Chat with AI
Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Edition 6ISBN: 978-0077718367Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Edition 6ISBN: 978-0077718367 Exercise 17
Trimming More Than Just Fat
Getting lean improves an organization's efficiency and makes it stronger for the long haul. But some organizations are so desperate to cut costs that they don't just get lean, they starve themselves of important human resources.
Some shoppers and business observers think that's what Walmart did during the most recent recession. Since 2008, the start of the recession, the company increased the number of stores by 13% but reduced its workforce by 1.4%. While cuts at headquarters could account for some of the difference between these percentages, it's likely that the impact includes stores trying to operate with fewer employees.
Customers have observed less help available and longer checkout lines. They also complain that overwhelmed employees are unable to keep shelves stocked with merchandise. Walmart's official response is that the percentage of items in stock has actually improved. However, reporters have cited examples of employees saying that the merchandise indeed has been delivered to the store, but they don't have time to move it to the shelves. And in the American Customer Satisfaction Index, a survey of consumer opinions about major corporations, Walmart recently was the lowest-ranked brand of department or discount store-the sixth year it was last or tied for last.
One employee said she was told her store was not allowed to schedule more worker-hours unless it had higher sales. Is this an example of a company that staffs efficiently or one that is starving itself of human resources Sales at Walmart have been falling, though profits have held steady. Spending less for human resources is one way to limit costs and maintain profits when sales decline. But if customers are leaving to find better service elsewhere, the company could be setting up a downward spiral.
Besides reducing the workforce in its stores, how else could a retailer like Walmart respond to a decline in demand
Getting lean improves an organization's efficiency and makes it stronger for the long haul. But some organizations are so desperate to cut costs that they don't just get lean, they starve themselves of important human resources.
Some shoppers and business observers think that's what Walmart did during the most recent recession. Since 2008, the start of the recession, the company increased the number of stores by 13% but reduced its workforce by 1.4%. While cuts at headquarters could account for some of the difference between these percentages, it's likely that the impact includes stores trying to operate with fewer employees.
Customers have observed less help available and longer checkout lines. They also complain that overwhelmed employees are unable to keep shelves stocked with merchandise. Walmart's official response is that the percentage of items in stock has actually improved. However, reporters have cited examples of employees saying that the merchandise indeed has been delivered to the store, but they don't have time to move it to the shelves. And in the American Customer Satisfaction Index, a survey of consumer opinions about major corporations, Walmart recently was the lowest-ranked brand of department or discount store-the sixth year it was last or tied for last.
One employee said she was told her store was not allowed to schedule more worker-hours unless it had higher sales. Is this an example of a company that staffs efficiently or one that is starving itself of human resources Sales at Walmart have been falling, though profits have held steady. Spending less for human resources is one way to limit costs and maintain profits when sales decline. But if customers are leaving to find better service elsewhere, the company could be setting up a downward spiral.
Besides reducing the workforce in its stores, how else could a retailer like Walmart respond to a decline in demand
Explanation
Verified
Verified
The retail industry is highly dynamic to...
Fundamentals of Human Resource Management 6th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart,Patrick Wright
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
