Type: Ethical Case Study

Company: Wal-Mart

Q1: What is the apical dilemma facing in this case? Do, WallMarts associates also faced ethical dilemma? If so, what is it?
Answer: Wac-Marts intent was to have a automated computer
system induction in the system to improve productivity by
scheduling tasks more efficiently, saving time and costs and
burden on the floor managers.
For this intent, Wald-Mart initiated a plan of getting the requires
system from Kronos to be installed and implemented is the work
scheduling process for lowering the cost and in return adding
these savings to its profit margins of the company.
Wall-Mart having approximately 1.4 million working locally in U.S,
and it is the biggest in taker of workforce in America. Its Retail
sales are staggering, close to $ 379 billion in the shape of sales
revue generated in January 31, 2008.
Its productivity was attained through creating lower operational
costs and low prices, supplemented by its excellent inventory and
stock control management system.
However, in 2007-08, , the company tried to further lower the
operational costs, by creating changes through bring in a new
system based on automated computerized scheduling system for
improving efficiency in work related scheduling and control
systems.

Type: Ethical Case Study

The news of this brought a sense or resistance, as they concerned
the seriousness if its implication by making a lot workforce
redundant and it also negates their certain rights and would make
their survival difficult in such circumstances.
Previously, the process of workforce scheduling was done in
respective in its big box stores and the store manager was the
sole in charge for doing these tasks manually. The store in charge
used to assess and evaluated the performances on weekly basis
and compared it with last years performance data.
This was a full one day devoted effort for the store in charge. Te
company thought that it was gigantic task considering the
number of stores in its chain of sores and this task is to expensive
and doesnt contribute much to the Wall-Mart as such.
Finally, the company got the system from Kronos and
implemented for scheduling purpose. The effect was evident as
the system was able to the task which was previously done
manually in few hours at the most. Giving the store in charge or
manager to give the time saved in other tasks in running the
store operations and effectively.
This new system had the ability to simultaneously of storing the
sales figures in the form of units sold and maintain transaction
logs and its related metrics in less than fifteen minutes and make
comparisons with the previous performances from the last year,
On top of it could generate reports of total number of customers
and new customers and the size and time line of traffics.
It also had the capacity to forecast, how much workforce would
be needed in different shifts and how much time it would/should
take to make a new sale.
The efficiency generated by this new system to make schedules
without having to call for extra staff or sending some of the

Type: Ethical Case Study

workforce earlier, as there was no need to pay them extra. On the
other hand, during peak rush hour calling the spare staff to come
early before their scheduled time previously they have been
working on.
Wall-Mart operates thousands of stores on 24 hour basis and
there was a history of having issues relating to haphazard calling
timings of the workers and labors, and there was resistances
shown by the workforce and the general labor on such problems.
Nights, due to less rush and traffic; workers were asked to go
early and come early on assigned peak hours on abrupt
instructions through the reports generated by Kronos. It started a
severe resentment and made this system as unjustified for the
workers due to the sudden changes they had to make in their
lifestyles and family responsibilities, which was a difficult
proposition for the majority.
The management in its report stated that with the functioning of
Kronos, the productivity has gained 12% approximately relating to
the labor management, ending January 31, 2008.
The workforce worked with Wal-Mart has always been called as
associates, meaning as partners of the company and to show
companys respect and loyalty towards them and vice versa. Nut
with the introduction of this new system started proving a points
of discriminating policies taking effect by the company towards its
workers, creating issues in dealing with the personal time
management and highly variable income structure, with high level
of un certainty of what they will get next?
It was taken as a basic threat to their financial stability and
household budgeting problems. Many stores managers to tell
their works to take time off as there is no prediction of heavy
workload or call them immediately when the system sudden
expected increase in traffic.

Type: Ethical Case Study

These uncertain and u predictable situation also had a bearing in
creating in getting their salary slips. These issues started
becoming a serious threat for the workers survival, many started
to babysit or moon lighting to have some financial stability, but it
was also difficult as no proper work schedule and timings could be
defined.
The issue had gone from bad to worse as the employees as it
became for the workers to manage their lively hood with no
financial security left in their jobs.
The company ordered the employees to sign on the document,
which will be treated as personal availability form, which
requires, the company can call them whenever necessary and
failure to abide it will lead to cuts in their paychecks.
The once workers friendly organization started looked like a
communist leadership with no regards to the workers benefits and
well being, robbing them with their labor rights and civil rights, as
given to them by the constitution of the country. That was a
blatant example of abusing of labor laws and unethical practices
by the company, who fails to give them a better quality of life, job
security and protection. But went on to make more money by
putting its associates lifes at stake.
Having a system to get more efficiency is not unethical, bit the
management and new rules and policies, they way they were
implemented is a classic example of braking the basic labor laws
unethically by putting at stake the lifes of millions by the largest
and most profitable retail chain in the world.

Q2. What ethical principles apply to this case? How they apply?
Answer: Wal-Mart has broken the basics principles of employers
ethics towards its over 140,000 workforce, by bringing them

Type: Ethical Case Study

misery, uncertainty in their personal lives, Financial loss, which
can lead to loss of family life.
Taken away the most important motivator for any worker, I term
of job security, benefits, rewards, respect and recognition. The
most importantly, is the monetary part the way it was designed,
conveyed and policies made coercively to be accepted by the
labor. Its looks the same as the plight of minimum wage workers
working in vineyards in harsh conditions.
Wal-Mart being the largest company who boasts that its workforce
are the associates of the company, on the other hand made their
living very difficult.
Associates are a class of people who survive on the maximum
work they can get, and in this case, the situations are contrary to
by cutting of their wages abruptly without certain logical and
humane justified actions. Their policies reflects that the largest
retail chain infarct does not compensate their workers more than
the minimum threshold of acceptable poverty line, this does not
let the workforce even to pay their insurances premiums and
healthcare facilities, which is their basic right. Wal-Mart already
has a history of such controversial issues relating to their bad
relationship with their workforce, and such matter made things
even worse.
In 2012, as many as eighty Al-Mart workers walked on streets to
stage a protest rally against bad working conditions prevailed at
Wal-Mart.
Its a notion built by Wall-Mart that its build communities through
it managements policies in terms of its relationship, care and
benefits to its workforce. But is found contrary to their claim as, a
study, conducted by to assess and evaluate the effect of its
community effect in Washington, in 2012, and the research
showed that the store will cost extra $ 13 million dollars in lost

Type: Ethical Case Study

and decrease in wages in next 20 years
companies are improving on this front .

(Mielach, 2012),

when most

The public and general citizens were not happy with such
practices of Wal-Mart, and this situation prevailed was cited as a
total contradiction and violation of Clayton Antitrust Act of 1914,
which clearly states that The labor of a human being is not a
commodity or an article of commerce.

Q3. What are the potential effects of computerized scheduling on

the employees moral? What are consequences of the effects on
the Wall-Mart?
Answer: Till know, for some reason or the other, there is no initiation of a suit
filed against the practices of Wal-Mart in relation to its unpopular and
unethical practices over the impacts and effects generated from the
companys implementation of computerized scheduling and management
system.
Therefore, interpretation of Wal-Marts planning and implantations effects
can be described as treating its associates equaling to a commodity or not,
we all have to see the judicial verdict, when and it comes. But through the
lens of a common citizen, the way company implemented the system lacked
a proactive approach and a proper foresight to have a viable justifiable
solution which is likely to come into light, or make changes which does not
create such an issue through strategizing on its human recourse utilization
and allocation
Paul bank representing the Web site WakeUpWalMart.com,, which is also
complemented by th United Food and Commercial Workers Union. What the
computer is trying to do is to enhance the optimization of most number of

Type: Ethical Case Study

part- time and least number of full-time associates at lower labor costs, with
no regard for the impact and effect that it has on workers life
On the other hand, Sarah Clark, Wal-Marts spokesperson opined that what
the company id doing is simply to improve customer service and curtailing
their checking and checkout times and giving the consumers better customer
service
Wal-Mart has gone through many such issues in the past and around the
globe, were it is e.g., India, It always managed to come out the crises without
paying a proper price and label it as a management issue and due to change
an transition and very quickly act and try to rectify it through expressing
their contributions to the U.S, economy. But consistent issues will bring about
serious allegations and litigations against this super store, and to be seen
how long it can defend itself.
The power of people who are concerned about the human value and labor
right supporters will defiantly join the fight. Also. Continuous practices of
such kind will be bad for its brand name and good workforce will shy away
from working for this company, and those, will come prepared and wont
work with loyalty and motivation. No company can survive the having
motivated workforce for long.

Type: Ethical Case Study

References
Blodget, H. (2010, September 20). Walmart Employs 1% of America. Should it be
Forced to Pay its Employees More. Retrieved June 09, 2013, from Business Insider:
http://www.businessinsider.com/walmart-employees-pay

Sources
Sources: Vanessa OConnell, Retailers Reprogram Workers in Efficiency Push, The Wall
Street Journal, September 10, 2008; Kris Maher, Wal-Mart Seeks New Flexibility in Worker
Shifts, The Wall Street Journal, January 3, 2007; www.kronos.com, accessed July 15, 2008;
Bob Evans, Wal-Marts Latest Orwellian Technology Move: Get Over It, InformationWeek,
April 6, 2007 and More Opinions on Wal-Marts Flexible Scheduling, InformationWeek, April
17, 2007

O'Donnell, H. M. (2012, June 08). Some Walmart Workers want Better Wages,
Affordable Benefits. Retrieved Jun3 09, 2013, from USA Today:

http://usatoday30.usatoday.com/money/industries/retail/story/2012-06-05/walmartworkers-air-complaints/55450634/