Matt_Simpson comments on Hayekian Prediction Markets? - Less Wrong

9 Post author: David_J_Balan 15 February 2010 11:50PM

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Comment author: Chronos 16 February 2010 12:59:07AM *  10 points [-]

Have you ever worked at Wal-mart? I have: I worked overnights as a shelf stocker for almost 5 years. The Soviet Union analogy is quite apt, although I'd peg it as closer to being a less gruesome version of the Great Leap Forward.

  • We'd joke to new hires about the Sam Walton statue in the basement. (The humor came from the non-existence of the basement, and the unease underlying the humor came from the fact we had posters instead of statues only because Bentonville was too cheap to spend more than $1.99 decorating the breakroom. In hushed tones, cracks about Chairman Mao were common between the better-read employees.)
  • Bentonville issued ridiculous edicts that completely ignored the situation on the ground in individual stores.
  • Edicts were replete with unrealistic quotas. For example, all employees were expected to stock 70 cases per hour, regardless of department: boxes full of tiny cosmetics bottles are treated identically to cardboard trays holding large blocks of Velveeta cheese (where the tray doubles as the customer display).
  • Edicts were inconsistently enforced. One week, the edict is to run backstock. A week later, the edict is to spend more time "zoning" (arranging the product on the shelf for aesthetics). The week after that, the edict is zero overtime. And a week after that, the edict is case counts for everyone (timed speed runs). Then it loops back to a previous edict, and everyone is scolded for not following that edict all along.
  • It was physically impossible to perform the job while fulfilling all edicts.
  • Sometimes, the more sympathetic managers would commiserate with us about being ordered to enforce the edicts. These were usually the managers who quit, got fired, or voluntarily stepped down because of the stress. One manager disappeared for six months, rumor has it due to a stress breakdown.
  • The less compassionate managers attempted to groom themselves for a position within The Party^W^WHome Office. Looking good to the higher bureaucrats was the only concern. They were the only ones who got promoted to Store Co-Manager and above.
  • If a plan failed, it was because the store (managers, employees, or both) had failed to execute it.
  • If blame for failure could be pinned on a specific person or team, they would be drummed out.
  • "Drumming out" would consist of enforcing all standing edicts to the letter, then punishing them for insubordination when an edict was broken: "verbal" coaching, written coaching, decision-day, fired.
  • A verbal coaching still involves written documentation, because Bentonville does not permit managers leeway, interpretation, or anything that can be swayed by compassion.
  • A "d-day" would send you home for a paid day: you were required to write an essay explaining why you deserved to keep your job.

EDIT: Oh, and how could I forget: this was replete with visits from Party Officials^W^WRegional Managers. The visits were officially "secret", but of course the Store Manager would be tipped off by someone in the Regional Office. Thus, the next 24 hours would be spent artificially polishing the store (zoning, filling holes on the shelves with products that don't belong there) at the cost of doing the real work.

Comment author: Bo102010 16 February 2010 02:26:14AM *  4 points [-]

What amazed me when I entered the workforce is how dysfunctional even highly successful companies are - or at least how dysfunctional they seem to be.

What you've described above is an entertaining read, but does it really depict anything unique to Wal-Mart? Other places I've worked:

  • Glorified their corporate leadership

  • Issued well-intentioned-but-tonedeaf "edicts," unrealistic quotas, or contradictory guidelines to regional offices

  • Scapegoated a person for not fulfilling some impossible set of requirements

  • Wallpapered over problems at the expense of doing real work for the sake of impressing superiors

Working for Wal-Mart sounds like working for lots of companies. I suspect that hidden somewhere inside the nonsense are a few things they do well to make them successful, whereas other corporations do the same set of counterproductive things without that useful core.

Comment author: taw 16 February 2010 02:43:42AM 2 points [-]

Look at some freelancers and tiny companies and you'll see that severe problems and inefficiencies exist on both extremes of the size scale.

Comment author: Bo102010 16 February 2010 02:54:41AM *  2 points [-]

They happen in the military and in all levels of academia, too.

My point is that a small set of good practices can apparently overcome a wealth of bad ones.