Organizational strategies of Walmart and Google

 

The workers at Walmart lack the motivation to work and are demoralized because of the meager pay. Most of them earn less than $25000 per year, barely sustaining their families.  A Walmart employee tells of his predicaments as he makes ends meets through odd means such as blood donation and his family relying on food stamps. The workers demonstrated against the poor pay and long working hours (Jamieson, 2013). The company does not offer attractive incentives to the employees, which demotivates them. By contrast, Google pays its employees attractive salaries, which makes it a covetable organization for most employees. Good salary packages and remunerations act a motivation to employees because it makes them feel appreciated and rewarded for their hard work.

Organizational strategy is a revolution in a company that aims at improving the current state, building and sustaining a good marketplace for the organization. Performance appraisals and employee compensation are indispensable in organizational strategies. Google fully adopts and implements good organizational strategy because it offers both fringe and cash compensation for its employees, and conducts job evaluation and performance appraisals from time to time. On the contrary, Walmart disregards organizational strategy and does not look into the employees’ needs. The organization offers low wages yet it can afford higher salaries and remunerations for its employees.

There is little interaction between the management and employees at Walmart and they communicate their grievances through representations and demonstrations. Google management maintains a good rapport with its employees, which is fundamental in attracting and retaining the workforce. Social media constitute a significant part of communication at Google, an aspect that keeps things running smoothly at the company. Walmart employees seem neglected and their issues ignored, but Google workers are a happy lot, due to the handsome pay and attractive working environment.

Google employs the merit pay structure, which is based on performance and job evaluation by the employer. The employer then raises the employee’s pay after a careful evaluation of their work and performance (U.S. Department of Labor, 2014). Google employees are paid on merit, with the highest qualified team of experts receiving hefty bonuses. By contrast, Walmart employs a base pay compensation structure, which pays the employees on an hourly basis. I am for the merit pay structure because it fairly compensates the workers based on their performance and expertise. I strongly oppose base pay compensation structure because the system oppresses the workers by paying them hourly wages and overworking them (Bernardin, 2014).

The entry of Walmart into the metropolitan market created a depression in the wages by displacing other competitors from the market. Their entry drastically drove the average pay way down below the recommended threshold.  Google competitively compensates its employees, with the engineers bagging the highest pay. Other workers are also compensated handsomely, making it one of the highest paying organizations globally. The monopoly of Google and its annual turnover offers it the opportunity for favorable compensations and incentives (Lobosco, 2012). Walmart’s market dominance drove out other competitors that were offering higher wages.

Google provides attractive incentives to its employees by offering cash and fringe compensations and other employee benefits, unlike Walmart. Thus, the company attracts and retains its employees for the overall growth of the organization.

Cash compensation seems to be the most favorable incentive for most employees. Walmart employees were campaigning for a pay increase and felt that an increase in cash compensation would reward them appropriately for their work. Similarly, Google offers high salaries for its employees, a factor that attracts employees to the company (Lynley, 2012). Therefore, cash compensation seems to be the incentive working best for most employees.

I would prefer to work for Google because of its high pay and favorable working conditions. It is a coveted organization by most employees because it caters to their needs accordingly. If I were Google’s human resources manager, I would carefully select candidates by taking them through the right recruiting process. The company has competitive salary packages, and it would be fair if only the best and most qualified candidates secured job position in the company. However, I would adjust the interviewing process, which seems to be too uptight, since it locks out some technically qualified candidates by mainly testing critical thinking skills (Lobosco, 2012).

 

References

Bernardin, J.H. (2014). Compensation: Base pay and fringe benefits. McGraw-Hill Inc. Retrieved on 14 March 2014 from http://answers.mheducation.com/business/management/human-resource-management/compensation-base-pay-and-fringe-benefits

Jamieson, D. (2013). Most Walmart store workers didn’t earn $25,000 last year. Huffington Post. Retrieved on 14 March 2014 from http://www.huffingtonpost.com/2013/10/23/walmart-salary_n_4151131.html

Lobosco, K. (2012). Interns at Google probably make more than you. CNN Money. Retrieved on 14 March 2014 from http://money.cnn.com/2013/06/12/technology/google-intern-pay/

Lynley, M. (2012). The highest paying jobs at Google. Business Insider. Retrieved on 14 March 2014 from http://www.businessinsider.com/the-highest-paying-jobs-at-google-ranked-2012-5#

U.S. Department of Labor. (2014). Wages. Retrieved on 14 March 2014 from http://www.dol.gov/dol/topic/wages/meritpay.htm

 

 

 

 

 


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