Problem
Irrelevant cost represent a business cost that does not impact a management decision. Since an irrelevant cost does not impact a managerial decision, in all likelihood the cost will not change that decision. In one decision a specified cost may be irrelevant to that decision, but with another managerial decision that cost may indeed be relevant, thus the term relevant cost, which is decision specific, (wiseGEEK, 2003-2019). Currently, Walmart has 1.4 million American workers, Walmart increased employee wages because it had to. The company was facing immense pressure from the media, their employees and outside organizations for wage increases. With churn costs 1.5 - 2.5 times the cost of the employee's salary, Walmart needs to continually focus on employee retention. With the media running weekly stories about the poor working conditions at Walmart or the social services received by Walmart employees, the company needed a plan to stop the negative PR. Plus, as other retailers increase their wages and benefits, Walmart's management is forced to do so as well, otherwise it would be left with a lack of applicants for its positions, (Gustafson, 2018). Walmart's biggest expense is its labor costs. Instead of paying each employee a higher wage and then reducing their hours, Walmart ought to revamp its entire strategy to cut the number of workers it employs. Self-serve has been implemented in every industry because of its incredible savings power. Walmart needs to drastically reduce its workforce to save on its greatest expense. Employees will be happier because of the increased opportunities for full-time hours and Walmart shareholders will be satisfied with higher profit from lower total employee wages, (Gustafson, 2018).
What can be done differently?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.