Organizational Culture of Wal-Mart

This article explores the organizational culture of Wal-Mart, including its cultural history, pros and cons, and cultural changes implemented over the years. It also discusses how organizational culture affects leadership and the success of the company.

Running head: Organizational culture
Wal-Mart
Organizational culture

Organizational culture
Table of Contents
Introduction.................................................................................................................................................3
A. What is organizational culture................................................................................................................3
B.The cultural history of Wal-Mart.............................................................................................................4
How an organization culture affect leadership.............................................................................................5
Pros and cons of Wal-Mart culture..............................................................................................................6
Cultural changes implemented over the years.............................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8
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Organizational culture
Introduction
Organizational culture is essential to attain desired objectives and targets in the
competitive market. The paper outlines the corporate culture that is possessed by Wal-Mart
Supermarket Company. It is well known American supermarket brand that offers innovative
retail products to the customers across the world. Cultural history, pros and cons of Walmart
culture have been briefly explained in the task. It discusses that how organizational culture affect
leadership at the workplace. Cultural changes that are implemented by the company have also
been elucidated in the paper. More detail of the task has been elaborated below.
Wal-Mart is an American multinational retail corporation that manages and operates a
chain of grocery stores, hypermarkets and discounted department stores (Walmart, 2018). It was
formulated in 1969 by Sam Walton. The firm has more than 11,200 stores under 55 banners in
more than 27 countries. The organization has employed approx 2.2 million associates globally
(Walmart, 2018). The firm continues to be a player in sustainability, employment opportunity
and corporate philanthropy. The main motive of the firm is to utilize strengths and collaboration
with others to convert the systems on which they rely.
A. What is organizational culture
The organizational culture may be defined as a system of shared, values, beliefs,
assumptions which governs how people behave in the companies. These shared values have a
strong and unique influence on the people in the organization. The organizational culture may
also affect the success and growth of the firm in a large extent (Lowe, 2018). Culture is
considered as a common platform or route where employees work in unison to earn profit and
revenue in the global market. Healthy and strong culture encourages workers to stay motivated
and trustworthy towards the management at the workplace. Along with this, the organizational
culture brings all the workers on a common platform to conduct business activities and
operations successfully and effectively (Ayman & Korabik, 2010).
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It is needed for the workers to adjust well in the company’s culture for them to render
their level best. Healthy and unique competition among the workers is one of the outputs of a
strong and effective organizational culture. Guidelines also contribute to make a favorable
culture at the workplace (Hock, Clauss & Schulz, 2016). They provide workers with a sense of
assistance and expectations that keep workers on task. With effective and dynamic culture, each
and every employee at the workers could able to understand their power, roles, and authorities
are and how to attain tasks and objectives prior to set deadlines (Managementstudyguide, 2018).
B.The cultural history of Wal-Mart
It is stated that Wal-Mart maintains strong and dynamic culture at the workplace to
motivate the workers towards the attainment of goals and objectives. Wal-Mart stores was
formulated on principles and rules developed by Sam Walton. These principles are implemented
every day in the organization (Yates, 2013). Corporate culture is one of the significant keys to
organization competitive edge. The four basis and unique beliefs of Wal-Mart corporate culture
have been discussed below.
Service to the customers: The customer is the boss to enhance and uplift profitability in the
international market. The company provides exchange and refund options to the customers to
win their loyalty and trust in the competitive market. It provides support to the executives for
serving better services to the customers across the globe (Walmart, 2018).
Respect for the individuals: Each and every associate’s opinion and review are respected.
Managers are being considered servant leaders who help to new executives realize their potential
through innovative feedback, praise and training. Open door management policy is used by the
company to encourage the employees for performing tasks and duties effectively and efficiently.
Strive for excellence: Wal-Mart is striving for excellence by providing new and innovative
ways of doing things and improving customer’s life every day. The firm is working as a team by
supporting each other and asking for help (Walmart, 2018).
Act with integrity: Wal-Mart fairly is dealing with suppliers, stakeholders, vendors and
associates to make a dynamic culture at the workplace. It follows code of conducts and ethics in
the workplace for attracting more people globally. Along with this, Wal-Mart provides exposure
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and good opportunities to new associates to know and understand about functioning of big retail
Company (Walmart, 2018).
How an organization culture affect leadership
It has been found from the various studies that organizational culture may impact on the
steps and decisions of leaders and employees therefore affecting all factors of organization and
management. Leaders or managers have a wider influence on strong and effective organizational
culture. It is elucidated that organizational culture entails various values, beliefs and behaviors.
All these values and behavior affect leadership strategies of the leaders at the workplace. The
organizational culture plays a major role in making a dynamic and positive working environment
in which people work in the organization. Communication skills are significant to the leaders or
managers at the workplace in order to communicate and collaborate with subordinates (Kotter,
2012).
There are three components of leadership including common goal and vision, ability to
influence and followers and subordinates that are willing to work towards the objectives and
vision. To be a unique and skilled leader in multicultural teams is essential a focus and monitor
on the communicational attributes and aspects (Schein, 1984). Different culture and behavior
require a single leadership strategy or approach tailored on particular cultural aspects. Corporate
culture further helps the leaders to enhance and improve the talents, skills and knowledge in the
competitive market (Byrne & Bradley, 2007).
Leadership and organizational culture are interconnected with each other because both
the factors help in improving performance and productivity of the followers. If the company does
not maintain favorable and unique corporate culture then it may affect the decision making,
performance and efficiency of leaders widely (Sims, 2002). The leaders could fail to perform
roles and duties effectively due to poor and ineffective corporate culture. Strong and powerful
corporate culture enhances and improves morale, loyalty and honesty among the leaders. With
good organizational culture, the leaders are able to develop better relationship with followers,
suppliers, customers and stakeholders. Leadership is related to the performance and productivity
of the organization. Therefore, without effective organizational culture, the leaders cannot
perform tasks and duties in a hassle free manner (Schein, 2014).
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Pros and cons of Wal-Mart culture
It is stated that Walmart corporate culture is unique that helps to attract and retain wide
range of candidates and customers in the competitive market. Culture is the foundation of
everything people do at Walmart (Walmart, 2010). The firm renders superior customer service
and products, generate an excellent frontline work environment and enhances and improves
performance in order to attain common goals and objectives of saving people money so they can
live better. The strong and unique corporate culture is one of high achievements for the firm that
help to boost and enhance profitability and returns. Apart from this, the company has a long and
dynamic history of rendering comprehensive health care and advantages to the executives. The
company offers quality plans to improve the quality of the products. These plans are considered
best and unique in the retail industry. Walmart believes and ensures that when associates have
stability and reliability in various areas such as parental leave, healthcare, maternity leave,
retirement planning and paid time off, the company could able to bring their excellent selves to
work (Walmart, 2010). The pros and cons of Wal-Mart culture have been drawn below.
Pros
 Excellent learning, exposure to new associates to know about activities and functioning
of big retail and Consumer Company.
 Provide innovative and unique benefits
 Work with good people, vertical mobility and steady raises
 Human resources are standardized and unique
 Helpful and attractive training programs
 Good working hour and dynamic corporate structure
 Stores throughout the nation, makes it easy to transfer or exchange
 Wal-Mart promotes the virtues of fairness, honesty and impartibility in decision making
 The firm also identifies and enhances the contributions of each worker to the success and
progress of the business.
 With effective corporate culture, the company is able to strives and compete for
excellence in the performance of teams, individuals and the entire company.
Cons
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Organizational culture
 It is stated that Wal-Mart is one of the biggest and well known companies across the
globe. Top management is more concerned about the number of associates but it is failed
to provide training and development coaching to them
 Crap pay and inadequate pay, horrible managers at stores
 Favoritism among the supervisors and managers
 There is no enough cashiers on stores so lines get long.
 Lack of career opportunities, the employees are switching the job or employment
 Bad and ineffective healthcare coverage
 Racism and illegal citizens
 Un-environmentally and poor friendly operations
 Anti-employee policy is one of the cons of Wal-Mart corporate culture (Schein, 2014).
Cultural changes implemented over the years
According to Wal-Mart, culture is strong and unique value in action. The organization’s
values and capabilities are service to the customer, competing for excellence and action with
honesty and integrity. The firm promotes and fosters a culture of uniqueness and integrity thus; it
helps in promoting global ethics. The firm upholds their policies and strategies for ethical
behavior and action everywhere they have activities and operations. Apart from this, the firm is
directed by the principles and rules of a wining work environment to promote strong culture at
the workplace (Cameron & Quinn, 2011). The company has implemented unique and excellent
IT infrastructure to support its speedy growth, development and serve its large customer base to
promote positive culture in the international market. Moreover, the firm also improves and
enhances employ wages and further it is also addressing management strategy to promote culture
and overcome the rivalries. Training is essential part of Wal-Mart’s corporate culture, thus, the
company emphasizes on training and development coaching (Reuters, 2017).
Wal-Mart culture is helpful in bringing and attaining competitive edge and success. It has
been analyzed that the company also focuses on the quality and features of the products and
services to improve corporate culture at the workplace. As the world’s biggest and leading
retailer, the firm renders ample of good opportunities for professional and personal growth and
development. Wal-Mart is a place of new and innovative opportunity. The firm begins with a
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strong and dynamic commitment to the 2.3 million executives that drive company’s stores, e-
commerce business, supply chain, logistics and other functions that are significant and vital to
serving customers in the international market. Corporate and business level strategies are being
used or implemented by the Corporation to develop innovative culture across the globe. Aside
this, the firm engages with frontline executives and leaders to support culture as it also is
maintaining consistent global communication and cooperation of its culture. By aligning HR
systems and policies from recruitment to retirement, the firm is able to identify and reward its
future executives and leaders as well (Glassdoor, 2018).
Conclusion
On the above mentioned limelight event it is concluded that Wal-Mart is one of the
biggest supermarkets that provides innovative and retail products to the customers across the
globe. It is stated from the above mentioned study that organizational culture is needed to build a
strong goodwill and reputation in the competitive market. In today’s competitive world, Wal-
Mart focuses its culture and values to promote products and services in the market. An effective
and unique culture is derived by Wal-Mart Corporation to stand out over the rivalries
internationally.
Culture may affect the leadership and progress of the firm. Without strong culture, the
organization is unable to fulfill the expectation, demands and needs of key target audience.
Innovative cultural changes have been implemented by Walmart while conducting the business
activities and operations globally. Less support from top management, poor training facilities and
bad healthcare programs are considered non-effective cultural change at Walmart that may
hamper image and financial position in the international market. In today’s modern world, the
company is trying to focus on the customer excellence, honesty, integrity, and business strategy
to promote effective corporate culture at the workplace. It will further help the company to make
an effective and attractive brand image in the international market.
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References
Ayman, R., & Korabik, K. (2010). Leadership: Why gender and culture matter. American
Psychologist, 65(3), 157.
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175.
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based
on the competing values framework. John Wiley & Sons.
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to-speed-change-2017-9?IR=T
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