Details

Abstract / Summary

Costco Wholesale Corporation, the seventh largest global retailer (as of 2007), stands out in the crowd as an exceptional retailer, which adopts distinctive employee welfare strategies. The company develops programmes and employee benefits that motivate its employees and strives to create an environment that fosters employee loyalty. While offering excellent employees benefits is not viewed very favorably by the investment community, Costco's CEO, Jim Sinegal, firmly believes that keeping employees satisfied and loyal will result in profitability for the organisation in the long-run. This is in stark contrast to the human resources (HR) policies followed by Wal-Mart, the world's largest retailer and analysts doubt if Costco's HR policies will actually pay-off. The case while enumerating the various employee strategies followed by Costco, allows for discussion on whether in the prevailing competitive retailing scenario, a successful retailer has to focus on creating stakeholder value or shareholder value.

Field of Interest

Business & Economics

Author

Punithavathi Srikant, fl. 2008

Copyright Message

Copyright © 2008 by IBS Center for Management Research

Content Type

Case study

Duration

0 sec

Format

Text

Original Publication Date

2008

Page Count

16

Publication Year

2008

Publisher

IBS Case Development Centre

Place Published / Released

Hyderabad, Telangana

Subject

Business & Economics, Social Sciences, Human Resource Management, Employee benefits, Human resource management, Loyalty, Wholesale Trade, Gerenciamento de Recursos Humanos, Gestión de Recursos Humanos, United States of America, USA, US of A, America, Estados Unidos, Costco, James D. Sinegal, 1936-, United States, Working Conditions

Keywords and Translated Subjects

Gerenciamento de Recursos Humanos, Gestión de Recursos Humanos, United States of America, USA, US of A, America, Estados Unidos