Communication Problem at Wal-Mart

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Table of Contents

Introduction
Identification of Problem
Analysis of the Problem
Possible Solutions
Reflection
References

Introduction

Wal-Mart is the largest retail outlet. It was founded in 1962, and since then, it has grown at an exponential rate. It has expanded its business globally by opening stores, Sam’s clubs and Supercenters all over the world (Wal-Mart Stores, 2009). It is follows the everyday low pricing strategy and hence provides the lowest prices to its customers.

I am the Human Resource Manager and I am responsible for taking care of the employees. My responsibilities include looking over the recruitment process, training, and performance appraisal.

Communication is very important within an organization. Any message, instruction, suggestion, request etc must be spread and not kept to oneself, and only the process of communication allows this to happen. It helps the organization become efficient and successful (Thompson, S.).

Although it may seem like Wal-Mart has a very good communication system if one looks at its efficient inventory control system. However, the problem that will be discussed in this paper is communication internally and externally, more specifically, communication with the employees and the public (Adubato, S., n.d).

Identification of Problem

The problem that Wal-Mart is facing is organizational. Wal-Mart pays so much attention to their everyday low pricing strategy that it has lost touch with the internal and external environment. They have ignored the criticism about the organization that is out there, and they have also ignored the needs, wants, suggestions and feedback from the employees. As a result of this communication problem, the employees do not give suggestions or feedback and are also de-motivated. In addition to this, Wal-Mart has a very poor brand image and public relations (Adubato, S., n.d).

This is a problem to the entire organization. It is becoming a challenge for the Human Resource, Marketing and Public Relations department the most as the responsibility of improving the motivation level and brand image falls on their shoulders. It affects all the departments because they all make up the brand and the brand image is what the effect of the problem is.

The communication problem that Wal-Mart is facing is definitely very critical. It will show its effects in the long term if nothing is done about it. The de-motivated employees will become inefficient and brand image will become so spoilt that it will lose its market share.

Analysis of the Problem

The main cause of the problem is the laziness on the part of the executives and the extensive growth which resulted in losing touch with the employees. When Wal-Mart got to know about the negative criticism, the CEO Lee Scott decided to ignore it, and very soon, this kept on spreading, and it became a problem for the organization (Adubato, S., n.d). In addition to this, the internal communication with the employees is poor because the employees hardly get to interact with anyone above their direct supervisor. Also, because the company is growing at such a fast pace, the employees increase with it, and as a result, they tend to get ignored.

The nature of business is retailing, and therefore it is very important for the employees to be motivated enough to treat the customers well. However, since they are de-motivated because of lack of communication, the quality of service provided by them is not up to the standard. Also because it is a global business, its reputation matters a lot. However, its brand image is becoming worse, and because of information technology, everyone gets to know about any event or issue immediately, the degree of seriousness in the problem is becoming higher than ever.

Possible Solutions

There are many approaches that Wal-Mart can take at the moment. The first alternative they have is to introduce a new system internally which will ensure that the information flow (both upwards and downwards) is effective. This system will make sure that the employees are motivated.

Another option is to establish concentrate more on the employees in every region. The human resource department will be required to assign more supervisors who become the direct link between higher level of management and the employees in-store. The main responsibility of these supervisors would make sure that the employees are happy and motivated.

And lastly, Wal-Mart can introduce a new marketing campaign and a positioning strategy. Press conferences and other public relations tools can be made use of to improve the image in front of the general public.

The major problem at the moment is the deteriorating brand image. This is the reason why I believe that Wal-Mart should introduce a new marketing campaign, public relations and positioning strategy which will handle all the negative criticisms effectively.

Reflection

Such a problem helped me realize how about how something as small as ignoring a negative criticism can affect the entire organization. It also highlighted the importance of communication in an organization.

Personally, it made me more sensitive to the external environment and the feelings and needs of the people around me. This has made me more aware and active when interacting with the people around me.

And lastly academically, this problem helped me realize the importance of effective business communication and the concept of diseconomies of scales.

References

Adubato, S. (n.d) Why Wal-Mart’s Communication Fell Short. Web.

Thomson, S. (2007) Importance of Communication in an Organization. Web.

Wal-Mart Stores, (2009) About us. Web.

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