Corporations throughout the world utilize and recognize the effectiveness of an organizational structure. An organizational structure reflects the way an organization positions their employees and jobs that can be resulted in accomplishing the goals and direction of the company. Larger organizations benefit from these structures because of the multiple tasks that are presented, while smaller ones may find it unnecessary. Therefore, plan of actions are established to successfully tackle the responsibilities for the different functions. An organization is typically faced with the responsibility of establishing exactly what skill an employee has, how they perform their duties, and who they report to. There are many factors that determine the type of organizational structure an organization uses. Such as what type of work the company does, how big the company is (employees), the type of revenue it produces, the geographic depth of the companies facilities, and even how much varied products the business has. The organizational structure for Wal-Mart and how it compares or contrasts to other organizational structures will be discussed in this paper. The evaluation of how the organizations function influences and determines the organizational structure and design of Wal-Mart will also be illustrated. Wal-Mart Structure
Founded in 1962, Walmart opened its first store in Rogers, Arkansas and eventually incorporated as Wal-Mart Stores, Inc. in 1969 (Wal-Mart Stores, Inc., 2011). With the magnitude of people that Wal-Mart employees, this company is a prime example of how essential the implementation of an organizational structure is. Wal-Mart is responsible for employing approximately 780,000 associates in 26 different countries not including the United States (Wal-Mart Stores, Inc., 2011). The Wal-Mart organizational structure is classified as the divisional structure. The divisional structure is broken down into three sub-catagories...
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