Organizational Behavior Harvard Case Solution & Analysis

Employee dissatisfaction and low wage

It is to stipulate that the wage rate of employees at Walmart is significantly lower as compared to wages offers to employees in the market competitors. The cost cutting activities have been extensively controlled by management in an aggressive manner. The company has started lowering the employee benefit. One of the best way of cutting cost is to manage labor, but Walmart has failed to adopt and implement such strategy in effective manner. The employee has become dissatisfied due to the low wage rate. It is to notify that the company should raise the minimum wage rate of employees, and should pledge to heavily invest in paying and training workers.

Authoritarian Culture of Wal-Mart

There is an authoritarian culture at Walmart, in which the power is centralized and the ultimate person who makes decision is leader. It is noteworthy that at Walmart, the culture has pressurized the store level managers to squeeze more from the stockers, lower level managers and workers. At Walmart, the hyper centralized management has led to numerous issues, such as the workers could not share their viewpoints about the working condition as well as other problems. There is a one-way communication that focuses on instructing sub-ordinates. Also, the authoritarian culture at Walmart has left no scope of the innovation which in turn in hibits the growth in future. However, it is significantly important that the innovation should be facilitated in dynamic business environment that ensures the sustainable growth. The authoritarian culture has lasted inevitable impact on the motivation level of employees which in turn adversely affects the financial performance of company.

Discrimination issues

At Walmart, the incidents of discrimination have added fuel to the dissatisfaction of employees and adversely affected the reputation of the company. Walmart’s organizational culture has promoted discrimination against the employee’s disability and gender. According to Herzberg’s tow factor motivation theory, the factors that motivate employees includes achievement, growth opportunities, job satisfaction, recognition &responsibility. Absence of such factors might lead to employees’ dissatisfaction. It is reported that women employees are given less salary in comparison to male employees, which in turn affected the female employees’ motivation.


After taking into consideration the multiple issues related to organizational behavior, it is to recommend that Walmart should take a closer look on the organizational culture that would develop the positive working environment. The organizational policies and leadership style should motivate its employees for enhanced performance.

Standard wage rate

It is recommended that the company should provide standard wage rage to the employees for the purpose of satisfying the employees’ physiological needs. It would boost the company’s performance.(Nobel, 2011).

Mentoring Employees

In addition to this, the management at Walmart should strive to motivate employees via mentorship, the motivation can be achieved through recognizing the contribution of individual employee to the organizational success.(Gallo, 2011).

Effective Communication

The company should inculcate the atmosphere that would most likely foster the free communication with superiors and improves employee attitude as well as their perception regarding the company.The employees can effectively perform when the company understands the behavior of employees and use methods such as positive reinforcement to influence the behavior of employees.(Deliver a Strategy That Works by Managing Culture and Communication, 2017).

Organic Culture

The company should develop strong organic culture which would most likely support innovation, hence providing ample growth opportunities. Also, it would encourage employees to have team working on task altogether as well as coordinate the flow of duties or information.(Batista, 2013).

Anti-discrimination policy

To improve the morale of employees, the company should stop gender discrimination. For the purpose of making it effective, the organization should design anti-discriminatory policies as well as implement it properly.

Reward and recognition policy

In order to retain and attract the talented and skilled workforce, the company should offer career growth opportunities to the employees. Besides it, the company should also redesign reward and recognition policy for the purpose of motivating workforce in achieving excellence. In addition to this, the company should distribute responsibilities amongst workers, and objective of performing activity should be explained in appropriate manner to motivate them in order to enhance the performance of individual employee. Also, it is important to train the mid-level management to improve the communication with workforce or employees.(Xin Liu, 2016).


To sum up, it is to conclude that Walmart should make efforts in taking control of the business through various aspects of the organizational behavior. The significance associated with the organizational behavior in the setup of organization includes; it helps the company in enhancing the competencies by understanding the individual behavior, and helps to be aware of the needs of employees, hence align those needs with the work objectives. It is to recommend that the company should redesign reward and recognition policy, anti-discriminatory policy and it should develop organic culture where employees would feel free to share their ideas, opinions, thoughts and viewpoints............


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