Wal-Mart:Organizational Performance and Effectiveness

  • Wal-Mart is a multinational retailer founded in the United States that sells general merchandise as well as groceries.

  • It is the biggest global retailer, the third biggest public company, biggest private employer and among the most valuable companies world over.

  • The company’s organizational culture was founded in the character of its founder, Walton.

  1. SWOT Analysis


  1. Scale of operations

  2. Cost leadership strategy

  3. Competence in information technology systems: Through its comprehensive information

  4. International operations

  5. Broad range of products


  1. High employee turnover

  2. Labor related legal tussles

  3. Negative publicity

  4. Limited differentiation


  1. Increasing acceptance of own label products

  2. Growth of retail market in new markets

  3. Growth in online shopping

  4. Healthy eating


  1. Rising prices of products

  2. Increased competition

  3. Resistance from local communities

  4. Political threat

  1. Wal-Mart Organizational Culture

  • Wal-Mart organizational culture is founded on its founder’s image, Sam Walton.

  • Walton. Walton’s characteristics included “Genuine, polite, civic-minded and wholesome.”

  • The culture at Wal-Mart is ‘cult-like’ and employees and managers must adapt to it

  • Organizational Culture is important in enhancing organizational effectiveness.

  • The current organizational culture at Wal-Mart ignores employees’ interest for short term financial gains.

  1. Challenges Facing Wal-Mart Organizational Culture

  • The organizational culture at Wal-Mart today is far from what the founder envisioned.

  • The troubled store is occasionally criticized for ill treatment of employees, poor pay, non-paid overtime as well as discrimination.

  • The company needs to restore the original organizational culture into practice.

  • Failure to restore sanity in the organization may have very costly effects in the future for Wal-Mart, considering that competitors are also thriving.

  1. Improving Organizational Culture

a).Have a Clear Mission and Live Up to It

b).Enhance Communication

c).The Organizational Culture Should Have Everyone Aboard

d).Developing a Strategic Plan Understood and Accepted by Everyone

e).A Culture of Fun

VI.Leadership at Wal-Mart

  • Managers at Wal-Mart take the role of coaches and servant leaders.

  • Company leaders are thus expected to lead by example especially when interacting with customers.

  1. Core Leadership Values in Wal-Mart

  • There are three core leadership values established at Wal-Mart. They include

i).respect for the individual,

ii).serve your customers and

iii).strive for excellence.

  • The organizational culture at Wal-Mart also emphasize on communication between business associates, managers, suppliers and customers.

  • Employees are expected to treat the company’s issues as their own issues, including expenses.

  • Honesty and integrity is also encouraged at

  • The customer is the king

  1. Organizational Performance

  • There are various issues surrounding Wal-Mart especially pertaining to its human resource.

  • The decision for Wal-Mart to cut down its employees’ wages and reduce health cover for its full time employees who work less than 30 hours a week was a big blow to the company

  • Some of the suggested changes that the company could adapt include

a).Compensation and Benefits

  • One way to motivate employee is to design a good compensation and benefit plan.

  • The company should be able to offer their employees with other benefits besides the basic benefits of health.

  • Benefits like holiday leave, paid sick leave, study leaves among other benefits. This will encourage employee satisfaction and low turnover.

b).Rewards and Promotions

  • The company must establish a system in which it recognizes hard working employees.

  • The company should also promote dedicated employees.


  • The company may invest in comprehensive training of its employees.

  • Training not only provides employees with the necessary skills to handle their job better, but also goes an extra mile to enhance customer satisfaction.

  • Training will also make sure that employees feel confident in their work

  1. References