There is an array of key components and factors involved in making an organization a successful business. One of those elements consists on evaluating employee’s performance; this sole component is critical in determining how effective is the organization’s productivity and which are the necessary steps to ensure proper functioning. “The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically the employee's supervisor, can sit down and have a lengthy face-to-face discussion about all aspects of the job” (Joseph, 2016). Employees’ performance assessment serves as an instrument to gather important information as to which areas of the job description are being performed according to standards …show more content…
and which must be improved.
Periodicity in this process is vital; this ensures that personnel issues, productivity and mission are evaluated in a consistent and timely manner. The most important resource of a company is its human resource, therefore ethical decisions as to the way this resource is managed, will ultimately determine if the company will have a long lasting success in the industry.
Topic/ Issue Identification
In order to remain as one of the most competitive organizations in the retailer world, Walmart has to evaluate its workforce performance on regular basis in order to make sure they are performing at the required level. Ignoring or diminishing the importance of performance management can prevent employees and the organization itself, from growing and advancing. It is said that the lack of frequent job reviews and evaluations among Walmart’ employees is affecting the organization overall performance. This week’s case study presents several issues regarding the way they company approaches these appraisals. The purpose of this analysis is to address this problem and suggest a better approach for Walmart
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when it comes to assessing their employee’s work. “Performance interviews are conducted at least twice a year, so that the progress of employees is regularly monitored” (Thompson, 2015). By knowing that Walmart evaluates their workforce performance every six months, it is easy to think the organization practice a culture of “minimum effort evaluation” among its workforce. In fact, Walmart’s managers probably also lack training and knowledge on how to perform these evaluations. For an organization of this magnitude, there is much to improve within the process than just a simple job reviewing. The first issue is that a periodical assessment has to be made not just to evaluate the way the employee works, but to give clear guidelines about the standards under which employees will be evaluated. Every company has an ethical responsibility to ensure that good work conditions are present, so its mission can be fulfilled and its employees count with the tools and the opportunities to perform to the exigencies. The challenge with these evaluations is not just to implement the changes suggested by them, but the longevity of the implementation and the proper tailoring of solutions. Analysis / Evaluation As other organizations, Walmart has ethical obligation to its employees, investors, providers and customers, having the responsibility to make sure the organization is well functioning to meet the organization overall goals. Walmart’s culture of continually growing can be compromised by the lack of an appropriate management system. The lack of ongoing performance management and appropriate and timely feedback is affecting employees and the organization daily business. Among other issues, “Walmart experiences a variety of performance problems. However, some of the most significant are as follows: 1.Lost productivity because of tardiness and absenteeism 2.Inaccuracies or errors in recording or reporting 3.Negativism or hostility in customer relations or workplace relations” (Thompson, 2015). Walmart’s lack of a constant performance management is not allowing managers to tackle these problems before they become out of control. Ongoing employee evaluation is a critical time in which managers can correct performance problems, redirect employee’s behavior; understand the reasons for tardiness, lack of motivation, identifying possible issues that are preventing employees to perform as wanted. There is a variety of solutions Walmart can implement towards remedying these problems. For example, the company can change the assessment frequency; a quarterly evaluation will allow the employee to feel that the employer cares about the worker’s wellbeing. A more frequent evaluation will help to build and maintain trust between employer and employee, thus creating reciprocity of benefits; will create conditions to allow all employees to maximize their contributions and will allow Walmart to improve the general public perception about the way this company treats its employees. There is not ethical value in demanding employees to perform to certain standards if the company itself does not ask the employee what the organization can do to help the person to become a better team member, to improve general work conditions and to treat employees with dignity and respect. Recommendation In this case, Walmart’s evaluations are clearly lacking regularity and competence. Walmart has evaluations on its employees twice a year. A six months period, does not allow the employer to take immediate measures or to make adjustments, if needed. Employees struggle when there is a gap in their manager’s management practices, because they aren’t clear on what their manager considers important and valuable about their performance. Problems can grow over a six months period, or an employee’s personal situation could be interfering with a good performance, but if the evaluation is made only twice a year, the company is losing precious opportunities to tackle those issues in a timely manner. A shorter period assessment, like a quarterly evaluation will allow the organization to have a current and more realistic picture of its employee’s situation and, it will allow managers to have a more consistent record of the development of its supervisees. These assessments must have a minimum questionnaire that every manager can use as a tool to identify issues with the employee. This standardized basic part of the assessment can serve as a way to document the progress or deterioration in the employee’s performance and the ethical responsibility of the company in suggesting ways to improve or implementing the changes case by case. This will help to have a more productive follow up evaluation because discussed issues can be readdressed and reevaluated, improvement can be rewarded and acknowledged by managers and overall performance tested. Additionally, it is important that the company’s managers receive also a proper training, as to how to use adequate evaluation strategies and tools; if this training does not take place, employee’s evaluations will not have the ideal results. After reviewing and acknowledging its own deficiencies, Walmart has to establish a performance management system that aligns employee’s performance with the organization’s needs. Ongoing monitoring provides the supervisor the opportunity to check how well employees are meeting determined standards and to make changes if it is necessary. The next step is to evaluate employee performance in order to make decisions about where to invest resources such as salary, promotions, areas of strength and areas that need further development. Walmart can also promote self-evaluation among employees as a way for them to acknowledge and evaluate their own performance. “When we don’t monitor employee performance, or encourage our employees to monitor their own performance it is like we give a pretty clear signal that they and their performance aren’t terribly interesting useful or significant” (Henshaw, 2011). Through continuous evaluation, supervisors can identify unacceptable performance at any time during the appraisal. Managers can also use this period to provide feedback, coaching and teaching them how to improve their performance. Other recommendation for Walmart is to reward employee’s performance. Effective managers understand the importance of using rewards as incentive for employees to do their job as required. Recognizing employee’s contribution motivates them to not only perform their job at a higher level but also inspires them to advance, which at the end of the day, will benefit the organization. It is also very important to keep in mind to document the performance management process. Keeping record of the performance management process would allow managers to compare earlier results with actual performance, and see if the objectives are being met. If this is done correctly, there should not be any concerns with Walmart’s performance management issues. Learning outcomes A lack of ongoing and appropriate performance management system can compromise any organization well-functioning and advancement.
Performance management issues can be fixed by maintaining close supervision, setting high standards, but also focusing on developing employee skills needed to reach them. A good manager is the one who helps their employees to identify and to focus on their most important objectives, goals, and desired outcomes; is the one who identifies the strong abilities in the individual, and shows a clear path to follow. Companies’ ethical focus, -and Walmart is not the exception- should be not only reviewing employee’s performance, but helping them to grow at all levels, creating an environment that energizes and motivates human beings and
teams. In my organization performance management or yearly “observations” are used to evaluate our capacity to perform our job as required and if we are meeting organizational goals. Performance management time is viewed as an opportunity to recognize what has been done well, what needs improvement or change and how we can work on bettering our performance. Even though, at some point for managers these assessments may be a complex and stressful periods, the truth is a well conducted performance management, will result in a positive experience from which employees and managers can learn in a very productive way.
Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of how much liabilities a company has compared to its assets. Wal-Mart in the year of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a company's ability pay short term obligations. Wal-Mart in the year of 2007 had a quick ratio of .25, and as of January 2008 it had a ratio of .21. Both the current ratio and quick ratio are a measure of liquidity. Wal-Mart is not as liquid as its competitors such as Costco or Family Dollar Stores Inc. I believe the reason why Wal-Mart is not too liquid is because they are heavily investing their profits for expansion and growth. Management claims in their financial report that holding their liquid reserves in other currencies have helped Wal-Mart hedge against inflationary pressures of the US dollar. The next ratio to look at is the inventory ratio which is defined as the cost of sales divided by average inventory. In the year of 2007, Wal-Mart’s inventory ratio was 7.68, and as of January 2008 it was 7.96. Wal-Mart has a lot of sales therefore it doesn’t have too much a problem of holding too much inventory. Its competitors have similar ratios though they don’t have as much sales as Wal-Mart. Wal-Mart’s ability to sell at lower prices for same quality, gives them the edge against its competition. As of the year 2007, Wal-Mart had a debt ratio of .58, and as of January 2008, it had a debt ratio of .59. The debt ratio is calculated by dividing the total debt by its total assets. Wal-Mart has a lot more assets than it does debt so Wal-Mart is not overleveraged.
Target’s core employee development strategy is to embrace, teach, and model concrete behaviors that will lead to higher levels of individual and system performance and excellence. Some of these objectives include teaching employees to perform at the highest level in a current position, manage internal and external environmental changes, increase promotability, and contribute directly through all outputs towards to common company goal. Each position in the company has a set list of guidelines for core behaviors and expectations. This set of guidelines are used to measure each individual employee and the achievement of these goals can help these employees progress their careers at Target. Linkage to performance plans also help in the development of employees. In these performance management training sessions, HR staff help employees develop a sense of understanding about the core values associated with striving for excellence, obtaining results, and other characteristics of high-performing organizations. Employees learn to communicate these core behaviors, and this gives all employees a clear understanding to what it takes to be a high performer. Another very important aspect for Target leadership is to identify and develop future positions. This creates back-ups for each position in the store to ensure seamless transitions if a current employee leaves or is terminated. Performance management is measured not only on individual employee basis, but also by the company as a whole. We will observe the company’s performance compared to its biggest rival Walmart. Based on recent stats we were able to compare the two companies in several aspects as
The performance assessment and appraisal forms are crucial within the performance management system (Aguinis, 2014). However, the appraisal form within the case study provided is designed for the supervisor’s use thus missing one vital factor throughout the entire process, employee participation. Thus, questioning the validity and reliability of the process. This is especially concerning as the bottom 10 per cent of employees are being fired and the top 20 per cent are being rewarded with $5,000.00 based on what their supervisor records on the form without consultation with employees. Thus, supervisors may not provide accurate scores as they do not have to justify their responses (Aguinis,
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
Since January 31, 2004, the investment banker for Wal-Mart has been Moody's investor services. Wal-Mart plans to refinance for their long term dept with Mood's Investor Services and also a few other investment banking for other corporate purposes that are not mentioned. Wal-Mart also plans to bowwow 3.3 billion dollars and an additional 1.1 billion for commercial paper By January 31, 2004 the, Wal-Mart had already established a 5.1 billion dollar lines of credits from 77 different banking industries and investment and used up approximately 145 million in the production of commercial paper. During the same time period Wal-Mart had 6 billion dollar debt of securities under a shelf registration regulation which derived from the SEC. Wal-Mart sold 1.25 billion in notes and maturity. The notes bear an interest of 4.1.25 % and mature by February 2011. The total quantity of notes allowed to be sold to is up to 4 billion.
Wal-Mart initially began its operations in 1945, when Sam Walton leased a ‘Ben Franklin’ franchise variety store in Newport, Arkansas. After relocating to Rogers, Arkansas in the early 1950s, Sam Walton’s ‘Ben Franklin’ became ‘Walton’s 5 & 10’. By 1962, Walton found himself the chain owner of 11 different Walton’s stores across Arkansas. He then decided to rename the chain ‘Wal-Mart’, after himself. On October 31, 1969, after further expansion across the state, the chain was incorporated as Wal-Mart Stores, Inc. Three years later, Wal-Mart was approved and listed on the New York Stock Exchange (NYSE).
Investment in training will be able to improve Walmart’s financial position. Training can bring resolution to reduced performance issues by clarifying the particulars of the job. This will diminish doubling of efforts in the workplace, the period spent fixing slipups and the problem solving required to right bad performances. Enhanced performance from management training can lessen employee turnover, decrease repair expenses by reducing equipment failures and end in smaller amounts of customer grievances. Better performance from employees will naturally create little need for supervision and bring improved
Wal-Mart maintains aggressively, a distinct and consistent corporate culture through out its operations. The issue is that local managers and supervisors are given unguided discretion on the hiring, firing, promoting, and disciplining of employees (Hart, 2006). These individual managers bring with them their own beliefs, biases, stereotypes, and assumpt...
However, as one of the largest retailers, Wal-Mart really needs to adjust its management assumption, treating its employees respectably and creating a positive work environment, which is essential for Wal-Mart’s on-going success. Managers should nurture their employees, increase their job satisfaction and pass on positive attitudes and passion within the work environment. This should be true even among employees who are doing low level jobs.
The financial performance of Wal-Mart continues to be strong. It delivered another record year in 2008 as total net sales increased 8.6 percent to $375 billion. Yet, earnings growth rates and same store sales have slowed. And, the company faces a number of challenges to its operating procedures, reputation and growth prospects. Given the company’s stated objectives of “growing operating income faster than sales” and increasing shareholder value, the strategies we recommend will directly affect the company’s ability to overcome present challenges and meet these primary financial objectives.
Performance management is the awareness of every individual having an invested interested in the firm or company they work for, after all, it takes more than machines and software to run a firm, it takes people (Nassar, 2007). In addition, it is people that generate 84% of the effergy; furthermore, it is the power that supports the machines that can run 24 hours a day without tiring or the computer that accounts for a multitude of application that function with precision (Nassar, 2007). In this discussion, we will look three important points about Walgreens Boots Alliance/Rite Aid (Walgreens Boots Alliance,2018) from an empirical position as follows; first, a discussion about training for employees, secondly, a look at three different teams I work with, and thirdly, the support the team receives (Nassar,
While the life of a manager might seem easy, the reality behind a manager who is successful in performance and efficiency shows that many people would think twice upon that idea. Throughout the decades, the role of a manager has changed drastically. With the Classical and Neo-Classical Movements, the specific requirements of a manager have been debated and explored to see which the best for an organization is. Managers need to keep the organization efficient and productive through delegation and specialized training while also making sure their employees’ human needs have been solved. With all of the aforementioned reasons and evidence being accounted for, it is clear that manager’s decisions have to be both helpful for the company and also cannot dehumanize their employees.
...arket, they still attempt to improve their performance in other areas, by contributing to charity and hence improving their local reputation, however they have very low customer and employee satisfaction. These lowered performance indicators stem from low employee motivation. It would be very beneficial for Walmart to increase these performance factors as the small cost of improving employee’s conditions and motivation would be balanced by not having to re-hire 70% of their work force every year.
Although performance is a major objective at top organizations, successfully addressing poor performance is also a key focus. Although many employees feel or dread performance appraisals they are directed to enforce clarity with individual employees day-to-day work-load, performance appraisals develops responsibility while making employees accountable for performance expectations, reinforces future career planning, helps the organization with determining training needs, and provides a stem of documentation for legality purposes. Performance management in detail is much broader than many employers, and employees assume and necessitates so much more. Proficient appraisals should represent a summary of on-going dialogue. Focusing only on an annual performance evaluation leads to misrepresentation of the performance management process in its
Organization is a group of people brought to gather to achieve specific goals. Goals can be achieved if team member are performing well. Performance is the results of activities given to the employees in an organization to be achieved within specific period of time. Evaluating the current performance of employees against past performances and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore performance appraisal helps the company know how individual employees are performing and how to improve their performance thus improving the performance of the company (Grubb, 2007). A performance appraisal is propose in which the performance management system in an organizations set work goals, determine performance standards, provide performance feedback, determine training and development needs and distribute rewards as well as evaluating an employee’s job performance during a period of time. The performance of team member is much more than appraising individuals’ works, it is managing the business, so the performance of an employee is influences by the performance of an organization. It is target to achieve the best results for the planned strategic by managing activities of employees. There are many different opinions on the performance appraisals, some organizations do performance appraisals without any aim just follow others., where some organizations do performance appraisals to make sure they have a record of a piece of paper in the employee’s file – they are careless about do corrective action. But successful organizations understand the importance of combining performance appraisals into their performance management process and strategy plan as the success of any organizatio...