Organisational Behaviour of Wal-Mart Company - Case Study Example

Running Header: Management Student’s Name: Instructor’s Name: Course Code Date of Submission: Introduction Industrial relations show a collective relationship between the organisational management and its workers. Industrial relations also involve a collection of various aspects such as trade unions, collective bargaining and how workers participate in increasing organisational output. It could also mean settlement of grievances among workers and the interpretation of labour laws meant to protect workers welfare. Banber et al. (2010) describes that industrial relations is seen to affect the economic and the social goals of an organisation and in order to achieve this goals, management should ensure that workers well being is effectively maintained. Industrial relations encompass all the factors that influence individuals’ behaviour at work. Some of these factors include institution, character, methods and contents. Some of these institutions come with power and authority and this tends to change the culture of the organisation and the employees belief. To solve the problem of competition in the market, organisations have been forced to utilise various methods of change implementation. The implementation of these practices has always seemed difficult since various managers’ focus on improving the technical issues around the working environment thus ignoring the most important factors. Some of these factors include the organisational behavior, values and culture.  In the recent years it is important to understand the organisation behavior since it enables managers to plan for the future and set up strategies of improving the organisation position. The above study shows Wal-Mart Company which is a major hypermarket and how it has used various strategies to implement organisational change. The study also shows how the company connects it strategies to achieve effectiveness. Wal-Mart Company believes in driving a sustainable business through diversity programs that build both qualitative and quantitative components which assist in achieving diversity goals. Freeman and Daniel (2009) describe that Wal-Mart aims at increasing its sales volume through offering friendly prices to its clients. This has enabled the company be associated with low prices and has improved the company’s image. The company therefore aims at ensuring that employees participate in attaining these goals. A culture of perfection has also been cultivated where every one aims at being on top. The major business objective of the company is ensuring that sales volumes are always increasing. The company also ensures that its growth rate is not stable but increasing. The other goal is to introduce ways of sustaining company’s competitive advantage for example through developed promotions. To achieve maximum goals, the company aims at carrying out a market research that will enable it discover the needs of their customers who are a greatest asset in business. Market research involved organised process for gathering information about markets and analysing the needs of customers. Freeman and Daniel (2009) shows market research form a significant part of the business strategy that shows an organisation which direction to take in order to attain a competitive advantage against the competitors. The objective for carrying out a market research is to examine the importance of marketing research in achieving organisational goals. The other objective is to outline the contents of research brief and proposal. Finally, market research aims at explaining how the information collected helps the company. The marketing research was carried out to identify directions, discover new business models and web distribution models. Information got from a marketing research does not guarantee success neither does it make business decisions. Final decisions are made by the marketing managers and therefore are necessary for them to obtain research report showing the courses of action. Market research therefore analyses the marketing needs, the size of the market and the scope of competition. Blyton et al. (2009) puts it that market research information is important as managers are in a better position to determine the needs of their service delivery. It is also clear on the likelihood to sell, and how to formulate strategies for target market demographics. The information will benefit all the departments in the firm for example the finance department will be capable of keeping resources of developing its other departments. The marketing managers will also be able to formulate new strategies that will be necessary to meet the needs of consumers and to attain a competitive position in the market environment. Market research is also necessary as it enables an organisation to discover new business ideas and to evaluate the kind of ideas that will be effective to use. There various methods needed to find information about markets; they also show how to meet the target marketing needs. The information provided by the market research will give managers a clear picture of the market. Blyton et al. (2009) argues that this will be by analysing consumer information which involves gender, age and their buying behaviours. This analysis should help the managers to decide on how to formulate market targeting s and what kind of group should be targeted for example in the hotel industry the manager may decide to formulate strategies that target a certain age of people. Competitor information is also got from market research where an organisation is able to learn the strategies of other competitors and therefore form similar strategies or change. Competitive opportunities are discovered through research for example customers may give the unmet consumer needs or the underserved consumer segments. This enables the company to develop systems in order to ensure that all the consumer preferences are met so as to beat other competitors. Organisational behaviour It is also necessary to analyse the organisational behaviour which focuses on how members behave around their workplace, the culture of the organisation and how managers ensure that every member agrees with the implemented culture. Organisational behavior generally shows how people conduct themselves within the organisation set up. One of the most important goals that all managers in this industry aim at is caring for their customers which include both internal and external customers. According to Freeman and Daniel (2009) organisational behavior is described as a field of study that shows how individuals perform their activities around the working environment. Managers should therefore be in a position of reviewing these activities and checking misconducts in order to improve effectiveness. An organisation being a social unit comprising various groups of people needs to have set goals in which every individual aim at achieving. It is therefore important to study the organisational behavior in order to realise the various challenges that face individuals at workplace. Some of these challenges can be grouped into several levels such as the organisational level, the group level and the individual level. The challenges facing the organisational level include productivity where low productivity affects every individual in the entire organisation. The other challenge at the organisational level includes lack of effective employees. Global competition is also included at the organisational level and finally is the management strategies (Bradley 2010). Analysing the organisational behaviour enables the company to retain its customers. This is necessary in building and enhancing a long-term relationship with customers. The relationships generate positive returns into the business. Bradley (2010) explains consumer retention is therefore a key to marketing success and every business should ensure that they achieve it. Organisational development is also necessary as it enhances self renewing capacity. The characteristics of OD are that it affects the culture and business processes. It also encourages collaboration between leaders and the team members. Members in an organisation are seen as the biggest asset of the organisation and therefore their skills are developed to enhance effectiveness. Mulcaster (2009) shows OD involves facilitation of business change it therefore affects change through the involvement of problem solving and decision making processes. OD affects change especially once an organisation improves its technical systems employees have to be trained on how to adapt to the new systems. Such development facilitates organisational change therefore changing the way activities are carried out. Organisational change The company also has to implement change to maintain a competitive position. Blyton et al. (2009) describes that change is an essential factor to consider for surviving in today’s market. This involves adding new people or modifying programs it also include change in mission and restructuring operations such as restructuring self managed teams or layoffs, improved new technologies, mergers etc. Change occurs to accomplish an overall goal and it is usually provoked by outside driving force such as addressing new markets or need for dramatic increases in productivity. Businesses change in order to keep up with the ever increasing trends in the market and to maintain their competitive position. Businesses also need to change in order to empower their employees and to build their skills in various aspects. This is because change develops people and facilitates learning. According to Mulcaster (2009) change includes; change in leadership, decline of profitability, change in employee profile and low morale. Change occurs in various ways for example there can be strategic change, operational change and transformational change. It also involves quality change, values, competitive position, and product market development. Businesses also change as a result of global or local change, external analyses, changing needs, or the demand of customers, and finally economic conditions. To implement change for example in a large company such as Wal-Mart, communication is very important. This is because people will need to express their views and it also helps individuals to adapt as fast as possible. It also builds capacity to manage change in human resource managers. SWOT Analysis Strengths Wal-mart has been a powerful retail brand and therefore has a good reputation for its value for money. Its convenience and the provision for a wide range of products have contributed to its strengths in the market. Mulcaster (2009) puts it that Wal-Mart has also grown substantially over the recent years therefore has experienced global expansion. The company has a core competence which involves the use of improved information technology that supports international logistics systems for example the company carries out a market research that enable the company to see hoe the products perform countrywide and store by store. The improved technology is also necessary as it supports the company’s efficient procurement. The other strength that enables the company to survive in the competitive market is having a focused strategy for human resource management and development. The major key factor to Wal-Mart business is people where the company invests time and money in training, development and in retaining employees. Weaknesses As the World’s largest grocery retailer and despite the advantages its offers to its customers and the economy, Wal-Mart is weak at certain areas as a result of its huge span of control. Since the Company sells its products across various sectors such as clothing, food and stationary it becomes flexible to its more focused competitors. Though the company is global, it has presence in few countries worldwide and this contributed to its weaker side. Opportunities Some of the opportunities that has enabled the company to position itself in the retail market include taking over, merging with companies and forming strategic alliances with global retailers for example in Europe and China region. The stores are available in small number of countries and therefore there is an opportunity of future business expansion to other consumer markets. The availability of new locations offers opportunities for exploitation of market development where the company diversifies in large centres and malls. Threats Being the market leader means that you are the target of competition both locally and globally and also a global retailer is exposed to various political issues the operate in different countries. These factors include the threats the company faces while trying to market and position its stores globally. The intense price competition which results from reduced cost of production and manufacturing cost is also a threat to the company. Models of change Using the above SWOT analysis, it is important to come up with the most appropriate model of change. The best model to be implemented in the company would be ‘Piecemeal model’. This is because the model’s strategies present are those that enable the company to achieve its competitive advantage. Some of the forms include team briefings, open communication, re-examining pay schemes, use of quality circles, performance appraisal and involving small group of people in a team. The model also advocates for change in the business which is necessary to come with the sophisticated trends in the market and to meet all the consumer needs and expectations. The model that would not be ideal to use in this company is the ‘bargaining for change’. One is because the model use the old style productivity bargaining. The model does not link the targeted change with the human resource plan and opening up of new strategies is not communicated to all the managers in the company. This method therefore seem to only make decision at the top level which limits industrial relations as employees are not aware of the decisions made. In this model, managers make their own decisions and change occur as a result of managerial initiatives, however, the initiatives lead to lack of strategic logic. The model also uses various traditional concerns for example the availability of labour and the scope of using labour where it was most needed. In this workplace change I have chosen to use ‘Piecemeal initiatives’ as it also involves the use of organisational development and modes of intervention. The model also has fewer drawbacks and those that can easily be resolved for example the inconsistencies between leadership and employee participative. To solve the problem, the human resource manager should offer administrative role of coordinating change for example by developing project plans, monitoring and keeping track of change while it is happening. They should also support employees to cope with change especially in behavioural and emotional aspects. The organisation learnt that people resist change due to various reasons such as loss of control, shock of new processes, uncertainty, inconvenience of new methods of operations, threat of status and competence. Human resource managers ensure that the above resistance is controlled and that all employees adapt to the new systems (Alexander et al. 2008). Recommendation For the company to effectively position its products into the market, a process should be followed by Wal-Mart which involves defining the market. This is to determine the relevant buyers in the market and ensuring that the products produces satisfy the needs of these buyers. The Company management should also identify the attributes or dimension in which are to be employed in order to achieve a competitive position. Information about the company’s products should be collected from a sample of customers. This will enable the company to know how their products are perceived in the market. Conclusions In the implementation of the above recommendations, the company’s management should ensure that they maintain their company resources which include maintaining a good relationship with the employees as this improves industrial relations. The product resources should also be effectively managed to avoid lower production in some places. Inventory and supply chain has to be effectively managed by the Company as this will be necessary in achieving the Company’s goals. The sources of raw materials should be reliable and relevant according to the conditions in the industry. References Alexander, R, Lewer, J & Gahan, P 2008, Understanding Australian Industrial relations, 7th ed., Melbourne, Thomson. Banber, G, Landsbury, R & Wailes, N 2010, International and comparative employment relations, 5th ed., Sage publications, London. Blyton, P, Heery, E, Bacon, N & Fiorito, J 2009, The SAGE handbook of industrial relations, Sage publications, London. Bradley, N 2010, Marketing research, Tools and techniques, Oxford University Press, Oxford. Freeman, B & Daniel, L 2009, Science and engineering careers in the United States, An analysis of markets and employment, University of Chicago Press. Mulcaster, W 2009, Three strategic frameworks, Business strategy series, vol. 10, no. 1, pp. 68 – 75. Read More