ORGANIZATIONAL BEHAVIOR - WAL-MART HIGH TURNOVER
Organizational Behavior - Wal-Mart High Turnover
Wal-Mart is a revered public multinational corporation, which operates chains of extremely large discount stores. It has its headquarters in Arkansas. Its rank by public revenue puts it on top of the globe. The given average turnover rate that was reported for the entire retail industry in 2012 was 41 .7 percent. However, it is worth noting that some of its stores boast of a high turn-over rate of more than 85% and 104%. The unprecedented levels of evident high turn-over rates at Wal-Mart rely on the employees. Wal-Mart pays an hourly wage that is barely above the required minimum wage. The 9.63 hourly rate set by Wal-Mart supersedes the 6.35 hourly rate set by the worker’s union. It means that there are always claims of low wages offered to the employees, and also tough working conditions. The systems implemented at the company may be the reasons behind the overworking of employees and the low wage rate. Wal-Mart also offers the lowest costs on its products, beating several competitors in the market. However, employees are the main culprits in the whole scenario. This paper is out to give a thorough analysis of Wal-mart and recommended the pertinent course of action to resolve the high-turnover- employee problem, which would lead to better performance of the company (Boxenbaum & Rouleau, 2011).
Impact of cost cutting on operations and revenue growth
Competition growth and revenue slow down impacted negatively on Wal-Mart, hence pushing the management to come up with measures to improve sales and returns. It prompted the development of the “Project Impact,” which came out to be an expensive remodel program for the stores. The goals of wooing many clients to the company failed, and they embarked on the “Win, Play, Show,” project, one designed for the inventory rationalization. The company notably ran a lean operation...