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In: Operations Management

In this assignment, you will compare how two companies, within the same industry (Walmart and Amazon)...

In this assignment, you will compare how two companies, within the same industry (Walmart and Amazon) , approach a specific business issue in the workplace. Acceptable issues include: a) motivating employees, b) corrective action, c) incentive programs, d) executive recruiting and training e) project management, f) diversity, g) responding to changes. Please include links to sources used.

Not a Case Study. Research Paper.

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Expert Solution

Talking about the incentive programs in both the companies- Walmart and Amazon which was updated recently, below are the details of the incentive plans changes that both the companies brought this year:

Incentive plan at Amazon: Amazon increased its pay to $15 per hour for its employees and are not tied to targets for getting incentives. Though there will be targets to meet but the pay will not depend on it. This is done to stop the unfair pressure on employees to achieve the targets. Amazon experienced a harsh work atmosphere with certain fixed targets based on which they were paid. To get rid of that pressure they demanded that the pay should be fixed and not incentive based. Though each employee will have metrics to perform and his performance will be reviewed based on it but the pay will not depend on that metrics.

Incentive Plan at Walmart: Walmart has given a pay raise of $11 per hour. Their other perks are sign-on bonuses, gym memberships, college tuition subsidy, relaxed dress code, referral bonuses and training. These benefits were welcomed by some employees while some did not take them positively as they preferred incentives over these benefits. The company kept the idea of listening to the employees and making the benefits scheme according to their needs. They conducted surveys for the same taking views of the employees on the current schemes.


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