Study On Labor Cost Control And Management In WM Corporation

Through more than30years of market-oriented reform, the retail market in China has evolved from the single pattern of department store to the white-hot competition situation of multiple formats. However, with the rapid development of Chinese economy, the operating costs including rent, labor cost, hydropower expenses etc. are increasing by degrees. Among them, labor cost rising has become the most urgent problem in front of retail operators which has a major influence on retail profitability. Therefore, the effective management of operating costs is of vital importance, while labor cost as a controllable cost, its control and management becomes the most important and effective way for retail operators to obtain the cost priority in a more competitive market.WM corporation was established in nineteen sixties, after50years of development, has become a multinational retailer. At present, WM China operated a variety of formats and brands, including hypermarkets, membership clubs, neighbourhood shops etc.. Facing with the rapidly rising cost dilemma, finding a new and effective solution to keep great balance between labor cost management and organizational healthy is the key strategy of WM company.Consequently in this thesis, on the theoretical basis of labor cost control and management, the author tries to analyze WM’s model of labor cost management and find out the existing problems, thus put forward corresponding suggestions for improvement. In-depth research provides direct insight into the practical problems, through the establishment of PDCA system, its implementation steps can be further straightened. Following the three principles of budget management, the coordination of multi-departments and maximum benefit, two-way control of vertical growth and horizontal comparison can help WM balance between managing labor cost and maintaining organizational health, thus realize the maximum value of labor cost, so that WM could continue to lead the retail trade in the fierce market competition.