South-Western - Management  
Wal-Mart Opens New Diversity Office
Topic Human Resources Planning
Key Words Diversity, leadership, diversity training
News Story

In November of 2003 Wal-Mart announced the creation of a diversity office to ensure its workers will have the opportunity to advance within the company.

The creation of this department came on the heels of employment related court actions in which "plaintiffs claim the company exerted a bias against women and didn't pay overtime..." It is also under investigation by a federal grand jury about its hiring practices of illegal immigrants.

Charlyn Jarrells Porter has been appointed to lead the diversity office. She is an 11-year Wal-Mart employee who has served as an in-house lawyer and later held a position in the Human Resources department. To further strengthen the position she will report directly to Tom Coughlin, Wal-Mart's number 2 executive.

Porter will coordinate programs to increase the number of qualified candidates, measure progress within the system, and hold managers accountable for the training and promotion of qualified employees.

Wal-Mart employs 1.1 billion people in the U.S. and is the world's largest employer. To reach such a large group, the subject of diversity will be emphasized during company meetings and the company will use video training to bolster the message.

Questions
1.

What techniques will Wal-Mart use to ensure its employees that they all have an opportunity to advance in the company?

2.

Why is diversity important in a company like WalMart? Wal-Mart says that the creation of this office is not in reaction to the pending lawsuits or the government's investigation of its hiring practices. What do you think?

Source "Wal-Mart Opens New Diversity Office," The New York Times, November 18, 2003.
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