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GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
0
Introduction
Wal-Mart Store is an multinational retail corporation wh...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
1
Case Background
The six female workers who working in Wal-Mart is the...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
2
The six women also hired Marc Bendick, a labor economist to against W...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
3
same woman also told by her next manager to find a husband and have c...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
4
Ethical Issue
Ethical issue that was raised by the case of Wal-Mart W...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
5
between men and women continuous increase to $1.16 per hour in 2001. ...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
6
Question 1
What financial impact do you think the lawsuit could poten...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
7
Question 2
What are the major moral complaints of the females suing W...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
8
Drogin also found that female employees are stayed in the workforce l...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
9
stereotypical beliefs about women generally, not by the actual skills...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
10
QUESTION 3
What factor do you think might account for the discrepanc...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
11
had higher performance ratings than men. Drogin found that women hir...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
12
QUESTION 4
What if anything, do you think, Wal-Mart should do to cor...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
13
Conclusion
Refer back to the case background, Wal-Mart stores are th...
GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’
14
Reference
Frank, T. (2006, April ). A Brief History of Walmart. Retr...
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Case study of 'wal mart women'

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Case study of 'wal mart women'

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Case study of 'wal mart women'

  1. 1. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 0 Introduction Wal-Mart Store is an multinational retail corporation which runs the chain of large discount department stores and warehouse stores in American. This Wal-Mart Store was founded by Sam Walton in 1962. The company was incorporated on October 31, 1969 and publicly traded on New York Stock Exchange in 1972. This Wal-Mart Store is the second largest public corporation around the world and it is also the biggest private employer in the world with over two million employees. Wal-Mart remains a family-owned business, as the company is controlled by the Walton Family, who own over 50 percent of Wal-Mart. This company also one of the world’s most valuable companies. Although Wal-Mart Store is the second largest public corporation around the world, it also face the biggest employee headache which is the class action lawsuit claiming the company discriminated against female employees. Essentially, there are two main reasons why women will earn less than men. They may have less education or less working experience or choose to work in an occupations that pay less than those that men choose. The other reason is that they may face discrimination which means that the earn is not equally to the skills they do have. In this lawsuit, it is claimed :  that Wal-Mart pays women less than men even when the women have the same amount of experience,  that earnings differences between men and women at Wal-Mart grow wider over time,  that Wal-Mart does not offer equal training opportunies to its women employees  that Wal-Mart prevents women from working in departments typically staffed by men and which typically pay more,  and that Wal-Mart refuses to post all management openings, thus limiting women's opportunities to apply for management positions.
  2. 2. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 1 Case Background The six female workers who working in Wal-Mart is the largest ever in American civil rights history. This is a case accusing Wal-Mart stores which is discriminating cases against US female workers. Two points had allege that women employed in Wal-Mart stores according to the 2010 court of Appeals opinion which is women was paid less than men, besides that the other opinion is receive fewer and wait longer for promotions to in store management positions than men. They were asking the Wal-Mart company compensate them or any other women who worked for Wal-Mart since December 26, 1998 which suffered from the sexual discrimination cases. If Wal-Mart were loses the case, it would cost Wal-Mart company many billions of dollar since the female workers who worked in Wal-Mart Company had been estimated as many as 1.5 billion to 2 million. Wal-Mart stores is the world's biggest retailer that owns more than 8400 stores and had over 2100000 employees worldwide. The law suit was launched in June 2001 that by six female Wal-Mart employees was the class action lawsuit that workers claiming the Wal-Mart company about the promotions, pay, management training and also job assignments. The six women asked for pay back and compensation for all 1.6 million female employees against who has discriminated . A statistical expect , Richard Drogin, a professor at California State University at Hayward was hired by the six women who filled the discrimination lawsuit to analyze an employee records. There was two main groups which is hourly employees at lower levels such as store cashiers, associates and stock people and the salaried management employees. Salaried management employees can be divided into two groups, the lower level are those manage a single store while the higher level are those manage an entire district or region. Since Wal-Mart promotes predominantly from within, workers typically progress from being an upper hourly employee to management trainee, to store manager and finally to region manager.
  3. 3. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 2 The six women also hired Marc Bendick, a labor economist to against Wal-Mart. Marc Bendick noted that the company had no trouble in promoting women in their management. 34.5 percent of in-store salaried managers were women while 56.5 percent of 20 comparable large were female salaried managers. The Wal-Mart would have about 4000 in-store female manager, 466 more in corporate headquarters female managers, about 150 for “blue-collar” nonstore establishments, 107 more in other nonstore establishment and about 100 in reporting establishment. William T. Bielby, a professor at University of California, who also hired by the women stated in his analyze and report of Wal-Mart ‘s hiring practices that the managers at the Wal-Mart was given no written policies to select candidates who met the minimum criteria of promotion and in setting the exact salaries. So, gender stereotypes always influence personal decisions moreover women not considered by their actual skills but was shaped by their manager’s stereotypical beliefs about them. Arturo Mireles who is a store manager proving that he only rely on subjective factors such as team work and ethics in making decision about promotion to Department Manager or Support Manager because he has no written criteria to be a guideline in his decision. The company policy not state the detail about when and how to adjust the payment or monitoring the number of employee who receive increases. However, William T. Bielby also note that the Wal-Mart managers believe that in management position, women have same qualified as men so the discrimination on the women must be based on individual decision of the manager-self not attributed to the Wal-Mart and the company was trying hard to make sure their employees get equal opportunity in their work. There are about more than a hundred of female employees who were came forward providing their received critism about their work in the Wal-Mart. A store manager in Utah for example was told to his female assistant that retail is “tough” and “not appropriate” for women while in Texas, a women were told by their manager to be “bitches” in the Wal-Mart management and a supervisor in the same state said to his female management trainee that he don’t like college graduates and female manager. The
  4. 4. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 3 same woman also told by her next manager to find a husband and have children. In Florida, the manager explain they paid more than women because they are here to build career and housewives just need to earn extra money in retail. In contrary, the company’s lawyer claim that there a large group of injured women to handle and every of them may had different or varied experience of injury in Wal-Mart not like the cases that were had by the six women. Wal-Mart moreover used the different system for compensating and promoting their employees while the wages payment based on their individual manager not by the uniform company policy. The company also claim they have held so many programs to make sure everyone get same regardless of race and gender. The company has started programs for achieving diversity in early year of 1990s with the everywhere posted of written antidiscrimination policy while the managers were told about the gender salaried composition and support women as “reflect the community”. They must set an annual goals which are “realistic”, “achievable”, “made sense”, and “weren’t worse than the year before” to increase the women representation in their area working place. Late Sam Walton begun the program which allowing the women entering the management job without relocate their home however the program was be a stranger today after the death of him. In April 2010, the women case was finally got a class action and December 6, 2010, the Supreme Court decide to hear the case and make decision for the final determination which effect the fate of 1.5 million of Wal-Mart female workers and impact on the company significant material finance but some analysts the company will settle the case before or after the Supreme Court decided.
  5. 5. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 4 Ethical Issue Ethical issue that was raised by the case of Wal-Mart Women was discrimination women in the workplace. Job discrimination is an unethical behavior. Discrimination means to distinguish someone on the basic of prejudice or morally attitude. There are six women who had worked in Wal-Mart sued Wal-Mart about their paid and opportunity of promotion is less than the men work in Wal-Mart although their experience, qualification and performance is better than men. Firstly, we can found that women employee in Wal-Mart earn money less than the men. Based on the research of Richard Drogin. He is a statistical expert and professor come from California State University. He found that Wal-Mart employees are divided into two group. There are salaried management in high level and hourly employees in low level. Salaried managers can earn $50,000 in but hourly employees just can earn $18,000 in a year in 2001. For example, the annual salary of district manager, men can made $239,519 but women just made $177,149. Among full-time employees, women get less than $5000 compare to men. Secondly, the opportunity of promotion of women is less than the men. According to Richard Drogin, chance of women will be promoted from an assistant manager to store manager is 10.12 years while men just need 8.64. In addition, he found that women performance is better than men. For a performance rating of job sales association, on scale of 1-7, 1 is low and 7 is high. Men get 3.68 and women get 3.75. This figure showed that women has high performance than women. Factors of women get less promotion because of relocate and policy of company in staffing. Another sociology expert William T. Bielby, professor University of California. His report noted that however a company have guidelines for the criteria of promotion, but didn’t have written policies for manager’s guidance. Form the research, we can found that glass ceiling will affect in making decisions about promotion. In a case, a store manager told to his female assistant about retail is not suitable to women. Then, compensation received by the men and women worker in Wal-Mart also different. A research from Drogin in 1996, women were paid less $0.35 per hour than a men. The pay gap
  6. 6. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 5 between men and women continuous increase to $1.16 per hour in 2001. Another statistic in 1996 showed that, male sales associations get more $0.20 per hour than female sales associations. Employee in the company have equity, they are fair to have benefit such as retirement benefits, medical benefits, bonus and so on. Compensation become a motivation for worker. Next, we noted that less women participated in management of Wal-Mart. A labor economist, marc Bendick noted another retailer company has 56.5% of female included in management but Wal-Mart just has 34.5%. So Wal-Mart need to have more than 4000 female participated in high level of management position. Nowadays, international company promote diversity in the company. Opinion from men and women is different. So that, company can receive a lot of vary business ideas. According to the statistic above, Wal-Mart suspected in job discrimination. Early in the 1990, Wal-Mart implement a written antidiscrimination rule to overall company but not widely used. From the lawsuit, Wal-Mart may face a problem of reparation about $10 billion and have to increase 60% the pay to employee. As a result, Wal-Mart’s shares already fell 3.9%. Government and agencies especially Equal Employment Opportunity Commission (EEOC) need to enforce the law, Civil Rights Act of 1964 to prevent from discrimination and protect them based on hiring, compensation, religion, race and sex.
  7. 7. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 6 Question 1 What financial impact do you think the lawsuit could potentially have on Wal-Mart? Do you think the women deserve to win their lawsuit? What if the outcome of the case cost Wal-Mart so much it had to lay off thousand of its workers and close stores? Financial impact is an expense or fall in revenue arising out of a disaster, change in market conditions, failure of a product, or other events under or beyond a management's control. Wal- Mart is such an effective competitor that it is gradually forcing down the wages and living standards of retail workers who aren't even employed by Wal-Mart. The company could face billions of dollars in demands for back pay and punitive damages. The real Wal-Mart conflict isn't between capital and labor. It is a battle involving consumers and cost-efficient producers against traditional retailers, organized labor, and community activists. Women deserve to win this lawsuit because they also has a rights as a worker or employee. Every working female enjoys the same employee rights that are bestowed on a male colleague. It is illegal to discriminate against a female employee at any stage of employment. A qualified female applicant cannot be denied employment because of being a women. She has equal right to promotion, vacation leave and other benefits provided by the employer. The Equal Pay Act requires that both women and men be given equal pay for equal work in the same organization. The Wal Mart company will face of problem from their shareholders because they doesn’t trust them anymore and maybe they will go away to find other company and wanted their money back. From this matter,Wal Mart also decrease their profit because they cannot run a bussiness properly due to lack of worker and so on. So it seems that during the recession when management cost saving strategy appeared to be foremost, with layoffs being the first action usually taken, the impact on surviving employees, their productivity, the reputation of the company and real costs savings has been underemphasized.
  8. 8. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 7 Question 2 What are the major moral complaints of the females suing Wal-Mart? Do you believe those complaints are justified? Why? Wal-Mart has said that the case should not be heard as a class-action, but that each woman should be considered individually and an individual determination should be made regarding whether she specifically was discriminated against by Wal-Mart, because each woman’s situation is different. Do you agree? The major moral complaints of the females suing Wal-Mart is the discrimination against female employees in promotions, pay, management training and job assignments, such as: 1. Female employees also receive fewer and wait longer for promotions to in-store management position than men. 2. Female employees are paid less than men in comparable positions, despite having higher performance ratings and greater seniority. 3. There is unequal distribution of management training among the male and female employees. 4. Male employees are allotted a better job assignment compare to women employees even though they are equally qualified, ranked and experienced. Yes, I strongly believe that these complaints are justified because it is clearly stated above that the female employees in Wal-Mart were not treated fairly and equally. Richard Drogin, a statistical expert found out that employees in Wal-Mart are divided into two main groups: hourly employees who occupied the lower levels and sand salaried manager who occupied the higher levels. Since Wal-Mart promotes predominantly from within, workers typically progress from being an upper hourly employee, to management trainee, to store manager or assistant manager, and finally to district, regional or cooperate manager. Compensation increases from one level to another. In 2001, salaried managers made about $50,000 a year while hourly employees made $18,000. Drogin found that 65% of hourly employees were women, but only 33% of salaried managers were. At both levels, women earned less than men. Drogin found that, on average women earned less than men at each in-store salaried management job, as well as in hourly pay rate.
  9. 9. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 8 Drogin also found that female employees are stayed in the workforce longer than male employees at Wal-Mart and so had more on-the-job experience on average than men did. Drogin discovered that while it took female employees 4.38 years from their date of hire to be promoted to assistant manager, male employees were promoted after only 2.86 years. And while it took female employees 10.12 years to become store managers, it took men only 8.64 years. Drogin also found that, on average, female employees had higher performance ratings than male employees. Drogin noted two factors that might affect women’s promotion into management. First, many store managers believed that employees going into salaried management positions had to be willing to relocate geographically, and they communicated this belief to women. Second, while the company had a policy of posting available management positions, and to communicate the availability of these positions by word of mouth to potential candidates they picked. Another expert hired by the six female employees who brought the discrimination lawsuit against Wal-Mart, Marc Bendick, a labor economist, noted that Wal-Mart’s top retail competitors had no trouble promoting women into management. While Wal-Mart’s in-store salaried managers were 34.5% women, salaried managers at 20 comparable large retail chains were 56.5% female. If Wal-Mart had achieved the same female manager-to-nonmanager ratios as comparable chains in 1999, it would have had at least 4,004 more in-store female managers, 466 more female managers at corporate headquarters, 144 more at “blue-collar” nonstore establishments, 107 more in other nonstore establishments, 97 more in separately reporting establishments. The six women suing Wal-Mart also hired an expert in sociology, William T. Bielby, a professor at the Universitiy of California, Santa Barbara, to analyze and report on Wal-Mart’s hiring practices. He noted that “a large body of social science research demonstrates that gender stereotypes are especially likely to influence personnel decisions when they are based on subjective factors, because substantial decision-maker discretion tends to allow people to seek out and retain stereotype-confirming information and ignore or minimize information that defies stereotypes”. Moreover, he added, “in such settings stereotypes can bias assessments of women’s qualifications, contributions, and advancement potential, because perceptions are shaped by
  10. 10. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 9 stereotypical beliefs about women generally, not by the actual skills and accomplishments of the person as an individual.” I do not agree that each woman in Wal-Mart is being considered individually and an individual determination should be made regarding whether she specifically was discriminated against by Wal-Mart, because each woman’s situation is different. Important statistical evidence being used by the female employees is a report conducted by Richard Drogin, a professor at California State University at Hayward, to analyze Wal-Mart’s computerized employee records of 3,945,151 employees who had worked any time during 1996- 2002. Among the results, Drogin found that it took longer for women to rise to a management position, at an average of 10.12 years since date of first hire, as opposed to 8.64 years for men. In general, women make up 92% of Wal-Mart’s cashiers, but only 14% of store management. The average proportion of female managers in the nation’s 20 largest retail stores is 20% higher than at Wal-Mart. Female employees are being compensated unfairly compared to male employees. According to Drogin, female employees earned about $ 5,000 less than male employees overall in 2001 at Wal-Mart. Dorgin also examined that women hired as sales associates in 1996 received $0.20 per hour less than men hired as sales associates that year. These evidence conducted by Richard Drogin are clearly pointed out Wal-Mart has discriminated the female employees and do not treat them fairly and equally.
  11. 11. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 10 QUESTION 3 What factor do you think might account for the discrepancies the Drogin report uncovered? The factor that I think might account for the discrepancies the Drogin report uncovered are wrong perception of higher level between men and women employee, subjective analysis of performance (job experience), and wage and promotion discrepancies. Firstly, the factor of wrong perception of higher level between men and women employee. Drogin found that 65 percent of hourly employees were women, but only 33 percent of salaried managers were. The hourly employees such as store cashiers, associates, stock people, department heads, and support managers while salaried manager like store manager and assistant manager, above them are district manager, regional vice presidents, and senior vice president. Apart from that, based on the Drogin report said women employee perhaps to raise children or for some other reason and it causes women left their jobs more than men. Means that, most of the women employees were hired at the lower level compare to men employee. Secondly, the factors that I think might account for the discrepancies the Drogin report uncovered is based on the subjective analysis of performance or job experience. Based on the assumption Drogin report that women left their jobs mare than men, perhaps to raise children of for some other reason. This would give women higher turnover rates and men greater experience and seniority. However, Drogin found that women stayed in the work force longer than men at Wal-Mart and so had more on-the-job experience on average than men did. Besides that, based on the Drogin report said the women employee is not suitable going to Salaried managers because most of the salaried manager must be ready with more challenging in their work such as had to be willing to relocate geographically, and they communicated this belief to women. This causes many women are not willing to go out of their accommodation. Then, while company had a policy of posting available management positions, manager had the discretion to not post some positions and to communicate the availability of these position by word of mouth to potential candidates they picked. Lastly, the factor that I think might account for the discrepancies the Drogin report uncovered are about wage and promotion discrepancies. Drogin found that, on average, women
  12. 12. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 11 had higher performance ratings than men. Drogin found that women hired with the same position as the men paid less than men. For example, he found that women who were hired into hourly jobs in 1996 were paid $0.35 less per hour than men hired into hourly jobs that same year. By 2001, the gap between the wagea of these same employees had increased to $1.16 per hour also,women hired as sales associates in 1996 received $0.20 per hour less than men hired as sales associates that year. By 2001, the difference had grown to $1.17 per hour. Finally, Drogin performed several statistical tests to determine whether the discrepancies in promotions and pay could be the result or women not being available when promotion came out.
  13. 13. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 12 QUESTION 4 What if anything, do you think, Wal-Mart should do to correct these discrepancies? Should the company institute an “affirmative action” promotion program for female employees? If so, what should this program be like? If discrimination is happening within the company. In order for Wal-Mart to correct these discrepancies they should make opportunity for women employees to advance in the organization. The women employee are also able to manage and develop an organization to successfully based on the skills, knowledge, and talent found within them. Women are also able to hold an office as an integrity and the best manager.These shouldn’t be a pay difference between males and females, and it shouldn’t take women longer to get promoted then men employees. The women employees are also entitled to get paid better than male employees based out of their work and the right to get promotion earlier than men if women employees are more capable and performance compared to male employee. Everyone needs to be trained on their legal rights. The employers and competent manager should abide by the laws set forth in the Employee Act and Trade Union Act to give proper rights to workers without looking down on women workers. I don’t think that the company should institute an “affirmative action” promotion program for female employees. Managers just need to promote fairy based on potential and knowledge. To institute an affirmative action program would be to show favoritism to women. Men should start to get discriminated against, and if the company starts to show favoritism towards women, then the men will complain.
  14. 14. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 13 Conclusion Refer back to the case background, Wal-Mart stores are the world’s biggest retailer and had over 2100000 employees worldwide but there are six female of Wal-Mart employees had launched a law suit which claiming that the Wal-Mart company had discrimination against female about the promotions, pay, management training and also job assignment in June, 2001. By this, Wal-Mart could face billions of dollars in demand for back pay and punitive damages. This matter will let the shareholders of Wal-Mart doesn’t trust them anymore and maybe they will go away to find other company and wanted their money back. Besides that, according to our opinions, the six female workers should win the lawsuit and gain benefits to all 1.5 billion to 2 million of female employees in Wal-Mart. This is because every female should enjoy the same employees’ rights that are bestowed on a male colleague. It is illegal to discriminate against a female employee at any stage of employment. A qualified female applicant cannot be denied employment because of being women. She has equal right to promotion, vacation leave and other benefits provided by the employer. The Equal Pay Act requires that both women and men be given equal pay for equal work in the same organization. To prevent this lawsuit in future, Wal-Mart had a written antidiscrimination policy posted everywhere. In 1990s, Wal-Mart had started a number of programs to achieve diversity. Managers were told that women’s representation should “reflect the community”. By many efforts had been done by Wal-Mart to antidiscrimination, Wal-Mart was named in the “Top 40 Greatest Organizations for Women of Color to Work” in year 2008 by Women of Color magazine as well as one of the “ Top 10 Best Companies for Women” by PINK magazine. On May 2007, Wal-Mart announced it was named one of the “ Top 50 Companies for Diversity” by Diversity-Inc magazine.
  15. 15. GROUP ASSIGNMENT OF CASE STUDY OF ‘WAL-MART WOMEN’ 14 Reference Frank, T. (2006, April ). A Brief History of Walmart. Retrieved November 2013, 16, from reclaimdemocracy.org: http://reclaimdemocracy.org/brief-history-of-walmart/ Musgrave, J. (2012, 0ctober 04). Female ex-Walmart employees file federal discrimination suit over promotions. Retrieved November 15, 2013, from palmbeachpost: http://www.palmbeachpost.com/news/business/employment/ex-female-walmart- employees-file-federal-discrimin/nSTP4/ Velasquez, M. G. (2012). Business Ethics. United States: pearson. Young, C. (2011, July 8). Wal-Mart and Gender Discrimination. Retrieved November 2013, 10, from reason: http://reason.com/archives/2011/07/08/wal-mart-and-gender-discrimina

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