Walmart CEO's Leadership: Management Style and Organizational Impact

This report examines the leadership style of Walmart CEO, Carl Douglas McMillon, focusing on his use of an authoritarian management style and transformational leadership. It analyzes the principles and functions of management, including planning, organizing, leading, and controlling, within the context of the retail industry and the impact of the COVID-19 pandemic. The report explores Walmart's organizational structure, the steps taken by the CEO to achieve high performance, and the changes in corporate culture. It also discusses the effects of power, influence, and conflict within the organization, along with the various types of motivation used. The analysis includes corporate examples and literature to support the arguments, concluding with suggestions and recommendations for strategic improvements.

Organisational Theory
and Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
A. Management style and state the principle and functions of management used by the CEO of a
retail firm.........................................................................................................................................3
B. Analysis of the steps taken by CEO according to the organisation structure for achievement of
high performance and change in the culture bought by CEO..........................................................4
C. Describe the leadership style of the CEO of that firm................................................................6
D. Analyse the effects of power, influence and conflict at the chosen firm....................................6
Analyse the effects of power, influences and conflict regrading the Walmart organisation. 7
E. various types of motivation used at chosen firm.........................................................................9
F. Appropriate corporate examples and literature to justify your stand .......................................10
G. Discussion and debate what suggestions / recommendations (strategies)................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Management style is regarded as the unique style that is adopted by different leaders for the
purpose of performing their assigned functions of managing employees in every organisation.
There are different styles that are adopted by leader according to a particular prevailing situation
for the purpose of dealing with the issues of employees and also at the same time for the purpose
of managing their work (Im, Cho and Kim, 2019). The report is based on examining the overall
management style that is used by CEO of Walmart who is Carl Douglas Mcmillon. He is an
American businessman and also chief executive officer of Wal-Mart who is part of the board of
directors. Joined Wal-Mart as a summer associate and in the year 2014 where he became
company’s fifth CEO. Presently there is analysis of the different management styles principles
and functions that are adopted by CEO of this retail organisation. Further there is an analysis of
the steps that are taken by CEO regarding the organisation structure for achieving higher
performance of employees in dealing with the different issues that are being faced by the
organisation.
Present issues in Wal-Mart: The present covid-19 pandemic has affected different
industries in a different manner but in case of retail industry there has been a crucial impact
because of the sudden shift in the way people are focusing on their needs and preferences. It
leads to developing a focus on the communication culture internally in large organisations like
Wal-Mart. There is a need to use some of the strategies for the purpose of managing the internal
functioning in order to deal with the situation of dynamic. So working as the leader is focusing
towards developing a collaboration culture so that there are better channels of communication
taking place among employees working at different levels and overall set objectives can be
achieved according to the provided time frame (Walmart CEO: To tackle today’s challenges,
‘listen with open ears and an open heart’, 2020).

MAIN BODY
A. Management style and state the principle and functions of management
used by the CEO of a retail firm
Management style: Macmillan is focusing on using of authoritarian management style which is
related to managing the organisation function by development of clear control and directions. It
is also related to the directive management style or the autocratic management style where there
is decisions taken only by the top management according to the reporting structures (Yaari, Blit-
Cohen and Savaya, 2020). In relation to Wal-Mart there is emphasis on determination of
organisation capacity so that it can add value to the retail services according to their customer
expectations. Leader is focusing on development of key culture components that consists of
providing timely services to customers, respecting of customers, service the excellence and
action with integrity.
Principle of management: Innovative management is an important key that is used by many
retail organisations. Wal-Mart has been able to survive with the limited innovation by focussing
on quality products and working towards maintaining of competitiveness in the market. They
are analysing all the issues that are causing changes in the human behaviour. There are different
principles of management that can be used by CEO in walmart, Henry fayol has developed 14
principles and gave a new perception of the management concept. Mcmillon is focussing on
developing unity of direction as the 5th principle of Fayol's 14 management principles by
engaging the activity with a unified goal. In this regard all person in a organisation must possess
one motive and goal that can make the work easier & achievement of objectives easily. In the
situation of COVID lead to creation of main direction of the whole organisation is to create a
super centre pick up & delivery capabilities for online grocery.
Culture of company: The culture of striving towards excellence in Wal-Mart is making efforts to
try different multiple routes for customers to shop in new ways. The organisation with its efforts
of employees is working towards developing of options and offers similarly to its competitor
Amazon. There has been acquisition of jet.com for 3 billion dollars for the purpose of expanding
their new delivery system and also payment and return methods.

Impact on employees: The overall organisation structure of Wal-Mart is determining the
business activities. Employees have to perform activities and functions according to the core
value of organisation. These core values include providing quality services to the customer,
respecting for each individual, striving for excellence and for the acting with integrity by being
more consistent. The employee has to work diligently towards ensuring that there is no
dissatisfaction of customers because of faults on part of organisation.
Wal-Mart as compared to its biggest competitors Amazon is working towards generation of a
competitive advantage through focusing on 4 core values. In the year 2018 Sainsbury also
announce the deal with Wal-Mart so that they are able to buy a majority stake in ASDA that is
Wal-Mart UK’s subsidiary (Walmart retreats from its UK Asda business to hone its focus on
competing with Amazon).
Functions of management: There are basically four functions of management that can be used
by CEO in organisation. Mcmillon is making use of such principles for the purpose of managing
the change in Walmart as mentioned below: Planning: The main role of CEO is to create a plan for achieving the objectives and
goals. It also includes allocation resource stop employees and further delegation of
responsibilities by setting of realistic timeliness & standards for achievement of getting
the goods delivered more quickly. CEO believes that there can be no growth without
change so there is use of a forward thinking approach. Organizing: The next step is to organize where CEO is working towards organizational
skills to ensure that all function is running smoothly. It ranges from structures to internal
process to ensure that teams and employees are performing those task that are best suited
to them such as using of express delivery options (Park, Miller and Knafl, 2019). Leading: Managers have to be confidence and comfortable during time of challenges and
changes. In walmart it involves projection of a strong sense of direction by
communicating the new processes that is launching of 70 new accelerated capabilities in
response to the COVID virus. Controlling: In walmart this function is to work towards achievement of success of the
organisation by monitoring employee performance, quality of work reliability of projects
and ensuring efficiency.

B. Analysis of the steps taken by CEO according to the organisation structure
for achievement of high performance and change in the culture bought by
CEO
Division structure: While a organisation is willing to expand the supply of goods & services to
Customers there is need to offer different product according to business engagement. A
divisional structure is aimed at grouping of various divisions of a organisation according to
specific demands, markets, products and customers. Divisional structure is divided in 3 different
Categories: Product structure: Product structure is grouping together of specific goods that are
produced by the organisation. In different product categories “Product a”, Product b and
product c.
Market structure: market structure is grouping workers based on specific markets.
Geographical structure: Organisation is grouped in such a way that employees present in one
geographic location that are grouped together for one division, walmart earlier used a
geographical structure now they have shift to market structure. CEO Mcmillon is focusing on
this style because it leads to higher efficiency in the way functions are being performed. There is
adoption of hierarchical structure according to the massive size of the organisation. They are
employing around 2.2 million of people across globe and there is no presence of alternative
organisation structure. The BOD consist of 16 members that includes two members from walton
family (Rodrigues, and da Silva, 2020).
CEO of walmart is focusing on structural characteristics that can help in facilitation of the
strategic implementations for the purpose of capturing a higher markets share in the retail
market. There has been development of e commerce strategy where walmart has taken decision
to shut the Jet.com and phase out three years after splashing oyt 3.3 billion dollars for acquiring
the start up. Mcmillon says that there have been no regrets about the decision to buy the firm. It
has lead to jump-starting of progress made last through years. There has been pick up of traction
with delivery end pick up (Walmart e-commerce soars during COVID-19 crisis, but online
profitability remains a longer term challenge, 2020).
The vast network of walmart stores claims that 90 percent of UK citizen proximity to
nearest outlets. It can be used as a strategy by CEO for the purpose of dealing with the issues that
are arsing because of the present scenario of COVID 19.

Culture: the organisational culture of walmart determines the way people are responding
to the challenges that are part of the workplace. The resilience of the human resources of the
organisation depends on the mind set of employees that has to be supported through the
corporate culture. Culture at walmart facilitates the retail business for adopting to the challenges
and changes that are taking place in external market. It leads to providing a competitive
advantage to deal with the competition arising from competitor brands such as Amazon who
posses major online digital distribution operations (Walmart: Organizational Structure &
Organizational Culture, 2019).
Impact on employees: Creation of inclusive culture: there has to be strong commitment
of 2.3 million associates that drives walmart stores, e commerce business logistic and other
related functions that is crucial for the purpose of serving to customers. Leaders are walmart
believe that associates are playing a important role in driving the business. CEO McMillan at
walmart is focussing on listening to associates for bets idea generators. At walmart all their
employees as are expected to practise the behaviour that has to be consistent with their core
values it includes the services to customers and respect for individuals along with striving for
excellence so that employees are able to act with integrity (Learn From the Best: How Wal-Mart
Builds Its Corporate Culture, 2016).
C. Describe the leadership style of the CEO of that firm
CEO of walmart Mcmillon is using of transformation leadership style that is related to
using a style by leaders that is for encouraging, motivating and inspiring the employees for
creation of change and innovating that can assist in shaping and growing the future of walmart.
CEO McMillon focused on lessons that are related to leadership where he defines that leadership
is all about learning, introduction of new ideas, answering to questions of other suburbanites and
willingness to learn (Ametorwodufia and Mensah, 2020). Walmart is a retail business that has
been embraced to keep up with the rapidly changing retail environment so that there can be
achievement of change without any type of risks.
Transformational leadership can be finding at different levels of teams, division,
departments, and organisations. It is generally used in case of leaders being visionary daring,
inspiring and risk takers, they possess a charismatic appal that is used for changing the way

organisation is operating. There are different aspects of transformation leadership that is done in
Walmart in order to promote the constant, mission, vision and set of values to other members.
Intellect stimulation: This is the basic approach that is adopted by Mcmillon for the
purpose of influencing the followers to be more creative and innovative, it encourages
development of new ideas from the subordinates, in this there is is preferences on ensuring
higher creative thinking on part of subordinates so that they can be motivated further to develop
new ideas for the purpose of corporate thinking.
Forward thinking is used for making decisions and long term success of the company.
The main aim of leaders McMillon is to work towards building of trust by communication to
people related to the culture of integrity and improvement of process, talent compliance and all
other systems.
D. Analyse the effects of power, influence and conflict at the chosen firm
Analyse the effects of power, influences and conflict regarding the Walmart organisation.
Walmart is multinational retail chain in UK in order to targeting ample numbers of
customers as well as founded by in 1962 by Sam Walton. It is famous chain in UK which
offering wide range of products and services are offered at cheaper price. It includes they are
enhancing standard of living in order to save money and better living. In 1924, it is opened 24
stores and incorporated as Walmart stores, Inc. It involves they are fastest growing industry
because they are operating their operations in many other countries such a 11 states with 276
stores (Chumba and Mutinda, 2017). In early 1990, this organisation has numbered one position
in supermarkets. It includes they are started their operation in UK market such as Mexican
market in Canada, China as well as European market.
It is formulating new strategies in order to implementing effectively such as increase
energy efficiency and achieving goal of supplied energy due to zero waste of sale products and
services which result as sustain people and individuals.
Effect of power: Walmart is focusing on use of operations management as it involves
different variety of a process that is focussing on management of the supply chain & inventory.
The success of Walmart is based on the performance in retail operations management that is
covering 10 decision areas of the operations management Strategy of Wal-Mart. There is
formation of a strategic direction that pertains to the issues of managers to deal it on daily basis

so that there can be optimization of operations of this company. The CEO is forming the vision
and mission of the organisation based on which the approach is developed to align the corporate
mission statement with the vision statement. There is requirement to achieve higher efficiency by
ensuring long term growth & success in the global market.
Conflicts: Conflict management is regard as the process of limiting the negative aspects
of conflicts so that further positive aspects can be created. The main aim of conflict management
is to enhance the group outcomes and learning that includes the performance effectiveness in
organisation. CEO in walmart is working towards resolving of conflicts that may arise because
of health disagreement that is playing a crucial role in success of a business. There can be
presence of healthy disagreement among individuals and unnecessary conflicts that may impede
the productivity & positive morale of employees. This type of conflict can prove beneficial in a
organization to reach a resolution and deal with the friction.
In the year 2019 there has been a issue that arise from the unsatisfied workforce of female
employees in walmart where they filed complaints against the management for getting less pay
as compared to the male counterparts. There were also issues related to no prevailing of
opportunities of growth. Memos from the Equal employment opportunity commission (EEOC)
were made public as 178 female employees filed a complaint. In the documents EEOC asked
walmart of women who filed complaint to reach to a specific agreement (Friesenhahn, 2019).
The complaint had a unimpressive track record because of gender discrimination. It was based in
history where in year 2001 they filed a lawsuit against walmart claiming that retailer has
discriminated against 1.6 million female employees because of gender based discrimination.
To all these issues walmart is responding by saying that complaint are not representing
million of women who are having positive experiences working in this organisation. There are
also complaints that EEOC's findings are not clear. So Walmart CEO claims that there is need of
support of employees working at different levels top resolve all such conflicts (Workplace
Conflict at Walmart Erupts Once Again With Gender Discrimination Claims, 2019).
Conflict management theory: Conflict management is the process where there has to be
identification and handling of conflicts in a fair, sensible and efficient manner, conflicts is a part
of business in walmart there are different conflict management styles that are used by Mcmillon
according to a particular type of situation. Some of the management styles are mentioned below:

Collaborating managers: In this leader in walmart is working towards avoiding the issue, in this
there has to be dealing with the issue by partnering or pairing up with each other for achievement
of the laid goals of the style (Shamsaii, 2019). The managers have to break free the win lose
paradigm and then seek a win situation.
Conflict resolution model:
It is a model that is applied in organisation by leaders in Walmart as mentioned below:
Stage 1: Awareness: It is the first stage of conflict resolution model It involves
awareness of the perceived differences for new strategies amid this COVID virus. It is related to
assertion that is arising when one party attempts to influence others to exercise control over
others.
Stage 2: Self preparation: it is the second stage of conflict revolutions model that
involves accessing of resourceful state. In this there is decision made regarding maintaining of a
resourceful state. There has to be anticipation of conflict by communicating the required
outcomes and then responding to the position of others in the organisation.
Stage 3: Conflict resolution: It is the third stage of model where there is focus on
reducing the emotional energy level and clarification of the differences. It leads towards
disputing parties to settle all the conflicts and agreeing to eliminate the destructive behaviour,
feeling and negative attitude of employees with regards to the prevailing conflicts.
Stage 4: Negotiation: Negotiation is a communication process in which each party is
attempting to posses influence one each other, there is an integrative agreement where all parties
interest have to be considered. For leads this is one of the most crucial stages at it involves
identification of the position of different parties, elicit the underlying interest of parties and
further asking related to the position, beliefs and values that are observed in such context.
From the above discussed theory it can be said that it is applied by CEO of Wal-Mart for
the purpose of dealing with different types of conflicts that are occurring internally in the
organisation. Conflict resolution generally takes place in Walmart by finding of mutually
acceptable solutions that is meeting the interest of both parties. The main aim of CEO is to drive
the e commerce business and market in terms of capital and capacity for fulfilment centres.

E. various types of motivation used at chosen firm
Motivational style: There are different styles that can be used by organisations. The five
stage model is divided in deficiency needs & growth needs. The first four level of needs are the
deficiency needs and top level needs is regarded as growth needs.
Physiological needs: It is the biological requirement that is necessary for survival of a
individual it includes clothing, shelter food, drink etc. These needs have to be compulsory
satisfied in order to enhance the satisfaction level of individuals.
Safety needs: When physiological needs are satisfied then individual move towards
safety and security needs, people are willing to experience safety security (Jimenez, Valdez and
Fasci, 2017). In Walmart CEO is using this aspects to ensure that the emotional and security
needs of a individual are Satisfied which can enhance their level of motivation.
Belongingness and love needs: After the safety and physiological needs are satisfied
then the third level needs involves the belongingness and social feelings. That is the need for
interpersonal relationships that can motivate individual behaviour.
Esteem needs: It is the fourth level need that is part of Maslow hierarchy in Wal-Mart
this need is used for ensuring that employees are able to develop suffice self esteem, desire for
reputation and respect from others. It generally arises from the formal position that is
experienced by employees related to prestige and status.
Self actualisation needs: It is the highest needs of Maslow hierarchy that is regarded as
realizing the potential and self fulfilment of individual regarding personal growth. It is the desire
to accomplish everything that is present in a individual. In Walmart this need is focussed to
ensure that employees are able to work according to their full potential.
Type of motivation adopted by top management in walmart:
In walmart the management is focusing on use of extrinsic reward technique that is
related to motivate their employees by offering them with health care benefits, financial benefits,
walmart also offers their employees to buy stocks at lower and discounts prices so that workers
can get additional income depending on the performance of the company (Motivation, 2020).
There has been use of motivation techniques to motivate the employees for enhancing their
present contribution level in this situation of COVID 19.

F. Appropriate corporate examples and literature to justify your stand
 Defining and communication of vision: the aspirational leadership strategy is very
suitable for a business organisation. It leads to development of a purpose that derives the
vision to achieve important goals. The main aim is to save people money so that they can
live better. It is a statement that has been given by Sam walton who is founder of
walmart, it strategies involves using of prices as a strategy for attracting of target
customers. Low pricing is a strategy that is determining the need to achieve higher
competitiveness.
G. Discussion and debate what suggestions / recommendations (strategies)
From above made discussion there are certain recommendations for CEO of walmart as
mentioned below:
1. The vision statement has to be communicated properly so that it gets imbibed in minds
and hearts of employees. The Change in corporate vision is reflecting the strategic change
that walmart implements with respect to change taking place in competitive environment
and overall conditions of retail industry. There can be creation of Omni channel
business strategy to serve the customers so that they can stay relevant with the
customers for coming future time period after the post COVID period will arise.
2. Delegate and empowering is one the best recommended leadership strategy that is
recommend for CEO of walmart to ensure the position of responsibility, it will lead to
development of sense of self worth development of team competence in different
departments of walmart. It will also lead to driving the e commerce strategy of business
so that there can be building of fulfilment centres with a multi year plan of walmart so
that we can deal with high volatility.
3. In Wal-Mart the leaders and managers can work towards development of smart selling
strategies for the purpose of enhancing the overall organisation sales. There can be
improvement in the overall business model of Walmart by being more competitive in
terms of assortment and the customers can access and lead in terms of its price. The
differentiation factor that is everyday low prices can be used as a tool for developing of
incredible customer experiences. The two key factors that are one stop shopping and