The Organizing Functions of Management at Walmart - Case Study Example

Running head: Wal-Mart Wal-Mart Institute’s Wal-Mart Wal-Mart is a branded American public multinational corporation that extendsits business into a large number of departmental and warehouse stores (Shetty, 2011). Its founder is Sam Walton who runs a massive and the largest private employer business over 15 countries world-wide. It is a powerful retail brand which is marked by its value for money, convenience and a wide range of products all in one store (“Walmart part 3, 2012). Now, let’s examine the functions of management being operated in Wal-Mart: PRINCIPLES AND PRACTICES OF ORGANIZING, CONTROLLING AND PLANNING AT WAL-MART: Wal-Mart has a vast infrastructure in which organizing, controlling practices and planning approaches are accomplished in the following manner: 1. ORGANIZATIONAL APPROACHES: According to (“Organizing function of management”, n.d.), the organizing functions managed within Wal-Mart are the result of executive authorities and their management, the roles and responsibilities offered by the employees and the effort that whole company put forward into it. The organizing approaches are based on various factors such as physical assets, financial position, human resources department, knowledge and technology (“Organizing function of management”, n.d.) which are explained here: Physical assets: Wal-Mart efficiently manages its physical assets in such a way that it keeps the prices low of its products and services, earns more profits and hence gain more customer satisfaction as compared to its other competitors (“Organizing function of management”, n.d.). Monetary: it has strong cost-structure based upon high profits with discounted low rates. Its market strategy is strong enough to prosper while offering low rates to the customers. Human resources: in order to achieve goals, vision and make a long-run success, Wal-Mart holds an effective Human Resources management. According to (“Organizing function of management”, n.d.), the HR department performs following duties: Checking the changing workforce Employment strategies Planning Job representation New staff members orientation Performance appraisal Preparation and development of the employees Maintenance of records etc. Knowledge: Wal-Mart gains important knowledge regarding various demographic factors through their internal and external working information department (“Organizing function of management”, n.d.). These demographic features include population, age, location, density and unemployment rate. These economic factors act as pointers which are noted down by the company time to time in order to calculate the economy rate, ups and downs and effect on market etc. (“Organizing function of management”, n.d.). Technology: the company organizes strategic acts in dealing various technological factors such as choosing or losing any technological product, controlling assets and inventories using online technologies, modernizing information gathering mediums, advertising products via in-stores Ad network etc. (“Organizing function of management”, n.d.). The use of latest technology saves time and money. 2. CONTROLLING: Controlling the internal matters is the main feature of the ethical base of Wal-Mart. The company controls its daily store-level and corporate level activities through its accounting department ("Management and Leadership Paper”, 2013). The accounting department performs following duties: Set documents in accordance with legal rules and regulations. Setting policies. Following court orders. Handle complaints received regarding accounting ("Management and Leadership Paper”, 2013). Audits control. Auditing matters. All authority and management officers are directed to circulate and share all financial information. According to ("Management and Leadership Paper”, 2013), the internal audit team performs and controls the following tasks: Set policies Protecting assets Business information Collect complaints from “ethic hotline” and perform action plans. Maintaining accounting department 3. PLANNING: Planning is a function that sets future action plans for deciding how to perform the task, when to carry out the action and who will be eligible for it (“Custom the organizing functions of management”, n.d.). It is defined as: “Planning is the basic management function that includes formulation of detailed plans which are aimed to achieve optimum balance demands with the available scarce resources” (“Custom the organizing functions of management”, n.d.). Wal-Mart holds goal oriented and persuasive planning strategies. According to (“Custom the organizing functions of management”, n.d.), the planning management of Wal-Mart involves the following duties: To build and maintain a diverse workforce Analysing workforce trends and projections Arrange necessary skill acquiring training sessions Devise succession plans and strategies Set recruitment procedure To create healthy work environment Set diversity program activities EVALUATING APPROACHES AND PROCESSES OF INTERNAL OPERATIONS OF WAL-MART: Wal-Mart performs its internal operations as follows: 1) Production Operations: Wal-Mart has an excellent distribution system of its products. It conducts it through a process named as “Cross-Docking” (“WalMart SWOT ANALYSIS”, n.d.). This is a continuous process which involves following steps: Delivering goods to warehouses Sorting the goods Distribution of goods This process has following features: Satellite based communication system Point of sale system Real time information According to (“WalMart SWOT ANALYSIS”, n.d.), this process is taken out within one day due to which following goals are achieved: Speed up the inventories Faster response to market demands Low inventory Reduction in sales cost by 2-3% 2) Computer Information Systems: Wal-Mart has a computerized satellite-based communication system as discussed above. In addition to it, it also maintains an authentic website i.e. an online store from where the customers can buy all products by mare selecting and ordering online. The website also holds all necessary information related to the company. According to (“WalMart SWOT ANALYSIS”, n.d.), the features and information offered by the website are: Financial data Finding employment History of Wal-Mart Email about the complaints or suggestions etc. SUGGESTIONS TO BE MORE SUCCESSFUL IN MANAGEMENT FUNCTIONS: Wal-Mart must have a sound mission statement that will make clear to its employees the true goals and objectives of the company. It must remove discrimination among employees and hire more female and minorities among its work force. It lacks unions. It must have involvement of Unions through which the daily issues and serious problems among employees can be resolved. It must improve its reputation and strive to enter into more market area. It must engage in research and development sector. It must improve its “aggressive-corporate” strategy and revise its slogans to give better impact. It must remove its “authoritarian” style. It must overcome sex discrimination in working environment. According to May (2004), Wal-Mart must attain a different management strategy. Lee Scott proposed the following strategy: “To develop a system that still rewards people for taking risks, but ensure that they also operate within more clearly defined boundaries. Mistakes have to be dealt with quickly and appropriately, even if that means sacking people. If getting that balance right were not difficult enough, it must also reduce the huge cost to Wal-Mart of replacing tens of thousands of workers each year (May, 2004).” Another problem faced by its management is while dealing with cost issues. It offers cost, told low, but which is just perceived as low i.e. it offers high prices as comparable to other companies. Hence, it must devise new tactics to make use of its assets and money which are its biggest strengths (Denning, 2011). It must hire skilled and motivated staff which is expert enough to achieve the required goals and also introduce innovation among the company performance and production. It must award incentives, promotions and various packages to the employees to gain their trust and loyalty. It must modernize and update its online store. It must enhance and improve its business model. It must focus its production toward customer satisfaction. It must eliminate the checkout queues (Denning, 2011). The management must treat the staff fairly and by not being biased. MANAGEMENT THEORIES TO INCREASE THE WAL-MART’S EFFICIENCY AND EFFECTIVENESS: According to Skaik (2008), following management theories can be employed to enhance Wal-Mart’s efficiency and growth: 1. Scientific management theory: Improve the job performance measures methods. Update the rules and procedures time to time as required to cope with industry. Eligible workers should be hired. The pay-to-performance measures must be set fairly. 2. Administrative management theory: Rules and regulations must be forwarded in written form. Tasks and roles must be clearly specified (“Work place pressure”, n.d.). Hierarchy of authority must be clearly specified. Selection and evaluation of employees must not be biased. 3. Management science theory: Set various models to help managers in decision making processes. Set techniques for managing the operations to enhance the growth and efficiency of the company. Use modern methods of online store and information handling system. 4. Classical Management theory: The company must emphasize on the structure. The management should tell the employees the goals, vision and mission of the company. The work should be fairly divided among employees. Sound discipline must be maintained in all matters. Develop a science for each operation to replace opinion and rule of thumb (“Basic management models”, 2006). Maintain the schedule of the tasks to be done. Train the employees according to their expertise. A hierarchical structure must be maintained throughout the company. 5. Neo-human relation theory: Maslow hierarchy of needs must be followed in order to develop satisfaction, incentives and intrinsic measures. This will let the managers to consider and fulfill needs of all employees fairly (“Basic management models”, 2006). Theory X and Theory Y must be followed through which managers will learn that which employees are leading ahead and who need motivation (“Basic management models”, 2006). It must follow Herzbergs motivation hygiene theory through which motivation can be earned among employees practically. It will ease the controlling and planning procedure (“Basic management models”, 2006). Works Cited “Basic management models and theories associated with motivation and leadership and be able to apply them to practical situations and problems.” (2006). Health knowledge. 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Retrieved from: “Work place pressure” (n.d.), UKdissertations.com. retrieved from: http://www.ukdissertations.com/dissertations/education/work-place-pressure.php Read More