Organizational Success: Principles of Management and Behavior - Research Paper

Introduction

Principles of management and organizational behavior are an essential aspect that influences the success of an organization. Companies apply various principles and strategies that influence their actions and the ability to achieve long-term success. While some companies have independent central command centers, others decentralize their services, considering the number of regions they cover. Management involves organizing factors of production, such as materials, labor, and capital to achieve desired outcomes (Kreitner, 2008). Therefore, companies must have able managers and board of directors to help in achieving the outcome by maximizing internal and external resources. Importantly, they must consider changes in the business environment and adjust their policies to exploit recognized opportunities, while minimizing the utilization of resources. In this regard, Walmart is the market leader in the retail sector and this is because of the management principles it has put in place that have contributed to meet the requirements of the customers internationally. Consequently, the research seeks to address principles of management the administration of the retailer has used to create and sustain its competitive advantage.

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Research Aim

Walmart is the leading retailer internationally and it has maintained its market position because of its competitive strategies and human capital. Competition in the industry has intensified but Walmart manages to stay ahead of the competitors in the home and international markets (Walmart, 2020). In this regard, the research aims to find out competitive strategies and management principles the company has effectively implemented that have contributed to its success.

Research Objectives

Considering the competitiveness of the company, the following research objectives will guide the study:

• To establish the effectiveness of the mission of the company
• To describe the organization of the company
• To establish the leadership style that has influenced the attitude and commitment of all stakeholders
• To describe the control processes in the company
• To establish any innovative managerial practices

Mission of Walmart

Walmart opened its first store in 1962 in Arkansas but the company has been committed to change the way people think and shop (Walmart, 2020). The success story of the company is associated with the visionary leadership of the founder that focuses on helping communities live a better life and save funds. Its rich heritage defines what the company wants to achieve in the long-run. The company went public in 1970 and this marked a significant milestone for the company (Walmart, 2020). The administration raised adequate finances to finance its growth projects and investments. As the competition increased, the founder developed new approaches and introduced the technology in its operations. The company expanded its operations to Mexico and other markets. Walmart receives about 265 million visitors across its 11,500 stores internationally. It has 56 stores across 27 countries besides employing 2.2 million associates (Walmart, 2020). Besides being a market leader in the retail sector, the company leads the market in sustainability and corporate social responsibility. The mission of the company is to save people financial resources so that they can live better lives.

The company applies lean methodology in its operations by utilizing its resources and people, as well as the effort to create and maximize value for the stakeholders. From a humble beginning, the company has opened many retail outlets in the US and the international market because of its focus on the needs and expectations of the customers. It continuously invests in its people and resources to seemingly change the experience of the customers since they can stop and shop anywhere and anytime (Walmart, 2020). When the company launched its operations, it used to distribute its products and services through brick-and-mortar stores. However, the founder recognized the need for developing online retailing where clients can shop online. The effort is to improve customer experience, as well as nurturing the skills and careers of the employees.

The cornerstone strategy of the company is everyday low price. The price focus of the company has never been strong while shoppers seek the convenience of shopping all their products under one roof. From online customers to physical shoppers, the company ensures that every customer is satisfied with the quality of services they receive (Walmart, 2020). Because of the financial status of the retailer, it can offer unimaginable discounts on all its products as a way of enticing and improving customer experience. Consequently, it is regarded as a low-cost retailer internationally; thus, attracting and retaining many customers. Therefore, it applies a customer-focus business strategy and it has put in place tactics that foster employee commitment towards customer satisfaction.

However, the company cannot achieve its business strategy without attracting and retaining a motivated workforce. All employees understand that an opportunity in the company is an opportunity to build a career. About 75% of the managers and supervisors in the company began their careers as hourly associates (Walmart, 2020). It has a clear methodology for promoting employees to jobs with more responsibilities with higher pay. Furthermore, equality and diversity in the workplace create opportunities for all employees; thus, motivating them to work hard under minimal supervision so that they can be considered for promotions when there is a vacancy. Therefore, many employees in the labor market want to work in the company and the current employees do not want to leave. Therefore, the business strategy meets the needs and expectations of all stakeholders.

Walmart has many customers because it offers a range of products, meaning that all people can buy whatever they want from the stores. Examples of its products and services include footwear, jewelry, furniture, electronics, toys, health beauty, movies, and music. It means that its customers include young people, professional sportspeople, men, and women. The company has the largest distribution operations internationally across its stores, direct delivery, and clubs (Walmart, 2020). It has distribution centers where clients pick perishable products. Although the competition is high in the retail sector, Walmart has managed to retain its competitiveness because of the ability to develop its products and services to offer a unique experience to the customers. Its primary competitors include Amazon, Kroger, Walgreens, Tesco, and Carrefour, as well as Costco.

Organization of the Firm

The company has a strong government team with a hierarchical structure. The company's board of directors operates within the framework of integrity and accountability. The board makes important decisions that influence the success of the company. Values and frameworks the board considers when making strategic decisions include honesty, fairness, and objectivity. The objective is to build trust among the stakeholders. Walmart has 11 board members where Gregory Penner is the chairman. The roles and duties of the board include the duty of loyalty (Walmart, 2020). It means that the board members should engage in practices that will not create a conflict of interest by applying core values, such as integrity and fairness. The other duty of the board members is the duty of care and this involves the ability of each member to perform their duties without external influence. They must be independent and take care of the resources of the company, as well as being accountable for their actions. Six committees are supporting the board in developing and implementing organizational policies. The committees include audit, compensation and management development, nominating and governance, executive, and strategic planning and finance committees.

The other responsibility of the board is to formulate the vision and mission statements, as well as long-term strategic plans. The board must have a view of the company's long-run by identifying markets to expand to and product development (Walmart, 2020). In line with this, the board formulates policies that guide the senior management team in its operations. To foster management efficiency, the board determines the structure of the company and other critical components, such as environmental factors and the extent of competition in the retail industry before formulating policies that would influence its success.

Underneath the board is the executive management team and this is mandated with the responsibility of implementing recommendations of the board. It includes nine members, including Doug McMillson, the president and the chief executive officer of Walmart, Inc (Walmart, 2020). Furthermore; the executive team includes other principles and regional managers, as well as presidents, heading different departments of the organization. Clear communication channels between the heads of department and the executive team as well as regional managers to ensure the running of the business. Informal entities in the organizations include informal groups and social teams not legally recognized in the structure but they help to provide critical information required to run the company successfully.

The process of making decisions in the company is systematic based on the hierarchical structure. Since the board is the highest decision-making entity in the company, it identifies the decision to be undertaken. The process begins with the identification of the decision, such as expanding the company to new markets where it has not established its operations. The step is essential since it helps the company to determine the potential impact of the decision on the company and its stakeholders. The second process is gathering adequate information (Kreitner, 2008). For example, the board must gather adequate information about the target market and factors that might affect its entry and success.

The third step is identifying alternative solutions to the decision. The board comprises of competent individuals with diversified skills and competencies. Therefore, the team evaluates the proposed decision and assesses potential alternatives and come up with the most effective solution (Walmart, 2020). The process is crucial to the success of the company since the board of directors must be accurate about the investment since it will be blamed for any failure of the company. Once the company has identified the best alternative, the next step is empowering the chief executive officer of the company to execute the plan. It is the responsibility of the chief executive officer to develop policies and implementation frameworks with the inclusion of the executive management team.

The process of managing change at Walmart is systematic and takes into account various elements of change. It has a program with six building blocks that define its management practices. The first process is developing a competent leadership that will execute the change successfully. It comprises of a team of experts and self-motivated determined to foster organizational success through change. For example, the team creates awareness of the change to be implemented, execute the plan and builds a culture of change to sustain the developed program. Lewin's change management model has three to successfully implementing change. They include unfreezing and this is where the leadership team creates change awareness in the entire organization and prepares everyone for upcoming change (Kreitner, 2008). The second phase is the change itself and this involves transla...