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Beginning: Organizational Culture

Walmart was founded in 1962 in Arkansas by Sam Walton and has grown to become the largest company in the world. Walton's goal was to provide customers with low prices so they could save money and live better lives. Walmart quickly expanded across the U.S. and became a publicly traded company. It now has both physical stores and an online shopping platform. However, Walmart faces criticisms over its low wages for employees, authoritarian leadership style, and issues with gender discrimination that stem from this leadership approach. Suggestions to address these problems include paying standardized living wages, shifting to a more inspirational management style, and allowing employee unions.

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Ivy Nguyen
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180 views3 pages

Beginning: Organizational Culture

Walmart was founded in 1962 in Arkansas by Sam Walton and has grown to become the largest company in the world. Walton's goal was to provide customers with low prices so they could save money and live better lives. Walmart quickly expanded across the U.S. and became a publicly traded company. It now has both physical stores and an online shopping platform. However, Walmart faces criticisms over its low wages for employees, authoritarian leadership style, and issues with gender discrimination that stem from this leadership approach. Suggestions to address these problems include paying standardized living wages, shifting to a more inspirational management style, and allowing employee unions.

Uploaded by

Ivy Nguyen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Beginning

Walmart was founded by Samuel Moore Walton in 1962 in Rogers, Arkansas. The
founder built his retail monstrosity on a genius motto: "The Lowest Prices Anytime,
anywhere" comes along its slogan “Save more. Live better”, with a goal of lowering
the cost of living and allowing his customers to live a better life because of it. 
    The retailer was an immediate success and after seven years of business the
company was incorporated Wal-Mart Stores, Inc. The following decade was one of
growth for the retailer, becoming a national chain and gaining a spot of the New
York Stock Exchange. 
    With a seeming global takeover, Walmart eventually established its spot on the
World Wide Web in 2000 with Walmart.com which allowed even more people to
access to Everyday Low Prices with even more convenience. Two years later the
company was named America's largest company by Fortune magazine's Fortune 500
list. 

Organizational culture:
 Hierarchicall functional organizational structure which is divided by 2
- Hierarchy
- Function based
 Walmart’s employee behaviors
1. Service to customers
2. Respect for the individual
3. Strive for excellence
4. Action with integrity
 Leadership style
- Democratic leadership
- Transformational leadership
Current Situation
 The current market situation in Walmart is really good infact their getting a
huge growth spark since the oronavirus (COVID-19) started, since customers
are using online shopping more. Because of this their having problems on
actually responding to their client since there's so many of them. So they try
making adjustments to meet the demands such as hiring more employees.
 Employee Dissatisfaction and Low Wages
Considering that Walmart’s CEO receives a wage of over $20 million per
year, employee dissatisfaction resulting from wages as low as 12$ per hour
presents an immediate organizational behavior issue (Meyn, 2018). It is
evident that the corporation cares more about its operations than its
employees.
 Authoritarian Leadership
Walmart relies on a centralized management style that employees have little
time and opportunity to share opinions concerning work problems and other
issues with their leaders, which is a consequence of the authoritarian
leadership style. As workers feel overworked and underrepresented in
management (Lichtenstein, 2011). Consequently, poor talent development and
innovation have inhibited employee and company advancement.

Walmart discourages the formation of employee unions and has been known
to punishing workers by shutting down operations when they try to establish
labor unions. The indication above further elaborates the authoritarian culture
in Walmart, which makes it cumbersome for it to ensure employee loyalty and
retention (Lichtenstein, 2011).

 Issues of Discrimination
Result from the authoritative leadership style
The sex and gender discrimination. For instance, although women represent a
significant number of the company’s workforce, they are often paid lower
wages than men are (Lichtenstein, 2011). Moreover, women have less
recognition and job satisfication compares with men.

Suggestions

Since wage is a key motivating factor for employees. Walmart should adopt
a standardized salary that can fully satisfy the psychological needs of its
employees. The mentioned objective can be achieved by conforming to
standard wage requirements in its countries of operation.

Additionally, the company ought to shift its management style to a more


inspirational one like Persuasive Management Style to ensure easy
communication between managers and subordinates. Doing so will allow
Walmart to instill inclusivity and extend employee development
opportunities.
More importantly, Walmart should allow the formation of worker unions,
which are vital to enabling career growth, improving employee loyalty and
retention, and enhancing worker performance.

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