Case 4-1
Summary
As one of the world’s largest and most well-known companies, Walmart is constantly using strategic HR
functions to improve performance. The company uses job analysis through interviews and direct
observation, which allows HR to establish expectable job outcomes. Job analysis provides information on
interpersonal, cognitive, and perceptual abilities, through a Work Profiling System, which examines the
capabilities for managers.
Analysis
The Walmart case allows students to assess the more strategic aspects of human resources. This case
study addresses job analysis and job design through the different techniques that Walmart uses to assess
each employee. Supply and demand forecasting is also used to adjust organizational needs with
appropriate staffing. Forecasting and trend analysis are also used to predict employee demand when a new
Walmart location is opened. Finally, financial incentives are used as a final resort if the strategic HR
procedures deems the current supply of potential employees to be inadequate.
Questions
1. How is job analysis performed at Walmart? What job analysis methods are employed?
Job analysis is the process used to identify the work performed and the working conditions for each job
within the organization. Inputs into job analysis include machines, materials, man power, and money. Job
2. What are the pros and cons of the job analysis methods used for Walmart’s sales force?
The company applies work-oriented job analysis for sales positions in the form of interviews and direct
observations. HR uses direct observation of sales personnel’s activities while conducting interviews to
analyze the jobs of team leaders and supervisors. This method enables HR to establish expectable job
3. For which position does Walmart use task or competency-based job analysis?
Task-based analysis describes the job as a function of the tasks performed within the job, while
4. What are the main differences in job specifications between Walmart’s sales force and their managers?
Job specifications identifies the qualifications needed by the person to perform successfully the duties and
5. What are the methods Walmart uses for HR forecasting? Which are quantitative and which are
qualitative?
HR forecasting identifies the estimated supply and demand for the different types of human resources in
the organization over some future period based upon an analysis of past and present demand. Quantitative
6. How does Walmart try to prevent labor shortages or surpluses?
Reconciling labor supply and demand is critical to avoid labor shortages and surpluses. Firms typically
deal with labor surpluses through downsizing/layoffs, pay reduction, work sharing, natural attrition,
hiring freezes, retraining, transfers, and early retirement. Labor shortages are circumvented through the
use of overtime, temporary/contract workers, retraining, outsourcing, turnover reduction, new hires, and
technological innovation.
Case 4-2
Summary
Honeywell is a segmented company within the manufacturing industry, with different divisions each
possessing their own individual cultures. This caused Honeywell to implement a uniform culture across
all segments to retain their top-level managers and to create a sense of community through a “One
Honeywell” culture. While this approach was successful leading to increased investments in new products
and services and less top-level turnover, Honeywell was not immune from the economic recession of
2008.
Analysis
The Honeywell case is an excellent opportunity for instructors to discuss how the culture of a company
can change during a recession. Even in the case of a successful company, it is important for students to be
aware that economic factors, both internally and externally, can impact a human resources strategy.
In addition, instructors may wish to address alternatives for the approach that Honeywell pursued in terms
of their decision to furlough. Alternatives such as severance pay and termination were potential options;
however, Honeywell was strategic in their approach to prepare for postrecession conditions and
positioned themselves to recover quicker than their competitors.
Questions
1. How does the use of HR forecasting reflect Honeywell’s strategy and culture?
“HR forecasting identifies the estimated supply and demand for the different types of human resources in
the organization over some future period based on analysis of past and present demand.” Therefore,
2. Which quantitative or qualitative man power forecasting method do you believe Honeywell used to
decide to move forward with furloughs rather than layoffs? Explain.
Honeywell seemed to have used both qualitative and quantitative analysis. “We need to use both
3. What options did Honeywell use to overcome the projected labor surplus during the recession? Other
available options?
Honeywell “then followed a different method of restructuring and let their workers take temporarily
unpaid leaves of absences: furloughs” (Case). This was the best option for the company since they did not
want to lose essential skilled workers when the recession was over. Honeywell was not interested in other
options to overcome the projected labor surplus during the recession but other options do exist.
A third option would have been a form of job (or work) sharing arrangement. In this option, employees
would have to share their project with more employees so the project is completed in less time. Therefore,
each employee receives a lower pay due to the lower number of hours required from each employee. This
is a better option for a company who is trying to follow a fair policy act or something else of that nature.
Also, the employee would be readily available when the recession was over.
4. Compared to layoffs, do you expect the impact of furloughs to be higher on the turnover rate or
lower? Explain your reasoning.
Compared to layoffs, furloughs would have a lower turnover rate because the leave is only temporary.
5. How might job analysis and job design minimize the impact of furloughs on organizational
performance and productivity? How does hoteling fit into this scenario?
“Job analysis is the process used to identify the work performed and the working conditions for each of
the jobs within [our] organizations” (9). Job analysis impacts the following HR processes related to
furloughing and organizational performance:
6. How could CEO Cote use trend/ratio/regression analysis to support his contention that most
Honeywell managers overestimated their savings and underestimated how disruptive layoffs would be
to the firm’s operation?
Trend analysis allows the company to look at historical trends and make judgments from those trends.
CEO Cote could use trend analysis by gathering historical information about the firm as well as the