HR Problem Paper

HR Problem Paper - Wal-Mart The conundrum of providing a...

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Wal-Mart The conundrum of providing a quality health insurance plan while controlling costs. Brooke Galietto December 2, 2010 Management 202 HR Problem Paper Table of Contents I. Executive Summary……………………………………………………………………. .3
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II. Wal- Mart………………………………………………………………………………………… ……………….4 III. Nature and Extent of HR Problem experience at Wal-Mart…………………………. .4 IV. General Research on the HR problem………………………………………………. ..7 V. Recommendations and Advice………………………………………………………. .10 VI. Bibliography…………………………………………………………………………13 I. Executive Summar y Wal-Mart is the largest retail company in the United States employing 2.1 million people in its 8,400 stores. Wal-Mart leads its competitors, Target, Carrefour, and Costco, by a large margin. Wal-Mart’s success can be dedicated in large part to its prominent foundation spearheaded by Wal-Mart’s founder Sam Walton. This foundation is succinctly stated in Wal-Mart’s current slogan, “Save Money, Live Better”. Shoppers 2
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choose Wal-Mart because of its consistent discounted prices, giant selection and variety of goods, and its accessibility. Although Wal-Mart’s cost cutting nature has yielded great financial success, it has also caused a lot of negative publicity and criticism especially in regard to employee treatment. Wal-Mart has been the defendant in many large-scale lawsuits because of discrimination and poor labor relations. Wal-Mart’s most notorious problem is their failure to provide adequate health insurance plans for their millions of workers. In 2005, two labor unions, Wake-Up Wal-Mart and Wal-Mart Watch campaigned against Wal-Mart in an attempt to spread the bad news about Wal-Mart and help Wal-Mart employees improve their working situation. Government officials also began criticizing and keeping a close watch on Wal-Mart’s activities. The government became involved because many of Wal-Mart employees, almost 50%, qualified for Medicaid costing states millions of dollars. Eligibility standard for a health insurance plan was very particular so many employees did not qualify. Furthermore, if an employee did qualify it is very likely that he could not afford the unreasonable health insurance plan provided. The average Wal- Mart employees earns about $20,000 dollars a year; using the Wal-Mart health insurance plan would cost an employee about one-fifth of their annual salary. Therefore, Wal-Mart needed to re-evaluate their health insurance plan to make it more available and affordable to their employees. Providing health benefits to employees is expensive and challenging for all companies,
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This document was uploaded on 10/27/2011 for the course MKT 291 at Miami University.

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HR Problem Paper - Wal-Mart The conundrum of providing a...

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