Introduction
Performance management is used by a wide range of companies, either formally with an organizational framework or informally with ongoing conversations. Performance management is the process of recognizing, evaluating, and improving an employee’s performance while ensuring it is in line with the firm’s strategic goals (Brown et al., 2019). A company’s employees’ abilities reveal through evaluating these approaches, which helps them achieve the company’s goals. Thus, employers may improve employees’ levels of work satisfaction by putting the board into action and engaging in careful planning. The research investigates the effectiveness of Walmart’s performance management system and training.
Current Performance Management System at Walmart
Training and performance management of Walmart’s employees is essential to the company’s worldwide growth goals. Walmart is experiencing significant growth and requires skills, experience, and knowledge (Thompson, 2017). The company’s training programs help employees execute daily obligations and adapt to changing retail conditions (Thompson, 2017). As an integral component of performance management, Walmart’s training programs seek to improve employees’ ability to handle routine tasks and adapt to changing conditions in the retail business.
Walmart’s human resource management (HRM) leads to an efficient performance system. It includes high-performance, cost-effective training to boost staff output (Thompson, 2017). The training process includes three stages: research, design, and implementation. Therefore, relevant research reduces staff performance issues and sets training goals (Abdel-Raheem & Saad, 2019). Walmart’s leadership emphasizes job analysis to evaluate training needs. It adopted a results-oriented approach to training design that included mentorship, group discussions, and on-the-job preparation (Walmart, 2019). Walmart evaluates the effectiveness of its training programs and staff productivity. Different criteria, such as warehouse staff productivity, have been devised for specific operations. Walmart’s management follows these regulations in decision-making and financial forecast.
Planning well is the bedrock of effective employee performance management. For instance, Walmart’s approach to performance management emphasizes decision-making, problem-solving, and customer service (Walmart, 2019). Walmart’s CEOs have a high level of expertise and excellent problem-solving abilities, which gives the firm an edge over its competitors (Walmart, 2019). Because of the organization’s dedication to the aspects mentioned above of performance planning, Walmart has developed a team of highly qualified individuals.
Explanation and Communication of Walmart’s Performance Management System
Walmart is among the businesses that have standardized performance feedback practices in place. Walmart’s performance management approach is discussed and shared in official and informal settings (Thompson, 2017). This communication occurs in one-on-one meetings, staff meetings, department meetings, and weekly staff meetings, and daily feedback is gathered (Walmart, 2019). This information is intended to encourage workers to enhance their performance and productivity. Thus, leaders and administrators must give others impartial feedback based on their judgment. Walmart relies on informal customer feedback and encourages staff to utilize it to enhance the company’s performance (Walmart, 2019). The management team provides formal feedback to workers to promote an ethical culture inside the organization.
Analysis of Walmart’s Current Performance Management System Effectiveness
The capacity of Walmart to create significant profits thanks to its employees’ high levels of performance and competence is one indication that its performance management system is working well. Walmart’s workers get regular feedback on their performance via formal and informal communication channels, resulting in a lower staff turnover rate (Walmart, 2019). This low staff turnover rate contributes to Walmart’s success. Workers get recognition for their performance, prizes depending on their rank or position, and incentives based on their status or position, contributing to this rate (Brown et al., 2019). Customers are satisfied with Walmart’s customer service because the performance of employees is evaluated and improved to meet the company’s customer service goals.
Formal and Informal Performance Feedback Processes
Employing formal and informal techniques, managers should offer frequent performance feedback to their staff. Therefore, employees may acquire information and become more engaged (Abdel-Raheem & Saad, 2019). In addition, they may make modifications essential for their continued personal and professional growth. Informal feedback often occurs during coffee or lunch breaks, when the manager may provide a few words of encouragement and show gratitude for the employees’ efforts and achievements. Contrary, formal feedback is often sent through meetings or email and varies according to the organization’s needs (Abdel-Raheem & Saad, 2019). Examples of suitable feedback include departmental meetings, small team meetings, and regular progress reports. Therefore, frontline managers must provide a status report to the board that contains KPI performance, product ideas, and other financial and statistical data.
Practices that can Improve Employee Performance and Foster a Positive Work Environment
Companies must offer a safe and pleasant working environment for their employees to increase employee efficiency and production. Walmart needs to urge its staff to keep their desks neat since a cluttered environment may reduce the amount of productivity they can do. When carried out correctly, these strategies can potentially increase worker productivity (Osborne & Hammoud, 2017). The primary objective is to raise the productivity produced by workers by ensuring that they are happy and feel comfortable in their working environment. The following are some tactics that, when implemented, will increase employee performance and establish a healthy atmosphere in the workplace.
Conducting Regular Performance Evaluations
Evaluations that are carried out often and promptly assist the company in identifying its present position and degree of performance. In addition, regular assessments assist in bringing day-to-day activities in line with the business’s goals (Brown et al., 2019). Consequently, according to the assessment statistics, Walmart workers can assess their performance by looking at the data and focusing on the aspects of their jobs in which they do poorly. An improvement in customer service and the ability of employees to solve problems may contribute to an increase in earnings for Walmart.
Abolishing Anti-Union Policy
Due to its anti-union attitude, Walmart has had a high employee turnover rate. Walmart can boost employee retention, engagement, and performance by eliminating the policy (Walmart, 2019). The employees have protested what they consider unfair treatment and the absence of a regulatory entity to address their issues. Besides offering various benefits to sick, wounded, or retiring employees, unions play a crucial role in the struggle for higher wages and equal working hours (Thompson, 2017). An employee partnership will improve employee performance since it ensures that all of the employee’s demands are met in the case of personal troubles with the firm.
Developing Open Lines of Communication with Employees
There is a positive association between regular employee feedback and employee performance. In the retail industry, businesses that cultivate a culture where employees get pertinent feedback from their management are often commercially successful (Osborne & Hammoud, 2017). Workers want feedback since it impacts their decision-making abilities and performance level. It is conceivable for Walmart management to get feedback that is not implemented. Hence, managers and supervisors must explain why employee feedback was not considered preventing the workers from developing emotions of disdain and diminishing their productivity (Osborne & Hammoud, 2017). Therefore, to support the creation of daily formative employee assessments as part of an ongoing effort to enhance employee performance, it is required to schedule check-ins with each worker’s supervisor.
Making Use of Innovative Technology
Artificial Intelligence (AI) and other innovative technologies will boost the workforce’s productivity. There is an increase in productivity and a reduction in maintenance costs due to the development of artificial intelligence and robotics (Walmart, 2019). This increment is because staff may focus on crucial organizational duties. Walmart’s recently constructed intelligence retail lab enables more than one hundred workers to perform regular testing to aid future growth (Walmart, 2019). This AI increases worker participation, eventually promoting employee performance (Walmart, 2019). The staff will have more time to dedicate to things they excel, such as delivering excellent customer service or improving the visual attractiveness of product displays. Machines will assess and report whether shopping carts are needed in a particular region.
Importance of Training to Meet Organizational Needs and Performance Goals
Quarterly training guarantees that staff always have access to the most up-to-date information, vital for exceptional performance. Training helps employees accomplish business goals and advance their careers (Osborne & Hammoud, 2017). Walmart evaluates training needs considering the organization’s human resource objectives. Training helps establish a productive team, and excellent training programs drive employee involvement (Osborne & Hammoud, 2017). Therefore, training is required to meet organizational standards and performance goals since it familiarizes new employees with the company’s goals. This is a crucial aspect of satisfying organizational needs and performance objectives.
Supervisors and management are liberated to focus on more pressing matters when workers are self-reliant. Walmart teaches over one hundred workers by giving them access to the new intelligence retail lab (Walmart, 2019). Employees develop confidence in their ability to act as supervisors since they feel more connected to and knowledgeable about Walmart’s most innovative technologies. Training is essential for achieving organizational expectations and performance objectives since it boosts employee morale and work engagement (Morsy et al., 2016). A company that spends on staff training demonstrates its appreciation for its workers. The availability of training that employees might not be aware of or seek out contributes to a positive work environment (Morsy et al., 2016). Employees valued and encouraged to pursue training opportunities are more inclined to accept more challenging assignments, improving productivity. Spark City, the newest video game from Walmart, enables anybody to “play” the role of a department manager (Walmart, 2019). Walmart Academy employees learn the same methods and processes they would use on the sales floor in real life due to the video game (Walamart, 2019). Consequently, personnel productivity and the likelihood of achieving corporate objectives increase.
Considerations for Designing an Effective Training Program
When creating an operational training program, it is critical to consider all aspects that may assist in achieving the specified training objectives. The first step is to determine what training a particular company requires. By doing a requirements analysis, a company can decide which skills, areas of expertise, and information are necessary for achieving its strategic goals (Morsy et al., 2016). This review reflects evolving demographics and technological improvements and explores how a company might address its problems and capitalize on its strengths.
A worker’s performance determines the training program necessary for that person. A firm should also consider the educational options available to its personnel. A training program must understand the various learning styles in its curriculum. According to a recent study, identifying people based on their learning styles is not necessarily the most appropriate method to define a style (Morsy et al., 2016). Significant individuals have diverse learning styles, often impacted by the subject matter being taught.
When developing an efficient training program, the third factor that should be considered is the finance plan. A company must examine how much it will cost to teach its personnel and whether the training would be resource-intensive (Morsy et al., 2016). Walmart must decide if it can pay all platform charges without damaging its profit margin if it implements a web-based training program (Morsy et al., 2016). Besides, it should assess the required amount of time for training.
When establishing a profitable training program, a corporation must consider the variety of accessible learning modalities. Identifying the proper mechanism to deliver the message is one strategy. Walmart may investigate if web-based training is preferable to one-on-one mentorship and whether virtual training might supplement work shadowing. Walmart may also consider training in the vestibule (Morsy et al., 2016). Most training programs use many distribution methods. In 2018, around 450,000 people participated in Walmart’s immersive supercenter training program (Walmart, 2019). This program taught workers retail and soft skills, including communication, leadership, and change management in the classroom and on the job (Walmart, 2019). Walmart provided these examples to illustrate an effective training program.
How Training and Performance Management Protect an Organization from Possible Litigation
Training and performance management help organizations avoid court and save money by ensuring staff follows the law. Walmart’s company strategy stresses compliance with all employment standards, and employees must undergo policy training (Walmart, 2019). Walmart employees receive ongoing training to uphold its principles and provide excellent customer service (Walmart, 2019). Walmart hasn’t been sued since its training and performance management system complies with employment laws (Walmart, 2019). Thus, training at all levels contributes to preserving a legally necessary code of ethics.
Types of Litigation That Might Arise
Walmart faces the possibility of many lawsuits if its performance management system fails. Walmart might be sued for employment discrimination, harassment, or wrongful termination. Title VII of the Civil Rights Act prohibits discrimination based on gender, race, religion, color, or national origin (Bonner, 2019). Litigation may result if management is not trained on discriminatory issues. Thus, A tort case is filed when civil rights are violated (Bonner, 2019). A compensation claim is filed if a Walmart employee negligently injures or damages a customer. Lastly, wrongful termination cases can be filed when an employee sues an employer for firing them without a valid reason. This kind of lawsuit might result in an injunction against the corporation (Bonner, 2019). A company must educate and interact with its employees to avoid lawsuits.
Conclusion
Performance management is the process of monitoring, measuring, and developing employee performance while ensuring that it aligns with the organization’s strategic objectives. Walmart has a firm grasp on the performance of its workers. The organization has offered training on all levels and aided with bad planning. Various performance criteria have been established to assess and monitor personnel performance. If Walmart prioritizes staff training and considers various factors when building a successful training program. Hence, the company will continue to attract more consumers and ward off some prospective legal action.
References
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Bonner, M. (2019). The 5 Most Common Lawsuits Filed Against Businesses. The Balance Small Business. Web.
Brown, T. C., O’Kane, P., Mazumdar, B., & McCracken, M. (2019). Performance management: A scoping review of the literature and an agenda for future research. Human Resource Development Review, 18(1), 47-82. Web.
Morsy, M. A., Ahmed, G. S., & Ali, N. A. (2016). Impact of effective training on employee performance in hotel establishments. International Journal of Heritage, Tourism, and Hospitality, 10(1/2), 92-109. Web.
Osborne, S., & Hammoud, M. S. (2017). Effective employee engagement in the workplace. International Journal of Applied Management and Technology, 16(1), 4. Web.
Thompson, A. (2017). Walmart’s HRM: Training, Performance Management. Panmore Institute. Web.
Walmart. (2019). Walmart’s New Intelligent Retail Lab Shows a Glimpse into the Future of Retail, IRL. Corporate – US. Web.