From the
straits times...
AUG 27, 2003
What Wal-Mart can teach S'pore companies
THE world's most successful company is a grocery chain in the
United States with two abiding principles which hold a lesson for
Singapore companies, said Deputy Prime Minister Tony Tan.
Wal-Mart Stores, No. 1 on Fortune magazine's famous annual list of
the world's Top 50 companies, was held up by Dr Tan yesterday to
make his point that workers' loyalty is crucial for long-term
success.
The giant retailer, he said, is so committed to its workers that
everyone who works there is an associate, not an employee, and
shares in the company's prosperity.
Coupled with its commitment to serve customers, the retailer shows
that motivating employees brings results.
The lesson for Singapore companies is: 'If you want to achieve
long-term success in business, think long term, avoid short-term
fixes, and aim for pre-emptive motivation of your staff rather than
pre-emptive retrenchment,' said Dr Tan, who is also Coordinating
Minister for Security and Defence.
He was arguing against recent views that in today's harsh business
world, loyalty is a thing of the past.
Senior executives, union officials and workers attending a dinner
to celebrate the 35th anniversary of Sembawang Shipyard and its
employees' union were struck by Wal-Mart's size when Dr Tan,
adviser to the union, made comparisons with Singapore.
The Arkansas-based company has more than 4,600 stores. More than
1.3 million people work for it, more than half of Singapore's total
workforce. Its sales are estimated to count for more than 2 per
cent of America's gross domestic product (GDP), similar to the role
Singapore Airlines plays in the Singapore economy, said Dr
Tan.
Its turnover last year of US$244 billion (S$427 billion) was larger
than Singapore's GDP and the company's profits in the last
financial year, at more than US$8 billion, would be more than
enough to cover Singapore's budget deficit.
To further fortify his argument, Dr Tan commented that executives
at the Top 50 Most Admired Companies said 'the success of their
enterprises, made possible by the loyalty and commitment of their
employees, is achieved only by constant attention to the needs of
their customers and employees'.
Copyright @ 2003 Singapore Press Holdings. All rights
reserved.
Employee loyalty. Obviously, some companies don't
care about how their employees feel.
Of course, I'm not saying that all workers should be paid high
wages. But at least they should be paid reasonable wages. Even
simple gestures such as appreciating the employees' contribution
helps motivate them.
In Singapore's working culture, maybe people are already too busy
to care for one another.