Running head: COMPANY MOTIVATIONAL PROFILE

Company Motivational Profile Walmart

COMPANY MOTIVATIONAL PROFILE

Company Motivational Profile Walmart

To achieve success, organizations must have a clearly defined plan. Sam Walton, founder
of Walmart, began his retail career as a management trainee at JC Penny. Walton opened a five
and dime store in 1951 and his first Walmart opened in 1962. Waltons concept of discounting
prices included a large variety of low priced items, buying large quantity goods at the lowest
price, and passing the savings on to his customers. Todays retail organizations must have a plan
to achieve success. Waltons vision allowed Walmart to grow into a multi-billion dollar
international retail giant. This paper discusses Walmarts motivational profile including the
background and history of Walmart, their corporate culture and management, the strengths and
weaknesses of their motivational strategies, and finally, an analysis of Walmarts motivational
strengths and recommendations for future improvements.
Background Information
Before opening Walmart, Sam Walton traveled around the world studying everything he
could about discount retailing. Walton became eager to bring the United States a different type of
store. He had an idea that Americans wanted something out of the box. Walton put in most of his
own personal money to open his first store in Rogers, AR. Walmart extended with more stores in
later years. He always believed that if a business gave their customers what they wanted, they
will continue to come back for more business. Walton knew that customers wanted a store to
exceed their expectations. When a store inconveniences anyone, they hate it.
Today there are over 10, 020 stores in America. Products and services include health and
beauty, electronics, grocery items, pharmacy, home furnishings, auto, garden, toys, and much
more. Walmart has shown that a business can start with the vision of one man and continue to
keep its values and not lose sight of the basic values it began with many years ago.

COMPANY MOTIVATIONAL PROFILE

Walmarts financial information is closely watched by their customers, shareholders, and

the entire world. Walmarts net sales for the past five years were $345 billion in 2007, $374
billion in 2008, $401 billion in 2009, $405 billion in 2010, and $419 billion in 2011. Walmart
increased their net sales by 3.4% from 2010 to 2011 and expect to increase their net sales by 4%
to 6% in 2012. Walmarts continuous operations increased by 12% in 2011 to $4.18 per share and
maintained a return on investment of over 19%. Walmart closed out 2011 with almost $11 billion
in free cash flow. Walmarts shareholders received a record number of $19.2 billion through
dividends and share repurchases. (Walmart 2011 Annual Report). These numbers reflect
Walmarts strengths as a business and the importance of shareholder value.
Corporate Culture and Management
The Mission Statement
The mission statement of an organization communicates the organizations goals. Sam
Walton believed that if we work together, well lower the cost of living for everyonewell
give the world an opportunity to see what its like to save and have a better life
(www.walmartstores.com). Walmarts mission statement is we save people money so they can
live better and was Sam Waltons ultimate goal for Walmart. Sam Walton believed the key was
to sell high quality and brand name products at the lowest price. When Walton opened his first
store in 1962, he developed three specific goals: 1) respect for individuals, 2) service to
customers, and 3) strive for excellence (www.walmartstores.com). The main goal is to keep low
retail prices and experts estimate that Walmart saves shoppers at least 15% on a typical cart of
groceries (Wilbert, n.d.).

COMPANY MOTIVATIONAL PROFILE

Organizational Structure
An organizations structure defines the companys procedures, reporting relationships,
and decision-making process. Walmarts organizational structure is seen in their shared services
division. Each major process formed the Centers of Excellence (COEs) and assists Walmart to
work toward efficiency, enhances individual career paths, and improves controls. The picture
below shows the Shared Services Wheel, including each COE developed.

Walmart first developed only five COEs and included Internal Disbursements (payroll,
travel, and expenses), External Disbursements (merchandise and freight payables and
warehouse), Receipts (accounts receivable, billing, and collections), Controls (reconciliations,
master data, and transactional controls), and Support (data entry, record retention, and Six Sigma
continuous improvement). Later, an additional COE for General Accounting was added as the
area of finance accelerated.
Once Walmart structured their processes, they focused on continuous improvement for
the company. Walmart developed their Continuous Improvement Team and utilized the Six
Sigma principles within each COE. Utilizing Six Sigma principles helps an organization measure
quality as that organization strives for perfection. Six Sigma is a disciplined, data-driven
approach and methodology for eliminating defects in any process from manufacturing to
transactional and from product to service (Terry, 2010). Creating such structured processes has

COMPANY MOTIVATIONAL PROFILE

helped Walmart create a positive impact and communicating Walmarts values both internally
and externally.
Walmart realized that their employees are the key to success and wanted employee
involvement during the decision-making process. Walmart decided to create their Governance
Committees. The nine committees created were Communication, Finance, Executive, People
(associates), Process (metrics), Marketing, Risk, Sustainability, and Technology (innovations).
These committees helped enhance communication and create an increased level of pride
throughout the company.
Decision-Making Strategies
Some of Walmarts goals include dominating the retail market, expanding into new
sectors of retail, and expanding within the United States and the International Market. Other
goals include broadening the appeal to customers, including creating a positive brand and
company recognition, becoming a better place to work, and improving business operations and
efficiencies.
Dominating the retail market comes from selling products at the lowest price. Walton
believed that achieving success at discount retailing meant cutting the price of an item as low as
possible, lower the markup, and earn a profit from the increased quantity of sales.
Walmart has expanded successfully both in the United States and internationally.
Walmarts expansion strategy includes taking over a retailer in a nation and converting that retail
store into a Walmart. Because few competitors can be so aggressive and powerful, Walmart has
utilized its wealth effectively to expand itself around the world.

COMPANY MOTIVATIONAL PROFILE

Walmarts use of advertising that include Walmart stores and associates and catchy
slogans such as Low Prices Always has helped Walmart create an impression with customers
who associate Walmart with low prices.
Motivational Strategies
As successful as Walmart is in other strategies, the company is not successful in using
employee motivational strategies. Calling employees associates is not enough. In 2004 PBS
released a video that presents the dark side of Walmart concerning the companys desire to
retain low prices at the expense of its employees in terms of wages, overtime pay, equal pay, and
promotions for women, and lack of employees benefits (PBS, 2004). The average salary for a
Walmart employee is between $15,000 and $20,000 annually (PBS, 2004).
Numerous class action suits filed against the giant international retailer resulted in
millions of dollars. Walmart paid $6.5 million for neglecting employees on meal and rest breaks
as well as allowing them to work off the clock (Forster, 2008, para. 2). Minnesota District
Judge Robert King Jr. ruled in a discrimination trial that Walmart willfully violated Minnesota
labor laws or its contract with its employees (Forster, 2008, para. 2). Additionally, Walmart has
lost numerous similar lawsuits for discrimination. A lawsuit in Philadelphia in 2006 held that
Walmart had to pay its employees $188 million in penalties. In 2005 a California lawsuit brought
a $172 million verdict, and a lawsuit in Colorado brought a judgment for $50 million against
Walmart (Forster, 2008).
In a five-to-four decision, the U.S. Supreme Court refused to rule on a nationwide class
action lawsuit (Dukes v Wal-Mart) brought by 1.5 million Walmart female employees
(Totenberg, 2011). The main reason for the ruling stated that the plaintiffs as a group could not
be considered a single class suing the defendant in a single trial (Totenberg, 2011, para. 4). To

COMPANY MOTIVATIONAL PROFILE

qualify as a group, the employees must point to discrimination based on a policy that affected
them all (Totenberg, 2011). Writing for the dissenters, Justice Ruth Bader Ginsburg found similar
policies in other companies but each location manager has the discretion to ignore those policies
replaced with policies that are more discriminatory (Totenberg, 2011).
Despite the Dukes decision, 500 female workers in five states filed discrimination charges
in January 2012 arguing that Walmart favors men over women for promotions and raises (Hines,
2012). Using a different strategy than the Dukes plaintiffs, the women first filed with the Equal
Employment Opportunity Commission (EEOC) in an effort to bring this independent federal
agency to conduct investigations of their complaints (Hines, 2012).
Company Analysis
Positive Experience for Employees
The Walmart Corporation understands that motivation from their employees is number
one and Walmart promotes a positive atmosphere to ensure their employees feel valued and
appreciated while working for their company. Upper management believes this will assist in
employee retention, which will lead to employees advancing to management positions over the
years to come. Walmart always believed in promoting from within because of the trainings and
the time they have invested in their employees. In addition, loyalty and respect will be earned by
their employees for giving them the opportunity to excel and become part of the Walmart family.
Walmart knows that educated employees working for the company will lead to a positive
working environment and high customer satisfaction from the knowledge gained by attending
college in hopes of graduating with a college degree. College assistance is given to employees to
attend college and Walmart works with each individuals schedule while attending college.
Employees can hold their full-time job and still attend college throughout the work week.

COMPANY MOTIVATIONAL PROFILE

Walmart employees understand and appreciate how the company promotes from within and how
the company assists with the employees college education giving each employee a positive
experience while employed at Walmart.
Motivation Approach
The essence of Walmarts approach to motivation includes diligently training their
employees on how to work as effectively as possible within the organizational structure. Trained
management shows progress reports on their productivity on a weekly or monthly basis.
Showing their progress from week to week and how it has progressed or where they need to
improve on gives employees the motivation to exceed the next months goal.
Combined Use of Motivational Techniques
The combinations of various motivational techniques are used by Walmart to be
successful. The company involves their employees to participate in motivational rallys to excite
the workforce from within, to promote a positive working environment, and to keep the moral
high within the organization. Coaching and training the employees to understand the companys
vision will give the workforce the knowledge needed to be successful, stay motivated, and work
as a team while working for the Walmart corporation. The combination of techniques that
Walmart uses is unique because it improves understanding and awareness, which equals
assertiveness and excellent customer service. The Walmart Corporation is geared for both
attracting new employees and improving employee retention. Walmart always has welcomed
new employees to join the Walmart family to share their new ideas and for the employees to
learn from the company as well. The company provides many perks and motivational techniques
for employees to ensure their stay with Walmart is a long one. The company knows employee
retention brings loyalty from staff members if treated with appreciation and gratitude.

COMPANY MOTIVATIONAL PROFILE

Walmart's Strong Motivational Practices

Company event inclusion, strategic employee training programs, opened promotion
ceilings, flexible working hours, and college incentives marked strong motivational practices.
Starting the employee encouragement program proved a valid approach as workers immerse into
the encompassing organizational picture. The strategic employee training programs received a
fair welcome as the capacity to expand worker skill sets enticed employees. Walmart's approach
to opening promotion ceilings and promoting advancement within offers the capacity to keep
turnover rates low and a concurrent working knowledge base inside the corporation. Flexible
work hours poise a positive image of policy flexibility to workers who cannot fulfill traditional
schedules. College benefit programs cement employee commitment and leverages Walmart the
ability to develop and retain talent from within the company.
Suggested Improvements for Walmart Motivation Strategy
Creating a motivation platform centered on employee benefit in lieu of profit margin
quotas culminates the suggested improvements for the Walmart motivation strategy. Opening
feedback channels to enable cordial dialogue and suggestion rather than only for negative
circumstances is a step forward. Including worker contribution by expanding further employee
involvement in company operations marks another corrective step. Leaders and managers
creating an enjoyable atmosphere for employees build employee synergy in customer relations
and productivity. Reducing the pay scale gap and offering flexible benefit programs reduces the
employee view of management hypocrisy and enables increased worker effectiveness.
Integrating a flexible and dynamic recognition program focused on employee centric needs
offers Walmart increased worker motivation and retention rates.

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Recommended Steps for Improving Walmart Motivation

Implementing programs aimed to improve employee commitment, satisfaction,
inspiration, and proper recognition serve as the recommended steps for improving Walmart
worker motivation levels. Fostering an open and honest environment is a secure way to open the
communication channels for employee feedback. Managers acting on employee feedback
suggestions in a dynamic approach, opposed to a "one size fits all," delivers employee
commitment. Expanding employee involvement programs through employee advisory groups
creates job satisfaction as workers receive the opportunity to increase stakeholder status in the
organization (Borbidge, 2007, p. 58). The next section covers inspiration and recognition steps
for improving Walmart employee motivation.
Reviewing the employee progress report program, launching an enjoyable work
experience program, and offering a flexible benefit upgrade define the recommended steps
toward improving Walmart inspiration and recognition programs. Involving employees and
managers to find efficiencies and deficits in the progress report program enables individual and
organizational goals to match. Meeting the end quota happens autonomously when leaders and
managers charge up the work environment centered on fun instead of sales targets (Leadershipand-Motivation-Training.com, 2012, p. 1). Employee inspiration soars once employees find the
workplace enjoyable and removed from unnecessary stressors. Increasing the employee pay scale
above the poverty levels and offering a flexible benefit package offer positive strides in
recognition. Managers fostering a workplace of appreciation through garnered awards and verbal
announcements levy greater potential toward employee motivation.

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Conclusion

This paper aimed to show the comprehensive motivational profile for the Walmart
Corporation. The first point listed background information, offered products, and financial
information for Walmart. Second, the paper outlined the mission statement, organizational
structure, and decision-making strategies to showcase corporate culture and management.
Various strong and weak points of Walmart's motivational strategy marked the third point. The
fourth point served a two part purpose in analyzing discovered motivational strengths and
recommended future improvements to the company's motivational strategy. Supporting and
integrating a stronger employee centric motivation offers Walmart the ability to improve on a
global scale for the next millennia.

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References

Biz Train. (2010). Wal-Mart manager explains ways his employees (associates) are a great
idea factory. Retrieved from http://www.biztrain.com/motivation/stories/walmart.htm
Borbidge, D. J. (2007). How do you influence behavior? To motivate workers, appreciate them.
Industrial Safety & Hygiene News, 41(2), 58. Retrieved from EBSCOhost
Forster, J. (2008, July 1). Court finds Wal-Mart repeatedly and willfully violated Minnesota
labor laws. St. Paul Pioneer Press. Retrieved from
http://reclaimdemocracy.org/walmart/2008/minnesota_labor_violations.php
Hines, A. (2012, February 4).Walmart women still seek justice in sex discrimination case.
Retrieved from http://www.huffingtonpost.com/2012/02/04/walmart-womendiscrimination_n_1253056.html
Leadership-and-Motivation-Training.com. (2012). Positive attitudes in the workplace. Retrieved
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PBS. (2004). Is Walmart good for America? Retrieved from
http://www.pbs.org/wgbh/pages/frontline/shows/walmart/
Schroeder, K., & Mixon, J. (2011). Building an Effective Shared Services Team at the Worlds
Largest Retailer. Articlesbase. Retreived from http://www.articlesbase.com
Terry, Kristen. (2010). What is Six Sigma? iSixSigma. Retreived from http://www.isixsigma.com
Totenberg, N. (2011, June 20). Supreme Court limits Wal-Mart discrimination case. National
Public Radio (NPR). Retrieved from ttp://www.npr.org/2011/06/20/137296721/supremecourt-limits-wal-mart-discrimination-case
Walmart. (n.d.). About us. Retrieved from http://walmartstores.com/

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Wilbert, Caroline. (n.d.). How Walmart Works. How Stuff Works. Retrieved from
http://money.howstuffworks.com/wal-mart.htm

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