The Organisational Structure of Walmart - Essay Example

Workplace report Wal-Mart The multinational retail company, Wal-Mart was formed during 1962 under the visionary leadership of Sam Walton. The company opened its first store in the Arkansas region and worked mainly to help address the needs of the customers and local communities through encouraging them to save money and also lead an enhanced lifestyle. In the current era Wal-Mart has enhanced its customer servicing initiatives by encouraging the people to procure merchandises both at the physical and online level through the use of websites and mobile phones. The company operates in an international fashion spread around 27 countries and also under different retail formats. Strategic Leadership, innovation and commitment to the stakeholders of the concern are some of the right keywords that can be effectively related to Wal-Mart operating in the international retail paradigm (“Our Storey”). The Organisational Structure of the Company shown in the Appendix reflects a Hybrid Form where specialised units are created by the concern that focuses on addressing the needs of specific departments and also other international regions. Relating to the departments specific heads are deputed that take care of the legal, merchandising, sourcing, and electronic and web commerce and also financial and corporate affairs of Wal-Mart. Again pertaining to the regions effective decentralisation is practiced by creating heads and deputy heads for international regions relating to Asia and European countries (“Walmart”). Analysis of the Management of Wal-Mart The analysis of the management of Wal-Mart would be done based on the different management models related to decision-making and team building functions. Decision-Making Models The Rational Model Rational model related to decision-making functions rests mainly along four steps that can be underlined as follows. The Rational Model moves along in firstly Identifying a Potential Problem; secondly the model endeavours to Generate Effective Solutions to the Problem identified, thirdly and fourthly the model probes to Select a Solution from the List of Generated Ones and tends to Evaluate its Feasibility in meeting desired ends respectively. Thus the Rational Model is based on a series of Logical Steps that aims at finding an Optimal Solution to the Problem identified. Rational Model is also based on some assumptions reflecting that the manager takes decisions in a well informed environment (Kreitner and Knicki 337). Simon’s Normative Model The Normative Model as rendered by Herbert Simon contrary to the Rational Model tends to operate based on an environment of uncertainty. This model being non-rational in nature tends to follow assumptions wherein the manager is not held to work in an informative work environment such that decisions can be taken in an optimal fashion. Further the Simon’s Normative Model also reflects that decision-making activities of managers are largely Bounded by a Set of Constraints generated from the Personal and Work Atmosphere related attributes. These constraints relating to the personal and work level thus happen to reduce the scope of the manager to gain the right amount of information for Optimal Decision-making functions. The manager owing to the inability to identify and evaluate different alternative Solutions to the Problem happens to take resort to the Satisficing one that appear to be ‘Good Enough’ in the light of the Problem Identified. Through the Process of Satisficing the Solutions generated are taken to be Satisfactory Enough in contrast to being Optimal in addressing the Problem (Kreitner and Knicki 340). The Nominal Group Technique (NGT) The Nominal Group Technique (NGT) is a decision-making process where decisions are gained from involvement of people in groups rather than acting in an individual manner to cite solutions. In this process firstly a group is convened in an organisational set up such that the problem is aptly discussed between the people in the group constructed. The people in the group are encouraged to list a set of ideas on a paper in a silent fashion that are individually generated by them in response to the problem identified. After that the probable solutions are listed by individual employees are called for pronouncing the best idea from their individual lists such that these ideas are copied on a board for discussion. While discussing the ideas listed agreements, disagreements, clarifications and criticisms are incorporated to arrive at the potential solution. Thus this technique encourages concepts related to ‘Brainstorming’ to generate ‘New Ideas’, ‘Active Participation of Members involved in the Group Constructed’ and ‘Agreement based on Majority’. Thus this Decision-making Technique in contrast to the previous models related to Rational and Normative Decision-making works on group or network of teams (Kreitner and Knicki 358-359). The Delphi Technique The Delphi Technique model for gaining business decisions like the Nominal Group Technique also works based on a set of people involved in groups. However unlike the Nominal Group technique this model introduced by the Rand Corporation involves group communication along with the manager based on rendering of questionnaires through physical and electronic mail and thereby generating feedback based on such. Delphi Technique works in the process of mailing of questionnaires to the target population group that is required to fill up the forms and give it back to the manager. The manager in turn reviews the responses rendered and generate effective feedback to the groups. Target group members are thereby required to evaluate the feedback and render changes in responses (Kreitner and Knicki 359). The Computer Aided-Decision-making Computer Aided-Decision-making Ventures serve the new generation decision-making activities that tend to encompass a target group of people based along different global locations. With the development of internet technology the decision-making activities in organisations have gained significant transformation where the managers act on gaining requisite and potential information from the enhanced market. Computer Aided Decision-Making functions operate based on two modes like ‘Chauffeur-Driven’ and ‘Group Driven’. For the first mode the responses are gained from the participants subjecting them to a host of set questions wherein the computer aids in tabulating the responses received from the participants. For making the second mode workable the organisational setup is required to be integrated based on a closed-network system such that the individual participants are encouraged to type ideas, feedbacks or comments on their screen which are then projected on a larger screen. This helps in generating adequate views of the people to the responses gained from the individual participants and thereby helps in decision-making (Kreitner and Knicki 359). Decision-Making Activities at Wal-Mart The decision making activities at Wal-Mart work on gaining potential information from the market through the integration of effective information systems that in turn assist the managers in optimising on the pattern of seeking the right solution for the problem identified. Thus the process of decision-making functions at Wal-Mart focuses on incorporating the Rational Model and also integration of information systems to help the management seek the right solution from the range of different alternatives identified (Geunes, Akcali, Pardalos, Romeijen and Shen 328). However Wal-Mart’s decision making activities operate on a centralised fashion rather than involving target groups from which different responses can be received and feedback generated. Groups and Teams Tuckman’s Theory of Group Development The Tuckman’s Theory of Group Development is generally a five stage model. The Five Stages can be reflected as follows. The First stage is known as ‘Forming’ where the people in teams or groups identify them in different roles. Through identification of roles the power or authority is aptly adhered to the different members. After ‘Forming’ the individuals in the Second Stage tend to appreciate or to rebel against polices or decisions rendered relating to the different roles formed. This stage is known as ‘Storming’. The Third stage known as ‘Norming’ follows the ‘Storming’ stage such that the people through brain-storming and effective group discussions endeavour to bring about new ideas. Through such efforts the people tend to attain some sort of cohesiveness in their team building functions. The Fourth stage related to ‘Performing’ where the individual group members through active cooperation and communication both on an intra and inter group level can achieve desired performance levels. Finally the Fifth Stage related to ‘Adjourning’ where the leader is required to generate potential feedbacks to the members involved in groups and teams to improve their future performance. Similarly awards and performance recognition activities are also carried out in this stage (Kreitner and Knicki 280-281). Role Conflict The concept of Role Conflict has its origin owing to the difference in levels of perceptions and expectations relating to the people involved in the different roles in the concern to other people surrounding the individuals as subordinates and superiors. Ethical conflicts tend to emanate around the different levels thereby disturbing the activities of individuals tied to the different roles (Kreitner and Knicki 285). Role Ambiguity Unlike Role Conflict where at least the perceptions and expectations through erroneous or inconsistent in nature are known to the Role Player, the event of ‘Role Ambiguity’ occurs when the Role Player is at all not clear about one’s duties and responsibilities in the organisation. This situation occurs when the right amount of information is not passed or withheld to be transmitted to the role players to act upon (Kreitner and Knicki 285-286). Norms Norms can be effectively understood as set of guidelines or code of conducts set by a group of two or more people in an organisation based on which the performances and attitudes of other people or groups in the concern are evaluated. These norms thus tend to encompass and govern behaviour as a whole related to different groups in the concern or the concern as a whole (Kreitner and Knicki 287). Groupthink The concept of Groupthink relates to an event of very high group cohesion such that this amount of high group cohesion happens to dissuade and restrict members in a group to actively work in generating new ideas and decisions. Significant cohesion tends to unanimously bind the members to also defend wrong decisions taken by the team (Kreitner and Knicki 297-298). Team Building Team Building efforts gain predominance when people with same level of competencies and skills are assimilated in a group to accomplish a set of defined tasks and assignments. People acting in groups act in a complimentary fashion to render combined efforts. Thus herein the parameters like leadership, accountability and problem-solving skills takes a broader and encompassed sense than it relates to an individual (Kreitner and Knicki 307, 327). Types of Teams Different types of Work Teams like Advice, Production, Project and Action are created in an organisation to help achieve a set of assigned tasks or purpose for which they are created. Advice Teams are composed of such persons that have low technical knowhow and also require less amount of coordination. These people only help in retrieving potential information from the larger market. Production teams are composed of people having technical knowledge related to day-to-day functioning such that one production team also requires working in integrated fashion with other production teams. Again for the conducting of different projects groups of persons with high technical expertise needed especially for the project in question are constructed. These Project Teams can be divided along different departments for accomplishment of organisational goals. The last work team referred to as Action Teams are categorised to reflect considerable amount of skills, competencies and knowhow coupled with required amount of coordination both intra and inter group to render enhanced results (Kreitner and Knicki 309). Failure of Teams Teams in an organisational set-up fail for reasons pertaining to the management and also amongst them. The management tends to render unrealistic expectations on the team members also making them weak in terms of staffing standards, strategies designed and inadequate training making them fail to reach goals. In addition to inept management practices the work of people in teams get affected owing to internal conflicts, lack of potency to learn and turning complacent at times thereby contributing to failures (Kreitner and Knicki 314). Building Trust Trust can be effectively built in by the managers through the process of effective communication, enhancing accessibility, recognising and rewarding employees for their performance in an unbiased fashion and finally through enhancing of own competence in decision-making and team-building (Kreitner and Knicki 319, 324). Group and Team Building in Wal-Mart The operational team in Wal-Mart is adequately divided along several functional groups pertaining to sourcing and merchandising, visual merchandising, sales staffs, cashiers, project management and human resources teams that continually operate based on adequate skills and competencies to achieve organisational goals. The different operational teams function in an interrelated fashion in the concern (Bergdahl). The Production and Operating teams function under the supervision of a Store Manager in its different stores where Project Teams work in establishment of new outlets (Soderquist 41). Trust Building activities are also carried out at Wal-Mart by encouraging the people to put their views in company blogs and forums. Similarly high performers are also recognised through such modes thereby motivating them to excel in their operations (Kurtz 114). Conclusion Wal-Mart needs to carry out decision-making activities on a decentralised platform through the integration of different teams and groups. Decentralisation of decision-making ventures would help in enhancing the parameter of transparency and cooperativeness in the concern. Similarly in team building functions the company management must work in enhancing the expertise of the people by encouraging them to brainstorm and render new ideas that would contribute in organisational development. Appendix Figure 1 (“Walmart”) Works Cited “Our Storey”. Wal-Mart. 2012. Web. October 15, 2012. “Walmart”. The OfficialBoard.com. September 5, 2012. Web. October 15, 2012. Bergdahl, Michael. The 10 Rules of Sam Walton: Success Secrets for Remarkable Results. New Jersey: John Wiley & Sons, 11-Jun-2007. Geunes, Joseph, Akçali, Elif, Pardalos, , Panos M., Romeijn, H. Edwin, Shen, Zuo-Jun (Max). Applications of Supply Chain Management and E-Commerce Research. United States: Springer, 19-Nov-2004. Kreitner & Knicki. Organisational Behaviour, 9th ed. McGraw-Hill Higher Education, New York , 2010. Kurtz, David L. Contemporary Marketing 2011. United States: Cengage Learning, 01-Jan-2010. Soderquist, Don. The Wal-Mart Way: The Inside Story Of the Success of the Worlds Largest Company. United States: Thomas Nelson Inc, 21-Apr-2005. Read More