OTHMAN YEOP ABDULLAH

GRADUATE SCHOOL OF BUSISNESS

COURSE CODE: OPMH 6023

INDIVIDUAL ASSIGNMENT

WALMART
ORGANIZATIONAL STRUCTURE & ORGANIZATIONAL CULTURE

NAME: AW KAI WEN

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Table Content
1.0 Bibliography……………………………………………………………………………...3
2.0 Purpose of study…………………………………………………………………………3
3.0 Summary of Article……………………………………………………………………3-4
4.0 Recommendation by Researcher……………………………………………………….4
5.0 Critique of the Article………………………………………………………………….4-6
6.0 Recommendation……………………………………………………………..………7-12
7.0 Conclusion………………………………………………………..……………………..12
8.0 References.………………………………………………………………..………….13-14

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1.0 Bibliography
Lombardo, J. (2019). Walmart: Organizational Structure & Organizational Culture. Panmore
Institute. Retrieved from http://panmore.com/walmart-organizational-structure-organizational-
culture.

2.0 Purpose of study

The organizational structure interacts with the organizational culture to maintain the significant

competitive advantage of Walmart. Walmart’s organizational culture determines the way

people respond to challenges in the workplace. Autocratic leadership style (AL) places more

emphasis on performance and low emphasis on people. The focus of power is with the leader

and all interactions within the group move towards the leader. The leader unilaterally exercises

all decision-making authority by determining policies, procedures for achieving goals, work

task, relationships, control of reward, and punishment (Fiaz, M., Su, Q., & Saqib, A.,2017). In

this article “Walmart: Organizational Structure & Organizational Culture” mentioned that

Walmart’s organizational structure is adequate, but the company needs to improve its

organizational culture.

3.0 Summary of Article

In the article researcher discussed that 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. Instruction and task 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. While this article mentioned that 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.

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In this way, effective monitoring and control are achieved through Walmart’s hierarchical

functional organizational structure. 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. However, lower level 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.

The researchers discussed an important topic, Walmart’s organizational culture has four main

components.

1. Service to customers

2. Respect for the individual

3. Strive for excellence

4. Action with integrity

In terms of integrity, Walmart promotes the virtues of honesty, fairness, and impartiality in

decision-making processes. Besides, the company strives for excellence in the performance of

individual workers, teams, and entire organization. In terms of service to customers, the

company prioritizes customers in operation. Walmart also recognizes the contributions of each

employee to the success of the business.

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4.0 Recommendation by researcher
Researcher given recommendation that Walmart can improve in applying its beliefs in the

context of its organizational culture. These beliefs are ideal. At the same time, the company is

frequently being criticized about 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

5.0 Critique on Article

I agreed with the researcher that Walmart’s organizational structure is adequate, the company

needs to improve its organizational culture. But the article was not clearly visible to the average

reader, how it should improve the organizational culture in the of respect for the individual and

the issue for employee’s concern was not only wages abuse. Besides, organizational structure

only specific mentioned hierarchical functional. In fact, Walmart also implement divisional

structure and matrix structure. In addition, there is no conclusion given and researcher has

closed statement with recommendation without further explanation. Basically, it required

several readings to establish why the researchers felt this study needed to be done. It was

limited to the researchers’ capabilities and resources.

Researcher only mentioned that the company is frequently criticized about its failure to address

employees’ concerns regarding low wages in the organization culture. In fact, according to

Lichtenstein, N. (2011), In the article “Wal-Mart’s Authoritarian Culture” stated that the

underlying issue, which the Supreme Court has now ratified, is Wal-Mart’s authoritarian style,

by which executives pressure store-level management to squeeze more and more from millions

of clerks, stockers and lower-tier managers. There are tens of thousands of experienced Wal-

Mart women who would like to be promoted to the first managerial rung, salaried assistant

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store manager. But Wal-Mart makes it impossible for many of them to take that post, because

its ruthless management style structures the job itself as one that most women, and especially

those with young children or a relative to care for, would find difficult to accept. There used to

be a remedy for this sort of managerial authoritarianism: it was called a union, which bargained

over not only wages and pensions but also the kind of qualitative issues, including promotion

and transfer policies, that have proved so vexing for non-unionized employees at Wal-Mart

and other big retailers. They have set the glass ceiling over women. It means that Walmart not

only failure to address employees’ concerns regarding low wages but also occur sex

discrimination and squeeze the resource which cause unsatisfaction of employees.

Walmart, the largest private employer in the U.S. (Hess, 2013), comprised of 11,000 stores and

2.2 million employees worldwide (Walmart, n.d.), is a plentiful source of corporate

wrongdoing examples. They are routinely embroiled in controversies, including sex

discrimination (Hines, 2012), and violating workers’ rights (Greenhouse, 2014). Walmart’s

treatment of its workers made it an obvious context for Ehrenreich’s (2001) investigation into

the plight of the working poor. Notably, Walmart is a dictatorship and authoritarian to describe

the working conditions (Brief, A. P., & Smith-Crowe, K.,2016)

Besides, for organization structure researcher mentioned Walmart has a hierarchical functional

organizational structure. This structure has two features: hierarchy and function-based

definition. Walmart’s organization structure is hierarchy function-based organization and

divisional function-based for top level and matrix organizational for store level which not

mentioned by researcher. In fact, according to Brunn, S. D. (2006) Wal-Mart follows a

divisional organisation structure at the top level and a matrix organizational structure at the

store level. Within the divisional structure it is divided into three sub-categories which is

product, geographic, and market structure. The three subcategories allow Wal-Mart to benefit

from the divisional structure by allowing the company to focus on the products they provide,

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services and the customers. It is essential to understand each individual structure when

contrasting and comparing to the divisional structure. For those employees that perform a task

for the company and is strategically places in a specific department due to that duty or task

then that is a functional structure. This structure better fits in to areas such as accounting, human

resources and even quality control that mentioned by researcher. A huge benefit from this

structure is that it allows the ability to strengthen the skills, encourage the skills and knowledge

form all parties. This structure gives the departments a sense of independence. As for a

divisional structure it places employees in areas based on what the organization is producing.

This allows for the company to focus on different areas or locations and gives them a chance

to adjust to the ever-changing market. The matrix structure is a bit different. It acts as both

functional and divisional structures. Matrix structure creates a company or organization for the

sole business of certain services or products.

6.0 Recommendation
6.1 Organizational Culture
Researcher can suggest how to improve the organization culture such as how to address

employees’ concerns regarding low wages, reduce the glass ceiling in the workplace and

protect worker’s right.

According to CEO Doug Mr. McMillon said of the emphasis on change. “What we’ve tried to

do in recent times is to say the purpose is the purpose, the values are the values, everything else

is open to debate and may change. And we’ll try to always explain why, but we’ve got to be

ready to go because retail is about change.” (Ryan.T,2018)

There are 3 things can improve: -

1. Alternative of wages – profit sharing

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According to Bergdahl (2016) stated that Sam Walton also notes that profit-sharing is available

to every employee, providing expectations are met, and that all employees are kept informed

of each months’ profits and losses. He mentioned that this gives the employees a form of

ownership of the success of the business, and sense of importance concerning their role. What

Walmart lacks in wages for incentives, however, it attempts to make up for via employee

suggestion programs, annual manager meetings, and departments for major issues such as

human resources. In my opinion, an employee can enjoy profit-sharing from a company, they

will work with commitment and ownership the job. This will attract more talent to work for

the company and retain the staff.

2. Reduce glass ceiling issue

According to Chisholm-Burns et.al (2017). Strategies to overcome barriers is to promote

women’s leadership must be developed and implemented. Organizations must prioritize gender

equity and be deliberate in their efforts to expand leadership opportunities for women this

includes creating comprehensive programs and policies that address barriers limiting the access

of women to leadership career tracks. In my opinion, Walmart should actively recruit, develop

and train, and support women in leadership roles, implement mentoring and coaching programs,

and enact policies that facilitate work–life balance. For example, providing resources for

childcare or eldercare and flexible work options. Besides, Hiring and promotion processes and

policies, as well as decisions regarding compensation, should be reviewed and monitored to

ensure that they are fair and uninfluenced by gender bias.

3. Protect workers’ rights

According to Ajunwa, I., Crawford, K., & Schultz, J. (2017). Sector-Specific Approach: The

Employee Privacy Protection Act more promising than an omnibus law would be a sector-

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specific approach that narrows the context and focus of the law to the particular employer-

employee relationship, recognizing the power differential between the parties and the

problematic frame of employment/workplace data. A hypothetical “Employee Privacy

Protection Act” (EPPA) could specifically limit workplace surveillance to its appropriate

context—actual workplaces and actual work tasks. It would explicitly prohibit surveillance

outside the workplace both in terms of physical location privacy and activity privacy. Such a

boundary could not be breached simply through notice-and-consent mechanisms. Much like

other worker protection laws, such as those providing for minimum wage, overtime pay, and

safe working conditions, the EPPA would serve as a general protection for all workers that

could not be waived. The EPPA would also prohibit productivity apps from monitoring

employees when they are off duty, notwithstanding any insistence on monitoring as a condition

of employment. In my opinion, Walmart’s employee would protect by the law of under

“Employee Privacy Protection Act” (EPPA), if any unfair treatment from Walmart, employees

are able to post complaint.

6.2 Organizational Structure

Researcher can explain more about Walmart job hierarchy and give input on the divisional

structure organization and structural hierarchy that the chain follows in filling its entire

managerial, hourly and higher executive positions.

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 Diagram 1 Divisional Structure

According to Hoşgör, E. A. (2015) Walmart divisional structure for each division within this

structure can correspond to either products or geographies of the organization. Each division

contains all the necessary resources and functions within it to support that particular product

line or geography. For example, its own finance, IT, and marketing departments.

Product and geographic divisional structures may be characterized as follows:

Product departmentalization : A divisional structure organized by product departmentalization

means that the various activities related to the product or service are under the authority of one

manager. For example, the Walmart’s division will have its own sales, production, and

marketing departments distinct from those departments within the product division.

Geographic departmentalization: Geographic departmentalization involves grouping activities

based on geography, such as an Asia/Pacific or Latin American division. Geographic

departmentalization is particularly important if tastes and brand responses differ across regions,

as it allows for flexibility in product offerings and marketing strategies.

According to “Walmart Job Hierarchy” (n.d), The whole of the job hierarchy is divided into

three broad segments which many sub-segments within each. A description of the hierarchy

segments follows below.

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Walmart matrix organizational structure at the very top executive has a pattern as illustrated

in Diagram 2 below: -

Diagram 2 Matrix Structure for store level

In Store Hourly Workers/ Management:

This is the lowest segment in the Walmart job hierarchy tree. This segment majorly comprises

of entry level positions and mostly all the employees in this segment are hired on hourly basis,

they work in the store in an hourly count.

In- Store Managers:

The In-store managers the next segment of the Walmart job hierarchical structure. This

segment is in the middle tier of the Walmart Business hierarchy structure. The positions

included in the segment comprises of individuals who have a greater responsibility as manager

and hence require a set of interpersonal skills to fulfil their job responsibilities.

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Above Store Level Management:

This is the highest tier of job hierarchy in Walmart. The list of positions in this segment includes

the highest-level executives and even the board of directors.

7.0 Conclusion
In a nutshell, this article is focus within the organizational structure interacts with the

organizational culture to maintain the significant competitive advantage of Walmart.

Walmart’s organizational culture determines the way people respond to challenges in the

workplace. Walmart’s continually growing internationally shows that the firm’s organizational

structure and organizational culture are helpful in bringing competitive advantages and success.

Lombardo.J (2019) In this article “Walmart: Organizational Structure & Organizational

Culture” mentioned that Walmart’s organizational structure is adequate, but the company needs

to improve its organizational culture. However, this study did not adequately describe how to

improve organizational culture or address the issue, the issue for respect for the individual not

only wages abuse and researcher did not further describe organizational structure and give

conclusion of article. Future research for Walmart’s organizational structure & organizational

culture, researcher can further research more details on the human resource issue of Walmart

with clear description comes with recommendation. In addition, for organization structure,

researcher can provide the organizational structure in macro form so that the average reader

can know the overall picture organizational structure of the Walmart and give conclusion of

article.

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8.0 References

1. Ajunwa, I., Crawford, K., & Schultz, J. (2017). Limitless worker surveillance. Calif.

L. Rev., 105, 735.

2. Brief, A. P., & Smith-Crowe, K. (2016). Organizations matter. The social psychology

of good and evil, 390-414.

3. Brunn, S. D. (2006). Wal-Mart world: The world's biggest corporation in the global

economy. Routledge.

4. Bergdahl, M. (2016). “THE WAL-MART WAY”...Cultural Kool-Aid Creates Cult-

Like Commitment.” Global Business News. Retrieved from

http://www.globalbusinessnews.net/story.asp?sid=1239

5. Chisholm-Burns, M. A., Spivey, C. A., Hagemann, T., & Josephson, M. A. (2017).

Women in leadership and the bewildering glass ceiling. American Journal of Health-

System Pharmacy, 74(5), 312-324.

6. Ehrenreich, B. (2001). Nickel and dimed: On (not) getting by in America. New York:

Picador.

7. Fiaz, M., Su, Q., & Saqib, A. (2017). Leadership styles and employees' motivation:

perspective from an emerging economy. The Journal of Developing Areas, 51(4),

143-156.

8. Greenhouse, S. (2014, Dec. 10). Walmart illegally punished workers, judge rules. The

New York Times.

9. Hess, A. E. M. (2013, Aug. 22). The 10 largest employers in America. USA Today.

10. Hines, A. (2012, June 6). Walmart sex discrimination claims filed by 2,000 women.

Huffington Post.

11. Hoşgör, E. A. (2015). Organizational structure. Wiley Encyclopedia of Management,

1-6.

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 12. Lichtenstein, N. (2011). Wal-Mart’s Authoritarian Culture. The New York Times.

13. Ryan.T (2018,Jan 18th) Walmart CEO: ‘Retail is about change’.Retailwire retrieved

from https://www.retailwire.com/discussion/walmart-ceo-retail-is-about-change/

14. Walmart. (n.d.) Our story. Retrieved from http://corporate.walmart.com/our-story/

15. Walmart Job Hierarchy (n.d) Retrieved from

https://www.hierarchystructure.com/walmart-job-hierarchy/

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