The Importance Of Employee Satisfaction And Organizational Commitment In The Retail Industry: A Case Study Of Walmart

Job Satisfaction and Organizational Commitment in the Retail Industry

Question:

Explain the principles of Organisation Behaviour.
 

Employee satisfaction is a concept that determines the degree of satisfaction that employees get in an organization and this shows the level of engagement and interest. The contended employees work well and there are fulfilling needs that help to fulfil the desires of an employee towards its organization (Eslami & Gharakhani, 2012). The responsibility is highly considered by satisfied employees and they work for growth and development of an organization through which an organization’s commitment is observed with the increase in job performance. Organizations can immensely garner and perform well when the employees are committed towards their work and this is a pride for organization and its members when employee retention rate is lower and the goals with its moral values are respected with an increase in the productivity. Management is involved for employee engagement plans and employee involvement for the development of Walmart which is considered in this study. 

Job satisfaction and organizational commitment are interlinked as such job satisfaction is the base to fulfill the organizational objectives and organizational commitments. When employees are satisfied because of the job security and human resource perspective policies in an organization, the level of acceptance and employee retention is considered. The manager determines the key success factors that help to increase the level of job satisfaction which in turn helps for organization commitment and strategic management plans. The competitive environment has increased the globalization and its perspectives that are beneficial consequences and is an increased effectiveness. It is observed as such in an organization from a survey that employees who are satisfied perform their responsibilities and duties in their job and are subsequently performing well as per organizational commitment. 

The retail industry has been well established with the supply and distribution channel that has a diverse effect for the retail companies all over the world. The open market and the innovation in the business have made strong efforts to move according to the business operations effectively and with utmost reliable information. Job satisfaction in the retail industry has made improvements towards the employment opportunity all over the world. At this end, the increase in the employment opportunity may determine the job satisfaction and organizational commitment concepts. Walmart is actually the largest retail sector that has several stores as their chain all over the world with the multinational brands and discounts that are provided by the company.

The study indicates the job satisfaction and the organizational commitment by making an importance in the retail industry. Employee turnover has been a main issue that is concerned in each organization and in almost in each industry. In developed countries, there is a valid ground that has an impact over the employee turnover ratio. It is observed that employee retention is possible when employees have responsibilities that are fulfilled as in organizational commitment and individual responsibilities towards an organization (Çelik, 2008). If this is fulfilled by an employee, the growth and development of an organization have a positive impact. Considering the case study of Wallmart,which is one of the largest retail industry in the world, it has rules, regulations and authority towards employees and this has maintained employee retention and turnover ratio in past years. Determining the level of employee satisfaction and organizational commitment, there are findings that reveal the real position of the company (Lambert, 2004). 

Walmart’s Policies and Practices for Employee Satisfaction and Organizational Commitment

As far as job satisfaction and organizational commitment is emphasized in the essay, the essay reveals about Walmart’s employees who are actually satisfied with their job and the others who are not committed towards an organization are unsatisfied with the reason of quitting the job opportunity and the job security they get from the company (Swailes, 2002). There are employees that are more than satisfied with the work culture and the responsibilities. The workplace conditions are mainly described in accordance with the other profiles and the pay structure. There are different pay structures which include according to the merit or may be according to the experience. Employment evaluation has made job opportunities and the job satisfaction at a higher level of interest for employees (Chen & Silverthorne, 2008). Performance evaluation has taken place moderately in the company which means there are training and development program with benefits and the perk systems that are accepted in an organization. As an HR manager of the company, it is examined that Walmart has policy systems in the company still increasing the measures taken for employee turnover may be a benefit for the company.

There are around 2 million people all over the globe who are employed at Walmart in one or the other store. The retail industry has developed globally and this in turn has made the biggest employment opportunity in the retail sector (Greenberg, 2005). As the retail company has large turnover, it has a competitive advantage that performs better when the human resources department have some rules and regulations towards the bottom line and the optimal use of resources in the company. A company makes all its efforts for its objectives and even for the employee satisfaction because it is the time when employees are paid according to the job profile and their skills. Employee satisfaction factor is achieved when the contemporary business environment is in practice while fulfilling the demands of employees with monetary efforts or non monetary efforts.

There is a perceived relation and a connection between job satisfaction, organizational commitment and job performance concepts. At this end, researchers and authors have made an emphasizes about employee satisfaction and organizational commitment. As per a research, an organization makes an optimal use of human resources and if the employees are satisfied they work for the organization’s goals (Schwepker, 2001). This states that employee satisfaction is a very critical factor that is important to consider in an organization.

Employee satisfaction is actually a pivotal role that is influenced in order to achieve the goal, motivation and as such positive impact of employees morale standards. These are the main concepts that are expected of an organization, but in turn an organization considers the following requirements such as employee empowerment, job evaluation, promotions, perks, benefits and improved compensation plan. These are the positive change management that a company does for employee satisfaction (Karrasch, 2003). 

There is a correlation that stands within job satisfaction, organizational commitment and job performance. This is the case when Walmart adopts employee satisfaction strategy by providing its employee performance evaluation system with an increase in compensation rate as far as benefit plans matter. This shows the relation between the employee satisfaction and the job performance factors.

Employee Satisfaction and Organizational Commitment in the Context of Walmart

There are no such organizations who may achieve organizational goals and achievements, if there are no right set of employees. Because of the reason, employees play a vital role in the organization’s success and the contemporary business is as such a matter of importance in the competitive world (Daneshfard & Ekvaniyan, 2012).

On the other hand, if job satisfaction is achieved by employees, there is an impact towards the organizational commitment which means employees are working hard for achieving the organization’s goals and their staff turnover is less due to employee satisfaction. When the employee turnover is controlled, absenteeism is not observed and this may be a positive impact for the growth and development of the company (Lok & Crawford, 2004). So there is a correlation towards each concept and is linked to the employee satisfaction and organizational commitment concepts.

There is a positive correlation that states the performance and job satisfaction point of view. For optimal use of employees, the best ever strategies are applied and implemented in an organization and this will gain the needs and requirements for growth and development of the company. There are crucial efforts made by an organization, which are undertaken in a large survey with extensive use of resource and has mainly aimed at the top level talent in the company. Employees of the company are asset of an organization who have responsibility towards an organization to fulfill the goals. 

There are social factors, economical factors, cultural factors, political factors, technological, environmental and legal factors that are responsible for the extent employees are satisfied in Walmart. These are critical factors that influence the employee satisfaction rate. Walmart being a well known retail company emphasize these changes (Ayeni & Phopoola, 2007).

Political factors may have an impact towards the degree of satisfaction that is observed in a research. With the political factors the employees feel they are being discriminated whether with race or class. Due to globalization, there are many such factors that have changed the level of commitment of employees.

Economic factors may even impact and the degree of employee satisfaction. The economic factors include the work conditions in an organization, the employment opportunity and the rate of employment that the company provides. At this end, Walmart has higher rate of employment opportunities and this has made an impact towards the employees. Employees are satisfied with the working conditions and the working hours (Nagar, 2012).

Technological factor has made an impact over the employee satisfaction. Information technology accepted in an organization proves that organization is well developed and is going according to the change (Alotaibi, 2001). Employees get satisfied with the level of technology used in the company, thereby they are committed towards their work. 

Globalization has made changes in the current organization to prove the effectiveness of competitive advantage that is dealt in Walmart. Employee satisfaction is achieved as far as globalization factor matters because employment opportunities are high at Walmart and there are 2 ­­­million employees all over the world who are working for Walmart because of the employment opportunities with job satisfaction rate. 

The Impact of Employee Satisfaction and Organizational Commitment on Job Performance

There are economic and non economic factors that influence the job satisfaction and organizational commitment in Walmart. As such the cost advantage that is adopted by the company may prove as a benefit for employees and increase the pay structure. Compensation and the benefits that are provided by the company are again entirely accepted by the employee which results in job satisfaction rate and organizational commitment. The human resources practices and policies adopted in the company matter a lot while the human resource department is managed significantly. This shows that employee involvement and employee engagement is accepted by the employees voluntarily.

The net income of the company is approximately 3.7 billion dollars as per the research in 2013 (Bergmann, Lester, De Meuse & Grahn, 2000). This made the demand in an employment opportunity with a higher rate of interest by the candidates and the notorious reputation of the company influence the general public to apply for the position. The job satisfaction rate is therefore high and the organizational commitment is therefore achieved as far as this is one of the reasons among many.

Employment treatment and higher salaries are one of the reasons for job satisfaction rate and organizational commitment as well. The structure of the company is managed in such a way that employees get satisfied as far as human resources practices are adopted. Employee morale is considered in the company and responsibility and authority are measured at this end. The rules, supervisions and the policies are well framed in the company so that employees get a fair compensation and equal pay at each level and phase. This becomes a positive impact for the employees to give their best as far as promotion matters with change management system adopted by the company. There are some disappointments that can be ignored as far as absenteeism in the company matters. 

Conclusion

The study conducts the findings that explore the perspirations and the perceptions of employees towards the company. There are certain measures that may help to fulfill the research with inherent interest. The fact that Walmart was selected here for the concepts of job satisfaction is due to an employment opportunity and employment relations it has towards its employees because the organization is well known, this may impact positively.

The role of a manager in a service organization is to build the teamwork among the employees while even emphasizing the need of employees. What is perceived at the next stage is job satisfaction of employees, which may enhance and increase the level of perceived objectives that are pre decided in the strategic planning process. Organizational commitment is observed and growth opportunities may flourish with the help of employee engagement and employee involvement. Employee retention rate is being standardized and this is keenly observed in Walmart. To work and support employees in a service organization describe about the level of leadership attitudes adopted in an organization which again helps to achieve the job satisfaction and organizational commitment concepts.

A contemporary manager builds and sustains the organizational commitment, attitude and motivates employees to achieve organizational and personal objectives. There are specific factors that influence the employee’s level of job satisfaction in a Walmart retail company. This even means that organizational commitment is achieved with those specific factors. Walmart being one of the well known retail company operates with thousands of department stores over the world. This shows how the organization would have been working for years by achieving growth and development in each of the countries. The human resource management practices make an influence towards the employee satisfaction and organizational commitment concepts. There are attitudes that are carried out by the company to satisfy employees. The human resource management practices adopted by Walmart has emphasized the employee satisfaction rate.

There is an intense relationship between the job satisfaction and the organizational commitment that has an influence over the company objectives. As such managers contribute and help to complete the purpose of an organization and indicates this as a normative commitment which is significantly a very important factor to perceive. There are factors that affect the growth and development of an organization, but these are to be maintained efficiently and this is observed as per the research conducted for many service companies in the world. Employees are getting rewards and incentives as per their performance and involvement in company objectives. 

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