuracies. The company also changes its processes and procedures to address
possible contributors to such errors and inaccuracies. In addition, negativism is a frequent
human resource management problem in many organizations. At Walmart, negativism leads
to lower productivity of sales teams and reduced effectiveness of managerial or supervisory
staff. To address this problem, Walmart encourages employees to participate in organizational
activities, including socials. Also, the firm provides benefits and incentives to help reduce
negativity in the workplace. Walmarts human resource management is always on the lookout
for other performance problems that can be solved through HR training, compensation, and
related approaches.

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IX.

COMPENSATION, CAREER DEVELOPMENT

Walmarts human resource management approaches for compensation and career development are
centered on minimizing costs. For instance, as part of the cost leadership generic strategy, the
company always aims to minimize spending for human resources. As such, Walmarts human resource
management is focused on ensuring that its compensation packages are minimized, but not to the
point that it compromises performance. The company also has career development strategies that aim
to minimize turnover by maximizing the level of fit between employees and their jobs. These human
resource management considerations are of critical importance in ensuring that Walmarts employees
are always sufficient in supporting the companys continued global growth.

CAREER DEVELOPMENT AT WALMART

Individual-Organization Matching. Walmart uses direct and indirect methods in evaluating
individual-organization match. The human resource management goal is to ensure that every
employee fits his job and the organization. In the direct method, Walmart collects information
from employees regarding their perceptions about the company. Such information represents
employees point of view about the appropriateness of their jobs and Walmarts strategies.
This method is typically applied per Walmart store. The company relies mainly on the direct
method for individual-organization matching. On the other hand, the indirect method
involving organizational variables as indicators of person-organization fit is less significant in
Walmarts efforts to match employees to their jobs and the organization. The human resource
management goal of using the indirect method is to determine the overall person-organization
match throughout the global organization of Walmart. Still, the direct method is more readily
applied because it is easier to implement, such as through the involvement of store managers.
Career Opportunities and Requirements. Walmarts human resource management
determines career opportunities and requirements based on different variables, including:
1.

Job analysis results

2.

Employee selection criteria

3.

Employee interests

4.

Employee knowledge, skills and abilities (KSAs)

One of Walmarts human resource management goals is to identify available career

opportunities in the organization. This identification process includes using job analysis
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results, which indicate the requirements for jobs and career paths within Walmarts
organization. To ensure that employees match these opportunities, the company uses
employee selection criteria, employee interests and KSAs to evaluate the level of person-job
fit between employees and the available opportunities. In this way, Walmarts human resource
management ensures that employees are on the right career path in the company, while
minimizing turnover among promoted workers. The identified employee-career matches are
used as one of the bases for promoting employees to higher positions in Walmarts corporate
ladder.
Assessing Employee Potential. Walmart assesses employee potential through different
variables. Store managers may use different criteria and methods of assessment. However, in
general, the following are the most significant criteria used for assessing employee potential
at Walmart:
1.

Employee knowledge, skills, and abilities

2.

Results of performance appraisals

Employee knowledge, skills and abilities are basic criteria for assessing employees potential
at Walmart. The human resource management objective is to ascertain what the employee is
capable of doing. This information is used to support career development. Walmart has
comprehensive information about employees KSAs based on recruitment documents and
other records. In relation, the company uses the results of performance appraisals to assess
employee potential. The human resource management objective in using performance
appraisal results is to determine the employees current capabilities and performance level.
With these criteria for assessment of employee potential, Walmart also emphasizes leadership
potential. The human resource management objective in this aspect is to support leadership
development within the company. This aspect relates with the fact that about 70% of
Walmarts managers started as hourly sales employees with leadership potential.
Instituting Career Development Initiatives. Career development initiatives support the
human resource management goal of improving the workforce, especially in filling leadership
or managerial positions. Walmarts approaches in instituting its career development initiatives
are:
1.

Coaching

2.

Training

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3.

APU partnership

Coaching is typically used in leadership positions, although it also applies to other positions
in the organization. Walmarts human resource management objective in using coaching is to
facilitate the sharing of leadership insights and ideas. For example, senior managers coach
junior managers to improve management and leadership capabilities. Coaching also improves
managers and supervisors morale and perception about Walmart. On the other hand, training
is a standard approach that addresses the human resource management goal of developing the
careers of employees. At Walmart, different job types and different levels in the
organizational structure have their respective training programs. These training programs are
designed to maximize performance. At the same time, the programs develop employees
knowledge, skills and abilities that are specific to certain career paths in the retail business.
For example, a Walmart employee who aims for a career path in human resource
management is more likely to receive training in this area to improve his performance and
support his career development as a potential HR manager. In addition, Walmarts recent
partnership with American Public University (APU) also supports career development. In this
partnership, APU gives academic credits to Walmart employees for their work at the
company. One of Walmarts goals in this partnership is to improve employee morale and
ensure the development of their knowledge, skills and abilities specific to retail business. In
this regard, though such partnership with APU, the firm addresses human resource
management goals in employee motivation and career development in the retail industry.
WALMARTS COMPENSATION STRATEGY
Basic Pay. Walmart is known for low prices and low wages. These low wages are frequently
criticized for inadequacy in supporting employees needs. At present, the companys
minimum hourly wage is $7.25, which is significantly below the national average of $9.93.
However, Walmart is reforming its human resource management. As such, the firm plans to
increase its minimum hourly wage to $10.00. This new minimum hourly wage will set
Walmart at the level of other retailers, such as Gap, which currently uses a minimum hourly
wage of $10.00. Also, Walmart plans to increase managers minimum hourly pay to $10.90 in
2015. The companys human resource management expects that these changes will improve
the workforce, especially with regard to employee retention.
Benefits. Walmart has a considerable list of benefits. The following is an overview of these
benefits:

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1.

Company-matched 401(k) contributions, up to 6% of salary

2.

Associate stock purchase plan with company match

3.

Associate discounts

4.

Comprehensive health insurance plans

Walmart maintains employee motivation through these benefits. The health insurance plans
include, among others, a vision plan, dental plan, life insurance, accidental death &
dismemberment insurance, and accident insurance. These benefits address the human
resource management goal of employee retention.
Incentives. Walmart offers many incentives for its workers. For example, the company gives
recognition to high-performance employees. The optional APU credits are also incentives to
motivate workers to improve their knowledge, skills and abilities. Walmart employees can
improve their performance and plan a long-term career though continuing education with
APU. These incentives address the human resource management objective of motivating
workers, especially in aiming for promotion and contributing more to Walmarts success.

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X.

Conclusion
PROBLEMS
With every good, there is the bad. Being such a powerful company, Wal-Mart has received
much criticism. Wal-Mart has been criticized for paying low wages and there has also been a
lot of criticism of Wal-Mart for not giving enough chances for women to get promoted. These
are important issues that Wal-Mart needs to address because pay acts as an important
incentive for increasing employee retention rates and also for encouraging employees to grow
with the organization. When you analyze the competitors of Wal-mart, Wal-Mart is paying
their associates a lot less than their competitors but they are bringing eleven billion dollars in
revenue, which is much more than their competitors. A friendly environment will help keep
the associates.
To solve these problems I believe Wal-Mart is on the right path. Wal-Mart is now trying to
keep their staff diverse by trying to keep fifty percent of the workforce as women. Rias
experience showed that women are moving up in the company with manager positions and
she emphasized that one woman had seven stores under her supervision. As far as the money
issue, I believe Wal-Mart can cut down on the amount of money paid to top executives and
increase associate pay. To an outsider looking in, it seems that the profits are only being
shared by top management and the associates are being forgotten.
DISADVANTAGE AND CHALLENGES
Because Wal-Mart doesnt pay so well, keeping quality associates is a problem that HR has to
handle .Wal-Mart competitors are paying much more and associates are noticing that.
Individuals want to work for a company where they will get better pay and benefits, so better
workers go to the places they can get more
THE GOOD
Although Wal-Mart offers low wages, they do offer health care benefits and other incentives.
All of the associates and their family can get health care at a low price and they can also own
shares of Wal-Mart by buying stock at a discounted price .Depending on how well the
company performs, there are also cash incentives for the associates. I believe these incentives
keep the workers motivated and a motivated associate produces good results.

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PERFORMANCE APPRAISALS
Incentives are the key to keeping employees happy and Wal-Mart understands this concept.
Appraising and offering incentives can help retain employees, encourage them to go the extra
mile, and have them put the company before themselves .We all could agree that Wal-Mart
starting pay is not high but giving associates something to look forward to will keep them
motivated. Wal-Mart has put in place employee evaluations and these evaluations can led to
promotions within the company and pay increases. Promotion within the company shows that
if an associate works hard, they will be rewarded.
CONCLUSION
At the end of day, I believe Wal-Mart needs to follow rule two of Sams rules for building a
business and share their profits with their associates. I believe sharing profits will not only
make associates perform better but they will also invest more into the company. Employees
will start to feel passionate about work and their passion will spark them to provide better
customer service. WalmMart should communicate everything to partners because
communication equals understanding, and understanding equals better production. Praise and
giving associates a voice will create loyalty and spark creative ideas from the bottom up. The
key objective for any business is to make a company a better place to work and Walmart is
doing a great job by offering incentives and implementing programs to assist in career
development. Walmart has great HR practices and I believe that once Walmart solves the
major problem of high employee turnover brought on by poor wages, they will be the perfect
company to work for.

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XI.
-

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