Wal-Mart is facing problems like high employee turnover, union problems etc. Wal-Mart assertively opposes any kind of union movements, as they are targeted by unionizing efforts constantly. In the attempt to prevent unionization, the company has been found to take up illegal means on many occasions. Wal-Mart has allegedly fired employees who have been sympathetic to unionization. It has also shut down departments and stores where the workers have voted in favor of unionization.
According to their report the average pay in Wal-Mart is $9. 68 per hour. This is 12. 4% lower than the average wages in the retail industry, even if you adjust the figures for geographical factors. The average pay in U. S. is $17. 80 per hour while larger retailers pay about a 15% more and unionized grocery employees are paid about a 30% more. A direct competitor of the company’s Sam’s Club, Costco also pays about $16 per hour (Miller, 2006). Issues regarding compensation plans for international companies in China
With the economic reforms initiated by Deng the Chinese economy was found to shift to market economy, from the Marxism policy that it followed prior. This encouraged the competition in the market and profit incentives; but the scope for planning was reduced. The primary purpose of the strategies was to promote the four modernizations in industry, science, national defense and agriculture. These would help raise China to the same stature as other countries with medium development, according to per capita production.
The country can also thrive towards opulence among its people by the middle of the 21st century. The reforms by Deng mainly focused on agriculture in the year 1980, then later in the mid 1980s made addition to the Special Economic Zones. The responsibility system by Deng replaced the commune and collectivization system. This system of Socialism modified with Chinese individuality was in many ways similar to the capitalistic system.
Capitalism is a system where by the state is found to govern sections of the economy. “One Country, Two Systems” policy permits two politically and economically diverse systems to exist in China at the same time (Hulme, 2006). The high speed growth was triggered in China in about the late 80s and in helped assist close to 300 million of the population from the poverty line; The GDP figure for China in 2006 ranked fourth in the world ($2554 Billion. )