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F l e x i b l e 
Schedul ing 
at Wal-Mart 
Good or for employees 
bad?
About 
WAL-MART
MILLION 
DOMESTIC 
WORKERS
$379 
$476 
BILLION 
SALES 
REVENUE 
IN 2008 
+25% 
BILLION 
SALES 
REVENUE 
IN 2014 
*United States Securities and Exchange Commission; March 21, 2014
MAKES it the 
TOP RETAILER 
in USA
HOW?
S A V E 
L I V E 
BETTER 
MONEY
low Operational Cost 
low Prices 
Just-in-Time Inventory
The 
Case
M A N U A L 
work scheduling 
is COSTLY and 
INEF FECTIVE
KRONOS
%IMP R O V E D 
P RODUC T IVI T Y 
H I G H E R 
CUSTOMER 
SATISFACTION
How it 
works 
INPUTS PROCESSES OUTPUTS
BUT 
w...a..it.
UNPREDICTABLE 
WOR K HOURS
UNSTABLE 
h o u r l y 
W A G E S
Case 
SOLUTIONS
1 
What is the ethical dilemma facing 
Wal-Mart in this case? Do Wal-Mart’s 
associates also face an ethical dilemma? 
If so, what is it?
E T H I C A L 
DILEMMA 
faced by 
Wal-Mart
Value 1 
Re s p o n s i b i l i t y of 
increasing 
s h a re h o l d e rs ’ va l u e
Value 2 
Re s p o n s i b i l i t y of 
ensuring 
employee wel fare
E T H I C A L 
DILEMMA 
faced by 
Associates
Value 1 
E a r n i n g a 
l i v i n g
Value 2 
L o o k i n g 
a f t e r 
f ami l y
BEFORE 
we 
MO V E 
on
STAKE 
HOLDERS 
c u s t o m e r s 
e m p l o y e e s 
m a n a g e r s
O P T I O N S 
continue as is 
account for employee welfare 
close Kronos
2 
What ethical principles apply to this 
case? How do they apply?
Golden 
Rule 
Do unto others 
as you would 
have them do 
unto you
Categorical 
Imp e ra t i v e 
If everyone 
did this, could the 
society survive
Utilitarian 
P r i n c i p l e 
Which action 
achieves the 
higher or 
greater values?
Risk Aversion 
P r i n c i p l e 
Which action 
produces the 
least harm?
3 
What are the potential effects of 
computerized scheduling on employee 
morale? What are the consequences of 
these effects for Wal-Mart?
l ow j o b s a t i s fa c t i o n 
Ef fe c t s 
on 
l ow mo t i v a t i o n 
Employee 
Mo r a l e 
i n s e c u r i t i e s 
g r i e v a n c e s 
f ami l y p ro b l ems
l ow q u a l i t y s e r v i c e 
C o n s e q u e n c e s 
for 
Wal-Mart 
we a k c u l t u r e 
b a d ima g e 
l aw s u i t s 
u n s u s t a i n a b l e g rowt h
“The labor of a 
human being is not a 
commodi ty or article 
of commer ce ” 
Clayton Antitrust Act of 1914

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Walmart Case

  • 1. F l e x i b l e Schedul ing at Wal-Mart Good or for employees bad?
  • 4. $379 $476 BILLION SALES REVENUE IN 2008 +25% BILLION SALES REVENUE IN 2014 *United States Securities and Exchange Commission; March 21, 2014
  • 5. MAKES it the TOP RETAILER in USA
  • 7. S A V E L I V E BETTER MONEY
  • 8. low Operational Cost low Prices Just-in-Time Inventory
  • 10. M A N U A L work scheduling is COSTLY and INEF FECTIVE
  • 12. %IMP R O V E D P RODUC T IVI T Y H I G H E R CUSTOMER SATISFACTION
  • 13. How it works INPUTS PROCESSES OUTPUTS
  • 16. UNSTABLE h o u r l y W A G E S
  • 18. 1 What is the ethical dilemma facing Wal-Mart in this case? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it?
  • 19. E T H I C A L DILEMMA faced by Wal-Mart
  • 20. Value 1 Re s p o n s i b i l i t y of increasing s h a re h o l d e rs ’ va l u e
  • 21. Value 2 Re s p o n s i b i l i t y of ensuring employee wel fare
  • 22. E T H I C A L DILEMMA faced by Associates
  • 23. Value 1 E a r n i n g a l i v i n g
  • 24. Value 2 L o o k i n g a f t e r f ami l y
  • 25. BEFORE we MO V E on
  • 26. STAKE HOLDERS c u s t o m e r s e m p l o y e e s m a n a g e r s
  • 27. O P T I O N S continue as is account for employee welfare close Kronos
  • 28. 2 What ethical principles apply to this case? How do they apply?
  • 29. Golden Rule Do unto others as you would have them do unto you
  • 30. Categorical Imp e ra t i v e If everyone did this, could the society survive
  • 31. Utilitarian P r i n c i p l e Which action achieves the higher or greater values?
  • 32. Risk Aversion P r i n c i p l e Which action produces the least harm?
  • 33. 3 What are the potential effects of computerized scheduling on employee morale? What are the consequences of these effects for Wal-Mart?
  • 34. l ow j o b s a t i s fa c t i o n Ef fe c t s on l ow mo t i v a t i o n Employee Mo r a l e i n s e c u r i t i e s g r i e v a n c e s f ami l y p ro b l ems
  • 35. l ow q u a l i t y s e r v i c e C o n s e q u e n c e s for Wal-Mart we a k c u l t u r e b a d ima g e l aw s u i t s u n s u s t a i n a b l e g rowt h
  • 36. “The labor of a human being is not a commodi ty or article of commer ce ” Clayton Antitrust Act of 1914