ICA Wal-Mart

Executive Summary 

Wal-Mart is an American is one of the largest retail corporation in the United States. It offers a variety of products, such as, toys, electronics, fabrics, beauty products, jewelry, and household items. Besides, the corporation has a pharmacy department, a photo processing center, and Tire and Lube express. The management is committed to lower the prices of their products as a strategy to attract more customers. Because the company buys goods in large quantities from the suppliers, it benefits from discounts, thus, keeping its prices low. Wal-Mart culture is based on open door policy and open communication, which is significant in identifying the needs of the clients.

Wal-Mart is one of the global leaders that strives to provide outstanding experience to the customers. The management has introduced online courses to ensure that the workers can gain comprehensive knowledge to enhance the customer’s experience. The top executives ensures that all the business associates, such as, managers, and the supervisors undergo through a training process to understand the effective strategies of enhancing customer’s experience.

In any organization, employee’s attitude affects their perfomance and job engagement. Claude was a lab associate at Wal-Mart. Initially, he maintained a positive attitude in undertaking his obligations at the company. However, he realized later that his job was a routine and replaceable. Similarly, some of his coworkers experienced disconcerting issues with the management. As a result, they developed a negative attitude towards their job. The employees are disengaged resulting from the different types of behavioral responses. Exit is one of the first behavioral response. Most of the company’s employees chose to leave the company within the first one year. The workers would complain about working shifts and the management. Additionally, some of the workers were less motivated and had a decreased sense of loyalty.

The structural Frame

Wal-Mart Stores Inc. has a hierarchical organizational structure. The management implements its mandate to the employees through the middle level managers. The staffs have an obligation to fulfill their responsibilities within the organization. The corporate managers have a great influence on the entire organization. Resulting from the organizational structure and lengthy approval process, the company cannot adjust its functions easily. The management recognizes the clients in the effective operation of the company. Similarly, the company recognizes the contribution of each of the workers towards its overall success.

The Human Resource Frame

Wal-Mart Company has a stratified human resource planning. Essentially, the human resource department conducts employee’s planning on behalf of the top level management. However, the corporation has different interpretation for the human resource model. The variation is an indicator that human resource planning occurs at different levels in the organization. The company uses special software product as a strategy to automate the process of analyzing variations in the workplace.  Afterwards, the professionals feed information to the central database to determine trends among the employees. As a result, Wal-Mart can forecast future changes in relation to the workforce.

Wal-Mart determines how different jobs fits the employees and the business environment. The management conducts a needs analysis to determine if the needs of the workers are satisfied. Similarly, the managers analyses the structure of Wal-Mart to determine if the employees can satisfy the needs of the organization (Lombardo 44). After store managers conducts a needs analysis, they relay the information to the corporate managers. For this reason, the professionals can decide on any strategies to enhance the operation of the company.

Maslow’s Hierarchy of Needs

Abraham Maslow introduced Maslow’s needs hierarchy theory through a book, “Motivation and Personality” and the paper, “A Theory of Human Motivation”. Maslow proposes that human beings are motivated to fulfill their basic necessities before satisfying higher needs. Basically, the hierarchy is displayed in form of a pyramid and consists of five levels. According to Maslow, the basic necessities are at the lowest level of the pyramid while the advanced needs are at the top of the pyramid (34). Maslow suggests that the hierarchy of needs has an important role to motivate human behaviour. He termed the highest level of the pyramid as self-actualization because it continues to develop even after getting fullfilled.

According to the Maslow’s needs hierarchy, it is apparent that Wal-Mart offered the employees physiological needs. The Company pay higher salaries and wages to the workers as compared to other fast foods restaurants in the United States. Nevertheless, the management failed to meet the safety and security needs of the employees. The company had set a camera in the washroom to record the worker’s employees. Some of the employees complained of facing racial segregation issues within the company. Therefore, the company could not meet the self-actualization needs of the workers, thus, resulting to the high rates of turnover. The basis of the Maslow’s theory is that the management motivates the workforce through providing them with lower needs before the higher needs.

McGregor’s XY Theory

Motivation and employee’s perfomance are typical topics of discussion in human resource management. The management must commit themselves to motivate the workers as a strategy to enhance their perfomance. Douglas McGregor developed Theory X and Y in relation to the classical management strategies. Theory X and Y are valid basic principles to enhance positive management techniques and styles. Basically, workers are motivated to pursue higher levels of their needs after satisfying their basic safety needs. For this reason, the management has to motivate the employees to satisfy their higher needs, such as, self-actualization and esteem.

Wal-Mart has utilized McGregor’s theories in different ways to achieve the set goals. In theory X, McGregor assumes that the workers are inherently lazy and lack determinations. It is one of the negative aspects in human behaviour. According to McGregor, theory X fails to satisfy the higher needs of the workers (56). In Bangladesh, Wal-Mart’s management would lock women inside the factory. Additionally, the management would offer the workers lower wages and would not recognize the values of the workers. As a result, the company had to face lawsuits and lower retention of the workers. Wal-Mart management has been empowering the workforce through training to ensure that it awards the ones, who show progress. Following the McGregor theory, the company is using recognition to motivate the employees.

Follett’s giving of Orders

Mary Parker Follet explores on the issues of authority in business management on how managers influence the informal groups in employment. According to Follet, managers should involve the workers in making decisions instead of giving orders (159). Follet warns managers to review a situation but not giving orders. As a result, managers and workers can collaborate to realize the most appropriate decision. Walmart managers has the ultimate authority to make decision without involving the views from the workers. The executives assume that they are the best person to understand what is good for the company. They give orders to the members of the workforce without a consideration of their interests. For instance, the workers cannot share their views in regard to the working conditions and other issues.

The Wal-Mart’s executives force the employees to complete with the laws and regulations at the company though threats of punishment. However, the authoritative nature of the management has led to a dysfunctional behaviour among the employees. Additionally, most of the workers are dissatisfied with their jobs, thus, resulting to reduced rates of retention. The workers recognize that the management has the right to give orders based on their position as leaders. Although the employees might commit to the orders, they lack a sense of commitment and cooperation within the organization.

Political Frame

French and Ravens Bases of Social Power
Power is the ability to have an influence over other people in an organization. French and Raven are influential theorists, who attempted to explore the sources of power for the leaders to have control over others. Organizational commitment, job perfomance, and job satisfaction are the main power sources in an organization. Wal-Mart’s management uses an authoritarian style of leadership to influence the decisions in the organization. The communication system in Wal-Mart is one way and the leaders focus on giving instructions to the subordinate staffs. However, the authoritarian culture inhibits the future growth of the organization. In the business world, organizations should facilitate innovation to enhance sustainable growth. However, Wal-Mart is an anti-union corporation and punishes the employees for violating the set laws. The top level executive is focused to advocate against formation of labour unions among the employees.

The Wal-Mart’s managers exercise absolute power in making all the decisions in the organization. Additionally, the top executives monitored the behaviour of the workers through the use of cameras in the washrooms. The company has been opposing the formation of workers unions in the organization as a strategy to ensure that they cannot forward their grievances. It is apparent that the top level executives have the overall control on the operation of the company.

Mintzberg’s Power Game and Players

Mintzberg analyses the exercise of power in “The Power Game and the Players”. He argues that power is the ability to change the existing practices and policies in an organization. In the case of Wal-Mart, some of the women complained that they had worked for many years with a promise of having a pay increase, which never materialized. Primarily, most of the executives were men, who discriminated against women in terms of pay and promotion. Most of the people are concerned on the nature of making decisions in a company. Wal-Mart have been experiencing issues on whether to implement the suggestions from the workers or from the senior level managers. Managers have much influence over the actions of the workers. Although Wal-Mart is one of the largest retailers in the United States, it is known for the authoritative management practices against the workers. Although the company is focused to provide low priced products in the market, the management treats the employees unfairly and do not involve them in making decisions at the company.

Pfeiffer’s Understanding the Power Decision Making

According to Lombardo, business leaders use rational decision making to solve existing problems in an organization (36). In most instances, leaders evaluate possible alternatives to enhance productivity and profitability. Decision making is one of the visible examples of power in a business. In an authoritarian leadership, the top executives have the power to decide on the most effective ways of a business operation. In such a scenario, the subordinate staffs have no influence on the running of a company. The management makes all the decisions without involving the subordinate workers. The top executives dictates directions to the junior workers. For instance, they select the workers to be involved as part of the workforce team and determines their responsibilities in the organization. Although the managers can criticize the workers, they do not participate in any discussions with the workers in regard to the operation of Wal-Mart. The management fails to allow the staffs the ability to implement decisions quickly.

Cultural Frame

Wal-Mart’s management is focused on enhancing a competitive edge in the daily operation of the organization. Basically, the firm offers low prices to their clients as compared to other corporations. According to Schein, the top executives are determined to improve the level of service to the customers and respect the suppliers and other associates (315). They recognize the customer as the boss. In fact, the mangers ensures that the clients have a friendly and pleasant experience while shopping at Wal-Mart. Through respect to the relevant stakeholders, Wal-Mart is committed to excellence in serving the community members. The company has a satisfaction guarantee policy to ensure that the consumers are certain about the quality of the products offered at the company.

Organizational Culture

According to Snihur, Yuliya, and Jorge, most of the organizations allows unionization of the workers in an organization (44). However, Wal-Mart has not created any policy to allow the unionization of the employees. The executives have created an open door policy to address the concerns of the employees. The company has an open communication with some associates to make relevant decision associated with the effective operation of Wal-Mart. The company is committed to enhance the experiences of the customers based on the slogan of “Saving people money so they can live better”. Additionally, the company is committed to offer the lowest prices to the clients.

Wal-Mart is committed to work towards achievement of the set objectives. The company operates e-commerce business and logistics to enhance the experience of the clients. Although the management uses an authoritarian leadership model, it addresses the concerns from other associates in the company. In fact, the top executives ensure that the associates understand the products and clients’ needs to enhance overall success of the organization.

Resulting from the recognition of Wal-Mart as one of the leaders in environmental sustainability, the associates has recommended that the company reduce its wastes and maximize on energy efficiency. The associates work in collaboration to enhance the experience of the clients. Wal-Mart incorporates its values in actions, such as, striving for excellence, respect for individuals, and act with integrity. The management incorporates business culture in every aspect of the business. The business culture reflects the values and beliefs in the organization to ensure that employees recognizes them in the day to day operation.

Senge’s Fifth Discipline

According to Senge, the Fifth Discipline is an influential synthesis of philosophy and describes the models that can be used in an organization to enhance learning process (66). The top executives should act as change agents and embrace learning as one of the logical objectives in an organization. Apparently, the leaders must be prepared for any eventuality within the organization setting. Business development, customer satisfaction, and financial perfomance are the indicators of learning and strategies of growth. Moreover, the satisfaction of the employees is measure of an organization’s growth rate. Basically, satisfied employees work towards achievement of the set objectives within the organization.

The store managers have an obligation to supervise the training process within the set deadline. They discuss the importance of efficient customer service and the importance of meeting the needs of clients. The workers must answer a series of questions as a form of their enquiry on their understanding of organizational goals. The management has to conduct a survey to gain feedback on the level of comprehension among the members of the workforce. Following the training process, managers evaluate the employee’s use of customer service tools in the company. The human resource manager can use the results of assessment of the employee’s perfomance to evaluate if the organizational goals are met.

Ouchi’s Z Organization

Ouchi’s theory Z is a management approach based on the Japanese principles. Top executives can use the theory as a combination of Japanese management philosophies and the culture of the United States. It is characterized by promotion procedures, consensual process of making decision, and individual responsibility. The model is a link between the empirical research in an organization and sociological theories. Ouchi emphasizes that theory Z corporations exhibit a homogenous set of cultural values that are resemble to that of clan culture. Therefore, the management has to socialize all the members to achieve congruence of the set objectives. The Theory Z supporters argue that cultural values enhances a commitment of the employees towards achievement of the set objectives.

Ouchi emphasizes on the need of organizations to enhance development of its workforce through continuous training. Wal-Mart organizes for online training to ensure that the workers possess relevant skills and knowledge to achieve the set objectives. The Wal-Mart’s workers have enough time for the training and understand how the company operates. As a result, the management develops a loyal, and dedicated workforce for the benefit of the company. Similarly, the employees have a chance to develop their career in the organization. The management recognizes individual responsibilities of the workers and their contributions towards the overall success of the company. Through the training process, the management empowers the workers to undertake their obligations with ease

Ouchi makes some assumptions about the employees. One of the assumptions is that workers build collaborative working relationships with the coworkers. In Wal-Mart, the management encourages teamwork towards achievement of common goals. The second assumption is that the employees expect reciprocity from the company. Although Wal-Mart does not involve the workers in the decision making process, it ensures that they are satisfied with the level of compensation and benefits. At the company, the employees have a sense of cohesion with their colleagues. Additionally, they are committed to work hard towards achievement of the set objectives.Wal-Mart motivates their employees through health and other financial benefits. The management allows the members of the workforce to have an opportunity of purchasing stock and receive discounted travel prices.

Wal-Mart Inc. Stores is one of the largest retailers on a global perspective. The offer low priced products to the customers as compared to the close rivals. However, the management uses coercive power to influence the actions of the employees. Additionally, the management do not incorporate the concerns and view of the workers in the process of making decisions. Instead, the top executives gives orders to the subordinate staffs, which they have to follow. The company discriminates against women in regard to benefits and promotion. However, the company incorporates Ouchi’s theory Z through a continuous training of the workers to enhance their overall development. However the company needs to formulate effective strategies to motivate the employees and enhance their overall loyalty in a company.

Works Cited

Follett, Mary Parker. “The giving of orders.” Scientific foundations of business administration (1926): 156-162.

Lombardo, Jessica. “Walmart: Organizational Structure & Organizational Culture.” Panmore Institute (2017).

Maslow, Abraham H. “A theory of human motivation.” Readings in managerial psychology 20 (1989).

McGregor, Douglas. “The human side of enterprise.” Classics of Organization Theory (1966).

Schein, Edgar H. “Organizational Culture: Skill, Defense Mechanism, or.” Affect, Conditioning, and Cognition (PLE: Emotion): Essays on the Determinants of Behavior (2014): 315.

Senge, Peter M. The fifth discipline fieldbook: Strategies and tools for building a learning organization. Crown Business, 2014.

Snihur, Yuliya, and Jorge Tarzijan. “Managing complexity in a multi-business-model organization.” Long Range Planning(2017).