Orgaizational Ethics Issue Resolution

The Key to Wal-Mart's Success

The Key to Wal-Mart's Success

The Key to Wal-Mart's Success

In 1962, San Walton founded Wal-Mart in Roger, Arkansas. "As in all things, in our people practices, we take to heart our core belief to strive for excellence. That means constantly looking for ways to improve, whether it's connecting executive compensation to diversity goals or improving the supplier application process. Improving these vital relationships is key to a better Wal-Mart and a better world" (People, n.d., ¶2).

The key to Wal-Marts success can be attributed by the way management evaluates performance through motivation, ethics, and conflict management.

Applying Motivational Principles

Sam Walton had a vision for building a business and four decades later Sam's vision became a successful reality. Wal-Mart's associates have enabled the organization to become the largest retailer in the world consisting of "2,700 Wal-Mart stores, 495 SAM's Clubs and 1,150 international stores currently in operation" (Divisions, n.d., ¶1). Sam's dream of a global retailer also became a reality by meeting the needs of customer's worldwide. The secret to the Sam Walton's success is attributed to the rules and principles that are used to run the organization. Sam Walton used 10 motivational principles or otherwise known as Sam's Rules for Building a Business. The rules have helped the organization focus on the principles used for four decades and are factors of the company's success. The following 10 rules are how applied motivational principles lead to the successfulness of Wal-Mart and the other Walton properties.

"Rule one is committing to your business" (Sam's Rules for Building a Business, n.d., catg. 255, ¶2). Committing to an organization whole heartedly with absolute passion can be contagious to other employees of an organization. Employees will do the best they can and others will follow having the same passion that will make going to work everyday more pleasant rather than employees coming to work hating his or her job.

"Rule two is Share your profits with all your associates, and treat them as partners." (Sam's Rules for Building a Business, n.d., catg. 255, ¶3). Encouraging employees to be partners in an organization will result in high performance and more production. Giving employees a stake in the company is accomplished by offering discounted stock and retirement benefits can be very motivational.

"Rule three is "Motivate your partners" (Sam's Rules for Building a Business, n.d., catg. 255, ¶4). Earnings and ownership is sometimes not enough to keep the employees motivated. Thinking of different ways to motivate and challenge employees is very important. Some ways of accomplishing motivation and challenges is by setting high goals, encourage competition and keep track who wins. Mix things up by not being predictable to keep the employees challenged

"Rule four is "Communicate everything you possibly can to your partners" (Sam's Rules for Building a Business, n.d., catg. 255, ¶5). This rule deals with empowering employees. Letting employees know more about how the organization works, the more employees will care about the organization. Having trust in an employee will gain more than the risks of information being used by competitors.

"Rule five is "Appreciate everything your associates do for the business" (Sam's Rules for Building a Business, n.d., catg. 255, ¶6). The money or bonuses that an employee receives for doing his or her job is only one way to show appreciation to employees. Just a few words of appreciation or a pat on the back can be very motivational and make the employee proud of the job that was completed. Words do not cost the company, but the gain from a few praises can be priceless.

Rule six is "Celebrate your successes" (Sam's Rules for Building a Business, n.d., catg. 255, ¶7). Go out of the box. Be silly, have fun, loosen up and everyone will follow. Make the competitors wonder if they should take the organization seriously.

Rule seven is "Listen to everyone in your company" (Sam's Rules for Building a Business, n.d., catg. 255, ¶8). Employees who are involved with the customers know the most of what the customer wants. An employer needs to listen to what the employees have to add to the quality of the business. Give employees the responsibility to come up with good ideas that will benefit the organization.

Rule eight is "Exceed your customers' expectations" (Sam's Rules for Building a Business, n.d., catg. 255, ¶9). Give the customers what is wanted and the customers will return. No excuses should be used to cover up mistakes. Apologies must be made an not excuses. Have pride in the organizations products and guarantee satisfaction to the customer, always.

Rule nine is "Control your expenses better than your competition." (Sam's Rules for Building a Business, n.d., catg. 255, ¶10). Wal-Mart has been ranked number one in the nation for being the nation's largest retailer. A motivated group of employees and good business sense of keeping expenses low and income high is what has kept Wal-Mart to have an efficient operation.

Rule 10 is "Swim upstream" (Sam's Rules for Building a Business, n.d., catg. 255, ¶11). Wal-Mart does business differently from the competitors. Finding a niche that the competitors does not have brings success to the operation.

The biggest motivator of all for an employee is the fact that Wal-Mart has been around for over 40 years and will most likely be around another 40 years. An employee can not get any better statistics for job security. Sam Walton motivated the employees and gets back the desired results that he wanted from his motivational tactics. Employees' are proud to work for an organization that gives back so much to the employees, customers, and the communities.

Evaluating the Organization's Ethics Program

In the past, Wal-Mart has been criticized for the organization's business ethics. Bad publicity towards wages that the female employees received compared to the male counterpart's wages was an important ethical issue. Another issue was in regard to the benefits program for the employees. Today, health benefits, promoting from within, wages and