Organizational Behavior

Case Analysis of Wal-Mart’s World

Case Summary
As the world’s largest retailer, it’s difficult for Wal-Mart to maintain its corporate culture across all of its 4000 stores, 1.5 billion employees. In the past, Sam Walton who is the Wal-Mart founder started the Saturday Meeting, which was helpful for Wal-Mart to operate the company and maintain its corporate culture——close-knit, solidarity, efficient, high formalization, frugality. However, with the development of Wal-Mart, tremendous attendance at the Saturday Meeting made it bored and difficult to maintain its culture. Also the increased public scrutiny brings to the biggest obstacle to Wal-Mart being the world’s largest company. For example, controversies over Wal-Mart’s anti-union position, its hiring and promotion practices, and its

the stronger the culture is. So employees' working hard can be praised and rewarded. strong culture leads to organizational goals. Innovation and risk taking. affordable image. The more employees accept the organization's key values and the greater their commitment to those values. So how to deal with the negative things may be the key problem for Wal-Mart to enjoy continued success. Fourthly. and managers have a meeting together and makes decision to change the sale plan. but people don't giving up innovation for the unknown risk. Wal-Mart’s Culture The seven primary characteristics are: innovation and risk taking. so it doesn't keep stability in the sale plans for a long time. Recently some bad affection occurs in Wal-Mart. Every employee can take part in the management decision. 3. The strong culture of Wal-Mart has some functions to contribute to its longterm performance. people orientation. strong culture can condense the employees. When some products are selling in other stores. and think about their advices. Wal-Mart will get the information at first many teeth will be exposed. 5. 7. 2. 6. The leaders make decisions quickly. Aggressiveness. People orientation. because it is intangible and informal. In Wal-Mart. because the process sometimes is important. Fifthly. Wal-Mart's leader will ask why they don't have them when he found some products are selling well in other competitors' stores. outcome orientation. Only when all employees know how the management decisions come from and affect. Team orientation. it is more helpful to standardize employees. aggressiveness and stability. 1. 4. Then let me use the seven characteristics to capture the essence of Wal-Mart’s culture. Wal- . they can do their job well. such as the greeter's performance——while smiling . team orientation.Organizational Behavior treatment of employees make it increasingly difficult for Wal-Mart to maintain its friendly. But if too much paying attention on outcome can result some bad thing. it moderates the relationship in WalMart between people and people. employees don't call staffs rather partners. Secondly. and the employees must get along well with customers. In Wal-Mart. and they form a positive value concept. Risk comes with innovation. Thirdly. relationship and relationship. Many companies can keep advantage in the market because of paying great attention on details. Attention to detail. Firstly. Outcome orientation. Wal-Mart’s managers respect everyone. Management focuses on the results or outcomes rather on the processes to achieve those outcomes. In the period of Sam Walton. Wal-Mart is encouraging employees to be innovative and take risk. Team decision makes many good ideas to make progress of Wal-Mart's feet. So does Wal-Mart. there are a lot of products coming or going into his store. and take actions fast. Wal-Mart is a service organization. people and relationship. Stability. and at once ask their stores to sell this kind of products. and never should be ignored. attention to detail. So Wal-Mart‘s culture is strong. Wal-Mart’s frugality culture affect many its employees.

Enlarging the span of control may decrease the conflicts. The chain of command is the continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. a. Centralization is bad for developing nowadays. I think Wal-Mart's organizational structure is mechanistic and the reasons are below. but overlook to construct the company such as the impact. In Wal-Mart. Decentralizing decision making and employee empowerment may be good solutions. And Wal-Mart thinks greatly of the increasing achievement.Organizational Behavior Mart respects its employees and keeps a friendly impact to all the people. and is good for managing. Clear chain of command. High formalization makes employees do their work orderly. Wal-Mart is the organization of centralization. There may be some suggestions of me to maintain and improve Wal-Mart's culture. can satisfy customer's need and deal with problems. the more difficulties to manage. and prohibit the exchange information among several departments. Narrow span of command also is a problem. The affection of Wal-Mart’s structure Wal-Mart is a mechanistic organizational structure which tends to be efficiency machines and rely heavily on rules. each employee is a unit because everyone has a specific job. . Customer departmentalization makes Wal-Mart set several positions. Rigid departmentalization. governments accounts manager. This is also the character of the retailer. wholesale accounts manager. Centralization and high formalization. there are two kinds of organizational structures. Work specialization makes Wal-Mart's efficiency highly. But the fixed departments have no enough ability to forecast the need of customers. High work specialization. c. 2. it employs the illegal immigrants for keeping the costs low. such as strengthening the training for entrepreneur. In the recent years. and similar controls. standardized tasks. employee's attitudes and so on. The larger company scope. carrying on socialization and improving the internal environment in the organization. which is obvious in Wal-Mart. The scale of Wal-Mart is very big and a lot of managers cannot make decisions. d. so it can keep the strategy of everyday low price. The clear chain of command makes it show the responsibilities and duties clearly. The organizational structure of Wal-Mart In management. Many decisions must be made by specific people. such as retail account manager. regulation. Characteristics of Wal-Mart's organizational structure 1. The kind of structure has good and bad affection to Wal-Mart. but also limit view of organizational goals. mechanistic organization and organic organization. b. which makes it highly efficient.

Create a good work environment for the employee. and this affects the other people. At last. the produce efficiency will decrease. they don't have enough morale to do their jobs.Organizational Behavior Recommendations to Improve Employee's Attitudes People popularly think Wal-Mart’s negative press doesn’t benefit its employees. getting enough pay. Let the employees join the decisions that should be made by upper managers. My recommendations to improve employee job satisfaction are below. so they have the master's sense of responsibility. Make the need of employee together with organization goals. If Wal-Mart wants to keep the continued success in the world. including the work and rest environment. making the company be in trouble. the basic rights such as freedom. Build up an encouraging of spirit mechanism. which may keep organizational commitment. Also. 7. 3. especially. Encourage employee to put forward a rationalization suggestion. . 4. Value employee training. 2. When employees feel they don't be accepted by the leaders. 1. and satisfy their need as far as possible. one is the external environment. it has to find solutions to the above problems and the negative publicity that results. 5. equality. the manager helps them carry out for satisfying the employee's sense of achievement. There are two aspects. 6. the employees’ attitudes affect the customers. Management by walking around. the ability of competition of companies turns to become weak. and the other is internal environment including culture human relationship. and people start to leave the company.