For many years Walmart focused exclusively on providing everyday low prices to customers so they could save

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For many years Walmart focused exclusively on providing “everyday low prices” to customers so they could save money on the merchandise and food they bought at Walmart stores. In order to provide the low everyday prices, Walmart would establish low hourly wages and minimal benefits to its workers in order to pass the savings of low labor costs on to its customers. Recently Walmart has decided to improve the welfare of its workers by raising its minimum employee starting wage to $11 per hour (up from $9 per hour) and improving the benefits package to include paid parental leave. With a group of four or five students develop a rationale for Walmart’s improved treatment of its workers by answering the following questions: Has Walmart developed a new strategy to focus greater attention on being a socially responsible employer and treat its employees with greater kindness and support? Is Walmart simply responding to the reality of facing challenging economic factors due to the current existence of a tight labor market with a scarce labor supply (4 percent unemployment rate in the United States in 2018) in order to staff its stores with enough workers to serve its customers? Has Walmart realized that many of its customers are also its employees and by treating them well the employees are more likely to become loyal customers at Walmart stores so that “one hand washes the other”? Be prepared to share the findings of your group with the class when called upon by the instructor.

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Managing Human Resources

ISBN: 9780135196007

9th Edition

Authors: Luis Gomez-Mejia, David Balkin, Kenneth Carson

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