Wal-Mart Inc.: An Industrial and Organizational Psychology Report

This report provides an analysis of Wal-Mart Inc. through the lens of Industrial and Organizational Psychology. It begins with an introduction to the company, its operations, and its global presence. The report then examines Wal-Mart's current recruitment strategies, including internal and external sources, and evaluates its employee evaluation methods, such as 360-degree appraisals and grading systems. The analysis highlights the strengths and weaknesses of these systems, providing examples and data to support its claims. Furthermore, the report offers recommendations for improving Wal-Mart's human resource practices, suggesting targeted job advertisements, job analysis, and the effective use of 360-degree appraisals and human resource accounting. The report concludes by emphasizing the importance of aligning human resource practices with the principles of Industrial and Organizational Psychology to enhance employee motivation, performance, and overall organizational success.

RUNNING HEAD: INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY
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INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY
WAL-MART Inc.

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Table of Contents
Introduction...............................................................................................................2
Current situation of Wal-Mart...................................................................................2
Evaluation of current system..................................................................................3
Recommendations.....................................................................................................3
References.................................................................................................................4

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Introduction
Wal-Mart Inc. is an American multinational corporation, which functions in the
hypermarkets series, stores of discount departments as well as the stores of grocery. It was
incorporated in the year 1969, over the year 2019; company has 11,368 stores and clubs in the
twenty-seven countries as well as the company is working with fifty-five diverse names. The
company is in the industry of retail and provides items like equipments of electronics,
furnishings, clothes, footwear, games, supplies of craft and party s and the items of grocery. The
products accessible under the brands of Wal-Mart are the products of private label (Griggs,
2015). In the year 2018 the Wal-Mart initiate the three series for the items of clothing, which is
George for the men’s clothes and accessories, time and Tru for the women’s as well as wonder
nation for the children. The sizes of the organization hypermarkets varies from 69,000 feet of
square to 2, 60,000, the company is earns the maximum profits which is more than the US$500
billion. The company functions in various countries, which are UK, China and the country of
South America. The business of the company, are extremely increasing and succeed however,
the operations were unsuccessful in the country of Germany as well as South Korea (Walmart
ANNUAL REPORT, 2018).
Current situation of Wal-Mart
The wall- mart uses both internal and external source to recruit the employees ,the
sources of internal, for this methods used by the Wall-Mart are- Employees which are currently
working in the company. It is mainly for the position of the administrative and executive, about
70% of the employees presently promoted from their position (Armando, Luca, Luca, Jens,
Mueller, & Nicola, 2018). It also makes use of on- the- job trainees as the source of recruitment,
these employees are mostly for the sales and marketing jobs, Transfer of the employees are done
by the Company. The company also applies several sources of External, which includes
advertisement of jobs by the website of the company. Wal-Mart does campus recruitment by
making agreement with the University of American public, sometimes company also hire
previous candidates for the job position.
The evaluation of employees done by Wal-Mart yearly and the methods which the company used
for review the performance of the employees are method of 360 degree appraisal, human

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resource accounting, grading method. For this company makes four ranks higher and lower
standards, standard and excellent performance and sometimes method of graphic rating scale is
also used by the company (Thomas, Ulrich, & Montgomery, 2015).
Evaluation of current system
By adopting the system of hiring the on-the-job trainees, helps the wall-mart in
diminishing the further expenditure in the management of the human resource. Through the job
advertisement, Wal-Mart regularly posted the job opening, this also decrease the company cost
to arrive at the candidates and increases the talent and competent employees which is 1.5
millions in year 2019 (Chandler, 2016). The 360-degree appraisal helps to motivate the
employees, because this candidate also does the self-appraisal, this helps the company to
generate revenue by $500 billion in year 2018 (Walmart ANNUAL REPORT, 2018). The other
methods like grading also help the company to divide the employees according to the
performance.
The system of job advertisement fails by the Wal-Mart, in the year 2013, The Wal-Mart made
the advertisement for the position of the associates for the new opening store in the city of
Washington DC, for this company accepts beyond 23,000 applications for the 600 obtainable
positions. It leads the company to obtain the unnecessary and unwanted candidates because only
the 2.6% of the candidates will be appropriate for the job (Beatty, Samuelson, & Abril, 2018).
The grading system for evaluating the performance is also considered demotivating tool among
the employees and decreases the teamwork. Wal-Mart grade the employees in based on standards
determined that is above or below, up to standards and outstanding, this increases the
competition among the employees and the method of 360 degree is frequently used the Wal-Mart
because of time consuming.
Recommendations
From the above it shows that, the Wal-Mart is taking various initiatives for hiring the
competent employees and motivating them by fairly reviewing the performance, but the systems
still fails in the organization. Based on the I/O psychology reviewed, In the process of
recruitment Wal-Mart can keep in mind the following mechanism, which includes that company,
has to put the target advertisements in the website and describes the skills and qualification

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specifically. This helps the Wal-Mart in solving the issue of receiving the unnecessary
applicants. Wal-Mart would also make an analysis for the job that accurately reveals the
specifications of the position; it helps in assessing the applicant KSA to verify who is appropriate
for the position.
For motivating the employees, Based on the I/O psychology reviewed, Wal-Mart should mostly
use the method of 360 degree for the appraisal, because in this employee also review the
performance of themselves, this helps the company to motivate the employees and evaluation
will be done fairly. The Wal-Mart could also use the method of Human resource accounting to
know that whether the employee is asset or the liability for the company.
References
Armando, P., Luca, D., Luca, G., Jens, Mueller, & Nicola, M. (2018). Improving innovation
performance through knowledge acquisition: the moderating role of employee retention
and human resource management practices. JOURNAL OF KNOWLEDGE
MANAGEMENT .
Beatty, J. F., Samuelson, S. S., & Abril, P. S. (2018). Business Law and the Legal Environment,
Standard Edition. Boston: Cengage Learning.
Chandler, D. (2016). Strategic Corporate Social Responsibility: Sustainable Value Creation.
Thousand Oaks: SAGE Publications.
Griggs, L. (2015). The Other Side of Justice. Page Publishing Inc.
Thomas, S., Ulrich, R., & Montgomery, W. (2015). PERFORMANCE EVALUATION
SYSTEM. U.S. Patent Application 14/071,914 .
Walmart ANNUAL REPORT. (2018). Retrieved 7 20, 2019, from s2.q4cdn:
https://s2.q4cdn.com/056532643/files/doc_financials/2018/annual/WMT-2018_Annual-
Report.pdf

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