PROBLEM-SOLVING APPLICATION CASE Walmart's Values Come under Scrutiny Sam Walton founded Walmart in Rogers, Arkansas, and the company grew from that single store in 1962 to more than 11,300 locations spanning 27 countries by 2019. Today, the multinational retailer is the world's largest company by revenue-generating over $500 billion in 2018-and the largest private employer with more than 2.2 million employees. The retailer also owns Sam's Club, a chain of warehouse clubs that sell groceries and general merchandise in bulk." Walmart is known for its "everyday low prices, but critics say prices are not all that's low at the retailer. Individual employees, advocacy groups, and govern- ment agencies have brought numerous labor-related lawsuits against the company, scrutinizing its internal values. Let's take a closer look at what's going on at the massive retailer. against pregnant workers in Wisconsin. The complaint was filed on behalf of Alyssa Gilliam, who became pregnant in 2015. Gilliam requested light duty or trans fer to a less physically demanding Job in which she would avoid heavy lifting due to her pregnancy. The company declined to accommodate her in any way. including providing her with a chair, shorter work days, or additional breaks, The EEOC alleges that Walmart retaliated by cutting Gilliam's benefits, reducing her work hours, and eventually forcing her to take unpald leave. Interestingly. Walmart had a robust light duty program that allowed workers with lifting restrictions to be accommodated, "But Walmart deprived pregnant workers of the opportunity to participate in this pro. gram. This amounted to pregnancy discrimination, which violates federal law." said the EEOC." Gilliam wasn't the only employee denied a chair. Adam Catlin, who suffers from cerebral palsy, has been a Walmart greeter in Selinsgrove, Pennsylvania, for almost ten years. Catlin was told in 2019 that due to a change in corporate policy, he would need to stand for his entire eight-hour shift and lift up to 25 pounds or be fired. Cait- lin's mother urged Walmart customers on Facebook to support her son. "1 know corporate decisions are corpo rate decisions, if that's where this originated from, but does anyone ever make any decisions anymore by put ting any heart or care into it?" she wrote. 12 A SERIES OF WORKPLACE ABUSES Walmart prides itself on its values. The retailer states that "We define culture as our values in action. It's how we deliver superior customer service, create a great front- line work environment and improve performance.. Moreover, Walmart's stated values are centered on being guided by good," which includes "respect for the Individual" and acting with integrity." Allegations against the company suggest a different story. Consider a report by a workers' advocacy group that says Walmart "routinely refuses to accept doctors' notes penalizes workers who need to take care of a sick family member and otherwise punishes employees for lawful absences. The report is based on a survey of more than 1,000 Walmart employees and accuses Walmart of Vio lating the American with Disabilities Act and Family Med- ical Leave Act, among other labor laws. Katie Orzehowski was a cashier at the Walmart in WALMART'S ALLEGED BAIT AND SWITCH Walmart CEO Doug McMillon's compensation for fiscal 2018 was $22.8 million, which is 1.188 times the annual compensation of its median employee. In con trast, CEO pay at S&P firms averaged 361 times more than the average employee in 2018." Overall, the Walmart is known for its "everyday low prices, but work hours, and eventually forcing her to take unpaid critics say prices are not all that's low at the retailer. leave. Interestingly, Walmart had a robust light duty Individual employees, advocacy groups, and govern program that allowed workers with lifting restrictions to ment agencies have brought numerous labor related be accommodated, "But Walmart deprived pregnant lawsuits against the company, scrutinizing its internal workers of the opportunity to participate in this) pro- values. Let's take a closer look at what's going on at gram. This amounted to pregnancy discrimination, the massive retailer which violates federal law," said the EEOC." Gilliam wasn't the only employee denied a chair Adam Catlin, who suffers from cerebral palsy, has been a A SERIES OF WORKPLACE ABUSES Walmart greeter in Selinsgrove, Pennsylvania, for almost Walmart prides itself on its values. The retailer states that, ten years. Catlin was told in 2019 that due to a change in "We define culture as our values in action. It's how we corporate policy, he would need to stand for his entire deliver superior customer service, create a great front- eight-hour shift and lift up to 25 pounds or be fired. Cait- line work environment and improve performance. fin's mother urged Walmart customers on Facebook to Moreover, Walmart's stated values are centered on support her son. "I know corporate decisions are corpo being guided by good which includes respect for the rate decisions, if that's] where this originated from, but Individual" and "acting with integrity.*** Allegations does anyone ever make any decisions anymore by put- against the company suggest a different story. ting any heart or care into it?" she wrote. Consider a report by a workers' advocacy group that says Walmart routinely refuses to accept doctors' notes, penalizes workers who need to take care of a sick family WALMART'S ALLEGED BAIT member and otherwise punishes employees for lawful AND SWITCH absences." The report is based on a survey of more than Walmart CEO Doug McMillon's compensation for fiscal 1,000 Walmart employees and accuses Walmart of Vio 2018 was $22.8 million, which is 1.188 times the tating the American with Disabilities Act and Family Med annual compensation of its median employee. In con- ical Leave Act, among other labor laws. trast, CEO pay at S&P firms averaged 361 times more Katie Orzehowski was a cashier at the Walmart in than the average employee in 2018. Overall, the North Huntingdon, Pennsylvania, and completed the company has been the defendant in scores of cases, employee survey. She suffered a miscarriage in 2016 including class actions, or group suits, accusing the and provided doctors' notes and hospitalization company of wage-law violations, according to Jona records to excuse her missed shifts, but the company than Tasini, president of the Economic Future Group. refused to excuse her absences. She was so worried Walmart decided to raise its minimum wage from that another absence would get her fired that she $10 to $11 in 2018. With much fanfare, CEO McMillon returned to work, while still in recovery. "I still had a lot stated, "Today, we are building on investments we've of bleeding going on, and that's embarrassing: been making in associates, in their wages and skills Orzehowski told The New York Times. development. It's our people who make the differ Walmart's focus on the bottom line over its ence and we appreciate how they work hard to make employees' welfare didn't end with those who suffered every day easier for busy families. ** Now consider from an illness. The Equal Employment Opportunity that Walmart closed dozens of its Sam's Club ware- Commission (EEOC) filed a lawsuit against the retailer houses on the same day it announced the pay in September 2018 alleging it unlawfully discriminated increases. This brings into question whether the retailer had positive intentions in raising employee pay. The United Food and Commercial Workers Inter- national Union, for example, called the wage increase a "public relations stunt" meant to distract from the closing of 63 stores. The closures resulted in approx- imately 10,000 workers losing their jobs." The timing of the announcement wasn't the only issue as many Sam's Club employees had no idea their stores would be closed until the day of the announcement Accord ing to The Times, some workers showed up for work only to be informed that their stores were closed." POOR JOB SATISFACTION IMPACTS CUSTOMER SERVICE Walmart's minimum wage hikes may raise the pay of some of its workers, but they may not be enough to solve the retailer's continued customer service prob- lem, according to Forbes." Walmart's American Cus- tomer Satisfaction Index (ACSI) score dropped between 2016 and 2017. The ASCI measures the quality of products and services American consumers receive by major department and discount retailers. The drop placed Walmart at the bottom of a list of department and discount retailers (even below a bankrupt Sears). Making Change at Walmart (MCAW). an organiza- tion dedicated to transforming the lives of Walmart employees, believes the company's poor customer service ratings are related to the way it treats its work ers. "Walmart lacks the ability to improve its customer experience when it refuses to focus on what we all know to be true-quality Jobs create quality experi- ences for both shoppers and workers," says MCAW director Randy Parraz. Walmart needs to do more for its employees if it wants to improve their attitudes with customers. For example, wages and benefits are so poor at Walmart that thousands of its employees qual ity for food stamps, Medicaid, and other government assistance programs, according to MCAW. Walmart says it has a common purpose of saving B. Cases have protagonists (key players), and prob- lems are generally viewed from a particular pro- tagonist's perspective. You need to determine from whose perspective-employee, manager, team, or the organization--you're defining the problem, C. Use details in the case to identify the key prob- lem. Don't assume, infer, or create problems that are not included in the case. D. To refine your choice, ask yourself, Why is this a problem? Answering this question helps refine and focus your thinking. Focus on topics in the current chapter, because we generally select cases that illustrate concepts in the current chapter STEP 2: Identify causes of the problem by using material from this chapter, which has been summarized in the Organizing Framework shown in Figure 2.4. Causes will tend to appear in either the inputs box or the Processes box A Start by looking at Figure 2.4 to decide which person factors, if any, are most likely causes of the defined problem. For each cause, ask your self. Why is this a cause of the problem? For example, if you think personal attitudes-an input in the Organizing Framework-are a cause, ask yourself why. This might lead you to the con clusion that Mayer's attitudes about telecommut- Ing are related to her prior work experience. This may have led her to make decisions that are adversely affecting employees. Asking why several times will lead you to a more complete list of causes B. Follow the same process for the situation factors. C. Because no processes were specifically dis- cussed in this chapter, you can skip an analysis of this component of the Organizing Framework. 2016 and 2017. The ASCI measures the quanty or products and services American consumers receive by major department and discount retailers. The drop placed Walmart at the bottom of a list of department and discount retailers (even below a bankrupt Sears) Making Change at Walmart (MCAW) an organiza- tion dedicated to transforming the lives of Walmart employees, believes the company's poor customer service ratings are related to the way it treats its work ers. "Walmart lacks the ability to improve its customer experience when it refuses to focus on what we all know to be true-quality Jobs create quality experi ences for both shoppers and workers," says MCAW director Randy Parraz. Walmart needs to do more for its employees if it wants to improve their attitudes with customers. For example, wages and benefits are so poor at Walmart that thousands of its employees qual ify for food stamps. Medicaid, and other government assistance programs, according to MCAW.2 Wolmart says it has a "common purpose of saving people money so they can live better. It seems its employees will need to live better as well if the com. pany wants to continue its success APPLY THE 3-STEP PROBLEM SOLVING APPROACH TO OB STEP 1: Define the problem. A Look first at the outcome bax of the Organizing Framework in Figure 2.4 to identify the important problem(s) in this case. Remember that a prob lem is a gap between a desired and a current state. State your problem as a gap, and be sure to consider problems at all three levels. If more than one desired outcome is not being accom- plished, decide which one is most important and focus on it for steps 2 and 3. MA the Processes box A. Start by looking at Figure 2.4 to decide which person factors, if any, are most likely causes of the defined problem. For each cause, ask your self, Why Is this a cause of the problem? For example, if you think personal attitudes-an Input in the Organizing Framework-are a cause, ask yourself why. This might lead you to the con- clusion that Mayer's attitudes about telecommut- Ing are related to her prior work experience This may have led her to make decisions that are adversely affecting employees. Asking why several times will lead you to a more complete list of causes 8. Follow the same process for the situation factors. C. Because no processes were specifically dis- cussed in this chapter, you can skip an analysis of this component of the Organizing Framework. D. To check the accuracy or appropriateness of the causes, be sure to map them onto the defined problem, STEP 3: Make recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1,5). Which recommendation is desirable and feasible? Given the causes identified in Step 2. what are your best recommendations? Use the material in Chapter 2 for in Chapter 1) to propose a solution Find potential solutions in the OB in Action and Applying OB boxes within the chapter. These fea tures provide insights into what other individuals or companies are doing regarding the fopic of hand Create an action plan for implementing your recommendations 4 PART 1 Individual Behavior