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Human Resource Management of Walmart -
January 28th, 2011
Wal-Mart Stores, Inc. (formerly branded as Wal-Mart, branded as Walmart since 2008) (NYSE: WMT) is an American public multinational corporation that runs a chain of large discount department stores and a chain of warehouse stores. In 2010 it was the world's largest public corporation by revenue, according to the Forbes Global 2000 for that year. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in Bentonville, Arkansas, is the largest majority private employer and the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America.
Wal-Mart has 8,500 stores in 15 countries, with 55 different names. The company operates under its own name in the United States, including the 50 states. It also operates under its own name in Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal-Mart" in some branches), in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Mart's investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful.
International Human Resource Management is the process of procuring, allocating and affectively utilizing human resources in a multinational corporation. HMM managers in multinational corporations need to achieve two somewhat conflicting goals. First, they must integrate HRM policies and practices across a number of subsidiaries in different countries so that overall corporate objectives can be achieved. At the same time, the approach to HRM must be sufficiently flexible to allow for significant differences in the types of HRM policies and practices that are most effective in different business and cultural settings
IHRM and Domestic HRM
In broad terms, IHRM involves the same activities as domestic HRM however, domestic HRM is involves with employees within only one national boundary. Some of the major differences of IHRM to domestic HRM are:
o IHRM encompasses more functions
o IHRM has more heterogeneous functions
o IHRM involves constantly changing perspectives
o IHRM requires more involvement in employees’ personal lives
o IHRM is influenced by more external sources
o IHRM involves a greater level of risk than typical domestic HRM (, 1991 cited in 2002)
Compared to domestic HRM, IHRM requires a much extensive perspective on even the most common HRM activities. IHRM personnel must deal with issues such as international taxation; international relocation and orientation; various other administrative services for expatriates; selecting, training and appraising local and international employees; and managing host-government relations. In the subsidiary level, the HRM personnel are more involved in the employees’ personal lives. Subsidiary HRM personnel often arrange housing, health care, transportation, education, and recreational activities for both expatriate and local employees. IHRM activities are also affected by more external forces than are domestic HRM activities. Subsidiary HRM personnel may have to deal with government ministers, other political figures, and a greater variety of social and economic interest groups than would normally encountered in purely domestic HRM
ep 3: Existing programmes:
· Identifying the strengths and weaknesses of the existing programme.
· Changes should not be made for the sake of change alone, unless that is the only way to deliver the message.
· Enhance areas of strength and correct any existing problems by examining closely all design and operation facets of the current programme in the light of the guiding principles, and clinically questioning the administrative elements.
Step 4: Changes:
· Where change is necessary, consider alternative approaches and validate them against the principles. Eliminate those which do not fully fit. Narrow the choice to no more than two.
· Test the final choices in a model under various financial and operational scenarios to choose the one which does the job and sends a clear, understandable message. That approach is then selected, the necessary documentation is completed, and the results are approved by the appropriate authorities.
Step 5: Implementation and communication:
· These are critical elements which are often not fully carried out as a part of programme development.
· Aside from the preparation of requisite processes and materials, it is essential that steps be taken to ensure management’s ownership of, and enthusiasm for, the programme.
· Some of this will occur by involving management in the information gathering and development process. Not to be overlooked is calling on management to play a leadership role in presenting the programme and being a major part of its operation.
Step 6: Monitoring:
· Maintaining surveillance over the guiding principles and comparing them with strategic changes. Updating the processes as necessary and continually assessing the operation and administration of the programme for consistency with design intent.
· Often the problem in a programme has more to do with operation and administration than with design. The goal is to make sure everything is functioning as intended.
The Internal Auditor
In today’s environment all companies are driven to reduce expenses and increase productivity. Executive compensation programmes are no exception. Neither are expenditures by boards of directors; stockholders increasingly are looking over their shoulders. Yet, in searching for ways of reducing the cost of developing executive compensation programmes, many companies overlook a hidden asset, which can help mightily to that end. That asset is the modern internal auditor.
There are seven steps in the compensation programme where internal auditors can be helpful and provide data at reasonable cost:
1. Evaluating, against specific criteria, each facet of the type, design, and operation of the existing plan.
2. Reviewing documents and conducting interviews of selected personnel to gain information on the operation of the existing compensation programme.
3. Providing information on the company’s organization, financial results, business plans, and strategic and organizational direction.
4. Establishing the underlying business philosophy by identifying:
· Business objectives, both qualitative and quantitative, consolidated and by appropriate business segments, by assigned accountability with designated measures and time horizons.
· Internally and externally directed management actions needed to ensure defined growth and success objectives.
· The existing and desired human characteristics and resources of the company which facilitate the accomplishment of business objectives.
5. Interviewing a cross-section of key executives to help to assess the effectiveness of the current programme.
6. Interviewing all members of the compensation committee to obtain their views, and meet their information needs.
7. Conducting a performance audit of incentive payouts by individual and organizational components against each unit’s actual performance.
Last edited by netrashetty; January 28th, 2011 at 06:53 PM..