Walmart Management

1714 WordsApr 20, 20127 Pages
Management Paper on Walmart Wal-Mart Stores: Managing Diverse Organizations By Angela L. Farrish Webster University Ms. Amy Thenor December 2011 Wal-Mart In 1970, Sam Walton the founder of Wal-Mart implemented an extremely significant warehouse distribution system. This new system evolved into Wal-Mart Stores Inc. and in that same year the company was publicly traded on the New York Stock Exchange. The company began to expand extremely rapidly throughout the 70’s. During this period Wal-Mart started incorporating pharmacies and auto service centers into its stores which incited even more growth. By 1979, there were 276 Wal-Mart stores in 11 states. During the early 1980’s Wal-Mart’s…show more content…
This motivational strategy allows employees to benefit from their performance which will in turn make the company’s overall performance better. Home office management associates are eligible to receive additional compensation through stock options. Associates can become shareholders through the Associate Stock Ownership Plan. Wal-Mart also contributes 15% each year toward associate stock purchases. This contribution is capped at $1,800 each year. Since the typical Wal-Mart employee only makes between $6 and $7.50 per hour, most are unable to afford the stock options and only one in fifty associates participate in the program. Wal-Mart associates also receive 10% off selected store merchandise and are offered discounted child care through four national providers (Peterson Coleman). These benefits help Wal-Mart keep its best and brightest employees. Diversity Challenges Problems in businesses conducted across cultures often arise when individuals from one culture are not able to understand culturally determined differences. The most common difference is the language barrier if individuals are not fluent in the language. With individuals, who don’t speak the same language, the use of nonverbal cues can explain what is trying to be communicated. Nonverbal cues and behaviors vary from one culture to another. For example, people from the U.S. are taught to use direct eye contact when communicating; in many
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