Walmart - Management Concepts

Executive Summary:

This report tells us about how the techniques of management and leadership are used, in Wal – Mart, to keep the work force working hard and effectively. It is evident that the main style or management model used is Weber’s Internal Process Model; however it also includes some aspects of the Human Relations model.

There are a range of techniques used to lead, mostly resulting in motivation of the work force. These range from fear to acceptance. The style used to manage and lead this type of organisation, in this type of market sector, is very effective and is evidence of the prosperity of the business.

Introduction:

The aim of this report is to show the management and leadership styles of any chosen company. I have chosen to use Wal – Mart, while drawing on appropriate models and theories relating to these styles. I shall then however evaluate how effective these styles are and see if there is any margin for improvement.

Wal – Mart: A Brief History:

Wal – Mart was founded by Sam Walton in 1962. However right from the companies’ conception they were facing competition from regional discount chains. While other discount stores had quickly spread across the country, Sam however only had 15. Wal-Mart got the boost it needed in 1970, when its stock was offered for the first time on the New York Stock Exchange. The public offering created enough capital to boost the number of stores to 276 within the next decade. All these years later, on January 2006 Wal – Mart generated more than $312.4 billion in global revenue. (*****)

Management and Leadership Definitions:

A manager is: “Collective administrative heads of a company, institution, business, etc., who are responsible for conducting the affairs of the company (institution, business, etc.) for meeting its short-range and long-range objectives, and for maintaining it as a profit making organization and/or an ongoing enterprise.” (*****)

Leadership is a: “dynamic process in a group whereby one individual influences the others to contribute voluntarily to the achievement of group tasks in a given situation” (2000; 51)

Now that we know what management and leadership is, we can simply see that leaders direct and managers execute.

Management Techniques:

Most companies do not fit exactly in to one management model, as they would most likely take on a few traits from a few models. In doing research I have found that Wal – Mart take on most of the traits from Weber’s internal process model. However this organisation also demonstrates some tendencies towards the human relations model, in the sense that they are very supportive towards their staff and they aim to integrate the needs of the individuals and the needs of the organisation. “We review what we could do better and encourage suggestions about correcting those weaknesses.” (***)

Wal – Mart largely relates to the internal process model because of the traits that it follows. There are rules and regulations that guide behaviour, of which all colleagues are trained in. They are told how to behave with customers and how to treat them. “Whenever you come within 10 feet of a customer, you will look him in the eye, greet him, and ask him if you can help him.”

There is clearly a hierarchal rule. At the bottom are the employees who run the checkouts and run the shop floor, above them are the seniors, who are people that have been promoted above the lower work force. Above the seniors are the managers, and above them is the store manager. Each layer in a sense manages the next.

The jobs that are undertaken by the work force are fairly easy, and can be picked up quickly with a bit of training and experience. No special skills are required so here mangers need to just make sure that the workers work to their best ability, and try to keep a high production level all the while keeping a level of service and quality.

Leadership Techniques:

“Sam Walton, who left no room for doubt over the WICH Factor. They were in charge, and everybody knew it.” (*****)

WICH means “Who’s In Charge Here”. This is a form of leadership that is very powerful as it suggests that Walton has earned his authority, and authority earned is greater then authority gained. People know that he is the leader and will not challenge him.

Leadership can be demonstrated in a power perspective. In Wal – Mart, resourcefulness is demonstrated as; rewards are given to colleagues that uphold a certain