A Report on Managing People and HRM Strategies at Wal-Mart

This report examines the human resource management (HRM) practices and strategies of Wal-Mart, a multinational retail giant. It explores the role of HRM in achieving organizational goals, including employee motivation, task allocation, and training. The report delves into the characteristics of Wal-Mart's HRM, highlighting its focus on employee development and talent management. It identifies key people management strategies such as cost leadership, differentiation, defensive strategies, and strategic alliances, which contribute to Wal-Mart's competitive advantage. Furthermore, the report analyzes Wal-Mart's current HRM patterns, including skill and knowledge requirements, qualification standards, and performance expectations. It also discusses the concept of strategic human resource management and its role in aligning HRM policies with organizational objectives. The report concludes that effective HRM is crucial for organizational success, emphasizing its impact on workplace environment, teamwork, and overall performance.

Running Head: Managing People
Wal-Mart
Managing People

Managing People 1
Human Resource Management (HRM) is the term used to describe formal systems devised for
the management of people within an organization (Inc., 2018). Their primary duties are fulfilling
the needs and want of employees in consideration to the policies of the organization so that they
could feel motivated and perform well. They are responsible for managing human resources
along with providing them adequate training so that tasks could be done as per management’s
expectations (Williams, Abbott & Heery, 2011).
Wal-Mart is an American multinational retail store. Along with retail stores, they also deal in
hypermarkets, departmental stores, supermarkets and grocery stores. The company was founded
in 1962 and it is known as one of the largest companies in the international market in terms of
value of business, financial position and company’s size. Human Resource department of the
organization has played major role in attainment of this milestone (O’Reilly, et. al., 2015). In
relation with maintaining the effective position in the market, organization has focused over
certain objectives such as fulfilment of employees’ requirements, allocation of tasks to the
appropriate person and providing appropriate training to them so that desired goals and
objectives could be attained by following all policies, frameworks and standards described by the
management. In terms of managing the people, it is required for human resource department to
perform in an appropriate manner. Wal-Mart has done the same and this has helped them to
attain their desired goals and objectives along with the developing an effective position in the
market (Zaharie & Osoian, 2013).
This assessment will include HRM practices, characteristics and the nature of human resource
department of the organization. Second phase of the assessment will focus over the identification
of people management strategies and the techniques used for acquiring competitive advantage in
the domestic as well as in international market place. The last phase of the assessment will
include key concepts in relation with the human resource management and the strategic human
resource department of Wal-Mart will be discussed.

Managing People 2
Human resource management process is bringing people together in relation with the
accomplishment of the tasks so that the desired goals and the objectives could be met. Nature of
human resource management is pervasive as it is available in all enterprises. Main motive of this
department is to conduct interactive sessions in relation with developing cooperation and
teamwork related objectives amongst the teammates. Apart from this, human resource
department is responsible for following the rules and regulations described by the management
while executing the tasks.
In relation with the allocation of tasks in an efficient manner, Wal-Mart’s management has
developed certain evaluation tests in order to evaluate their employees’ efficiencies and talent.
Main purpose of performing this task is to assign the appropriate task to the desired and talented
candidate. This helps the organization to fulfil organizational desired goals and objectives along
with developing an effective image in the marketplace (Nielsen, et. al., 2013). Developing
correlation amongst teammates in order to promote teamwork and other crucial objectives is
another significance functionality of human resource department. Basic nature of HRM is that it
is a part of management, it performs pervasive function, manages all functional areas, it operates
over employee-centric approach and plays crucial role in development of relationships amongst
the employees in terms of performance of the organizational tasks in an effective and efficient
manner. This helps the organization to attain their desired goals and objectives with the
development of an effective image in the target market (Liu, et. al., 2010).
Characteristics of HRM:
 Primary characteristic of human resource department is to identify, polish and improvise
the talent of the people working within the organization. This helps the organization to
accomplish their tasks in an effective and efficient manner.
 Human Resource Department of Wal-Mart has two concepts i.e. soft and hard version.
Traditional approach of human resource management defines that HRM is a concept
whereas all other departments acts as assets for the organization. This is because HRM
invest on new candidates through providing them training. Afterwards those candidates
act as assets for the organization.

Managing People 3
 Hard version focuses over managing people in an efficient manner in terms to obtain
desired goals and objectives along with gaining competitive advantage (Miller & Solberg,
2012). While the soft version of human resource department focuses over providing
appropriate training measures to the employees so that competitive advantage could be
attained.
 HRM acts as an art and a science as well. This is because HRM is an art of managing
employees of an organization through innovative and creative approaches while it also
apply certain theories and models for managing them (Olivera, et. al., 2013).
 It is also known as a continuous process as it starts with human resource planning till
recruitment, selection and providing training measures to selected candidates in relation
with the accomplishment of the organization.
In terms of attaining competitive advantage in the marketplace, it is necessary to adopt certain
management strategies, tools and techniques. Following are some of them adopted by Wal-Mart:
Cost Leadership: This is one of the generic strategies described by Michael Porter.
Alternatively, it is used for uplifting the sales which could make distinctive image for
organization from its competitors. Under this strategy, primary motive is to increase profits by
decreasing costs and increasing market share and customer base by cutting prices. Wal-Mart has
implemented the same sort of strategy and this has helped them to stand on the leading position
in the market. Wal-Mart has provided various qualitative products to its target audience at lower
rates in comparison to its competitors and with the help of this; Wal-Mart has attained
competitive advantage. Apart from the lower rates and qualitative products, Wal-Mart has also
adopted sundry effective and advanced measures which have enhanced organizational efficiency
in comparison to other companies of the same industry (Münstermann, Eckhardt & Weitzel,
2010).
Differentiation: Differentiation strategy is implemented by an organization for separating its
products and services from its competitors and for making a distinctive place in the market. In
this strategy, price of the product plays crucial role and it helps the organizations to make their
separate identity. Wal-Mart has also developed their distinctive image in the market along with

Managing People 4
the attainment of the desired goals and objectives. Differentiation strategy is the crucial factor
which leads to innovations and invention (Williams, et. al., 2015).
Defensive strategy: Utilisation of defensive strategy is another significant factor which helps the
business enterprise to gain competitive advantage. Defensive strategies are used by the
companies to develop an effective image in the industry. This strategy also helps the
organization to maintain the same sort of image in the industry. In order to maintain distinctive
image in the industry, Wal-Mart has also adopted effective set of advanced measures (Petroni,
Venturini & Verbano, 2012).
Alliances: Apart from the above strategies and measures, strategic alliances with other
corporations of the same industries are another important technique for gaining competitive
advantage in the marketplace. While working together, companies need to ensure that the line
between collusion and alliances could not be crossed. Collusion situation occurs when business
corporations works together to control the prices of the industry. Apart from this, alliances are
the joint venture of two or more companies together with the objective of accomplishment of the
goals and objectives (Vergara & Estévez, 2014).
Apart from the above techniques, tools, procedures and strategies, Wal-Mart has been able to
accomplish its goals along with the attainment of an effective and distinctive image in the
market. Along with the above strategies and techniques, organizational management has adopted
certain policies which lead the company to improve its performance in the market (Purce, 2014).
Current pattern of HRM of Wal-Mart
Skill and knowledge: Primary activities of Wal-Mart are linked with marketing and sales. In
this relation, HRM department is required to appoint qualified, skilled and knowledgeable
employees so that’s these activities could be accomplished as per the expectations.
Qualification: As Wal-Mart has adopted customer centric approach and in this scenario, it is
necessary for an organization to appoint qualified employees so that they could serve its target
and potential customers in a better way.

Managing People 5
Performance standards: In relation with the expectations of management, HRM department
has developed certain quality and performance linked standards in relation with the
accomplishment of the tasks in an effective manner.
Human Resource department is majorly concerned about planning, staffing and benefits and
employee compensation. HRM is responsible for enhancing organizational performance along
with the objective of maximising the efficiency. Human Resource management of Wal-Mart
helps the organization to utilise all available resources in an efficient manner so that the desired
goals and objectives could be attained. Under this process, human resource department performs
various functions such as recruitment and selection activities, personnel administration, training
and development to selected candidates, reward management and performance review program,
management of talent in an effective manner in the workplace, etc. All these functions are crucial
because they help the organization to enhance its efficiency. Maintaining labour relations,
planning for further expansion of workforce and fulfilment of labour’s needs are another several
factors which helps the organization to gain competitive advantage in the market (Robertson,
2011).
Wal-Mart’s human resource department is capable to enough to enlarge its output in comparison
with the minimum utilisation of input. For motivating the employees, organization also adopts
several motivational strategies along with reward management program. This also helps the
human resource department to develop an effective image within the employees which influence
them for uplifting its image in the target market (Van Hoorn, Waller & Hasselbring, 2012). With
the help of these strategies, Wal-Mart has been able to attain its desired goals and objectives. It is
concerned with the human dimensions of management of the organization. This department is
concerned about managing people. Apart from this, human resource management need to
provide sufficient information to its employees so that desired goals could be attained.
Concept of strategic human resource management is concerned about meeting with the
company’s needs through promoting their goals and objectives. They develop strategies in
relation with the accomplishment of the tasks of organization. In relation to this aspect, strategies
are being developed by the human resource department for hiring people, providing appropriate

Managing People 6
training to them so that they could mould their skill, talent and knowledge as per organizational
policies and standards. Basic features of strategic human resource management are:
 There is an obvious link amongst the policies and standards of the organization to the
strategic aims, and the environment of organization. This will help the organization to
uplift its performance as per the expectations of the management along with attaining
competitive advantage in the market (Snape & Redman, 2010).
 Management of the organization supports HRM so that efficient workforce could be
appointed.
 It helps to describe crystal clear vision of organization.
 Retention and development of competent people is also performed by human resource
management. This is a crucial process of HRM which is a part of resource-based view
framework. This framework is a managerial task which is performed to manage strategic
resources in an effective and appropriate manner so that desired goals could be attained
(Tanford, Raab & Kim, 2011).
From the aforesaid information, it has concluded that human resource management plays crucial
role in the success and growth of the organization. Human resource management has various
aspects and all these aspects help to perform all the tasks in an effective manner. It has also
learnt that there are sundry advantages linked with human resource management. It plays
essential role in the allocation of all organizational resources along with the workforce to the
desired departments so that expected outcomes could be attained.
Apart from this, it has also been understood from the study that human resource management’s
practices have a significant role in developing effective workplace environment. Team work
related objectives and correlation amongst the teammates, interactive sessions, etc. are executed
by this department in order to gain desired goals and objectives. According to research, it is
necessary for every organization to promote human resource management so that key employees
could be retained. Apart from this, requirement of organization in terms of workforce is also
fulfilled by the organization.

Managing People 7
From the aforesaid information, it can be concluded that human resource management has a
significant role in terms of accomplishment of organizational desired goals and objectives. In this
assessment, nature and characteristics of human resource management has been evaluated and
discussed. Apart from this, procedures, techniques and tools related to gain competitive
advantage within workplace has also been discussed. Last part of the assessment concluded the
key concepts of HRM and SHRM along with the involvement of HRM practices in
accomplishment of goals and objectives.

Managing People 8
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Managing People 9
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