Wal-Mart: A Case of Employee Discrimination

In 1962, Sam Walton (Walton), along with his brother Bud Walton established the first Wal-Mart store in Rogers, Arkansas, US. When he established the first Wal-Mart retail store, many people told him that operating a discount store in a small town would not be profitable enough in the long run. However, Walton strongly believed in his business model. Ignoring the critics, he continued to focus on providing good service to customers through his retail stores. Walton understood the importance of building good relations with both employees and customers. He relied on three basic principles to build his retail business: Respect for the individual, Service to customers and Strive for excellence. Thanks to this people-centric philosophy, Wal-Mart registered sales of $ 1 million within one year.

From the very beginning, Walton laid down two rules that guided Wal-Mart associates (hourly employees were called 'associates') through their work. The first being 'The Customer is always right,' and the second being 'If the customer happens to be wrong, refer to rule No 1.' He encouraged associates to discuss problems openly and created a highly participatory, entrepreneurial and goal oriented environment. Wal-Mart's manpower policies encouraged its employees to make decisions, take risks and even commit mistakes in the cause of customer service. Walton formulated a mission for his associates 'get them, keep them and grow them.' Walton described his relationship with his employees as a 'partnership'...