Human Resource Management Issue

                                             Human Resource Management Issue

 

                 CASE STUDY : Worker’s Strike at Wal-Mart Retails in China

            This is the latest Human Resource Issues that have affected one of the largest Retail Stores Globally. Workers’ strikes have been classified as one of strategies through which employees express their grievances. Many employees see this as an opportunity to attract the attention of their employers and other key organizational stakeholders. A significant number of human resource managers identify workers’ strike as a major challenge given the fact that it delays the implementation of organizational objectives. Besides, workers’ strikes have been recognized as a major challenge to the creation of a positive company image; business stakeholders perceive the strikes as sources of negative image towards a company among the public. This problem usually affects the performance of a company because it creates a negative perception among the public that a company mistreats its employees. In fact, many contemporary researchers place emphasis on the fact that managers need to understand the need of their workers to avoid unnecessary strikes or protests.

            As mentioned earlier, Wal-Mart has had a major challenge emerging from a series of strikes among its Workers in China. Chinese Wal-Mart workers have launched various wildcat strikes, leading to a disruption of the company’s activities in China. The reason that led to this strike is based on the introduction of new working hours that has been seen as unfair by many of its workers. The strike began by some of its employees in one of its stores located in the Southern City. The strike spread rapidly within a period of two days, 1,500km to the North Eastern parts. One of the workers, Duan Yu, emphasized that the strike would continue until the company addresses their concerns. The strike has raised many issues including the realization of the Communist Party fears of organized and coordinated industrial actions across the country. This strike came a few days after the Chinese government announced its plans to lay-off a substantial number of its workers.

            Wal-Mart is not the only company that has experienced workers’ strike in China. There have been various aspects of workers’ disputes from other companies across the country. In fact, from 2014, the number of workers engaging in strike has increased significantly since the year 2014, reaching an alarming figure in 2015. The Chinese Labor Bulletin acknowledges that labor strikes have jeopardized different economic activities in the country, creating a need for proper intervention mechanisms. Many stakeholders believe that it is quite unprecedented for employees across China to organize major strikes as has been noted in the case of Wal-Mart China. The existence of advanced communication application has been associated with the rapid spread of the strikes in various Wal-Mart Stores in China. Anita Chan, a Lecturer at the Australian University termed the Wal-Mart Strikes in China as unique; this is because many strikes usually occur in one place, however, this occurred in several Wal-Mart Stores. Witnesses mentioned that the rapid occurrence of the strike was facilitated by existence of a communication platform, the WeChat that was used by the striking employees to communicate and coordinate the strike. More than 20,000 Wal-Mart China employees had registered in the application and were able to receive and send information related to the strike.

            It appears that the problem of workers’ strike has not only affected Wal-Mart, China, but it has also been experienced in the United States. Many Wal-Mart workers in the United States have shown solidarity with their colleagues in China and have threatened to strike if the issues raised by their colleagues are not properly addressed. The Wal-Mart China strike has been associated with controversies; some of the Wal-Mart Workers’ Union have recognized and appreciated the  solidarity between Wal-Mart workers in the US and China. Some of the demands that have been raised by the Wal-Mart China workers to ensure that the conflict is resolved include; eliminating the system that only allows manager to introduce unlimited amount of working hours.

Human Resource Practices that can be used to Prevent or Reduce Workers’ Strike

            According to the United States Bureau Labor Statistics, more than 16 percent of companies in the United States have experience problems associated with labor strikes. Wal-Mart is one of the international companies that have been affected by recent cases of workers strife. Even though the numbers of strikes have been reducing in various companies and sectors, the need to prevent the occurrence of strikes is paramount. The following are some of the Human Resource Management strategies that can be applied to prevent workers’ strike:

Frequent Communication with Workers and other Key Stakeholder

            The United States Bureau of Labor Statistics has indicated that employers need to understand that importance of paying attention to their workers’ emotions. Stakeholders such as Brian Terney, the Human Resource Personnel for Menlo Park have learned hard lessons from intense labor strikes. In his opinion, employers should not overlook their workers’ needs, emotional health and opinions. Daily communication is a critical Human Resource Management that could be used in the case of Wal-Mart to prevent the occurrence of strikes among its workers. Proper communication could also be used to ensure that managers understand uncertainties that might accompany labor strikes and formulate appropriate actions. Through frequent and proper communication, organizational managers in the case of Wal-Mart may understand the needs of their workers in a detailed manner to create a path for the resolution of identified challenges.

            It is essential to acknowledge that proper communication also involves listening to workers; providing them with a platform to air their views and offer constructive suggestions. This is essential because it creates a platform for developing mutual agreements between workers and their employers, hence, preventing potential labor strikes. It is also significant to recognize that many employees are usually emotional when it comes to dealing with their salary increment, making adjustment to their working hours and making decisions regarding their engagement in Workers’ Union. Companies such as CF Motor Freight, a major Trucking organization have indicated that proper and frequent communication between employers and organizational stakeholders is one of the most effective modes of preventing or resolving strikes among workers.

Application of a Participatory Approach in Decision-Making

            In most cases, organizations in the case of Wal-Mart do not involve sub-ordinate staff in making critical decisions. Many of the managerial decisions made by the organization are performed by top managerial teams and other key stakeholders. Application of a participatory approach in making decisions involving major organizational decisions is important because of several reasons: Firstly, it creates an opportunity for sub-ordinate staff to air their views about key operational plans so that they do not conflict with the needs or workers in the company. In this approach workers and top managerial teams are usually involved in planning, budgeting and implementation of activities in a manner that the needs of workers are considered.

            Certain researchers have indicated that the application of a participatory approach in organizational decision-making also creates a sense of ownership or organizational projects. When workers feel attached to organizational activities, they tend to engage in constructive activities so that the objectives and goals of their companies are achieved at the most appropriate time. The creation of such an environment also enhances the capacity of workers to identify challenges experienced by their colleagues, hence, facilitating the prevention of potential conflicts or strikers.

Application of Proactive Measures

            Workers’ strike as seen in the case of Wal-Mart are usually protected and regulated by standards or laws. This means that once such incidences have occurred, there are limited or little actions that employers can perform. In this perspective, the most appropriate action that employers can apply to prevent is the observation of proactive measures. It is important to note that proactive measures involve the observation and adhering to laws that govern the protection of workers’ rights. For instance, Wal-Mart could observe legal frameworks that stipulate workers’ compensation, employees’ worker-hour schedule and benefits among others. Engaging in fair employment activities, characterized by strictly adhering to employment laws would prevent the occurrence of adversarial strikes and not only improve the relationship between workers and employers, but also with law-makers. Other proactive measures that could be applied by Wal-Mart to prevent the strike are respecting workers rights and recognize their opinions. Besides, proactive measures could involve the provision of appropriate wages to enhance the rapport between key stakeholders. Research indicates that the application of proactive actions by employers could also create an opportunity to identify and resolve potential conflicts that might lead to strikes.

Identification and Observation of Business/Human Resource Management Priorities

            It is important for employers and human resource managers to understand the difference that exist between legal and illegal strikes. This is essential because it enables concerned parties to determine the appropriate courses of actions taken by human resource managers and other concerned parties. In the event that Human Resource Managers identify potential workers’ strikes that might jeopardize their operations, they should ensure that contingency plans are formulated by relevant and qualified stakeholders. These plans will set a platform for the identification and a continuity of the company’s priorities. This will ensure that operations during the period of strike are not jeopardized or affected. Various companies have different strategies that are used to deal with strikes. However, strikes are common problems experienced by companies and require appropriate actions by concerned stakeholders.

Learning from Case Studies

            There are a myriad of companies that have experience labor strikes across the globe. Contemporary companies such as Wal-Mart could learn from such cases, especially, the actions that were taken by concerned stakeholders to resolve the historical strikes. Learning from past cases also provide an opportunity to understand the root causes of strike and engage in the assessment of their employees’ activities, followed by the resolution of identified challenges. One of the historical labor strikes that were successfully resolved in the United States is the Great Southwest Railroad Strike. Wal-Mart China could replicate the solutions that were applied by the Great Southwest Railroad Strike. The application of the strategies that were used to resolve historical strikes could enable current companies such Wal-Mart to eliminate the series of strikes that have jeopardized its operations over the last few years.

The use of Appropriate Negotiation Strategies

            In an article published in the online CNN News Channel, it is indicated that negotiations in the events of strikes are some of the extreme challenges experienced by human resource managers. Dr. Mark de Rond in this article offers a guideline concerning the application of effective negotiation mechanisms to deal with issues ascribed to workers’ strikes. As a Cambridge Business Expert, Dr. Mark de Rond places emphasis on the fact that the capacity to implement successful negotiations between workers and their employers is one of the most imperative tools that should be possessed by Human Resource Personnel. However, many HR Managers fail to acquire or develop this skill, hence, facing critical problems when strikes or conflicts between employees and their managers exist.

            According to Dr. Mark de Rond, a significant number of individuals that occupy top managerial positions including the Human Resource Manager are usually too busy with other operational responsibilities and are usually not empathetic towards the sub-ordinate staff. Research indicates that people with different life experiences may not be empathetic to other individuals; this is common among individuals with unique priorities. The different priorities between employers and their employees may affect their capacities to engage in successful negotiations. Some of the skills and values that make managers desirable, such as ambitions and strong wills, usually make it quite challenging for them to comprehend the needs and requirements of their workers or the sub-ordinate staff. Even though managers may acquire a proper understanding of their employees or sub-ordinate staff, there are occasions they will most likely experience resenting opinions from workers. In certain occasions, Human Resource Managers may ensure that they soften their tones and provide employees with detailed explanations concerning the reasons a company has taken a particular action. This is an essential procedure that could be employed in the case of Wal-Mart to ensure that it engages in an amicable resolution of the problems experienced by the company, specifically, the series of workers’ strikes it has experienced overtime.

           

The application of a straight-forward negotiation approach, although, complicated provides a platform for stakeholder understanding. That is, the understanding of positions and interests of each aggrieved party. It is has been argued that the negotiation processes, as ways of resolving strikes among companies may be characterized by heated arguments and require HR Managers to understand and control their tempers. In the opinion of Dr. Mark de Rond, proper listening skills among HR Managers are imperative during the negotiations process to ensure that the concerns of concerned or aggrieved parties are properly addressed. Human Resource Managers may also be required to develop proper in-house mediation teams that compose both the workers and other key representatives. Research indicates that negotiation is an effective technique that many successful companies have implemented to circumvent the conflict that exists between employers and their workers.

Handling conflicts such the ones experienced by Wal-Mart may be challenging, especially when negotiations are used to facilitate the resolution. However, the consequences are usually more reliable compared to litigation processes. The prevention or resolution of extreme disputes and strikes as in the case of Wal-Mart, various adversaries may occur; for example, certain stakeholders may be aggressive towards the negotiating team. In this regard, it is highly recommended that persons approaching the negotiating table consider the situation as a problem rather than a battle to be won. This is paramount for an effective negotiation process for small and large companies.

Provision of Proper Work Environment

            The provision of an appropriate work environment by Human Resource Managers is a simple, yet the most effective way through which labor disputes may be resolved. There are no business stakeholders that welcome labor strikes or disputes. Disputes interfere with the operations of organizations in a variety of ways; however, through the provision of proper working environment, Human Resource Managers may avoid simple or extreme labor strikes. Better working conditions could be provided in the case of Wal-Mart China by ensuring that employees are assigned duties within reasonable time and are offered flexible working schedules. The major problem that led to the strikes that were recently performed by Wal-Mart workers in China is the introduction of unrealistic work periods, characterized by the exposure of workers to extended periods of work. The workers also complained that the managers have been provided with too much authority so that they can introduce new hours of operation without the consultation of other key stakeholders.

            The resolution of the above challenges or the problem experienced at Wal-Mart could involve assessing and rectifying various issues i.e. determining whether or not workers are satisfied with their work environments so that challenges are identified in time and resolved appropriately.

Monitoring and Evaluation of Employees’ Work Environment

            Monitoring and Evaluation of workers’ environment is one of the most important responsibilities that can be undertaken by Human Resource Managers. Through monitoring and evaluation, concerned parties are able to identify challenges, failures or successes achieved by their employees. Besides, monitoring and evaluation is critical because it offers a platform for HR Managers and other key organizational decision-makers to identify problems experienced by their workers as a result of poor working conditions. This sets an opportunity for the resolution of problems, therefore, preventing the potential Human Resource challenges. Monitoring and Evaluation could be successfully applied in the case of Wal-Mart to facilitate an early detection of problems faced by their workers, thus, preventing the strike.

Conclusion

            As discussed above, the most current Human Resource Management issue that has been experienced by an International organization is the strike among workers at Wal-Mart China. This was a serious human resource management issue given that it derailed the implementation of the organizational activities, leading to a deterioration of the company’s image among its target market. There are several human resource management practices that could have been applied by Wal-Mart to prevent or resolve the issues; one of these Human Resource Practices is the engagement in straight-forward negotiations. Also, human resource managers may ensure that there is frequent communication with their employees; this would provide an opportunity for the company to identify the challenges experienced by the workers, leading to an early resolution.

Wal-Mart China Human Resource Department may also engage in monitoring, evaluation and the provision of a proper work environment for their workers. The application of a participatory approach and observation of proactive measures may also be applied by companies in the position of Wal-Mart to resolve issues of strikes and other critical conflicts that might occur between workers and their employees. Consequently, the Human Resource Management may explore previous cases where strikes have been successfully resolved to ensure that effective techniques are replicated in their company to support an effective resolution of the problem.