“There are 7,390 Wal-Mart stores and Sam’s Club locations that employ 2 million people and serve 200 million customers a year” (Gagnier, 2008). Wal-Mart's mission is to help people save money so they can live better. Wal-Mart grew rapidly and is one of the world largest corporations. Due to the concern about the effect of its super centers on neighborhood in which it operates, especially in the undersize stores highly protected by the governments, Wal-Mart has to handle many issues properly in order to reach its objectives. Analyzing management function, Wal-Mart should be able to see the opportunities of continuing success.
Management function
A function is a series of related activities performed for the purpose of fulfilling missions or objectives of the organization, generating revenue for the organization, servicing customers, producing products and services, or managing, administering, monitoring, recording, and reporting on the activities of the organization.
The management functions of any organization can be segmented into two categories including business category and administrative category. Each function can be assigned to one or the other category or a function may be assigned in both categories. Functions in business category are also called operational category, which consist of those activities that are directly involved in producing the products, providing services, generating revenues and the profits of the firm, or managing those areas. The administrative category contains those functions which service the firm as an entity and provide for its day-to-day well being. The administrative category usually contains functions such as personnel, buildings and maintenance, executive management, and general accounting. Globalization, technology, and innovation all required management to make changes in order to keep up with the trend. Wal-Mart has been good at taking advantage of globalization, technology, and increasing its profits both globally and at home.
Operational function analysis
To stay ahead, organizations have to update technologies constantly. In 2001, Wal-Mart started to renovate its technology by changing all of its mainframes and storage products to IBM to keep its technology updated. This move changed its older technology to newer technology that allowed Wal-Mart to keep up with the consumer demands. Wal-Mart has been successfully passing other competitors. There are a lot more people shopping on line which means it is necessary for them to have the updated technology that will allow them to stay ahead (Deango, 2001[a1] ). However, competitors such as Target and Tesco can now match Wal-Mart in technological sophistication. Wal-Mart is under pressure for more technology application innovation.
Wal-Mart has to constantly adapt to the changes and demands of consumers and know what products should be sold and when. The management took new innovated ideas from its employees and put them in practice stimulating them to bring even more ideas that help the company keep ahead of its competitors (Deango, 2001). Actually, Wal-Mart has been constantly bringing new products to consumers and giving consumers what they want at lower prices than competitors. In addition, managers have worked hard to get employees ready for new products to come, and listen to the feedback coming from internal and external costumers.
Wal-Mart has to constantly adapt to the changes and demands of consumers and know what products should be sold and when. The management took new innovated ideas from its employees and put them in practice stimulating them to bring even more ideas that help the company keep ahead of its competitors (Deango, 2001). Actually, Wal-Mart has been constantly bringing new products to consumers and giving consumers what they want at lower prices than competitors. In addition, managers have worked hard to get employees ready for new products to come, and listen to the feedback coming from internal and external costumers.
Efficient supply chain management is the key to the profitability of retail business. Having more inventory than it is absolutely needed ties up capital and increase storage and handling costs. Wal-Mart is the pioneer of "just-in-time" inventory in the retail industry, which generated outstanding efficiency and competitive advantage.
Administrative function analysis
Wal-Mart went through many of changes in the period of growth but some things kept the same. Wal-Mart maintained a strong corporate culture based on three core principles: Service to the customer; striving for excellence; and respect for the individual. In the present, Wal-Mart culture is still based on the same principles (Mrs, 2004[a2] ).
Ethnical diversity is an issue that affects the management, consumers and profits. Wal-Mart’s ethnical diversity issues can arise with consumers and workers due to the different types of cultures that they may have. Wal-Mart had developed code of ethics that does not discriminate anyone under any condition. Regardless of race, religion, gender or disability, if a person is willing to work, Wal-Mart has an open opportunity for hiring. However, the record of complaints and lawsuits against Wal-Mart's unfair employee treatment such as low-wages, unfair benefits, and sexual discrimination in pay, promotion and training, indicated that Wal-Mart is not internally diverse. "It was a small company run like a small company. Now it's a real big company, and they're struggling. They can't afford to lose the public trust" (Smith, 2005).
Wal-Mart is 40% controlled by members of the Walton family (Bateman & Snell, 2009)[a3] . As the world’s largest retailer, efficient delegation is crucial to get job done. The Walton family delegate assignment of authority and responsibility to their lower level management to oversee the employees to carry out their specific task or duties. Although the tasks and responsibilities are passed to other persons, the ultimate responsibility of completion still lies within higher level managers. Actually, the use of delegation is widely utilized in the managing of the leading and controlling function. Delegation occurs within Wal-Mart from the regional management to store manager to assistant manager all the way down to the staff members. However, the ultimate responsibility of the store operations is the regional manager.
Training is another important management issue. If associates do not complete jobs properly such as stocking, pricing, and displaying, Wal-Mart can lose sales and losing sales will affect the profit. Management has constantly used their skills and certifications to train employees how to do a particular job right. To bring together this decentralized organization, with more than 2,000 locations worldwide, a program called Computer Based Learning (CBL) was installed in all Wal-Mart affiliates using multimedia devices (audio, video, text and graphics), a series of training modules impress upon employees their job responsibilities as well as Wal-Mart's company values (Shakespeare, 1996).[a4]
Function interrelations
Management function is the foundation for any business. Creating an environment that generates commitment from all employees is one of the goals for Wal-Mart. The delegation function sends the signal that employees are partners in the company. Delegation is a form of complement, building trust and confidence within the company. Keeping employees satisfied helps defuse labor issues as well. Wal-Mart has diversified work force and customers. Well managed diversified work force is the base for management to accomplish financial objectives. Employees either working at administrative or operational areas are all trained for the constantly changing services.
Operational function has direct impact on profit. Wal-Mart has been making their profit margins on great technology systems. The technology has impact on all areas from operational function to management function such as employee training, supply chain management, stocking, pricing, and displaying. Bring new product to consumers is a way to remain competitive. The operation of new products introduction requires the support of technology, constant training for employees, management coordination, and efficient delivery system. "Just-in-time" system provides super-efficiency with high demand of operation and management function.
Conclusion
Operational function and administrative function are two basic management functions in an organization, which are related activities performed for purpose of fulfilling missions or objectives. Though Wal-Mart went through many of changes in the period of growth, some things kept the same. Wal-Mart maintained a strong corporate culture based on three core principles: service to the customer; striving for excellence; and respect for the individual. In the present, Wal-Mart culture is still based on the same principles (Mrs, 2004). [a5]
Wal-Mart is 40% controlled by members of the Walton family (Bateman& Snell, 2009). [a6] As the world’s largest retailer, efficient delegation is crucial to get job done. The Walton family delegate assignment of authority and responsibility to their lower level management to oversee the employees to carry out their specific task or duties. The delegation function sends the signal that employees are partners in the company. Delegation is a form of complement, building trust and confidence within the company. In addition, Wal- Mart management had constantly used their skills and certifications to train employees how to do a particular job right.
To stay ahead, Wal-Mart had been updated technologies. Wal-Mart is the pioneer of "just-in-time" inventory in the retail industry, which generated outstanding efficiency and competitive advantage. But “Wal-Mart has been both praised and pilloried as a template for twenty-first century capitalism” (Gereffi, 2009). The record of complaints and lawsuits against Wal-Mart's unfair employee treatment such as low-wages, unfair benefits, and sexual discrimination in pay, promotion and training, indicated that Wal-Mart is not internally diverse. Wal-Mart needs to make progress to properly address the diversity issues. Furthermore, competitors such as Target and Tesco can now match Wal-Mart in technological sophistication, and Wal-Mart is under pressure for more technology application innovation to maintain the competitive advantage.
No comments:
Post a Comment