Formulate appropriate recommendations (minimum 5) of possible strategic leadership practices that engage frontline leaders to support and foster the company’s culture and inclusiveness

Formulate appropriate recommendations (minimum 5) of possible strategic leadership practices that engage frontline leaders to support and foster the company’s culture and inclusiveness

CASE STUDY:

Walmart: Organizational Structure & Organizational Culture FEBRUARY 15 , 201 9, BY JESSI, CA LOMBARDO

http://panmore.com/walmart-organizational-structure-organizational-culture Walmart’s organizational structure determines the company’s business activities. Currently, these activities are mainly in the retail industry, including operations in the e-commerce market. The company’s corporate structure also imposes limits on how the business addresses its problems. Structural characteristics help facilitate the company’s strategic implementations in capturing a bigger share of the retail market. In relation, Walmart’s organizational culture determines the way people respond to challenges in the workplace. The resilience of the company’s human resources partly depends on the mindset supported through the corporate culture. Cultural features help the retail business adapt to changes and emerging challenges in the international market. The long history of Walmart Inc. in succeeding and continually growing internationally shows that the firm’s organizational structure and organizational culture are helpful in bringing competitive advantages and success. The organizational structure interacts with the organizational culture to maintain the significant competitive advantage of Walmart against other firms, such as Amazon and Target, as well as Apple, Google, and other technology companies that have major online digital content distribution operations.

Formerly named Wal-Mart Stores Inc., the company has a leadership position in the industry. Such a retail market position and potential long-term business success are linked to the beneficial and synergistic combination of the company’s organizational structure and organizational culture. The characteristics and implications of the corporate culture are influenced by how the corporate structure supports human resource development and other aspects of Walmart’s retail business operations, such as marketing, and strategy formulation and organizational design founded on the company’s mission and vision.

Walmart’s Organizational Structure

Walmart has a hierarchical functional organizational structure. This structure has two features: hierarchy and function-based definition. The hierarchy feature pertains to the vertical lines of command and authority throughout the organizational structure. For example, except for the CEO, every employee has a direct superior. Directives and mandates coming from the top levels

of the company’s management are implemented through middle managers down to the rank-and-file employees in Walmart stores. On the other hand, the function-based definition feature of the company’s corporate structure involves groups of employees fulfilling certain functions. For example, Walmart has a department for the function of human resource management. The company also has a department for the function of information technology, and another department for the function of marketing. These are just some of the numerous function-based departments in Walmart’s organizational structure.

The main effect of Walmart’s hierarchical functional organizational structure is the ability of corporate managers to easily influence the entire organization. For example, new policies and strategies developed at the company’s corporate headquarters are directly passed on to regional managers down to the store managers. In this way, effective monitoring and control are achieved through Walmart’s hierarchical functional organizational structure. However, a downside of this corporate structure is that it has minimal support for organizational flexibility. The lower levels of the organizational structure cannot easily adjust business practices because of the lengthy communications and approval process involving the middle managers and corporate managers at Walmart’s headquarters.

Walmart’s Organizational Culture

Walmart’s organizational culture has four main components. These components guide employees’ behaviors, which determine organizational capacities to add value in the provision of retail service and related services to consumers. The cultural components are also identified as Walmart’s beliefs:

1.     Service to customers

2.     Respect for the individual

3.     Strive for excellence

4.     Action with integrity

In terms of service to customers, the company prioritizes customers in its operations. Walmart also recognizes the contributions of each employee to the success of the business. In addition,

the firm strives for excellence in the performance of individual workers, teams, and the entire organization. In terms of maintaining integrity, Walmart promotes the virtues of honesty, fairness, and impartiality in decision-making processes.

Creating an inclusive culture

It begins with a strong commitment to the 2.3 million associates that drive Walmart’s stores, e-commerce business, logistics and other functions that are crucial to serving customers. Walmart’s leaders believe all associates have an important voice and play a critical role in driving the business – Walton is often quoted as saying “listen to your associates, they’re your best idea generators”. Any associate might come up with the next big idea that separates Walmart from the competition.

As Walmart has gained recognition in recent years as a leader on environmental sustainability, some of the initiatives that have helped the company maximize energy efficiency or reduce waste began as ideas shared by associates. Working together, Walmart associates make corporate strategy a reality, and they alone do the consistent, important things that make a customer’s experience special. It’s not uncommon when talking with a Walmart associate to hear them say “that Walmart can change the world” – and mean it.

This approach to doing business is a direct result of the Walmart culture – which the company defines as “our values in action”. At Walmart, every associate is expected to practice behaviors consistent with four core values – “Service to the Customer”, “Respect for the Individual”, “Strive for Excellence” and “Act with Integrity” which trace back to the start of Walmart and are consistent around the world.

While Walmart’s values are universal, it’s by design that you’ll see them manifest a bit different whether you’re at the company’s Home Office in Bentonville USA, or shopping at a store in Sao Paulo or Beijing. Walmart’s values remain the same, but the application adapts to align to local customs and norms – an example of a business philosophy Walmart’s International division calls “freedom within a framework”.

Walmart cultural principles

1. Walmart sees corporate culture as a key business strategy.

For culture to survive as organizations expand, everyone needs to be committed to it as a business strategy. In high-performing organizations, efforts to build a positive culture do not compete with the means to achieve business results – culture is the means. Realizing this, Walmart has integrated culture development into its business planning processes. Moreover, senior leaders are heavily engaged in that planning, and also serve as culture role models as they communicate the company’s strategy and values to others within the organization. After all, truly successful corporate culture rollouts start from the top.

2. Walmart engages frontline leaders to support its culture.

Successful corporate culture rollouts might start at the top, but their long-term viability depends upon buy-in from the grassroots. Don’t simply wait for company culture to trickle down from senior leadership. Engage frontline leaders to support and live the company culture as well. This includes leaders in the formal “chain of command” as well as more informal leaders that live and influence at or near the front line.

Each Walmart associate is expected to be a keeper of the culture and practice behaviors consistent with company values – one of those behaviors being to lead by example. In that way Walmart has 2.3 million culture leaders, and that is one of the reasons why the company is so effective in developing its own talent- with 75 percent of its salaried U.S. field managers promoting from hourly positions.

3. Walmart maintains consistent global communication of its culture.

How culture is communicated is key to sustaining culture over the long-term. Ensure communication is consistent, both internally and externally. Arm teams in different locations or branches with the tools they need. When it comes time to reinforce or refine its culture, Walmart engages leaders at the local level, giving them what they need to communicate with their teams. Ensuring all locations are on the same page can help companies scale more effectively and make sure culture doesn’t suffer in the process.

4. Walmart aligns its people systems.

By aligning HR systems from recruitment to retirement, Walmart is able to recognize and reward its future associates and leaders. Understanding how culture plays a part in benefits will help any company sync its recruitment and retention strategies. Most important, leadership development and selection – the path to success at Walmart – is achieving great results through living the culture.

5. Walmart conducts its business with an emphasis on culture every day.

Culture has a starting point, but not an end. Walmart’s culture is integrated into every aspect of its business. Company culture reflects the values and beliefs of any organization, so employees should strive to live them every day-as should the organization as a whole. Defining a winning culture is fruitless if it does not radiate through the company. Hire and promote leaders at every level who get results and embody core values-they will build teams that do the same.

Recommendations for Walmart’s Organizational Culture and Structure

Walmart’s organizational structure is ideal for the company’s type of business and global scope of operations. Managerial control and influence is maximized through this corporate structure, despite the vastness of the company’s retail and related operations. However, Walmart can improve in applying its beliefs in the context of its organizational culture. These beliefs are ideal. Still, the company is frequently criticized for its failure to address employees’ concerns regarding low wages. Such criticisms point to the difference between the belief of respect for individuals in the organization’s culture, and the actual treatment of the employees. Thus, a suitable recommendation for Walmart is to implement more effective measures for fulfilling the respect for the individual component of the organizational culture

References

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Hickman, C. R., & Silva, M. A. (2018). Creating excellence: Managing corporate culture, strategy, and change in the new age. Routledge.

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