Ana G University. Méndez Isabela Campus
Introduction
I open a parenthesis to point out that this essay represents a personal reflection at the same time that an academic investigation. Wal-Mart has been the work workshop of more than one of the members of my family, so the information that I share below comes, both external sources, and from the privileged knowledge to which I had access through the input of inputmy beloved ones.
The Wal-Mart Compensation Plan is based on the internal capital compensation approach. From the internal equity perspective, the organization rewards or compensates for employees fairly according to the relative value of their work within the organization. On the other hand, market -based compensation is a method for using market payment data to evaluate the organization’s payment level and then decide employee compensation.
According to an internal statement, Wal-Mart offers fair compensation to its employees based on their performance and contribution to the company to attract and retain business employees. In addition, Wal-Mart makes an annual review of the company’s administration and employees to reward them. The Mega -Empresa considers several factors, such as the level of skills, efforts, responsibility and working conditions of employees, while compensating them.
Developing
The company focuses on compensation based on internal heritage to provide fair compensation to management, executives and employees. Compensation based on internal equity encourages employees to perform well and increase the contribution in the organization that can help Wal-Mart to compete in the market.
Executives and employees. Compensation based on internal equity encourages employees to perform well and increase the contribution in the organization that can help Wal-Mart to compete in the market. Executives and employees. Compensation based on internal equity encourages employees to perform well and increase the contribution in the organization that can help Wal-Mart to compete in the market.
Walmart Human Resources Management Approaches for compensation and professional development focuses precisely on minimizing costs. Although efforts have been made to create an effective employee-retention program, WAL-MART remains at a high employee-rotation rate compared to competitors in the retail industry. But, who is not prepared to fail, is not prepared to learn. There is no success without setbacks.
Competency -based payment philosophy.
In competency -based payment, the organization pays its employees based on their skills, knowledge, capacity and behavior in the place of the position it occupies. It is an effective approach to address organizational needs to motivate employees and support organizational strategies.
Wal-Mart uses competition-based philosophy to compare the work or performance of the employee the use of evaluation factors through work, such as effort, skill and responsibility. According to this system, Wal-Mart pays rewards to employees in individuals based on their ability to perform tasks. The competition-based payment system encourages employees to become high-performance people who can help Wal-Mart to grow and improve their performance. In this system, employees must apply certain skills and competences that can be beneficial to achieve strategic objectives.
Compensation based on individual performance.
Wal-Mart cannot include equipment performance components in the competition-based payment system because the company’s philosophy is based on the individual system related to payment performance. The philosophy of the Wal-Mart’s payment system is based on individual competences that depend on the value of employees in what they can do. If an individual employee can perform multiple tasks, Wal-Mart can expect an increasing individual value.
Wal-Mart considers individual performance, skills, knowledge and ability of individuals, while compensating employees, but cannot consider the general performance of the team. It is an effective way to motivate the employee and promote it to apply their skills and competence in the workplace.
WAL-MART employee salary base.
Wal-Mart uses competition-based philosophy to establish workers’ base salaries by comparing work with each other through the function of their obligations and responsibilities. Can help them assign internally equitable payment rates for each job. The payment rate for each job dependent on themselves, not in the publication.
Wal-Mart paid its employees an average salary per hour according to the competitive score of the individual that is based on internal compensation based on equity (Barbaro, 2017). In the company, the base salaries and the salary scales of the employees in similar positions can differ in each state and even by area of a state because its salary structure is based on the philosophy of competition when considering the individual competitive score.
Performance -based system.
Wal-Mart offers fair compensation for workers, executives and managers based on their performance and contribution to the growth of the company that indicates that the performance base system uses. Employee compensation depends on the location of the store, skills, knowledge, experience and capacity of personnel. The company does not consider antiquity and position of the employee to decide the compensation of people.
The company includes variable payment components such as incentives, bonds, participation in profits, etc. In the Compensation Plan. It also provides incentives to workers to attract and retain key employees. The participation plan was established in 1971 by the founder of the Sam Walton company. He believed that the participation plan in profits encourages people to contribute to business success. The company grants employee bonds / incentives on the basis of their performance or contribution in the organization. The company annually reviews the performance of employees or executives and then decides their remuneration.
Performance evaluation approach
Wal-Mart does not use supervisor, peer and self-assessment rating approaches to evaluate employee performance. In the supervisor rating, the supervisor evaluates the performance and progress of employees during the entire evaluation period, while self-assessment gives the employee the opportunity to evaluate their own performance.
On the other hand, in the peer review method, people who do a similar work are judged by the performance of an employee. Wal-Mart does not use these performance evaluation approaches to evaluate employee performance. Wal-Mart uses a 360-degree feedback approach in the evaluation system by collecting information on employee performance from all directions around performance.
In comments of 360 degrees, companies collect information on the performance of the employee from all addresses, which means a circle of 360 degrees (Burton, Obel and Desonctis, 2015).
Wal-Mart collects information on the performance of supervisors, managers, colleagues and even customers. Use a 360 -degree feedback method to support human resources functions and emotionally evaluate employee performance to provide fair compensation. It is an excellent method to recognize good performance and improve performance by identifying the strengths and weaknesses of employee performance.
Executive Compensation Strategy.
Wal-Mart includes basic salaries, incentives, bonds, actions awards and other benefits in total executive packages. The company decides the compensation of executives based on the performance of the individual and the company’s benefit. The amount of the bonds and awards of shares depends on the operational income of the company in the year. The company provides fair remuneration to executives based on their performance, contribution and efforts. The company offers compensation to executives by considering the paid remuneration to the executives of comparable companies and their responsibility.
Conclusions
Recapitulating, as part of the generic cost leadership strategy, the company always aims to minimize human resources spending. As such, Wal-Mart Human Resources management focuses on ensuring that its compensation packages are minimized, but not to the point of compromising performance. These benefits address the human resources management objective of employee retention.
Wal-Mart’s compensation philosophies and approaches could be effective in order to improve workers’ performance and achieve strategic objectives. Through the use of compensation practices based on individual equity and competition-based philosophy, Wal-Mart offers compensation or fair reward to each worker and maintains the culture of the organization. A fair compensation motivated and encouraged employees to perform well, which helped Wal-Mart to achieve their strategic objectives.
Compensation based on individual performance motivated employees to perform well, which could be beneficial for the company to provide their services to customers and satisfy them. The performance -based system reduces conflicts between management and employees that can improve the general performance of the organization (Lipman and Hall, 2018).
The 360 -degree feedback performance evaluation method is effective in identifying the weakness of a particular employee who is beneficial for the company to improve its performance / it through the provision of training and development facilities. It is an effective way to improve employee performance and achieve the objectives of the organization.
Most large companies have a mission statement that even CEO has trouble remembering.
When employees receive adequate compensation, they are positively motivated to overcome expectations at work. Employee efforts at work are directly related to their salary. There is much to do and as Lean’s principle establishes, there are no small changes: little transformations are gradually achieved.
Walmart’s payment of incentives focuses on managers. The company can improve the resulting imbalance by giving more equitable emphasis to the incentives of managers, supervisors and rank employees. An applicable recommendation is to use an incentive plan that offers better incentives for low -ranking employees. Instead of focusing on supervisors and managers, Walmart’s human resources management can increase incentives for sales personnel, which are the final result and the basis of the retail business.
BIBLIOGRAPHIES
- Baldwin, d.A. (2013) The Library Compensation Handbook: A Guide for Administrators,
- Librarians, and Staff. United States: Unlimited Libraries.
- Barbarian, m. (May 4, 2017). Wal-Mart reveals some compensation details. The New
- York Times Company. Recovered from
- Burton, r.M., Obel, b. and disappointment, g. (2015). Organizational Design: A step by step approach
- (2nd ed.). United Kingdom: Cambridge University Press.
- Caruth, d.L. & Handlogten, G.D. (2011). Manage compensation (and also understand it):
- Manual for perplexes. United States: Greenwood Publishing Group.
- Lipman, f.D. & Hall, S.AND. (2018) best executive compensation practices. USA:
- John Wiley & Sons.
- Swanson R.C. & Swansburg, R.J. (2012) Introduction to Management and Leadership for Nurses
- Managers (3rd ed.). United States: Jones & Bartlett Learning.
- Varela, Ricardo A. (2006) Compensation administration, salaries, salaries and benefits
- Prentice Hall ISBN: 970-26-0700-0 Spanish edition.
- Wal-Mart Stores, INC. (2014). The Walmart Foundation appoints a new president.
- Wal-Mart Stores, INC. (2014). Wal-Mart Stores, INC. Letter of the Compensation Committee
- Nomination and government.
- Wal-Mart Stores.com. (2012) Walmart Annual Report
Leave feedback