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Wal-Mart's Compensation And Benefits The Thesis

The median annual salary of hourly workers hovers in the $20,000 a year range, with in-store management earning a median salary in the range of $54,000 to $60,000 a year. Figure 1: Wal-Mart Organizational Structure

Conclusion

Wal-Mart's organizational structure is specifically designed to enable hourly workers for complete nearly every position in a Wal-Mart SuperCenter yet the benefits and compensations structures have a wide variation in them between part-time workers, full-time workers and managers. From an economic impact standpoint, with a $470,331 run rate per week necessary to keep any given SuperCenter breaking even and delivering onto to company-wide overhead, the competitive practices necessary to reach this level disrupt smaller local and regional competitors severely. The average Wal-Mart employee earns $9.70 per hour and is often kept to part-time status so the company does not have to pay medical benefits. With evidence of discrimination to women and monitories (Drogin, 2003) and investigations into the hiring practices of part-time staff (Adamy, 2008) the benefits and compensation practices of Wal-Mart will continue to face scrutiny. Compensation and benefits are more oriented towards keeping any given SuperCenter profitable and growing in efficiency, often having full-time associates fulfill a variety of roles, some focused on keeping the supply chain functioning efficiently and others focused on retailing.

Appendices:

Wage Analysis Table By Department Showing Wage Rates

WAL-MART DEPARTMENTS ASSOCIATES NEEDED BY DEPARTMENT (assumes 24 hr. operation) SUPERVISORS REQUIRED BY DEPARTMENT ASSOCIATE HRLY AVERAGE WAGE SUPERVISOR HRLY AVERAGE WAGE ASSOCIATE WAGES PER WEEK BY DEPT (40 hrs x avg. wage x # associates) SUPERVISOR WAGES PER WEEK BY DEPT (40 hrs x avg. wage x # associates) OVERNIGHT ASSOCIATES

NIGHT RECEIVING

DAY RECEIVING

SERVICE DELI

MERCH DEPTS

INFANTS/TODDLERS

DOMESTIC GOODS

FRONT END

HORTICULTURE

OPTICAL PROFESSIONAL

RECEIVING

SECURITY

TOYS

PRODUCE

SPORTING GOODS

BACK OFFICE

AUTOMOTIVE

DAIRY PRODUCTS

HARDWARE

HOUSEWARES

MAINTENANCE

PAPER GOODS

PHARMACY

PIECE GOODS

SHOES

DEMOS

HEALTH AND BEAUTY AIDS

PETS AND SUPPLIES

STATIONARY AND BOOKS

GROCERY DRY GOODS

JEWELRY

BAKERY

CANDY, TOBACCO, COOKIES

ELECTRONICS

HOSIERY

LADIES SPORTSWEAR

MEAT

MENS WEAR

benefit x # associates) SUPERVISOR BENEFITS PER WEEK BY DEPT (40 hrs x avg. benefit x # associates) AUTOMOTIVE
BACK OFFICE

BAKERY

CANDY, TOBACCO, COOKIES

DAIRY PRODUCTS

DAY RECEIVING

DEMOS

DOMESTIC GOODS

ELECTRONICS

FRONT END

GROCERY DRY GOODS

HARDWARE

HEALTH AND BEAUTY AIDS

HORTICULTURE

HOSIERY

HOUSEWARES

INFANTS/TODDLERS

JEWELRY

LADIES SPORTSWEAR

MAINTENANCE

MEAT

MENS WEAR

MERCH DEPTS

NIGHT RECEIVING

OPTICAL PROFESSIONAL

OVERNIGHT ASSOCIATES

PAPER GOODS

PETS AND SUPPLIES

PHARMACY

PIECE GOODS

PRODUCE

RECEIVING

SECURITY

SERVICE DELI

SHOES

SPORTING GOODS

STATIONARY AND BOOKS

TOYS

References

Janet Adamy (2008). Wal-Mart's Employee Health Benefits Come Under Fire. Knight Ridder Tribune Business News,1. Retrieved February 19, 2009, from ABI/INFORM Dateline database. (Document ID: 425264391).

Elizabeth E. Davis, Matthew Freedman, Julia Lane, Brian McCall, et al. (2006). SUPERMARKET HUMAN RESOURCE PRACTICES AND COMPETITION FROM MASS MERCHANDISERS. American Journal of Agricultural Economics, 88(5), 1289. Retrieved February 13, 2009, from ABI/INFORM Global database. (Document ID: 1174862211).

Richard Drogin, Ph. D. (2003) - STATISTICAL ANALYSIS OF GENDER PATTERNS IN WAL-MART WORKFORCE, February, 2003

Drogin, Kakigi & Associates, Berkeley, CA 94705

Melanie A Spangler, Margaret M. Britt, Tomas H. Parks. (2008). Wal-Mart and Women: Good Business Practice or Gamesmanship? Journal of Applied Management and Entrepreneurship, 13(2), 14-25. Retrieved February 12, 2009, from ABI/INFORM Global database. (Document ID: 1561214401).

Securities and Exchange Commission, 2009. Analysis from Freedgar.com of Wal-Mart Annual Reports 2002, 2003, 2004, 2005, and 2006 - Accessed from Wal-Mart.com Investor Relations website on February 15, 2009.

Wal-Mart seeks ways to cut benefit spending. (27 October). Knight Ridder Tribune Business News,1. Retrieved February 21, 2009, from ABI/INFORM Dateline database. (Document ID: 917490841).

Sources used in this document:
References

Janet Adamy (2008). Wal-Mart's Employee Health Benefits Come Under Fire. Knight Ridder Tribune Business News,1. Retrieved February 19, 2009, from ABI/INFORM Dateline database. (Document ID: 425264391).

Elizabeth E. Davis, Matthew Freedman, Julia Lane, Brian McCall, et al. (2006). SUPERMARKET HUMAN RESOURCE PRACTICES AND COMPETITION FROM MASS MERCHANDISERS. American Journal of Agricultural Economics, 88(5), 1289. Retrieved February 13, 2009, from ABI/INFORM Global database. (Document ID: 1174862211).

Richard Drogin, Ph. D. (2003) - STATISTICAL ANALYSIS OF GENDER PATTERNS IN WAL-MART WORKFORCE, February, 2003

Drogin, Kakigi & Associates, Berkeley, CA 94705
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