Walmart Organizational Behaviour

Group Project

Wal-Mart and Its Culture

Background

Wal-Mart Stores, Inc. is the world's largest retailer, and rated as number one in the Fortune 500 company list. In 2011, Wal-Mart was reported to have total revenue of 421,849 million and net income of more than 16 billion. Founded in 1962 by Walton, Wal-Mart is currently the largest U.S. employer with 1.4 million workers (Wal-Mart, 2008) and 600,000 worldwide, and its major success was accounted to occur only after almost two decades in the 1980's. As part of the corporation, the major business success was followed by opening the Sam's club in 1983 and the launching the first Super enter in 1988. Within few decades, the corporation operated "different retail formats including various supercenters, food and drugs, general merchandise stores, small markets called bodegas, cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants." (Walmart store, n.d.) Wal-Mart's eversince has used the business operation of dealing wide variety of general merchandise maintained at best possible low prices at all times which is attributed as one of the keys of attaining company success which named its founder Sam Walton as one of the recognized richest man in the United States less than two decades in 1980s after establishing the company.

Who in this world does not know how successful Walmart is? Amidst the many challenges the company has faced, this organization has remained to be on its foot standing firmly as a one of the world's giants in the business arena. Every organization possesses its own distinct behaviours and certain characteristics depicting on how the company is building harmonious relationships that helps it to achieve its targeted organizational and social goals. As an organization that established its own name, the great Walmart's unique organizational behaviour perhaps is the greatest asset and its main key that made it into the current mighty Walmart. As one of the definitions, Organizational behaviour is "the actions and attitudes of people in organizations which covers the body of knowledge that can help managers understand the complexity within organizations, identify problems, determine the best ways to correct them, and establish whether the changes would make a significant difference." (Understanding and managing organizational behaviour, 2006, n.d.) This paper will try to explain some of the significant organizational behaviour of the Walmart Corporation which will expound on its organizational culture, communication and the decision making processes. An internet research will be utilized to collect pertinent data and information that will provide support on a thesis statement: "The efficient organizational behaviour is the main factor that made Walmart a successful giant retail store."

Walmart, currently spelled unhyphenated, is the same as what is used to be Wal-mart. Everyone knows this American public corporation which is currently a world's leader in running a chain of large discount department stores. The company has gone through some rough road on its path to successful operations especially after the death of Walton in 1992. Almost everyone heard about the highly publicized criticism about Walmart covering different organizational issues. It has been well heard how the company is criticized by some community groups including women's rights groups, grassroots organizations, and labor unions. Highlighted issues scrutinized the company's extensive foreign product sourcing. The issues on low rates of employee health insurance enrollment and the allegedly company's resistance to union representation, unfair labor practices and controversial gender-based discrimination or sexism has been hot media topics. Despite of the many challenges and oppositions particularly press pressures, the company has maintained to be successful and protect its image favourable to most of the consumers in America and many countries worldwide. The basic company beliefs highlighting the company's culture, the company's open door policy in communication and its flexibility in efficient decision-making are just amongst some of the contributors that helped the company to build a positive image patronized by many associates and consumers.

The company has wavered a bit by decreasing its revenue at some point of operation but it has not affected its success in terms of general performance. With all the challenges, nothing has held Walmart back from making it to be the successful and largest retailer of various grocery goods in the United States with successful worldwide operations. (The Walmart story, 2006, n.d.)

Wal-Mart Matrix Organizational Structure

A company's individual organizational structure is a formal composition of task and reporting relationships that allows the company to control, coordinate, and motivate employees so a common goal can be achieved. When composing a structure for a particular organization, management looks for the most effective way to categorize departments and their coordinating relationships to achieve the highest levels of production. Wal-Mart was constructed into a three product divisional structure. The successful world retailers' business categories include Wal-Mart Stores (U.S.), Sam's Club (U.S.), and International stores. The International segment yields about 20% of the company's overall business income and is responsible for several different types of restaurants and stores including Wal-Mart and Sam's Club in 13 countries and Puerto Rico. This divisional structure and approach works to Wal-Mart's advantage because each division is open to focus its efforts on specific goals such as product, service, or customers. Narrowing the focus really allows the company to perform more effectively because they are allowed to pinpoint specific areas needing change and adjust appropriately.

On the other hand, Wal-Mart adopted the matrix organizational structure within the company. The matrix structure allows the company to put together very flexible teams based on the experiences and skills of their employees. That's why in Wal-Mart the employees work as a team. Therefore, they are motivated to perform better. This results in higher efficiency and gives higher returns at lower cost as well. Sam Walton, the founder of Wal-Mart, used to say: "If you want to go fast - go alone and if you want to go far - go together." He believed it's because of their teamwork that makes them special. "What makes ordinary people do extraordinary things? Sam Walton once asked. "Aren't we a group of ordinary