Wal-Mart and It's Organizational Behavior Issues

Topics: Sam Walton, Wal-Mart, Management Pages: 8 (2969 words) Published: April 14, 2013
Organizational Behavior
March 30, 2013

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 will determine the outcome of their performance, along with their satisfaction, and development. The entire elements combine helps to build the framework in the way the organization operates. (Davis, 1993) It is important for Wal-Mart to understand their employees’ job satisfaction, fairness, personal development and growth within its organization. Wal-Mart was founded by Sam Walton in 1962. Sam Walton business strategy was to supply products for customers at low prices. Sam Walton began the first Wal-Mart store in Rogers, Ark. While Wal-Mart was at their beginning stage their competitor Kmart was growing rapidly. During that time Walton was only able to invest in 15 stores. In the 1970s Wal-Mart offered stock which helped to expand the company with 276 stores in 11 states. By the 1980s Sam Walton was labeled one of the richest individuals in the United States. In 1983, Sam’s club Warehouse was opened. In 1988 the first Supercenter was open offering grocery and 36 departments of merchandise. In 1989 there were 1,402 Wal-Mart stores and 123 Sam Club. As of to date there are 10, 185 Wal-Mart and Clubs location in 27 countries with 2.2 million employees. Walton theory is quoted in autobiography by stating “… if you think about it from the point of view of the customer, you want everything: a wide assortment of quality merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable service; convenient hours; and a pleasant shopping experience. You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you're invisible." This strategy helped to build the foundation of Wal-Mart and by the 1980s Sam Walton was labeled one of the richest man in the United States. ("History,”) With the low cost being the drive of the business, comes a price to employees’ benefits and pay. Walton believed in order to maintain low cost for his customers, he would have to control payroll. When Walton passed away in 1992, this issue was shed to light to the public in the way Wal-Mart treated their employees with unequal pay and benefits. The negative press created a negative image of Wal-Mart and caused them to lose 8 percent of their customers. The new leaders of Wal-Mart took on one philosophy of Walton and that was reducing cost, but left out the key element of making their employees feel as if they had a stake in the company. The pressures of reducing cost created unrealistic demands for Wal-Mart’s managers, specifically dealing with payroll. The high cost of low price began to have an effect causing Washington to get involved of the turmoil. The state of Maryland followed suit by creating a bill for large employers such as Wal-Mart to spend at least 8 percent of their payroll on health benefits. Thirty others states are soon to follow with similar bills. (Frank, 2006) Wal-Mart stated as a defense their company offers the lowest cost in healthcare benefits within their industry along with competitive wages. Wal-Mart’s associates have mixed reactions to how satisfied they are with their company’s benefits and wages. Some employees have resigned because of their dissatisfaction while other...

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