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Wal-Mart vs. Amazon Performance Management
Performance management refers to the methods and instruments the top-level management uses in managing, leading, evaluation, and educating of employees (Gruman et al. .123). Wal-Mart and Amazon are significant competitors in the retail industry, and rivalry continually arises from the continuous evolution in offerings and innovations. This article aims at reviewing the comparative analysis of ways that Wal-Mart and Amazon manage their performance
Wal-Mart performance management
Planning stage
Wal-Mart has designed several practices that are aimed at improving its performance. The three methods are driven towards suitability to the retail industry. The company mainly addresses the issue of customer service. As a retail store, the management primarily emphasizes on customer satisfaction at the planning stage. Further, the company makes decision making and management of results at the planning stage, especially the top positions (Thompson). Top-management is crucial for every organization’s performance. The initial decision made impacts The Company’s entire process. Finally, the human resource emphasizes the critical analysis of problems and effective solutions.
The standards and measurement
The human resource has outlined the standards and the measurement of the outcome at all levels of management. Wal-Mart makes emphasis on the productivity standards for all ware house personnel. The managerial positions need to be at the forefront in making informed decisions and effective management of the finance (Thompson).
Performance problems
Waymart stores often encounters challenges which include reduction of productivity because of absenteeism. Wal-Mart employees are subjected to termination if productivity because of absenteeism. Another issue which arises is the incompetence of accountants such as mistakes in recording the reporting. Human resource normally uses training programs to improve employee’s performance (Thompson).
In customer relations department, there are reports of negativity and hostility. Poor customer relation cripples the company’s productivity hence human resource organizes team building activities and socials (Thompson). Further, the organization encourages its employees through provision of incentives and benefits. To sum up, Wal-Mart human resource often look it any issue arising that may have adverse effects on the performance of the organization and continuously solve them through training, and compensation.
Amazon performance management
Amazon is a major retailer with most technically advanced performance management criteria. Amazon use data approach with clear metrics of measurement and standard. The approach aims at reviewing the employee and customer behaviour. The tech giant renown of the ‘Stack ranking’ where the performance of the employees is rated based on annual review. Every aspect of the employee is measured and ordered. During appraisal the workers are treated as data subjects and only retained if the final data after the review add up to the organizations expectations ‘‘4 Unique performance Management Techniques”.
Further, the company has an internal forum where the employees may always comment on the colleagues actions. The continuous feedback is back up by the anytime tool which keep the workers on their toes. The employees are often given 3-month period to get on their feet if their performance do not meet the required standards.
The organization has continuously developed management practices. The latest and most unique dimension is the white paper process. According to Beth Galleti, the white paper lays out the reasoning and approach and sued to make decisions by the managerial positions. White paper is used during promotions where the manger seeking to promote is asked to write accomplishments and success and failure of the employee. The manager gathers people who worked closely with individual to give comments regarding the performance of the employee and then incorporated into the written document ‘‘4 Unique Performance Management Techniques”.
Conclusion
In summary, the article introduced the comparative analysis of the two organizations through analysis of the stages of performance appraisal used in the company. Wal-Mart has a fair approach which is far distinct from amazon. Performance management in Wal-Mart is based on pre-set standards which are continuous monitored by the management. The approach is employee and customer oriented while amazon has extensive approach based on employee ratings and evaluation. The tool is called white paper determines promotions and other benefits. The company also uses stack ranking which rates employee base on the performance from hiring stage.
References
Thompson A., “Wal-Mart’s HRM: Training, Performance Management.’’28 January 2017, Panmore institute, Retrieved on April 26, 2020 fromhttp://panmore.com/walmart-human-resource-management-training-performance-management
‘‘4 Unique Performance Management Techniques. ’’August 17, 2018, Payscale, Retrieved on April 26, 2020 from https://www.payscale.com/compensation-today/2018/08/performance-management-techniques
Gruman, Jamie A., and Alan M. Saks. “Performance management and employee engagement.” Human resource management review 21.2 (2011): 123-136.