Wal-Marts Women-Case Analysis

The case discusses allegations of anti-employee practices against the world's largest retailer, Wal-Mart, in the early 21st century. It examines the various unethical and illegal practices that employees claimed Wal-Mart was following particularly discrimination against women and the prevention of unionization.

Financial impact that lawsuit could potentially have on Wal-Mart

Some of the impact could occur in the following forms: The 6 women who filed the case against Wal-Mart were not only asking the company to pay for the unfair deed but also asking them to pay back and compensate for all 1.6 female employees against whom Wal-Mart discriminated. This would cost the company a fortune because these 1.6 female workers were entitled to promotions, salary increment, trainings and other such things. To compensate or reimburse that much amount for all those workers would surely have a huge and major impact on the companys financial position. The other way how this lawsuit could affect the companys financial position would be through the transaction or sales. Since major part of the shoppers constitutes women, after hearing what Wal-Mart has done and how women are treated at WalMart they would certainly feel insecure and ripped off. They would instead opt for a better place to shop. This would lead to a fall in sales and increase in competition. Another thing is the reputation and goodwill of the company. The lawsuit already has brought the name of the company down and now if the company fails to win the case, then the company would suffer a huge fall of share in the market. They would even have to close most of the stores and start all over again which would be impossible looking at the current market situation and all the competition worldwide.

The turnover of workers or employees will also be affected. Reaching this news of discrimination, most of the women employees might quit their job, even those who did not experience the situation. So interviewing, selecting or recruiting those new employees would cost Wal-Mart another million. Moreover, those new employees would have no experience and would commit lots of errors. Training them would again add to the cost.

Major moral complaints of the females suing Wal-Mart with justification and the factors that might have accounted for discrepancies that Drogin Report uncovered
The major moral complaints of females suing Wal-Mart in the case basically cover the discrimination against female employees. To point out what constitutes those complaints: Difference in the promotion scheme between male and female employees The lower payment of wages and salaries to female employees even they were at same level with male employees Unequal distribution of management training among the male and female employees Male allotted a better job assignment compared to women even they were in a comparable positions, despite having higher performance ratings and greater seniority We believe that these moral complaints are since we are in a different period of time or era where ones role in society is no more limited to ones gender. The six women who sued Wal-Mart had physical proof and evidences of the discrimination laid upon them. Richard Drogin, a statistical expert found out that employees at Wal-Mart were divided into two main groups, hourly employees who occupied the lower levels and salaried managers who occupied the higher levels. Compensation increases from one level to the next. In 2001, salaried managers made about $50,000 a year while hourly employees made $18,000. Drogin found out that not only 65% of hourly employees were women but also 33% of salaried managers constituted women. So at both the point women earned less than man. When we also

look upon the experience level, an average woman was far more experienced than an average man because women worked for longer than men but had less turnover rates. It was also found that the performance rating of an average woman was much higher than of an average man. Drogin found out that be it in a cashiers place, a managers place or a sales associates place women performed better than men. However women were paid about 5% to 15% times less than men and the frequency of promotion for women was very less when compared to men. So all this adds up to reasons why the lawsuit was justifiable.

Steps to correct Wal-Marts discrepancies.

Wal-Mart has already started working on the problem. Some of the initiatives they have taken are: They had posted anti-discrimination posters all over Women were allotted more responsibilities and representation in areas they were evaluated Women could enter salaried management jobs without having to relocate their homes But these initiatives were forgone with the passage of time. Some of initiatives Wal-Mart could think to adopt are: Re-shape Wal-Mart cultureWal-Marts women were mostly looked down and not given the respect they deserve. Men at Wal-Mart fail to see that and they criticized women of their looks, their past, future and their purpose in life. So therefore women should be given respect and treated equally. Avoiding Work DiscriminationWomen at Wal-Mart seem to be working at par with men but still they are not paid at par. To compensate for the womens losses they could reduce their work time or they could allocate women to areas where minimum energy is required.

Forming a Womens AssociationAn association called the Womens Association can be formed in every retail store so that female employees can come together to discuss their issues and forward suggestions and feedback.

A need for the company to institute an affirmative action promotion program for female employees

Yes definitely the company should institute an affirmative action in order to promote program for the female employees, which could focus on freedom to speak, advance and employment especially for the female workers. Some points which could be included in the program could be as follows: The right and responsibilities of Women The Importance, potential and ability of Women in Workplace Sacrifices Women make at every aspect of life Success stories of Women at Work