Essays on Wal-Mart: Performance Management System Case Study

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The paper "Wal-Mart: Performance Management System" is a good example of a management case study. Performance management describes a process that is prone to constant revision to identify the areas for improvement and to determine whether all the components of the organisation are working effectively and efficiently to attain the desired organisational goals (Armstrong & Baron 2005). Put differently, it refers to a process of management architecture to ensure that the organisation along with its resources work in a coordinated manner to attain the organisation’ s goals. It also helps determine whether some components of the organisation need some adjustment to enable them to integrate all the required components (Armstrong 2009). .

In all, performance management promotes an organisation’ s efficiency, thus promoting business success. This paper outlines, analyses and assesses the performance management system that Wal-Mart uses to achieve its key strategic goals of competitive pricing, Situational analysis The company has the goal of attaining price leadership. The company’ s management focuses on driving the company towards being a price leader since the company believes that pricing strategy conforms to a direct approach for achieving performance and attracting customers.

This implies that the company’ s business strategy and measurement of performance have to relate to price leadership. As a market leader in sustainability, employment opportunity and corporate philanthropy, the company is a multinational retail corporation that operates a chain of warehouses and discount department stores. It is currently the largest private employer with some 2.2 million employees (Walmart 2013a). It is also the largest retailer globally. Currently, Wal-Mart has around 8,500 stores in 15 countries. The company has been at the frontline of introducing technology use in its distribution centres as a result of cutting down on its shipping costs and delivery time.

Advanced computer systems such as track inventory have been introduced resulting in fast and efficient checkout time and reordering. In the recent past, wireless in-store systems have also been introduced resulting in improved customer service. The company has the largest net sales globally with consolidated net sales of around $114.9 billion and an operating income of $6.3 billion as of 2013 (Walmart 2013b). The company has one of the best retail link computer systems that ensure fast and efficient inventories.

The company’ s global presence and global repute have helped it become increasingly competitive. Among its largest competitive advantages are its advanced logistics systems, as the company can ship merchandise from any of its numerous distribution centres hence providing cheap and efficient routes. Additionally, it has its distribution centre used specifically for online orders. Wall-Mart’ s competitive low pricing strategy has enabled the company to attract low income as well as high-income customers. The company has a large highly motivated employee base attributed to the company’ s strategy of motivating workers through paying them higher minimum wage (Walmart 2013a). However, Wal-Mart has a bad reputation for having discriminatory policies.

For instance, the company’ s female workers sued the company for its policies that denied them promotions while at the same time paying men higher than women even in situations where they are in a similar job group (Walmart 2013a). Current performance management system   At Wal-Mart, performance management entails harnessing several people management practices such as learning and development, with the aim of making the company attain its overall goal of becoming a market price leader.

Wal-Mart integrates PMS to ensure that individuals and teams within the organization are assessed and managed in ways that achieve improved levels of organizational and individual performance and development. Through performance management, Wal-Mart also hopes to establish a culture where employees can take responsibility for continual service delivery improvement, as well as employee skills and capabilities (Ellis & Onyeizung 2011). In which case, Wal-Mart hopes that effective performance management would facilitate collaborative approach which would subsequently influence individual performance, individual development and organizational outcomes.

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