Walmart plc: In-depth Analysis of Organizational Structure and Culture

This case study provides an in-depth analysis of Walmart's organizational structure and culture, specifically within the UK context. It examines the company's hierarchical functional structure and its impact on management practices, employee motivation, and overall organizational performance. The analysis considers principles of management, the roles and skills required, and the importance of specialization within the functional model. The study also delves into Walmart's organizational culture, highlighting its core values of integrity, service, respect, and excellence. Furthermore, the assignment assesses how Walmart's culture fosters employee engagement and contributes to its success, including its sustainability goals. The report concludes with recommendations for improvements, such as enhancing flexibility and adapting organizational structures to different market needs. This assignment, contributed by a student, is available on Desklib, a platform offering AI-based study tools for students.

INDIVIDUAL CASE
STUDY ANALYSIS

Table of Contents
INTRODUCTION...........................................................................................................................3
ORGANIZATIONAL STRUCTURE.............................................................................................3
ORGANIZATIONAL CULTURE..................................................................................................7
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Organizational structure and cultures are those phenomenons which play significant role
behind success of a venture. Organizational structure refers to a method or a way by which the
entity is being governed the activities are being controlled, organized, coordinated. At the same
time organizational culture stands for all those set of practises or philosophy which drive the
organizational practises at every stage and ensure relationship among various position holders
(Guo, et al. 2018)
The report would be presenting in-depth analysis of organizational structure and culture
in context of Walmart plc which is working as a service provider in UK but originated in USA.
With this regard it would also be taken into consideration that how these aspects are impacting
the way company is being managed and the employees of the organization are being motivated
to grab organizational objectives. At the end of the report some recommendations shall be
extended in order to improve the performance.
ORGANIZATIONAL STRUCTURE
Walmart plc which is an America originated organization engaged in rendering services
to large scale. The business is getting thrived in UK and around 24 countries. The company is
getting operated on wider scale that's way having a mammoth constellation of employees which
is around 23 lac. With such a higher amount of employees working effectively is not a handy
thing so with this respect, there is rigour need to have a well-structured organizational structure.
Walmart is working with Hierarchical functional organization structure. There are
number of such organizational structures but it depends on the organization to go with the most
suitable one in attempt to enable the entity to perform with intensive capacity. For instance
functional, divisional horizontal, matrix, network, team-based etc. (Boussebaa and
Faulconbridge, 2019)
Management of human resources is one of the most prominent aspect of a business.
Walmart is carrying out its operations on wider level that's why having great managerial
practises are essential which can be meet with well-structured organizational structure.
There are some principles of management such as division of work, centralization,
decentralization, subordination, unity of command, unity of demand etc. these principles are
helpful to drive the operations in efficient manner. At the same time there are some roles and

skills of management such as planning, organizing, controlling, conflict reducing, coordinating
etc. which can be executed successfully only if there is a well-structured organizational structure.
Walmart is working on wider level so there is strong need to articulate and keep all its
operations separate so can pay separate attention to them. It keeps all function at different hands
at the same time top to down approach is also being practised. Being a service provide there are
ample number of functions are being performed by Walmart Plc.
These functions consist taking orders, tracing process, managing finance, communicating
with present customers and with potential customers, planning, Supply Chain management etc.
so for executing these different functions there is inevitable need to have such a strong internal
mechanism which can be realized by Functional organization structure (Roberts, 2018)
The structure of an organization is one of the most prominent deciding force of its
performance. There are number of such structures but for Walmart the most suitable and rational
one is Functional model. The entity is strictly abiding with a well articulated hierarchy. It is
helping in many ways.
The biggest advantage of this structure is the specialization factor it brings. There are
different levels and positions where people are working with their possessed specialization to
carry out the operations with proper efficiency. Due to higher investments and greater size of
market, all different activities are having need to be given special attention which is only
possible with this structure (Sofo, Elshafie and Camele, 2020)
The functional structure makes operations faster. All the fictions are being controlled by
special person following a particular hierarchy so it becomes easier to carry out them faster
which enhance capacity of management. Hierarchy eradicates all potential ambiguity which
brings operational clarity to the organization.
So form the evaluation above it can be summarized that organizational structure is the
salient component which decides the way company is being managed. Its key areas of functions
and their efficiency lies in its well-articulated organizational structure. The present approach of
managing organization is based on hierarchical system and person with proper specialization are
engaged in management. It can be deciphered that if the same structure is not there then the way
of management would also get changed.

The organization structure paves way that how the relationship would be kept,
communication, coordination, conflict management etc. are to be managed. The motivation of
employees depends on that how are they being governed. If the structure of an organization is
fully appropriate then will revert better to its employees (Castaldi and Giarratana, 2018)
Maslow's Hierarchy needs theory of motivation explains that every human being is
having some hierarchy of its expectations or motivational factors. At one if one requirement is
fulfilled then would strive for other. With this regard it can be seen that Functional
Organizational Model which is based on Hierarchical philosophy upholds the notion of giving
chance to improve rank and position.
The organization is having a good hierarchy so the employees who are having potential to
perform better can possess higher rank. Walmart plc is one of the top online service provider
which is carrying out its business by using different channels such as social media platform etc.
the goal of entity is so provide affordable, safe food and a range of other items such as books,
clothes, home items, grocery etc.
Along with it, the company is also striving to achieve its goal of providing eco friendly
services, reducing environmental catastrophe, bringing social sustainability, developing value
among customers etc. as Walmart declare to reduce virgin plastic up to 15% by the year 2025.
Such drastic goals can only be realized with highly motivated employees (Zoschke and Bock,
2018)
Performance of the company it would be fair to say that employees are well motivated.
The organization it timely evaluates performance and extending better in reciprocation. The
entity is quite concerned about the motivation so the function structure is aiding with this regard.
All activities are being performed by specialists, there is a good mechanism for conflict
management.
There are different structures such as functional, departmental, matrix etc. but the entity
which is having more than 23 lac employees, it is essential to a suitable design to manage various
associated aspects. In such a huge number of employees conflicts are so common. Yet with the
well-articulated organizational structure conflicts can be reduced and eradicated.
Hierarchical model of Walmart is helpful with this regard. If there is any conflict then
employees can directly inform it to just immediate upper authority. It is helpful to wipe out

horrendous negative impacts of conflicts of workplace. The KPIs such as sales, revenues, etc. are
looking in favour of the entity (Tardieu, et al. 2020)
It can bee concluded that the functional structure is looking favourable for the entity.
Hierarchical approach is a must need due to wider size. For example- In the year 2021 it made
around 555 billion USD sales across the world. It can be concluded that the employees are quite
motivated which is ultimately fetching such drastic and favourable results to the organization
despite being in an intensive competition. Another example- Form the year 2020 to 2022 the
increase in revenues had been 1.86%, 6.72% and 2.43% respectively. It is clear indication of its
skyrocketing performance (Scheefhals and MacGillavry, 2018)
Form the
Recommendations-
The performance of the company is quite satisfactory yet there is need to bring some
changes. The prevailing market circumstances are not much stable there is strong need to
introduce some new ways in order to enhance performance and augmenting overall performance,
along with competitive advantage.
The entity is abiding with its tough hierarchy with proper seriousness but in the present
market there is need to shuffle and reshuffle it for taking advantage of prevailing opportunities.
With this regard it is recommended to make the hierarchy a bit smooth and coordinative so can
make employees feel comfortable.
Flexibility is the main component which must be practised, there is lack of flexibility.
The entity is strictly complying with pre-decided norms, rules, regulations so it is suggested that
the plans and policies of the organization must be more flexible.
The culture of Walmart is driven by its structure, the organization is giving burning
priority to its customers but here it is essential to perceive that what are those factors which are
driving organizations to enhance their role in the market. So such new aspects can be imparted in
the organizational structure.
There is no need to follow the same organizational structure everywhere. The company is
working in more than 24 nations so it is suggested that it can make the change of organizational
structure. As per needs of certain market organizational structure can be decided. It would be
helping to work better with targetted constellation of customers.

As it can be seen all key competitors such as Amazon, Tesco are having same
hierarchical structure but having higher flexibility so it is substantiated for the entity to inculcate
some changes to make it more lucrative.
ORGANIZATIONAL CULTURE
The organizational culture are referred as the proper way to behave within the
organization. The culture of the organization is referred as the attitudes, beliefs, values and
behaviour that are contributed to the organization with the different social and work
environments. The organizational culture are important for the values of organization, vision,
employees engagements, productivity. Retention rate of employees and customers, positive
recruiting efforts, happiness and many more (Isensee, 2020). The organizational culture of the
Walmart company is consist on the core values that include the integrity, service, respect and
excellence. The Walmart beliefs that they are provided the better services to the customers. In
the context of respect of the individual are helps in become success of the company in the future.
In addition, maintaining the integrity in the company promotes the honesty, decision-
making process and fairness. In terms of strive for excellence include the team works,
performance of the individual employees as well as performance of the entire organization. The
culture of the company are strong and employees are treated equally within the organization.
Walmart company maintain a friendly environments and employees can share the problems
when they are comfort. The employees of the organization are act with the integrity, they can
suggest any ideas and decision-making process as well as they are been honest and say the truth.
The workers of Walmart are hard-working and it is their competitive edge (Paais and Pattiruhu,
2020). The company is not facing the any issues regarding the caste, colour, face and creed
because they are effort for the excellence. In other words employees are treated equally within
the business. The organization managers and leaders are communicated with the workers and
employees as well as listen them carefully. The company have the positive working
environments and employees engagements are also good within the business organization.
The company manage the good environment within the organization, the impact of the
organizational culture is good that its helps in increase the sustainability of the organization as
well as personal developments of the company. With the helps of Walmart organizational culture
is maintained the dynamic leadership and work ethics for achieve the goals of the business. The

corporate cultures of the company helps in enhance the employee's engagement within the
business. The company provide the best facilities to the employees of company as compare to the
other organization. The engagement with the employees in the organization helps in make the
better environments and team working environments are also developed (Elsbach and Stigliani,
2018). The organization manages the own code of ethics personal ethics of the employees as well
as values based leadership.
The working ethics helps in learning of the employees inside the environments as well as
they are taught them that they do not compromise with the reputation and goodwill of the
company. The company provide the protection to the employees and health care when they are
working in industry. The organization culture helps in develop the efficiency and improve the
productivity as well as performance of the business. The better organizational culture helps in
attract the customers towards the company and retention rate of employees and customers are
also increased with the helps of the best environment culture.
The Walmart company adopt the authoritarian culture where leaders have the ability to
make decision as well as power of centralization. It helps in put the more importance on
obedience and discipline among the employees. The authoritarian culture helps the leaders
capable to understand that what is good for the business and increase the interest of the
organisation. The purpose of this culture is increase the productivity and profitability of the
organisation (Bergon, 2022). The culture of organisation helps in motive the employees for
increasing their performance and it is necessary to take proper measure for the organisation. The
culture of the business helps in motivate the employees to achieve the goals of the company as
well as adopt the team work.
The company uses the employees empowerments to motivate the employees in the
Walmart and management team of company is responsible for the employee's motivation. If the
company involves the employees to make decisions within the business then it helps in motivate
the employees. The better cultural environments of company helps in maximize the purpose,
play and potential which is felt by the employees as well as minimize the economic pressure,
emotional pressure and inertial. It is known as the creating total motivation for employees.
McClelland's needs theory
This theory is also known as the acquired need theory. The acquired need theory are
applied by the Walmart company for motivate the workers of the organization in the aspects of

leadership. This theory states that employees have a main motivating drivers such as power,
affiliation and needs of the achievement's. In moreover, the workers are motivated with the helps
of desire of mastery to achieve the difficulty task. This is need for the personal achievement's of
workers and motivated for the completion of task and job (Rybnicek and Bergner, 2019). In
terms of affiliation that are driven by the desire to maintain and create the social relationship.
This is helps in maintain the connection with the employees, emotionally attach and avoid the
pain of employees and console in the difficulties time to employees. In the context of power, the
employees are motivated by the desire to teach, influence, as well as encouragement. It helps in
create the better working environments as well as control the situation of organization.
The motivational techniques are most important in the organisation and strategies which
are helps in directly influence the efficiency of workers. In this theory, the leader of the company
can motivate the subordinates with the understanding of needs of workers and finding the acquire
needs of employees
Example: employees not able to become successful in the future, if they the employees affiliation
needs are not met within the organisation.
In order to motivate the employees, the Walmart company perform the various tasks to
motivate them such as praise the employees with the maintain friendly environments, meeting
with employees, say thanks to employees for performing well, celebrate the success of the
business with employees, encourage employees for participate in support and advice the new
ideas and decision-making process. The company provide the opportunity to learn and develop
the new skills and promote them. All are helps in motivate the employees as well as encourage
them to become success in the future and helps in enhance the performance of the employees
(Bressler, 2022).
The Walmart company adopt the effectiveness techniques to motivate the employees that
include the life insurance of employee's, salary increments, better relationship among the
employees, house allowance, sponsorship for trips and further studies, annual leave, safety,
improved working conditions, etc. that all are helps in motivate employees as well as improve
the motivational management strategies of Walmart.

RECOMMENDATION
Walmart company can improve its beliefs in the context of organizational culture. The
beliefs of the company are ideal, the Walmart company is fail regarding the low wages that must
be good for motivate the employees, if the wages of employees are good then it helps in increase
the productivity and profitability of the organization. It makes the differences between the belief
of individual respects and actual treatments of workers in the organizational cultures. The
company should maintain the better wages of employees which helps in motivate them as well as
helps in enhance their performance.
Therefore, recommendation that company should implement the effective techniques to
measures for accomplish the respect of individual factor in organizational culture (Smith, 2019).
The company should involve the employees in the decision-making process as well as appreciate
them for their jobs and celebrate the success of the employees in the organization which helps in
motivate the employees and improve the performance of them. The company should promote the
employees according to the performance of employees and provide them proper coach and
training that helps in increase the retention rate of employees. If the organization culture are
improved then it helps in build the trust, community. The company should invest on employees
as well as strive for diversity to increase the retention rate of employees.
CONCLUSION
As the conclusion, the organizational culture and structure bot are interrelated to each
other because the organizational culture is defined the organizational culture. In other words the
structure of organization is framework for the culture which is implemented in organization.
Both are important in the organization for the efficiency and reputation of company. With the
helps of organization culture and structure new customers are attracted towards the business as
well as improve the workflow of business in systematic ways. The Walmart company use the
hierarchical and functional organizational structures while, the company adopt the authoritarian
and corporate culture within the business to maintain the business operation and effectively
accomplish the goals and objectives of the organization.
In the conclusion, this report discussed that how company manage the culture and
structure of organization. Their report also elaborated that organizational culture and structure

helps in motivate the employees with the Maslow's hierarchical theory and McClellan's theory to
achieve the goal of organization.

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