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1. Introduction – Human Resource Planning 2

2. Human Resource Planning 4

3. Recruitment 6

4. About Wal-Mart 11

5. Organizational Structure and Culture 14

6. Human Resource Management 16

7. Recruitment, Selection, Employee Retention 20

8. Training, Performance Management 24

9. Appraisal, Compensation, Career Development 29

10. Conclusion 32

11. Bibliography 34

INDEX

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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

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

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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 individual’s 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 public-

sector 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

organization’s 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.

Determine present and future organisational requirement taking into consideration of

personnel planning and job analysis activities.

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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:

EXTERNAL RECRUITMENT

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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.

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- 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

doesn’t finish until after the appointment has been made.

The main stages are identified in the below flow chart –

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

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IV. ABOUT WALMART

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 México y Centroamérica 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

WALMART’S VISION, MISSION, GENERIC & INTENSIVE STRATEGIES

Walmart follows its vision statement and mission statement through the cost-leadership

generic strategy, based on Porter’s model, and the market penetration and market

development intensive growth strategies. Walmart’s mission and vision are used as bases for

these strategic choices.

WALMART’S MISSION AND VISION STATEMENTS

Walmart’s Vision Statement. The company traces its success to the ideals of its founder,

Sam Walton. These ideals are emphasized in Walmart’s 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. Walmart’s 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

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on the basis of financial benefits. Employees earn wages, while consumers save money

through Walmart’s low prices. However, the heartcomponent of the vision statement remains

to be proven.

Walmart’s Mission Statement. The company’s strategic decisions are also a direct

manifestation of its mission. Walmart’s mission statement is “Saving people money so they

can live better.” This statement is synonymous to the company’s slogan, “Save money. Live

better.” The firm follows and succeeds in fulfilling the saving people moneycomponent of the

mission statement. Consumers save money through Walmart’s low selling prices. However, it

is not yet clear if the company satisfies the live bettercomponent of the mission statement.

There are criticisms on Walmart’s very low wages that are barely enough for employees to

make ends meet. There are also criticisms about the long-term effects of the firm’s continued

large-scale sales of cheap and sometimes hazardous imported goods.

WALMART’S GENERIC STRATEGY (PORTER’S MODEL)

Based on Porter’s Model, Walmart’s generic strategy is cost leadership. In cost leadership,

the firm’s 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 large-

scale operations.

WALMART’S 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.

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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

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 company’s efforts are on sales and marketing. Thus, product development is not

a significant intensive strategy in the firm’s growth.

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V. ORGANIZATIONAL STRUCTURE & CULTURE

Walmart’s organizational structure determines the company’s business activities. Its

organizational structure also imposes limits on how the business addresses its problems. In

relation, Walmart’s 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 firm’s

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.

Walmart’s leadership position in the retail industry and its potential long-term success are

linked to the beneficial combination of the company’s 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 Walmart’s 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 company’s 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 Walmart’s organizational structure.

The main effect of Walmart’s hierarchical functional organizational structure is the ability of

corporate managers to easily influence the entire organization. For example, new policies and

strategies developed at Walmart’s corporate headquarters are directly passed on to regional

managers down to the store managers. In this way, effective monitoring and control are

achieved through Walmart’s 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 Walmart’s headquarters.

ORGANIZATIONAL CULTURE

Walmart’s organizational culture has four main components. These components guide

employees’ behaviors. The components are also identified as Walmart’s 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

Walmart’s human resource management is a critical success factor for the business. The

company’s retail service offers goods in a way that is convenient and efficient for shoppers.

In this service context, Walmart’s human resources directly determine business output. The

company’s 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 Walmart’s 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.

WALMART’S HUMAN RESOURCE PLANNING

Forecasting. Walmart’s 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. Walmart’s 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. Walmart’s 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 Walmart’s 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

needs. A current trend that shows an increasing demand for human resources indicates a

larger workforce requirement in the future. Walmart’s human resource management uses

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trend analysis to determine HR needs along with the company’s global expansion. In

addition, the Delphi method forecasts future HR needs based on expert opinion. Walmart’s

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 company’s 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

Walmart’s 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

Walmart’s human resources leave and/or are replaced. Turnover, together with the rate of

recruitment, is an indicator of changes in the size of the company’s workforce. Walmart’s

human resource management ensures that the recruitment rate is commensurate to the

turnover rate. If the turnover rate is lower than the recruitment rate, Walmart’s workforce

increases in size. An increase in workforce size usually happens when the company expands

or opens new stores. In addition, Walmart’s 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, Walmart’s human resource management

increases or decreases recruitment efforts.

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 firm’s human

resource management uses the following approaches to balance HR supply and demand:

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1. Changes in recruitment

2. Changes in compensation

Changes in recruitment are Walmart’s main approach to balance HR supply and demand. The

company’s 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, Walmart’s human resource management minimizes changes in the firm’s

compensation strategy. On the other hand, changes in compensation are also used to prevent

an imbalance in HR supply and demand.Walmart’s compensation strategy is designed to

minimize HR expenditure. This strategy agrees with the company’s cost leadership generic

strategy. When HR supply becomes inadequate, Walmart’s last resort is to increase wages.

Theoretically, higher wages attract more applicants. Walmart’s 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 Walmart’s

human resource management through the company’s 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 firm’s 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 company’s human resource

management uses direct observation of sales personnel’s activities. Interviews are conducted

to analyze the jobs of team leaders and supervisors. This method enables Walmart’s human

resource management to establish expectable job outcomes. On the other hand, the worker-

oriented 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 Walmart’s human resource management to pinpoint the

necessary capabilities of managers, such as store managers and corporate managers.

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Job descriptions. As the largest retailer in the world, Walmart has a wide variety of job

descriptions. Nonetheless, the firm’s 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. Walmart’s 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, Walmart’s 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

but not necessary for a sales employee to effectively fulfill his job. Walmart’s 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

Walmart’s 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, Walmart’s human

resource management strategy includes a continually evolving compensation program, together with

employee-relations management and career development. The firm’s 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, Walmart’s

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. Walmart’s 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.

Walmart’s 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, Walmart’s human resource management supports the promotion of

hourly sales employees to managerial positions. About 70% of the company’s managers

started as hourly sales employees and were promoted to their current positions. Walmart uses

current employees as the biggest internal recruitment source. The company’s 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 ensuring person-job fit. In addition, transfers are used to temporarily fill

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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.

Walmart’s 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 company’s website is the main human resource management portal for this

recruitment source. Job openings are regularly posted on Walmart’s corporate website for

interested applicants. This recruitment source has the benefit of minimizing costs in reaching

applicants. In addition, the firm’s 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

company’s employees, based on duration of employment and performance reviews. This

strategy promotes APU, while also improving Walmart’s human resource management

ability to reach out to APU students interested in working at the company. Thus, this external

recruitment source increases the firm’s reach into the labor market. Previous applicants are a

less significant external recruitment source used at Walmart. The company’s 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 firm’s 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 recruitment process instead of waiting for applicants. The method

also enables the company to apply certain criteria in selecting students to contact. For

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example, representatives of Walmart’s 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, Walmart’s human resource management objective

is to reach out to a larger population of workers. These methods include advertisements on

the company’s website and on other media. Indirect methods of recruitment provide the

majority of Walmart’s human resources. These advertisements have a global reach, thereby

providing large-scale support for the company’s 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. Walmart’s 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. Walmart’s 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. Walmart’s 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 applicant’s 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 company’s 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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WALMART’S 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 company’s 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. Walmart’s human resource management includes

promotions and training & development to support the company’s HR needs and increase

employee morale. The company promotes hourly sales employees to supervisory, then to

managerial positions. The firm’s 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 company’s corporate ladder.

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VIII. TRAINING, PERFORMANCE MANAGEMENT

Walmart’s employee training and performance management are determinants of the company’s

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. Walmart’s

training programs are designed to ensure effectiveness in handling daily job tasks, and capacity to

adjust to emergent conditions in the retail industry. The firm’s human resource management goals

include cost-effective high performance training to maximize employee productivity. These training

programs and performance management efforts address some of Walmart’s 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 Walmart’s 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, Walmart’s 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 Walmart’s goal of cost-minimization, which is linked to the firm’s

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.

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:

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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 company’s 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 firm’s

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 process-

oriented 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 Walmart’s training programs. In discussions, the

human resource management objective is to deliver basic knowledge to employees. For

example, trainers and trainees discuss details of Walmart’s 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. Walmart’s 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. Walmart’s 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.

Evaluation. Walmart’s 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. Walmart’s

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

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programs, although the firm emphasizes it more for positions in sales and supply chain

operations.

Walmart’s 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.

WALMART’S PERFORMANCE MANAGEMENT PRACTICES

Performance Planning. Walmart’s 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. Walmart’s 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. Walmart’s human resource management considers these dimensions as essential

for planning for adequate workforce performance.

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, Walmart’s human resource management puts more emphasis on

salesmanship. In contrast, standards for problem solving and planning have more weight in

managerial and supervisory positions.

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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. Walmart’s 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. Walmart’s 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

Walmart’s 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, Walmart’s 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 Walmart’s

employees are always sufficient in supporting the company’s 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

Walmart’s 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 Walmart’s 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. Walmart’s 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 Walmart’s human resource management goals is to identify available career

opportunities in the organization. This identification process includes using job analysis

results, which indicate the requirements for jobs and career paths within Walmart’s

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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, Walmart’s 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

Walmart’s 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 employee’s 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

Walmart’s 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. Walmart’s approaches in instituting its career development

initiatives are:

1. Coaching

2. Training

3. APU partnership

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Coaching is typically used in leadership positions, although it also applies to other positions

in the organization. Walmart’s 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, Walmart’s 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 Walmart’s 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.

WALMART’S 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 company’s

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 company’s 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:

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

2. Associate stock purchase plan with company match

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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 Walmart’s 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. Ria’s

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 doesn’t 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 Sam’s 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. BIBLIOGRAPHY

- Wal-Mart Stores, Inc. (2015). Walmart’s Official E-commerce Website.- Wal-Mart Stores, Inc. (2015). Walmart Form 10-K, 2015.- Wal-Mart Stores, Inc. (2015). Walmart Human Resources.- Greenhouse, S., & Barbaro, M. (2006, June 2). Wal-Mart pushes to redefine its work 

force. The New York Times.- Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012).

Clarifying the construct of human resource systems: Relating human resource management to employee performance. Human Resource Management

Review, 22(2), 73-85.- Muethel, M., Gehrlein, S., & Hoegl, M. (2012). Socio‐demographic factors and

shared leadership behaviors in dispersed teams: Implications for human resource management. Human Resource Management, 51(4), 525-548.

- Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

- Schuler, R., & E. Jackson, S. (2014). Human resource management and organizational effectiveness: Yesterday and today. Journal of Organizational

Effectiveness: People and Performance, 1(1), 35-55.- Skariachan, D., & Wohl, J. (2013, June 13). Wal-Mart’s everyday hiring strategy: add 

more temps. The Denver Post.- Slocum, J., Lei, D., & Buller, P. (2014). Executing business strategies through

human resource management practices. Organizational Dynamics, 43(2), 73-87.- Wal-Mart Names Chief of ‘Office of Diversity’ (2003, November 19). LA Times.- Zimmerman, A. (2004, August 12). Wal-Mart to Toughen Job Screening. The Wall

Street Journal.- Wohl, J. (2012, November 11). Wal-Mart employees to pay more for health care 

plans. Chicago Tribune.

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