Wal-Mart Culture Introduction There are a number of organizational behavior concepts that affect the success or failure of any organization; a few examples would be communication, motivation and decision making. Every organization has its’ own organizational culture which defines the organizational behaviors that it believes to be most important. An organization’s values, mission statement, goals and philosophy all make up the organizations culture. An example of an extremely successful company with a very strong organizational culture is Wal-Mart. History Sam Walton opened the first Wal-Mart store in 1962 in Rogers, Arkansas. Ten years and fifteen stores later, Wal-Mart stock was offered for the first time on the New York Stock …show more content…
(walmartstores.com-268) This policy helps to motivate the employees to continually come up with new ideas and look for ways to improve processes. These policies not only facilitate communication between the employees, and help keep associates happy by giving them a sense of ownership or empowerment, but this also works towards achieving a higher level of customer service from the employees. Employees who feel a sense of ownership in their organization are more likely to take a personal interest, and go that extra mile to ensure they are providing excellent customer service. (Ard) Another way that Wal-Mart motivates and empowers its employees is by using outcome orientation and on-the-spot decision making. Employees are empowered to do what they need to do to make sure the customer is satisfied. This means that some things are taken to management for resolution; however the majority of the issues are handled by the employees themselves. Whether a situation was handled correctly, depends entirely on whether or not the customer is satisfied with the outcome. Wal-Mart associates are motivated using various methods. The most rewarding form of motivation for some might be the empowerment aspect discussed above. For others it might be the pay raises, and associate profit sharing programs that employees can participate in after being employed for one year, or even the 10% employee discounts they receive on all items. However,
(3) The most important ingredient in Wal-Mart success was the way it treated its associates. He believed that if you wanted the people in the stores to take care of the customers, you had to make sure that you were taking care of the people in the stores.
Wal-Mart, the largest private employer in the globe and the third among the largest corporations in the world, is known to apply a wide range of logistic and supply chain techniques in meeting the dynamic demands from their clients. Additionally, the need to stay at the top in the world of business has made this concept mandatory for the multinational organization. Wal-mart, in its drive to achieve these ends has presented a number of implications, not only to the organization but also to its clients and the society at large (Fishman, 2006). Various positive attributes, say the history of the corporation, its application of information technology and computerized systems and the culture of the organization has, to a great extent catapulted the organization to great heights (Keil & Spector, 2005). Other attributed that have been of help to the organization and its client base include the corporation's strong global marketing procedures, practical distribution networks and strategic geographical locations just to mention but a few. On the negative side of the corporations activities and performance include the likes of rapacious pricing, poor labour and employees relations and poor working conditions among others.
Wal-Mart has three basic beliefs that are an integral part of their teamwork. The first is respect for the
4. Relations with Suppliers- Wal-Mart has in place a system that helps to achieve their goal of lower prices. This Information Technology system includes computers, networking, and internet that cuts inventories and waste and helps with speedy delivery. This system also helps Wal-Mart to keep in constant contact with suppliers by transferring the data that suppliers need so they know what Wal-Mart needs. Wal-Mart also works with suppliers to improve their production and squeezes the best prices out of its supplier. The video referred to Wal-Mart as the customer’s agent. All of this focus Wal-Mart puts on suppliers reduces costs and lowers prices. Wal-Mart’s technological/logistical leadership remains unmatched by competitors (Web, 2005).
One of the ways that people operate in the political frame is through the obtaining and use of scarce resources within the organization. Scare resources can include things like money (salaries or budgets), positions (such as promotions), larger offices, more office supplies, access to help such as secretaries, as well as intangible things like status, influence, and overall power within the organization (Bolman and Deal 18). Wal-Mart has plenty of resources because it is a large organization. However, those resources are concentrated in just a handful of people at the top of the corporate chain. Most of the resources do not flow down to the common store
This paper will discuss the structure of Wal-Mart's corporate culture and how it influences their employees. In order to understand an Organization Behavior there are different elements that will create the employees perspective of the organization’s culture such as the management’s philosophy, vision, values, and goals. The driving force of these elements will create the culture of the organization. An organization’s culture will define the leadership, and dynamics of the organization. With each element listed the employees of the organization will identify this as work life that will guide their level of motivation. Depending on which level of motivation the employees are at
In 1950, former J.C. Penny employee, Sam Walton opened Walton’s Five and Dime in Bentonville, Arkansas. By 1965, in the same small town Walton would open the first Walmart store unknowing that his investment would become the world’s largest retailer. By keeping sales prices low Walton was able to get ahead of the competition and successfully opened an additional store within the same year. Walton’s success continued and by 1967 his chain of stores had grown to 24 locations, and was bringing in about $12.6 million dollars in sales annually.
Wal-Mart is a general merchandise discount retailer, which was incorporated in 1962. Wal-Mart’s history is based on one man, Sam Walton, who changed the course of retailing forever. Sam Walton first entered retailing when he was a management trainee at J.C. Penny Co. in 1940 in Des Moines, Iowa. After serving in the Army in World War II, Walton acquired a Ben Franklin variety store franchise with his brother James Walton in Newport Arkansas, until they lost the lease to the store in 1950. By 1962, when the first Wal-Mart Discount City was opened in Rogers Arkansas, both Walton’s were operating fifteen stores under the “Walton 5 & 10” name, and were the largest Ben Franklin franchisee in the
Walmart’s organizational structure determines the company’s business activities. Its organizational structure also enforces limits on how the business discourses its problems. In relation, Walmart’s organizational culture decides the way people react to challenges in the workplace. The elasticity of the human resources of the company partly depends on the mindset maintained through the organizational culture of the Wal-Mart. Nonetheless, the long history of Walmart in progressing successfully and continually growing internationally proves that the firm’s organizational structure and organizational culture have been very positive in bringing competitive advantage and achievement. Such organizational structure interacts with the organizational culture to maintain the significant competitive advantage of Walmart.
When Sam Walton died in 1992, the company was taken over with the same cheapness in mind. Only, the new leaders at Wal-Mart didn’t show the employees that they were still important.
There are so many organizational behavior concepts to take into consideration for the success or failure of any organization, business or company. The way these concepts are handled by management and employees will either keep the business open or these same concepts could end up in closure of this same business or organization. Management and employees are the people who will make the "win or lose" situation occur. Communication, motivation, and power and politics are some of the concepts that will cause a business to succeed or fail. Businesses must be competitive to stay alive, or these same businesses will
Wal-Mart was started in Rogers, Arkansas during the early 1960’s by Sam Walton. (Ghillyer, 2010). Walton traveled all around the country researching what consumers wanted in a retail store. When Sam Walton fist opened Wal-Mart he
The first primary characteristic, which Wal-mart embodies, is innovation and risk taking. Wal-Mart has many policies in place to ensure that employee ideas and concerns can be openly expressed to management. Sam felt it was important that associates feel like they can go to management at any time to
In Wal-Mart, employees are valued and empowered. All employees are called “associates” symbolizing their importance to the firm. The belief is also that the employees will work harder if treated well. Open doors and open books policy is enforced to make sure that, employees are empowered to
In 1962, Sam Walton opened the first Wal-Mart in Bentonville, Arkansas. What began as a single