Question
Please assist with a brief description of how the following source is relevant to the Walmart case study: citation of the source: Kline, D. (2022).
Please assist with a brief description of how the following source is relevant to the Walmart case study:
citation of the source:
Kline, D. (2022). Cathie Wood: Here's the Biggest Problem Facing Target and Walmart.
Retrieved on June 5, 2022, from https://www.thestreet.com/investing/do-walmart-and-
target-have-an-inventory-problem.
Walmart
Sharon A. Whatley
Walmart- Company Background
Walmart, controlled by the Walton family, is a leading international retailer in over twenty-seven countries, has sixty-nine brands in various regions, and over two million employees. In 2000, Walmart engaged in the $4 generic-drug prescription program and online shopping. I will discuss Walmart's departmental and organizational issues from a customer's perspective regarding poor customer service and product/service complaints. I am not employed by Walmart however; I am a frequent shopper. I have chosen to focus on Walmart because it is an example of a large organization where the reputation of the organizational culture represents a lack of training for employees and defective products & services which result in poor customer service and organizational failures.
Product & Service Complaints
Walmart is known for low prices, poor customer service, overcrowded stores, and lacking training for employees. Walmart has substandard customer service which has a negative impact on the organization. In fact, the Better Business Bureau shows a customer review rating of 1.08 and there have been 4505 consumer complaints in the last twelve months that involve problems with products/services, inaccurate websites, misleading pricing policies, and customer service issues.
Online Shopping Experience
In my recent shopping experience at Walmart, there was a discrepancy between the inventory available on the website versus the inventory in the local store. Walmart's online shopping website is not designed to dispute transactions or handle complaints and associates lack the knowledge and skills to resolve the issues. I recently purchased a Roku television through Walmart's website, which was a dissatisfying online shopping experience. The television was in stock on the website and available for pick up within 2 hours. Twenty minutes later, I received an email showing that the television was not in stock and that it would be shipped within two weeks. I contacted the local store and was transferred multiple times and then provided with a different customer service number to request a credit. I contacted my bank to receive immediate credit and traveled to the local store where I purchased the television that day. The human capital was not leveraged effectively in this scenario and the issue could have been resolved by a knowledgeable and skilled associate.
The Decision for Walmart -Departmental Issues
Walmart closed around 130 locations by late 2017 because of unpopularity, market share loss, and deficient performance. As of 2022, Walmart confirmed that stores across the U.S. closed due to deficient performance. Walmart closed the "underperforming" Supercenter in southwest Louisville. "Our decision is based on several factors, including historic and current financial performance, and is in line with the threshold that guides our strategy to close underperforming locations." Little told the newspaper. "The Cincinnati Enquirer reported that officials said its closure was also based on historic and current financial performance." Poor organizational practices were a factor that made it more reasonable for Walmart to sell than to resolve all the issues. This paper is written from the perspective that the store closings could have been prevented given some organizational changes.
Proposed Organizational Behavior Concepts
There is an opportunity for intervention using the following organizational behavioral concepts: Active management-by-exception is recommended which is a form of transactional leadership that clarifies the performance standards and disciplines of those who do not meet the minimal standards. Walmart has an effort-reward imbalance which suggests that the employees would perform better if rewards were obtained for work completed. Deficient performance is highest when the required effort is high, but rewards are low. Walmart would also benefit from the supplemental organizational process in which associates and managers have ongoing meetings for the purpose of understanding and addressing important problems and listening to customer feedback.
Finally, transformational leadership is an approach that would motivate Walmart's employees to do more than expected, to continuously develop, increase self-confidence, and have more interest in the organization.
Conclusion
In conclusion, an organization can be unsuccessful due to poor business planning, high employee turnover, and low employee morale/motivation. A poor customer service reputation can lead to decreased sales and having to terminate operations or close underperforming stores. The employees' and customers' concerns should be considered, and recommended intervention be implemented where needed. Employees that are dissatisfied with their jobs are less productive, and the quality of work suffers. Work-life balance is one of the key variables when addressing issues of employee management and retention. Overworked employees have less time to spend with each individual customer and provide a lower quality of work which makes the customer feel undervalued.
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