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The Wal Mart Company

1750 words (7 pages) Essay

9th May 2017 Management Reference this

In this section, we discussed the organization structure of the Wal-mart company. We use many theories in the book Contemporary Management and analyze the Wal-mart company. As it is known to us, there are many contingencies the organization is organized. Contingency theory is a behavioral theory that claims that there is no single best way to design organizational structures and it mostly contains two parts which is called the internal contingency and external contingency. In my opinion, the contingency approach to organizational design tailors the design of the company to the sources of environmental uncertainties faced by the organization. The point is to design an organizational structure that can deal with the uncertainties in the environment effectively and efficiently. Here listed some important contingencies for companies like Technology, Customers and competitors, Suppliers and distributors and some more contingencies and these can make the companies operating more stable and more formalized. Wal-mart is not organized as a non-profit organization. It is not required to disclose its source of funding either. Instead, it is organized as the biggest retailers in the world.

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I think it is organized in the best way for this company combines all these elements together. In the book, I know some contingencies that the organization is organized. Wal-mart’s managers often change their structures to meet up with what their workers need and try to satisfy them well. They growing their store management teams and so on. On the one hand, Wal-mart will organized into three distinctive geographic business units, they are called Wal-mart West, Wal-mart South and Wal-mart North. This power will unleash by bringing their Logistics team, with its worldwide, best-in-class reputation, and industry-leading Real Estate team together with our Wal-mart US Stores division, will help them further transform the business and unlock opportunities for their customers, associates and shareholders. On the other hand, they will be able to develop and grow their talent more quickly and provide opportunities throughout the organization. By reducing their Market Managers’ span of control, they will be able to focus on more to develop their Store Managers and to implement new productivity initiatives. The impact of the internet will be stronger with significantly more growth opportunities in the future to the Store Managers. They have also changed their Regional General Manager structure by adding smaller regions at the Senior Director level to augment the VP RGMs. All of these they do are aimed at organizing this global company well.

The job characteristics model contains affect theory, dispositional theory, opponent process theory, equity theory, discrepancy theory and the two-factor theory.

Job enlargement and the Job enrichment are always the topic of the most concern. Job enlargement is increasing the number of different tasks in a given job by changing the division of labor and the job enrichment is increasing the degree of responsibility a worker has over his or her job. In general, managers always make design choices to increase job enlargement and the job enrichment. It is more likely to increase the flexibility of people’s behave, making them not just doing things rigidly or mechanically. And I think this action mostly decided by workers only. At the same time, the job enrichment and the job enlargement are the motivation to develop a good work environment. Most of us want our job to be interesting and challenging because of this we can make ourselves a real difference to others. So it is a good way for some managers to provide the boring jobs look like more interesting even adds the variety and challenge to an employee’s daily routines. This is the practice to enhance individual jobs to make the responsibilities more rewarding and inspire for the people who do them. Then we can design some jobs that motivated. Here are five factors of job design that can make contributions to people’s enjoyment of their jobs, they are the skill variety, the task identity, the task significance, autonomy and the feedback. Job enrichment with these factors can enhance the job’s core dimensions and increase people’s sense of fulfillment. And to the job enrichment options, it is likely for people to rotate jobs, combine the tasks together, Identify Project-Focused Work Units, Create Autonomous Work Teams, Implement Participative Management and Redistribute Power and Authority, . Rotate jobs can give people the chances to use a variety of skills and the performance of different kinds of works. Through job rotation, workers can be much more motivating and focus more on their jobs. Combine the work activities together are to provide a more challenging and complex work assignment. This can significantly increase ‘task identity’¬†for people can see a job through from start to finish. This allows workers to use a wide variety of skills, which can make the work seem more meaningful and important. Consider expanding their roles to give them responsibility for the entire process, or for a bigger part of that process. The third is the managers should not have all of the marketing people in the same department. It is important for the managers to direct who works on which project. In this case, the more orderly it will be. The forth is set a goal for a team, and make team members free to determine their own work assignment and so on, doing what they mostly like to do and take some advice they provided whatever on the plans or the strategies. This is an excellent method to communicate to the team members and make the organization better.

Wal-Mart uses the divisional structure. This is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer. This kind of organizational structure contains the product structure, the market structure and the geographic structure.

If it is part of a chain, it is more likely for the whole company to use the product team structure. The enormous economic weight that Wal-Mart has acquired is unprecedented for a retail chain. Wal-mart has been known for various things combine the good and bad. For example, they provide convenience for the consumers by offering a one-stop shopping experience at an affordable price. In late October of 2005, the manager of Wal-mart even announced a new strategy which is called for broad systemic, this changes in hopes of encouraging and achieving sustainability.

The functional structure and the geographic structure can make the organization to operate more effectively. Last year Wal-Mart unveiled a new management structure that was supposed to be this revolutionary system that would let assistant managers spend more time with family and reduce their workload. This new layer would take merchandising responsibilities away from the middle managers and lessen their workload. These new zone managers were still hourly workers and were given little actual power. This is not a good structure which allows the company operating more effectively. It must be better to allow the middle managers to have more time for a plentiful rest.

I think if they move to a product team structure will lead to greater efficiency and effectiveness. A product team structure is an organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates. This structure can make the company more orderly, each worker just need to report to their own manager and this will save a lot of time and seems more directly.

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There are there levels of management. They are the first-line managers, the middle managers and the top managers. There are many levels in the Wal-mart hierarchy. The CEO of the company must report to a board of trustees, and the top managers must report to both CEOs, then the middle managers should report to the top managers, the first-line managers must report to the middle managers.

Wal-Mart’s business structure could be considered a mix of both centralized and decentralized. It is the Godzilla of the retail industry and it is close to the pinnacle of centralization. Top managers must seek a balance between centralization and decentralization of authority that best responds to the four contingencies that they face. If in a stable environment, then there is no need to decentralize authority. In uncertain, changing environments, however, top managers must empower employees and allow teams to make important strategic decisions. Store managers have decision-making power over some aspects of their store, such as who they hire, but not others, such as product reordering and selection.

The distribution of authority is appropriate for the organization and its activities. The Wal-mart is closer to the centralization. The division of the Wal-mart are various, like workers, the first-line managers, the middle managers and the

The advice I would like to give to the company is: first, develop deep knowledge of its customers. Wal-Mart collects information about every customer transaction. Wal-Mart applies analytics to understand how its customers behave and to predict their responses to changes in its offerings. Relentlessly pursue improved operational efficiencies. Wal-Mart’s supply-chain operations are legendary for their efficiency. The retailer rigorously measures nearly every meaningful aspect of its operations. Company-wide performance benchmarking illuminates opportunities for management intervention. The second is translates analytics-derived information into performance improvements for it is an information-driven organization. Employees at all levels are exposed to performance data. Their inputs are elicited and acted upon in order to extend the company’s competitive advantage. The third is transfer Wal-Mart’s lessons into the government agencies. Because they must understand the needs and usage patterns for citizens they serve, identify the operational factors that contribute most to mission success, achieve deep insight into the structure of intricate and diverse cost factors and manage the alignment between cost and mission-success factors.


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