Essay Wal-Mart

1065 Words Aug 8th, 2011 5 Pages
Running Head: WAL-MART EXPANDS HEALTH BENEFITS

Business Case 4

Human Resource Management Foundation – HRM 500

1. How well do you think Wal-Mart’s earlier, more limited health benefits supported the company’s overall business strategy?
I feel Wal-Mart’s earlier, limited health benefits did not support the company’s overall business strategy because, in order for employees to want to work for a specific employer, employees must feel they are making a difference in his/her position. Employees must also feel that the organization is meeting some of their important needs. Employees place value in job satisfaction for example, employee earnings and benefits. ‘A job is the primary source of income and financial security for most
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Organizations that are committed to retaining good workers must also provide adequate compensation that allows employees to feel the organization cares about their needs. In order for Wal-Mart to remain competitive they must offer a compensation package that employees feel is fair and comparable to other organizations. If employees feel that the organization does not care or place any value on their individual needs employees may not remain with the organization and/or adapt the desired behaviors the organization requires, to provide superior customer service. 3. Why do you think Wal-Mart gave employees the option to tailor their health care coverage 50 different ways? Discuss three pros and cons of this approach.
I feel Wal-Mart reasons for giving their employees the 50 options is because every one of their employees has different needs that are important. By offering a flexible health plan employees can tailor the plan that fits their individual needs. For example, a single mother with children would need additional benefits than a single person without children that is in good health. A senior who is covered by his wife’s benefit plan, but her plan does not cover dental benefits. Another example, a mature adult who is caring for his/her aging parents may need assistance with family care. With Wal-Mart offering a wide variety of benefits can enhance their competitive edge and can attract new employees and retain present personnel who

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