Organisational Theory and Practice: A Report on Wal-Mart

This report examines the organizational structure and culture of Wal-Mart, analyzing its hybrid hierarchical and functional approach. It details how the company utilizes a combination of hierarchical and function-based structures, including product, market, and geographic divisions. The report explores Wal-Mart's organizational culture, emphasizing its focus on low prices, customer service, and employee motivation through financial incentives, rewards, and trust-building. It also discusses the company's values, such as respecting individuals and striving for excellence, and the importance of teamwork. The report concludes with recommendations for further improvements within the organization. This detailed analysis provides a comprehensive overview of Wal-Mart's operations and management strategies.

Organisational Theory and
Practice
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The organization structure of the Wal-Mart company..........................................................3
Organizational culture of the Wal-Mart company.................................................................5
Organization structure and culture for motivate employees:...............................................6
Theory of motivation.................................................................................................................8
Recommendation:......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Organizational is defined as the organizational design, structure, and relationship. The
organizational theory focus on the various dimensions level of the organizations such as
specialisation, standardization, formalisation, complexity, size, authority, goals as well as
strategy of the company that all are helps in analysing and measuring the organization
performance. The Wal-Mart Company is an American multinational company which is operated
in the United Kingdom. It is the world largest company and owns the chain stores in the UK. The
company offer the subsidiaries, retails foods, leisure goods, clothing and home goods throughout
the United Kingdom. This report will discuss the organizational structure and organizational
culture of the Wal-Mart Company and how it manages the impact on the company. The
employees of the company are motivated through the organizational culture and structure to
archive the goals and objectives of thee business. This will elaborate the recommendation which
need to improve within the organization.
MAIN BODY
The organization structure of the Wal-Mart company
The organization structure is referring as the method which is used for the workflow
though the organization and activities of the organization which are delegate towards the goal
and objectives of the organization. The company Wal-Mart follow the hybrid hierarchical
functions, where the CEO of the company Doug McMillan is not direct by any superior and
directors which are sent from the top level management. The company also follow the function
based structure for classify employees in the organization according to their knowledge and
skills. So, the organization structure of the company is characterized in the hierarchy and
functional based group. In other words, the company use the two different combination of
organizational structure and also can said that use the matrix organizational structure.
In the hierarchical structure, The company directors are sent from the top management
level to the district managers, regional managers, stores managers, middle managers and also the
store team members which as required (Bimbard, C., aqnd et.al., 2018). This structure allows
managers to easily manage their business and control impacts of decision. The hierarchical
structure helps company to manage their operation in effective manner. The company has 12
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boards of directors that is members of Walton family and some other people. Board of directors
includes chief finance officer, chief legal offers, chief technology officer and corporate secretary.
On next level there are many leaders across the diverse range, which performs roles in ethics,
international strategy, technology, health and wellness etc.
In the function based structure, company used their employees in order to their particular
experience and skills. Function based groups involve marketing, production, human resources,
customer care etc. And each group is managed by a seiner manager in order to meet company
goals (Ma, 2018). Wal-Mart Company includes department such as nail salons, restaurants,
hairdressers, incorporate banks, optometrists and many more.
The key success of this structure is well organized level of management and effective
management. By effective communication between stores and headquarters company manage
their business activities in efficient manner which helps wall mart to get success in the market
place. The divisional approaches and structure is company advantage that is because in
organization each division is focus on their efforts to achieve particular goal and objectives such
as services, product and customers (David, 2021). The narrow focus of the company is to allow
perform effectively as their pinpoint areas is to provide good services to customers and meet
their requirement. The company have three divisional structures that are product structure,
geographic structure, market structure which is describes as:
Product structure: In this structure, the company groups employees are based upon the
products which are produced by Wal-Mart in the specific area such as the company produce the
products in the three specific groups like product a, product b, and product c. The separate
division of the products manufacturing is helps the company to manage the product structure in
the effective and efficient way as well as it helps in reduce the conflicts and misunderstanding
between the managers and employees.
Market structure: The market structure is based on the specific market. The Wal-Mart
company also follow the market structure within the organization and it helps in organized the
sales and customers service departments into the different areas. The company are sell products
to the business customers and individual’s customers. With the market structure the company
easily manage their operation in the competitive market with targeting the customers in the
specific areas such as corporate sale and corporate consumer service function together while the
consumer sales and consumers services worked together.
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Geographic structure: The Wal-Mart Company also follows the geographic structure which is
based on the location. The company manage their operations according to the locations because
the company operates it many areas throughout the United States, United Kingdom, etc. it helps
organization to manage their operation in the appropriate ways and also provide a competitive
advantages.
Organizational culture of the Wal-Mart company
The organizational culture is the collection of beliefs and values, practices and
expectations which help in inform and guide the actions of the organization as well as team of
the organization. The organization culture is to be maintaining by the company strategy
regarding the values and beliefs to sustain in the market with the reputations and goodwill. The
purpose of the organizational culture is saving people money and they live better.
The Wal-Mart company is the world largest retailers company. The company follow a cultural
phenomenon from Sam Walton. The vision of the Sam Walton was the keep the price as low as
possible for organization advantages (Jiang, 2018). The company offer the lowest price to the
shoppers as compared to anywhere else and it helps in change the Wal-Mart organizational
culture. It also helps in attract the customers as well as generate the high revenues and sales of
the company as compared to competitiors of the company.
The company was also cleared about the priorities which are related to the customers,,
employees and operational detail within the company. It was helps in enhance the involvements
and motivation are created within the company by giving the trusting, responsibilities and
monitoring their performance. The company wants that employees bear the minimum cost so,
they cut down expenses. This was helps in attract the loyalty and trust towards the
organizational culture of the Wal-Mart company. The company was fastly growing in the
competitive market.
The penny wise culture was found by the Walton which plays a vital role in the success
of the Wal-Mart organization. The penny wise culture is present at headquarter of the Wal-Mart
company. The Wal-Mart strategy is keeping price low to become successful in the marketplace.
The company ensure that ultimate goals of lowest price including the technology and corporate
culture (Rosemaro, E., 2022). It was the best strategy of the company to sustain and maintain the
position in the competitive markets as well as make position in the competitive eyes and minds.
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The Wal-Mart company also helps he customers to save money for they live better. The
company is based on the morale and values. The Wal-Mart serves unique culture. The customs
and rules of the company are based on the values which lead the respects for the suppliers,
customers and associates. The Wal-Mart culture is also based on the open door policy that
includes the communication which is essential for meeting and understanding the customer’s
needs (YULINDA, 2020). The customers, associates and suppliers can trust on the open door policy
is the most essential part of the organizational culture and it also helps inn manage the operation
and culture of the organization. The company focus on the 3 basic values and beliefs which are
services to customers, respecting the individuals and striving for the excellence for enhance the
better maintain and built the reputation of the company in the marketplace. The beliefs and value
of the company helps in interact the customers towards the organization and each others. The
company motivate the employees to interact the customers in the good ways for guiding and
supporting them.
The Wal-Mart company also promotes the effective leadership who are listen to the
employees, partners as well as helps them to accomplish the duties and goals which are assigned
to them. The Walton believed in the team work because it helps in play coordination and
cooperation within the organization to improve the performance of the organization as well as
helps in develop the company growth. The team work helps in maintain the organizational
culture to develop an enjoyable environment in the business (Schalock and Verdugo, 2018). In the
team work, all working together as a team is helps in enhance the work efficiencies of employees
and organization. It also helps in increase the learning opportunities for the employees as well as
lead to increase the accountability because the confidence is maintain through the team work.
The Wal-Mart company also align with the people systems and HR systems from the process of
recruitments to retirements to recognize and rewards its future leaders and associates for achieve
the great success through living the culture within the organization.
Organization structure and culture for motivate employees:
In the organizational structure have two combine of structure such as hierarchy and
functional based. The hierarchy based organizational structure helps in explain the relationship
between the employees and management. The employees motivation means the wants, desire and
needs which are must be fulfil for achieve the organizational goals. The organization must fufil
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their needs with the rewards and incentives to enhance the performance for the work efficiencies.
There are various ways to motivate the employees for achieving the goal of the organization.
Financial incentive: The employees are motivated through the financial incentives because
without money no employees work (Liu and Lin, 2020). The financial incentives are great factor to
motivate the employees and it helps in increase the performance of the employees as well as
increases the productivity within the organization.
Rewards: the research claims that the reward systems motivates the employees and satisfy the
employees as well as increase the productivity. In other words, the reward system count in
inspire and motivate the employees.
Equality: the equality and empowerments are important for the organization. It helps in provide
profit to the organization. The company empowered the employees then they do their jobs
properly as well as it helps in improve the productivity of the organization.
Build trust: if the organization is build the trust with the employees then it helps in motivate the
employees towards the work and also helps in lead the business success.
Promotion: the organization must motivate the employees to promote the position that include
the responsibilities or authority which helps in motivates the employees to better perform in
effective ways. The possibility of job promotions can motivate the employees as well as
encourage them which help in engagements of the employees, loyalty and improve the culture of
the company. It also helps in achieve the targets and achievements of the organization.
In the functional structure each departments have its own function which is owned by the
managers. The advantage of functional structure is employee focus on their tasks as well as
provides the clarity of work motivate employees to be efficient and productivity in their works.
The size of the company is determines the organization structure that how company can utilize
the many structure at one time (Calciolari and Prenestini, 2022). And it is depends on the products
and services of the company that they produce. The effective structure helps in fulfil the needs of
the employees and customers as well.
The organization structure influences the employees positively and negatively. Without
motivation the organization have negative effects on the employees such as low performance, no
productivity, dissatisfaction and high cost. With the help of positive effects are run with the
motivation of the employees such as improve productivity, enhance the performance level,
satisfaction of work, low staff turnover, work with the effectively and efficiently on the time.
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The organization structure of the Wal-Mart have various shapes that is use for fulfil the
organization needs as well as motivate the employees to do the task in the effective manner.
Organizational culture to motivate employees
The organizational culture includes the values, norms and characteristics of the individual. The
Wal-Mart company culture is different from every organization. The company make sure that the
employees must understand the company culture which helps in perform better that improve the
motivational level as well as enhance the productivity of the organization. The concept of
motivation is helps organization to make employees more productive so company achieve their
goals. Organization culture classifies company from its norms, artefacts and values. Culture
helps employee to work effective in a group so they achieve company objective (Azkiya And
Riyanto, 2020). Employees motivation is the most powerful strategy of the company which helps
in achieve the goals and objectives of the organization. With the help of training and
developments of employees, the organization ways to gain a competitive advantages. Employees
of the company are important resources which help in maintain the organizational culture with
the customers to interact with them. The motivated employees in the effective culture helps in
minimize the barriers and conflicts that face by the employees doing their task and it also helps
in furnish the environments with the productivity and prosperity (Ali and Anwar, 2021). In the
organizational culture the employees get motivated by the following things such as delegate the
authorities and power to the employees as well as provide gifts to them on the special days that
will helps in motivate the morale and yield. With the help of organization culture, the company
can create the friendly environment as well as make them feel the worth and reward on the
hardworking also helps in boost the employee’s morale.
Theory of motivation
The company can use the X and Y motivational theory for motivate the employees within the
organization. The traditional organization are centralised the hierarchy structure that helps in
directed people to desire. In the X and Y theory employees are inspired by the financial and
punishments factors. If the company manger control the employees of the organization then the
managers makes sure that the changes cannot affect them (Renata and Wardiah, 2018). So, the
mangers have to use the factors and theory to motivate the employees that work on the
employees who are financial means and satisfied in security. The theory X and Y are part of the
motivational theories. The theory is use by the managers to motivate the employees. The theory
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Y stresses on the recognition and rewards while the theory X give importance to the supervision
as well as apply the authoritarian approach to motivate the people of the organization and it is the
delegation of authority from the management. The theory use by the company to motivate the
employees in the different ways. In the theory Y, the employees are responsible for the work and
action towards the company that helps in achieves the goal of the organization without the
supervision (Einhorn and Meredith, 2020). The employees can participate in the decision making
process. The theory X focuses on the punishing the people to get work complete, but the theory
Y is use in the positive ways like promotions, rewards and recognition which helps in motivate
the employees to work hard for achieve the goal of the organization. This theory helps employee
to improve their skills and knowledge which have great impact on organization success and
growth. It is also help introvert employee to work in a team and share their ideas and thought
freely so it improves their performance.
Recommendation:
The recommendation need to improve the performance of the company. If a company
have effective communication between employers and employees, manager and employees than
it give positive impact on organization success. In an effective communication environment
employees feel motivated to share their ideas, thoughts and information. For making strong
communication company also focus on reduce or minimize barriers of communication such as
language barrier, culture barriers, lack of trust, listening, clarity and consistency, etc.
The company need to improve the proper selection in the organization. In other words, the
company need to select the right person at the right jobs (Kalogiannidis, 2020). The candidates who
are select in the business must be fit with the organization cultures and values. The company
needs to coach the employees as well as built the leaning and development of the employees
within the organization through the training and developments programme. The company Wal-
Mart have to involve the employees in the decision making process which helps in motivate the
employees. The company need to show the care about the employees that helps in improve the
organizational culture. The culture of the organization can be created by the influence the
employees and it helps in achieve the goal of the organization. The company can recognize the
employees to make feel the employees appreciated, retain the employees, change the
engagements and reinforce the positive habits that make the difference in the organization. In the
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organization, employees have different perceptions so, the recognition need to customize to the
each person within the organization.
CONCLUSION
Business organization is an entity establishes for the aim of bring on commercial
enterprise. If business is properly well organized, then it gives value and creates positive impact
on organization success. Organization structure is a method by which company work flows
effectively, it also allow people to work in groups to achieve organization on time. Its key
elements are activities which direct company in order to achieve task and objective of the
company such as roles, responsibilities and rules etc. This report concludes that organization
culture have great impact on success of company, it is a collection of expectations, practise and
values which guide employees to achieve tasks. A successful organization culture means strong
core beliefs and values that motivate employees to work in best way. This report discusses
organization structure of the company that is hierarchical structure which helps company to
manage their businesses effectively and organization culture also helps company to manage their
workplace. Moreover, this report also elaborates how organization culture and organization
structure motivate employee towards work, so it improve their productivity and generate good
revenues. Report also includes motivation theories that is X and Y theories for motivating
employee to give their 100% and achieve company goals. The above report also discusses some
recommendation which an organization may take to improve their performance.
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REFERENCES
Books and journals
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Satisfaction. Ali, BJ, & Anwar, G.(2021). An Empirical Study of Employees’ Motivation and its
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30.
Azkiya, H. and Riyanto, S., 2020. The Importance of Work Motivation for Improving Employee Performance.
Bimbard, C., aqnd et.al., 2018. Multi-scale mapping along the auditory hierarchy using high-
resolution functional UltraSound in the awake ferret. Elife. 7. p.e35028.
Calciolari, S. and Prenestini, A., 2022. Values-based methods for measuring organizational culture:
logic, evidence and critique. In Handbook of Research Methods for Organisational Culture.
Edward Elgar Publishing.
David, M.E., David, F.R. and David, F.R., 2021. Testing and Enhancing a Pivotal Organizational Structure
Decision-Making Model. International Journal of Strategic Decision Sciences (IJSDS). 12(2). pp.1-19.
Einhorn, F., Meredith, J. and Marnewick, C., 2020. Business case effectiveness: the critical role of the
organization. International Journal of Managing Projects in Business.
Jiang, Y., Motivation at Work and Organizational Culture Case Study of Walmart. International Journal of
Education and Technology. p.159.
Kalogiannidis, S., 2020. Impact of effective business communication on employee performance. European Journal
of Business and Management Research. 5(6).
Liu, X. and Lin, K.L., 2020. Green organizational culture, corporate social responsibility implementation, and food
safety. Frontiers in Psychology. p.3079.
Ma, J., and et.al., 2018. Using deep learning to model the hierarchical structure and function of a
cell. Nature methods.15(4). pp.290-298.
Renata, R., Wardiah, D. and Kristiawan, M., 2018. The influence of headmaster’s supervision and achievement
motivation on effective teachers. International Journal of Scientific & Technology Research. 7(4). pp.44-
49.
Rosemaro, E., 2022. Understanding the Concept of Entrepreneurship Management and Its Contribution in
Organization. International Journal of New Practices in Management and Engineering. 11(01). pp.24-30.
Schalock, R.L., Verdugo, M.A. and van Loon, J., 2018. Understanding organization transformation in evaluation
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YULINDA, A.R., 2020. Is Understanding Culture A Key For Organization? (Doctoral dissertation, Universitas
Gadjah Mada).
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