Project Proposal on Employee Turnover
Professor Patrick Kinane
GM 591 Leadership and Organizational Behavior
July 17, 2011
Overview of organization
The organization that will be the topic of discussion in my final project is Wal Mart. Wal Mart is public multinational corporation that runs chains of large discount department stores and warehouse stores whose headquarters are in Bentonville, Arkansas. The company is the world's 18th largest public corporation, according to the Forbes Global 2000 list, and the largest public corporation when ranked by revenue. The average turnover rate for the entire retail industry in 2006 is 34 .7 percent but at Wal-Mart , some stores have experienced turnover rates of as much as 85 percent and 104 percent. Although the turnover rate varies per store , the large disparity between the average turnover rate in the industry and the turnover rate at Wal-Mart. I am not actually associated with Wal Mart but I have 6 years experience as a manager in the retail industry and have worked with people who have had a negative outlook towards that company. Wal-Mart stores supports claims of the unprecedented level of turnover at Wal-Mart three major reasons explain the high turnover rate of Wal-Mart employees . First , the firm pays an hourly wage barely above the minimum wage . Wal-Mart management disclosed that its average hourly rate is 9 .63 for all its stores in the United States but the workers union states that the average wage is actually 6 .35 per hour for the workers. The higher per hour rate reported by the firm was due to the inclusion of the hourly wage of managers and executives . As such , low wage continues to be a justification for the high turnover rate of employees at Wal-Mart . Second , Wal-Mart continues to move against the complete unionization of its workforce. Although Wal-Mart workers have a union there is little room for the...