CASE STUDY Help

CASE STUDY 

Instructions: Read the following case study and prepare an argument for the three questions at the end of this study. Answer to each question should be approximately 3 pages (12 point font, page margin 1 inch, double spaced). Grading would be based on development of logical argument as well as writing. You must research external resources (literature search, web, other publications etc.) to support your argument. These references should be listed at the end. 

Please refer to grading rubric before you start working on this case study.





There is a minimum of 10 scholarly resources that are used effectively in the essay. All the references are effectively used, correctly cited and correctly listed in the reference list according to APA style. 



Wal-Mart Stores, with 1.3 million employees, is the biggest private employer in the United States. In 2004, the company also became the defendant in the largest-ever class action lawsuit charging sex discrimination. According to the original lawsuit, filed by six women, Wal-Mart systematically denied them the pay levels and promotion opportunities available to its male employees. A federal judge found that the company’s practices raised the possibility that unfair treatment was a pattern, justifying a class-action lawsuit and meaning more than a million female employees could receive damages if Wal-Mart loses the case. 

The complaint launching this lawsuit arose when a female assistant manager in California Sam’s Club discovered that a male assistant manager was earning $10,000 more per year than she was. The woman, Stephanie Odle, inquired and was told the reason for her male co-worker’s higher pay: He had a wife and children to support. Odle received a raise but only after submitting a household budget, and even with the raise, her pay remained below that of her male colleague. Odle claims she was later fired for complaining and she took her case to Equal Employment Opportunity Commission. Eventually her complaint was combined with that of other female Wal-Mart employees. 

The plaintiffs in the lawsuit use numbers to make their case. They point out that two-third of Wal-Mart’s hourly employees are women, yet slightly one-third of its managers are women. Among the top managers of Wal-Mart’s stores, only 14 percent are Women. In addition, according to lawsuit, female Wal-Mart employees in hourly jobs earn 5 -15 percent less than men holding the same job.

In its defense, Wal-Mart points out that most employment decisions are not made at its headquarters but within each store. As a result, the company cannot be engaged in a pattern of discrimination. Also, Wal-Mart says the pay gap does not exist in 90 percent of its stores. With regard to the low proportion of women in management ranks the company says the cause is that a low proportion of women apply for promotions. The company also noted that it expects managers to move more frequently; presumably, female employees are less likely than men to accept this career requirement. 

Some recent changes at Wal-Mart could make treatment of employees more evenhanded. The company hired a director of diversity, restructured pay scales and contracted with consultants to rewrite job descriptions. Executives’ bonuses are partly based on meeting diversity-related goals. A new electronic system enables employees throughout the company to apply for management training. Until a few-years ago, only hourly jobs - not management jobs – were posted within stores; most retailers post all job openings as a way to show the fairness of their promotion practices. Christine Kwapnoski, one of the parties to the lawsuit, complained that she wanted to become the supervisor, but the Sam’s Club where she worked lacked an application process, so she had to rely on word of mouth. According to Kwapnoski, her male co-workers spent more time socializing with management, so they had better access to promotions. (She also said she was told that if she wanted a promotion, she should “doll up.”) 

If Wal-Mart works with the government to settle the case, it is likely to make further changes. Some companies that have settled similar lawsuits have agreed to accept a court appointed monitor to supervise the company’s employment practices. Another common result ofdiscrimination settlements is for the employer to establish objective criteria for measuring employees’ performance. 





1.	Wal-Mart’s vision is to achieve superior customer service and low prices by applying three basic beliefs of founder Sam Walton: “respect for the individual, service to our customers, and strive for excellence.” How might workforce diversity help a company fulfill this vision? How might diversity make this vision more challenging to achieve? Based on the information given in this case, how well do you think Wal-Mart has fulfilled its vision? 



2.	Defenders of Wal-Mart point out that a company with more than a million employees cannot be expected to ensure that every single person is treated fairly; it has to trust lower-level managers to do the right thing. What general requirements does this viewpoint place on store managers and department supervisors? 





3.	Prepare an argument supporting either the female employees’ charges or Wal-Mart‘s defense. Look up recent news stories about the case, and see if they contain additional facts you can use to support your argument.