Analysis of Leadership, Management, and Operations at Walmart

This report provides a comprehensive analysis of leadership and management practices at Walmart. It begins by differentiating between the roles and characteristics of leaders and managers within the organization, highlighting their similarities and differences. The report then delves into the functions of a manager, based on Fayol's principles, including planning, organizing, staffing, directing, and controlling, and explores how these functions are applied in various situations. Furthermore, the report examines different leadership theories, such as situational, contingency, and system leadership, and their relevance to Walmart's operations. The report also discusses approaches to operational management, like Total Quality Management (TQM), and the factors that influence decision-making processes for leaders and managers, providing a holistic view of Walmart's operational and leadership strategies. The report concludes with a review of the key findings and their implications for Walmart's success.

Management and
Operations

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and characteristics of leader and a manager...............................................................1
TASK 2............................................................................................................................................3
P2. Role and functions of manager:............................................................................................3
P3. Theories and approaches of leadership:................................................................................4
TASK 3............................................................................................................................................6
P5. Importance and values of operations management:..............................................................8
TASK 4............................................................................................................................................9
P6 Factors affecting decision making process of leaders and managers....................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operational management refers to the integration of various management functions like
planning, organising, staffing and controlling to manage the business activities that brings high
level of efficiency in an organisation. Its main aim is to convert raw material into finish goods as
effectively as possible to increase profitability and customer satisfaction(Bott and Luna, Seven
Networks Inc, 2017). It helps in maximizing the utilization of resources and at the same time
maintain the quality of product. Walmart is an multi-national retail industry that operates a chain
of discount department store, grocery store, hypermarkets. It deals in various product segments
like electronics, movies & music, home furniture, clothing, health& beauty, grocery etc. This
project consists of difference and similarity that a leader and manager have in their functions
along with different theories and approaches used by them. In addition to this it also identifies
various environmental factors that affect the decision-making of leaders and managers of
Walmart .
TASK 1
P1. Roles and characteristics of leader and a manager
Difference and Similarities:-
Leader is a person who leads group of people within an organisation with the great
imagination. They motivate employees to achieve their goal along with organisational
objective. Manager is a person who have the responsibility to control and manage the company
as well as employees of that organisation (CHEN and JIANG, 2011). Leader and manager poses
differences in their characteristics as well as having different roles performed by them in
Walmart which are given below:
Differences:-
Basis Leader Manager
Role Main role of Leader is to
motivate people and provide
them a vision to achieve their
life's goal along with the
organisational objective.
Manager's roles is to planning
the tasks and instruct their
employees to achieve them on
time. Managers of Walmart
manages the human resource
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functions using three activities
such as internal promotion,
external recruitment and
higher incentives which keep
them energetic and motivated
toward the achievement of
organisational objectives.
Risk Leaders take risk and motivate
their follower to try new things
, as they assume that failure is
the step on the path of
success(Chen, Wu and Fu,
2012). Leaders of Walmart
always willing to take risk by
adding new products to their
stores.
Managers tries to minimize the
risk, they seeks to control the
problem faced by organisation
and use to avoid them instead
of taking risks. Walmarts have
skilled and competent
managers who formulates
strategies to control the risk of
organisation.
Outcomes Leaders of this organisation
tries to inspire their follower to
achieve more and their vision
is to expand their branches
over large geographical region
into different and untapped
countries.
Managers of Walmart arev
more convergent toward the
completion of their task
efficiently. They are result
oriented and focused on
maximizing the profit of the
company by satisfying their
customers and maintaining
long term relation with them.
Similarities:-
Leaders and managers both plays a vital role for the success of an organisation in a long
run and in competing with their Rivals. Both performs several different functions toward the
growth of organisation but have some similarities in their characteristics and roles(Fotevski,
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NEMISYS NETWORKS LLC, 2011). A manager can also be a leader if he has a skill to inspire
their employees to work more efficiently toward the success of organisation. Leaders and
manager of Walmart have following similarities.
 Both have a great influence over the environment of this company and create a
foundation of functional structure of organisation to get best result from the employees
efforts.
 A great manager also poses leadership skills as they set a vision for the achievement of
overall goal of organisation and encourage their employees to achieve that goal by
working together as a team.
 Manager and Leader are more focused toward the achievement of certain goal that assist
Walmart toward its growth.
 Both leader and manager are more concerned about developing strategies to provide
guidelines to the employees of Walmart so that allocated resources can be used more
effectively and efficiently for the completion their tasks.
TASK 2
P2. Role and functions of manager:
There are various role and functions of manger which is essential for the better
functioning of organisation(Hammill and Tanner, 2011). Manager have five major functions
which is derived by Fayol that are as follows:
Planning:
It is the first step that involves drafting out exactly how to attain specific objective.
Manager required to plan the schedule and provide blueprint of how action is to be done with
needful details, and also there should be back up plan if this doesn't work then what to do next.
For example, Walmart's aim is to improve its sales. The manager first need to decide which steps
are essentials to achieve that objective. Steps may involves increasing inventory, advertisement
and sale staff. These necessary decisions are formed into a plan.
Organising:
After the plan next step is organising, where the manager required to sync and have to
make sure that everything is going as per the plan and if not then they should work on the
problem and make it as planned(Handschin and Petroianu, 2012). Manager of company required
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to organize team and materials according to plan. Two important element of organizing is
assigning work and granting authority. For example, Walmart needs a store manager so organize
the date, venue and time to conduct interview for those who are eligible to post.
Staffing:
Another function of manager is staffing which means grouping of staff into several teams
and assigning different task to them(Higgins, Fitzpatrick and Dancho, Smart Storage Systems
Inc, 2015). When team members have any grievances than they need to report team leader and
issues will be taken care of. For example, assembling a new team for a new project.
Directing:
After staffing, next step is directing which means a manager require to do more than just
plan. Its manager's role and responsibility to lead the employees in every situation in order to
avoid disputes and delay in assigned task. Manager of Walmart has to guide the employees so
that they have clear idea about what is to be done and how to do it. Directing involves
motivating, guiding, encouraging and communication. For example, a teams needs team leader
to looking up each task that is achieved, in- process or aborted.
The role of leader and functions of managers in different situations:
 Stable situation: In organisation or external environment when there is stable situation
which means there are very few changes in internal and external environment. So the role
of leader and manager is the predict the future or forecast it by using past record and
formulate different strategies that are beneficial for firm .
 Stable to moderate situation: It is a situation where Company faces very few changes in
their external environment and that can be controlled by using effective
strategies(Johnstone, 2016). In such case it is the role of manager to formulate policies
that can eliminate the risk of loss due to changes that take place in environment.
 fast change:Fast change refers to the situation when a company faces continuous changes
in business environment. This requires a manager to develop a contingency plan in order
to eliminate the risk of failure in such situation. The role of a leader is to motivate the
employees to maintain their efficient at workplace.
P3. Theories and approaches of leadership:
Situational theory of leadership:
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It refers to leadership style which may change continuously to meet the requirement of
others in enterprise based on situation. This is not based on specific skill of manager, instead of
he modifies the style of management which suits the needs of organisation. The situational
approach is based on task oriented(Nakayama, and Bucks, 2012). This is about the leader's
analytical skill that helpful in choosing leadership style according to the situation. A good leader
is flexible as well as adaptive in nature as required to situation. Leaders have to evaluate all facts
and figures of current scenario and they take decision by choosing the best appropriate theory as
per the situation. It is most effective and efficient style that can be changed on situational basis
and also supports leader or manager in attaining the specific task in proper manner to the
business growth on the long term basis. When the leader of company adjusting his style to fit
improvement level of followers he may trying to influence them.
Contingency leadership:
This theory is focused on the importance of leader's personality as well as situation in
which leader operates its function. It is a type of leadership style that natures those being led,
work facing a group are different and the make up of leader. This theory believes in effective
leadership is not all about which leadership style is obtained as per the situation. It is only
depends on having control over the situation. Role and responsibility of good leader to discuss
about aim with employees to achieve the particular goal. Leader should have clear vision about
the procedure of completing task with the teammate to lead them about task for attaining
organisational goal. It is concentrated on highlighting specific issue instead of situational
analysis. The theory gives the idea to the leader about they can go for two different styles which
are either people oriented or may be task oriented. It should be appropriate theory among the all
and leader always try to adapt this theory as it helps in business growth.
System leadership:
Another approach of leadership is system leadership which suggest that leader should
treat company as system which is interrelated either with man made or natural. It differs from
dynamic or active systems to static or passive system. This is any set of distinctive parts which
interact to formulate a complex whole(Parisio and Glielmo, 2013). System theory gives approach
to analysing, understanding and thinking about company. This theory defines that leader converts
organisational environment into system. A company is made up of different type parts such as
information, employees, infrastructure, machinery, product, assets and resources as the system. It
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creates the environmental scene in the enterprise in order to achieve organisational goal in
effective and efficient way.
In context to Walmart, contingency theory is opt by the leader because it is suitable for all
business situations(Mendis, Muttaqi, and Perera, 2012). As it is the best leadership theory that
helps in taking right decision making by leader for a particular issue and resolve it in a very
effective manner. Contingency theory also very helpful for Walmart in achieving its
organisational goal in efficient and effective manner.
TASK 3
P4 Approaches of operational management and role of leaders and managers
Operation management is an very essential part of organisation as it manages the
activities performed in organisation that help in enhancing the productivity and aligning the
product according to customer's requirement. Following are the approaches used by Walmart to
achieve efficiency in their operations:
 Total quality management:-
TQM is a technique used by companies that focuses on continuous improvement in
method of doing business to achieve long term success through customer satisfaction. This
process involves all the members related to the organisation to participate in improving the
quality of product and services. Managers of Walmart uses this approach to improve their quality
of services and to provide innovative products to their customer. To remain a market leader
company manage good relation with their supplier and motivate them to provide quality inputs. Six Sigma:-
It is a set of tools and techniques used by companies that involves statistical and data
driven approach for eliminating the defects in product and its process for improving the quality
of their offerings. Walmart uses Six sigma approach to identify the percent of product that are
defective(Steinberg, 2011). Company is more concerned about providing quality product to their
customers. Hence their manager sets some critical control point where supplier have to disclose
details of their manufacturers, stock go through security inspection and after that product are
consider ready for delivery.
 Just in time:-
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It is an manufacturing system used by operational management in which materials are
delivered before time as it required to minimize the storage cost. Walmart applies this approach
to meet customer demand exact in quality, quantity and on time when they asked(Stoppato,
2012). Company uses cross-docking method of JIT in which supplier's truck transfer goods to
Walmart's truck which deliver the goods to the store that reduces the inventory cost of company.
Roles of store manager:-
Store manager is a person who is responsible for management of day to day operations
performed by its staff members to ensure profit maximization and efficient functioning of store.
Followings are the roles and responsibilities of store manager:- Recruitment and Selection:- Major role of store manger is to recruit and select the
competent candidate with required skills and experience according to Walmart stores and
provide them training so that they can aid toward the companies growth. Preparing of Budget:- Store manager is responsible for planning future course of action
and forecasting expenses that may arrive during the performance of these action in future
for preparing the budget. Managing store environment:- He must maintains the physical evidence of Walmart
stores in most attractive way so that customer get influenced through the internal
environment of store to purchase product and services(Wang, and Cullinane, 2015). It
includes LED lighting of indoor-outdoor and parking lots, water efficiency, concrete
flooring, white roof, replenishment of stock etc. Achievement of sales target:- Store manager is responsible for maximizing the
profitability of stores and achieving the sales target by motivating and guiding their
employees.
 Cost minimization:- To reduces the wastage and maximize the revenue for the
company's growth store managers in Walmart uses cost effective policies to minimize
the expenses.
P5. Importance and values of operations management:
There are various advantages of operations management which results in improving the
productivity and delivery of products and services on time. It focuses on converting raw material
and labour into product and services effectively to increase the profit of an organisation.
Significance of operational management are as follows:
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 Product positioning:
Importance of operational management product positioning of final product in
market. Walmart assures that the product they deliver to customer is of high quality and
also environment friendly that gives great value to the potential customer(White, 2016). It
also very helpful in differentiate Walmart's product and services from their competitors
as they are also offering same products. So company has to present their product and
services in such a way that is attracting large number of people with the help of
operational management.
 Reduce wastage of resources:
Operational management is helpful in optimum utilization of resources which
results in increase in profit and by solving issues which is related to maintenance, design
and operations of system which is used by production of product to decrease wastage.
Walmart uses different kind of strategies for proper utilization of resources by providing
incentives to their retailer for making affords for less wastage and this leads to earn more
money. Help in satisfaction customer need:
By producing quality product with the help of operational management it leads to
satisfying customer needs and wants. Walmart produce product as per the demand of
customers which helps in attaining consumers satisfaction and also leads to profit
maximization of company(Zhang, and Chen, 2014). By offering variety of products with
superior quality provides high level of satisfaction to consumers and also attracts new
customers.
 Provide long term benefits to company:
Operational management aspire employees to manufacture their product with best
quality and also deliver product to customer on time. Walmart gives long term benefit to
potential customers by providing innovative product in their supermarket on regular basis
so that it attracts new consumers which helps in profit maximization and also create
brand image in market. Walmart provide good quality of product with affordable price so
it results in increase in sales and this leads to increase in profit.
 Supporting company's strategy:
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Operation management is the mixture of different functions of enterprise such as
planning, organising, directing, staffing and controlling(inder, and Aharonovich, Cork
Group Trading Ltd, 2013). Another activity of operation management is cutting the cost
of product at time of manufacturing to decrease their expenditure and helpful in
generating more profit .
 Interdepartmental integration:
It is manager's responsibility to divide the work among various department of
organisation which helpful in avoiding disputes between employees and save time in
product production. Operation management assist company to integrate with other
departments of organisation. For attaining enterprise goal it is very necessary to have
integration among various departments of company and having team work is very
important for employees in firm because it results in fast decision making and attain their
goals on time.
 Inventory management:
Another importance of operational management is inventory control. Walmart's
has good inventory management which includes just in time crossing docking and vendor
managed inventory model. Company minimizes the size of its stock this helps in firm's
cost minimization efforts. These approaches leads to maximization of enterprise's
performance with the help of operations management.
These are the importance of operations management which helps in developing a product with
optimum utilization of resources that reduces the cost of production and affordable of large
number of people which results in profit maximization.
TASK 4
P6 Factors affecting decision making process of leaders and managers
There are number of factors that are present within as well as outside the organisation
that affect the decision making process of leaders and managers which are as follows:
Internal factors:- These includes factors that are present within the organisation and affect the
success and operation of business. Following are the internal factors: Customer :- These are the person who purchase the product and services of the company.
Customer satisfaction is the main aim of company and each user has different need and
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preferences, this affect the decisions of a manager(Stoppato, 2012). He must consider the
demand of their customer in order to align the product according to end user to maintain
good relation. Suppliers:- A person who supply goods or raw material to company is known as supplier.
Walmart maintain good relations with suppliers so that they can supply goods to store in
a timely manner as delay in delivery may affect the profitability of company.
External factors:-
It includes factors that are present outside the organisation and not under the control of
company there effect can only be minimized but can't be eliminated. Following are the external
factors: Political:- Political factor includes policies and standards enforced by government that
must be followed to operate the business in a particular area. These factors has a great
impact over the functioning of Walmart as it is getting political pressure for increasing
wages rate. Economic:- It includes factors like inflation rate, income level, foreign exchange rate etc.
that affects the company's revenue. Walmart getting number of opportunities as it having
their store in developing countries like America, Germany etc. where economies are
stable that benefited company with increasing demand of products and services . Social:- Socio-cultural factors present in business environment includes customer taste
and preference, custom, value etc. It affects the decision making of manager as these
factors must be consider while making decisions regarding the production of product. For
instance with the increase in the issue of obesity, awareness for adding healthy food in
diet is trending now which provides an opportunity to Walmart by increasing its array of
healthful products.
Factors impact upon decision making as a store manager
For effective decision , it is necessary for a store manager of Walmart to consider all
internal as well as external factors during decision marking process related to the production and
operational activities. By using these factors company can determine various opportunities in
market to exploit them, that help in achieving goals and objective of firm. In addition to this, it
also eliminates the chances of error that may arise at the time of manufacturing of product and
services.
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These factors affects the decision making of a manager as Walmart has its stores
worldwide and each country has different legislative policies that may affect the growth of
company. So, they must consider these policies while formulating strategies related to operating
their stores in different countries. Another factor to be consider while making decisions is to
determine the need, taste and preferences of the customer in order to make them available with
products that can satisfy their demand. As failure in this decision results in declining of market
share and demand for the product and services.
By considering these factors in decision making, Walmart can increase their chance of success
and growth which in turn will provides competitive advantage to it. It also help an store manager
to analyse various threats that may affect the growth of company.
CONCLUSION
From the above report it is concluded that leaders and managers plays vital role for
smooth running and achievement of organisational goals. They guides the employees how to
achieve specific task by motivating and encouraging them. This file also explains about features
of leader and manager which they possess and helps in dealing with different situations. Further,
operational management is very necessary in the organisation as it provides good quality of
product and also on time delivery. Walmart follows various leadership theories and approaches
of operation management which helps in achieving organisational goal and also satisfy customer
needs and wants.
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