Summary.
Wal-Mart’s legendary obsession with cost containment shows up in countless ways, including aggressive control of employee benefits and wages. Managing labor costs isn’t a crazy idea, of course. But stingy pay and benefits don’t necessarily translate into lower costs in the long run.
A version of this article appeared in the December 2006 issue of Harvard Business Review.
Read more on Labor or related topics Costing, Compensation and benefits and Competitive strategy