Employee Relations Practices Transfer at Walmart Inc.: A Case Study

This report examines Walmart Inc.'s approach to international human resource management (IHRM), specifically focusing on the transfer of employee relations practices to its overseas subsidiaries. The report begins with an introduction to IHRM and its strategic importance, particularly for multinational corporations (MNCs) like Walmart. It provides an overview of Walmart's global operations, including its various subsidiaries like Flipkart, and the company's diverse product offerings. A literature review explores the concept of employee relations, emphasizing its role in achieving organizational goals, maintaining employer-employee relationships, and fostering a positive work environment. The report then delves into Walmart's employee relations practices, such as communication, hiring and selection processes, offering benefits and rewards, gamification, training and development, encouraging innovation, and performance appraisals. The core of the report investigates the challenges and strategies involved in transferring these practices to overseas subsidiaries, considering factors that influence their implementation, and potential impacts on employee engagement and organizational performance. The report concludes with a summary of findings and recommendations for Walmart's IHRM strategy.

Contemporary
International Human
Resource Management

Table of Contents
TITLE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
FINDINGS.....................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................13

TITLE
“To transfer the employees relation practices to its overseas subsidiaries”
INTRODUCTION
Human resource management is considered to be the most strategic approach for all the
type of the organisation whether it be the domestic firms or international firms. HRM is mainly
associated with the administration of people within the organisations in order to attain the goals
and objectives of the business can be attained within a short duration of time. These are the
department in the organisation responsible for the employees’ selection, employee’s
recruitments, employees benefit and employees relations. In this report, the main focus is on the
concept of transfer of the employees relation to its overseas subsidiaries either fully, partially or
not at all. The prime objectives of the IHRM is give more emphasis on the management of the
personnel at multinational companies in regard to provide the organisation with the certain level
of the opportunities so that the business can expand their operation globally. In this current report
the chosen association is Walmart Inc. which operates their business worldwide by covering the
hypermarket globally. The final section of this assignment consists of the implementation of the
different employees relation practices within the host countries and its overseas subsidiaries.
Lastly, it also considers the impact of the employees’ relations effectively. For completing this
report a case study approach has be followed.
Overview of the company
Walmart Inc. is termed to be the most renounced multinational company operating their
business in the retail sector, discounts departments store and grocery stores. At the initial level
the company was known as the Walmart stores, Inc. then after a period it was termed as a
Walmart Inc. in the year 2018. The company has established 11,390 stores and clubs across 30
countries. Walmart Inc. also execute their business across 60 countries under the different
names . The company deals in offering their customers with merchandise such as apparel, house
wear, small appliances, all musical instruments, books, shoes, jewellery etc. This MNC operates
in all the sectors whether it be a retail or wholesale sectors to render their services to the
customers for fulfilling their expectations and wants. Walmart operates their business by
considering various brands under its to earn the large amount of the revenue in the competitive
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market. The Walmart Inc. operates their business by the establishment of various subsidiaries
some of the subsidiaries are Sam's club, Flip kart, Walmart Canada, Jet.com, Bonobos etc.
LITERATURE REVIEW:
Concept of the Employees Relation:
Employees relation is the most essential component for the business as this helps the
business in achieving their goals within the shorter duration of the times by effective utilisation
of the resources which are available to them. Employees relation is also coined as the process of
managing and maintaining the relationship between the employers and employees of the
organisations. This is the necessary factor for the business as the organisation have a better
employees’ relation will be able to provide their employees with the fair and consistent treatment
regarding their job which they are operating in order to accomplish the business objectives.
Better employee relation will also enable the organisation to prevent all those hurdles which may
occur while operating the business between the employers and employees(Barcik and
Dziwinski, 2015). These programmes are taken to be the most critical part of the HRM which
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has be created to ensure that all the resources within the organisation whether it be raw material,
labour, machinery and people are utilized in such a manner so that better outcomes can be
received. Better employee relation will help the business in formulating the strategies which are
easily under stable and achievable. These programmes of the employee relations starts with the
written documentation about the policies. These written documents provide with the rules,
regulations policies and procedure which are required for addressing the matters which the
related to the employees and all those problems which are arising in the workplace within the
business. Employee relations within the business also impact the business in both positive and
negative manner. In positive aspects the concept of employees relation also enable the business
in retaining their employees within the business for longer duration of time by providing them
the friendly environment through proper employee relation business will also be able to increase
their productivity through their employee's engagement in a most effective manner. Proper
employees relation within the business will also leads to higher motivation and confidence level
of their employees by which they will automatically lead the business towards their increased
revenue(Advantage of good employees relations, 2018). In this the business will focus more on
the adaptation of the Unitarist perspective where they believe more in mutual corporation and on
their working in better coordinated manner. It will also allow the business of Walmart in working
with the harmonious nature and one culture so that the goal of the business can be achieved.
Employees relation practices:
Every organisation has set up their own employees relation practices which helps them in
managing the environment of the organisation. There are various practices of the employee
relations which needs to be considered by the organisation in regard to maintain the workplace
free from conflicts and arguments. Implementation of these practices will also assist the
organisation in handling the complaints, to alter the changes so that the aims and objectives can
be attain within a span of time. Below mentioned are the employees relation practices
implemented by the Walmart Inc.:
Communication : This termed to be the best employee relation practice which have been
adopted by the company like Walmart Inc. as this has lead their business with the proper and
effective decision making process . Proper involvement and open communication with the
employees has given a advantage to solve the problems and issues with many alternative
solutions. Open communication has also increased the belief of the employees towards the
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business of Walmart Inc. Through this employee relation practice the business of Walmart Inc.
has also increase the productivity(McQuail and Windahl, 2015). With this effective
communication the business of Walmart can also identify about what exactly the problem is and
what is the reason behind the causing of these issues. This will also help the business in retaining
their employees within the business for a longer period of time.
Hiring and selection process : This employee relation practices is the one in which the
business of Walmart Inc. has focus as this has helped them in hiring the most suitable candidate
who would help them in operating their business successfully with the appropriate utilisation of
the skills and knowledge which is present in the candidate to whom they have hired. Walmart
Inc. has adopted this in their business so that the candidates which they are employing can be
proven productive for the business organisation. To select and hire the most suitable candidate
the business have also implemented certain criteria such as assessment test and interviews so that
they can easily judge and identify the candidate having required skills and knowledge.
Offering benefits and rewards with meeting :This employee relation practice have
raised the profitability of the business of the Walmart as consistent rewards and benefits to the
employees have boost their morale to work for the organisation and towards its goals. The
company keeps on checking their employees’ performance and pet on the back of their
employees if they find that the performance of the workers within the organisation is excellent
which encourages the employees to work with their full devotion and efforts. Offering certain
benefits like paid holidays, paid for the extra hour works has built a strong relation between the
employers and employees.
Gamify : The business of the Walmart Inc. has adopted the practice of the gamification
in which they allow their employees to take rest by playing some games, mental games so that
the employees feel fresh to work with the organisation. Continuous working may decrease the
level of efficiency due to which the organisation may have to suffer from the decreased amount
of the revenues and profits. The concept of this gamification will boost and will keep the morale
of their employees higher for the workplace(Morschheuser and et. Al., 2017). Through this the
business can also retain and boost their employees confidence level to work for the business so
that the increment in the revenue of the business can be done in the most systematic manner.
Giving employees multiple channels for the training and development : The company
has adopted multiple channels for providing training to their workers in effective way that the
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employees can easily understand what the organisation wants and seeks to achieve by the
training which they are rendering to the new employees. For the effective training the company
has also focused on the use of video conferencing and many new and updated technology which
have increased the ability of the employees to perform the task and activities (Renwick, Redman
and Maguire, 2013).
Try something daring : This is the most essential and the new concept of the employee
relation practices in which the company like Walmart Inc. ask their employees to emerge with
the fresh and creative thought which can be beneficial; for the company while competing with
their competitors. This involves kick box concept where the Walmart Inc. kick out the
competitors from the market with the help of the all innovative ideas which have been given by
the employees.
Performance appraisal : Walmart Inc. keeps on appraising the performance of their
employee by consistent viewing on the task which the employees have carried out by which the
employees keep on preventing the errors which are occurring at the initial stage of the operating
of the task and reduce the amount of wastage. This process of performance appraisal also
encourages the employees to work more for the accomplishment of objectives (Bernardin and
Wiatrowski, 2013). This will also allow the business in maintaining a goof relations among
employees as in performance appraisal the employees will be appraised on their performance
basis where no biases can be done and fair and actual decision for the employees as well as the
organisation can be formed.
Performance appraisal is the best practices which is adopted by Walmart in order to boost
their staff members to perform better in intense competitive world. Appraising staff members for
their performance directly or indirectly motivate them to achieve the desire outcomes easily.
Along, with this it helps business associates to retain capable and skill workers to retain for
longer time period which is a positive sign for the business (Performance appraisal, 2018).
Above written are the employees relation practices which the business of Walmart Inc. is
following in order to increase their employees relations with the employers and also to increase
their amount of the profitability.
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In current scenario, the business of Walmart Inc. is planning to transfer their
employment relations practices to its overseas subsidiaries to reduce the burden of work in the
business. As many organisation have adopted this concept so that the best of the employees can
be hired through the outsourcing department who would lead the organisation towards the level
of growth and provide them the advantage to compete with the other MNCs . Transferring of the
employment relation will provide the business of the Walmart Inc. With various benefits which
would enhance the productivity and profitability of the enterprise in the most effective manner.
The business of Walmart Inc. has also planned to transfer the employees relation
practices to its various subsidiaries:
Flip kart :
Flip kart is one of the subsidiary of the large multinational company like Walmart Inc.
Flip kart is well known for providing online e-commerce services to the customers. The
company was established in India in the year of 2017. The business holds the large market share
by capturing the larger mass. Flip kart deals in providing the customers with the electronic
products, fashion and lifestyle products. The business was initially founded by the Sachin and
Binny bansal but later on acquire by the company like Walmart Inc. with the acquisition of 77%
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of share of the company. The Walmart Inc. has decided to transfer their employment relation
fully in the Flip kart India as the company has a full knowledge about the labour laws and their
rights and also has established a multi channels for training and development their workers
regarding the working process of the business (Dutta and Bhat, 2014).The business is also
operating their operation successfully so transferring of full employees relation practices is
advantageous for both the subsidiary company as well as parent company that is Walmart Inc. As
the employees of the Flip kart are more productive and are more devoted towards the fulfilment
of the business goals. The employees within the Flip kart are able to solve the crisis of their own
without any interference of the top level management. So the business of the Walmart Inc. has
focused on the full and proper implementation of the employees relation practices in this
enterprise. Implementation of the employees relation practice is advantageous for Flip kart as
they are able to carry their task with the help of their employees who have been hire through
proper procedure of the employees relation practices and through this the problem of the labour
turnover has also minimised (Khanna and Sampat, 2015). Transfer of employee relation practices
is also helpful for the business of the flip kart in understanding the culture diversity and all the
dynamic changes as these changes can bring the business to the extreme level of the growth and
success. The business of Flip kart consists of all the employment relations practices such as they
have also foster the culture of open communication so that the business can have strong decision
making, concept of offering of the rewards and benefits to employees on their excellent working,
performance appraisal for managing and overviewing the performance of the employees from
time to time so that the errors may get reduced within the time-frame.(Albrecht and et. al., 2015).
As the business is executing all the employees relation practices in their business and is running
successfully by competing the competitors the decision regarding the fully transferring of the
employees relation practices in this association is taken.
Unitarist perspective is theory on employee relation where firm is regarded as integrated
and harmonious group of staff with one loyal culture. This theory indirectly has build strong
employee relations which is a positive mark for company. By effectively adopting this best
outcomes can be attained as compare to competitors. By adopting this Walmart is able to create
positive working environment for their employees. Moreover, this theory assist company to
decrease switching ratio of potential workers to other firm. Also, all the co-workers working
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share mutual purpose which help them to attain set goals easily (Employee relation theories,
2018).
Sam's club :
Another subsidiary to the business of Walmart is Sam's club. The enterprise of Sam's club
is the American chain which deals in retail business. Sam's club is operated and owned by the
company Walmart Inc. The company holds the second largest position in the sales volume
among the warehouse clubs. The company operates their business in the United States and was
established in the year of 1983. Sam's club deals in offering the products such as electronics,
office home furniture, auto, garden supplies, children accessories, pet supplies and health and
beauty items. Company deals in selling of their products in the bulk. The business of the Sam's
club has spread over the 599 locations across the countries. The business of the Sam's club was
acquired by the multinational company Walmart Inc. in 1993 with this successful acquisition of
the company the sales volumes and profitability of both the business has increased
simultaneously. The Walmart Inc. which is the parent company to the Sam's club has decided to
transfer the employees relation practices in this enterprise in the partial manner as the business
lacks at some of the employment relation practices and is not as successful as it should be in the
U.S market(Rule, 2016). Transfer of the employees relation practices like communication,
performance appraisal and gamify has allow the business to successfully compete with the
competitors as these practices are implemented in the business by considering some of the major
factors like as the labour of the Sam's club are more keen to know about how what and why the
business of operating the business. So transferring of these practices has assisted the business to
have open communication with the employees regarding the goals that has to be achieved and
has also appreciate the labour or workers on their performance. Performance appraisal in the
business of the Sam's club will help the labour to work effectively towards the organisational
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goal as this will give them a sense of recognition among the members and employees. These
employees relations transfer have also assisted the business to establish the flexible working
environment by the adoption of the concept of gamify which help the employees in the business
to take some rest during the working hours so that the level of the productivity can be
maintained. These transfer provide the benefits of less mismanagement, lack of duplication of
work and proper and effective utilisation of the available resources. The business of Sam's club
were also facing the problem to cope up with the changes which occurs rapidly this concept of
employees relation practices will also support them to deal with the constant fluctuation in the
business.
So that the business can earn the maximum benefits and outcomes. These partial
implementation in the business must be considered and some corrective measures must be taken
such as the business must focus on the continuous development and training programmes to their
employees which will help the business to overcome all the conflicts which are arising while
attaining the organisational objective. This problem of partial transfer of employees relation
practices can also be reduces by the business by involving their potential employees in the
process of their decision execution in the business(Courtemanche and Carden, 2014).
Bonobos: The parent company to the Bonobos is Walmart Inc. Bonobos is an e-
commerce company that deals in providing the apparel to the customers. The concern was
established in the New York city in the year 2007. The enterprise of Bonobos is operating their
business with 62 branches across the country. Bonobos is the brands which deals mainly in the
sale of men's suits, trouser, denim shirts, swimwear, outerwear and accessories. Bonobos is the
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leading company which has focused on the designing of the men's wear rather than the women's
wear (Ahmad, 2015). The business of the Walmart Inc. has not to transfered the employees
relations practices in this business as the concern operates with their own policies and procedure
and is also facing the problem of the survival as there are many competitor available in the
market. They have also focused on not transferring just because the business is not as successful
as it should be in the market place. All the employees relation practices such bas communication,
offering of benefits and rewards, gamification, performance appraisal is not transferred as these
involves higher amount of engagement of employees as well as the management of the
organisation which is not possible as the business operates with its own procedure. Unnecessary
transfer of the employees’ relation practices may leads the business with increase in their cost of
the operation and decreased profitability. Bonobos is also facing various difficulties as the
country in which they are operating the operation is regulations by the strict rules and regulation
which have been lead by the government. So the transfer of the practices in this business is not
possible as per the conditions(Somasundram, 2020).
Thus, these are the subsidiaries where the association like Walmart Inc. is focusing on the
factor to transfer their employees relations practices either in the full manner, partial or has
decided not to transfer the practices by considering all those factor which are associated with the
success and growth of the business organisation. The company has consider the business of Flip
Kart to transfer their practices in the full manner as the business is running successfully and have
strong and sound employees working within it. Partially in the Sam's club as the business lacks
to operates successfully and the employees here are much more keen to know about what, how
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