Describe the advantages and disadvantages of WalMarts strate

Describe the advantages and disadvantages of Wal-Mart’s strategies to prevent unionization.

Solution

The main advantage of preventing unionization is that Wal-Mart can take the organizational decisions without the influence from the unions. This helps to provide flexibility while taking important decisions related to organizational changes. Another advantage is that Wal-Mart can make cost advantage by providing low salary to the workers compared to other unionized firms and cutting on employee benefits. By preventing unions Wal-Mart has freedom in making decisions related to employees and they are able to prevent employee strikes against those decisions in the organization which adds to their advantage. As the unions are prevented the employees do not strike against the management and Wal-Mart take advantage of this while implementing their strategies.

The disadvantage is that the strategy to prevent unions and the cost cutting on labor has created employee dissatisfaction. Wal-Mart employees try to change the organization whenever they find a new job with better salary and benefits. The lack of employee commitment is the main disadvantage. The union guarantees employee protection and job security in unionized firms which would be lacking in Wal-Mart due to their strategies to prevent unions. Another disadvantage is the increased number of employee complaints as there is no one authorized among the employees to take care of the employee issues in the absence of unions. The employees do not encourage others to join Wal-Mart because of its strategies.