Wal-Mart Four Functions of Management
Management is an essential tool for the success of any organization. All the function of management are affected by external and internal factors that will influence the decision the managers make and how they delegate the work throughout the organization. Some essential factor that managers must take into consideration that will help the organization move forward and guarantee its success. Diversity and ethics play a big role on an organization as it takes the multi-culture of the organization and display the values used for decision-making. There are several factors that affects all management function but when use appropriately by an organization it will help stay ahead of its competitors.
As Wal-Mart grew rapidly becoming one of the world largest corporations, witness were concern about the effect of its super centers on neighborhood in which it operates, especially in the undersize stores highly protect by the governments. This can affect all four functions of management planning externally. By dissecting the problems down to the basics Wal-Mart staff and its executives can begin over-seeing projects of any changes needed.
Taking the four management sections brings a viewpoint of questions that need answering. This can be related to a number of issues outside the business, for example, location, the public, the surrounding community, and of course, environmental issues to name a few. These issues have to be considered in order to have a good Market Value. According to Patel R (2006), a study made in analyzed two different Wal-Mats, the first that was open for a short period was taking control of the local market by dropping the price to a very low profit margin In the second store, they completely took control of the local economy, making an economic low spot having Wal-Mart in the middle and the rest of the stores with prices 17% higher. Situations like this one need to be taken under consideration because if nothing gets done soon to fix it will give the business a bad reputation and the view of mistrust. This affects the business resources and finances that can cause to drop the profits margin.
The external factors complete evaluation study the exterior boundaries that Wal-Mart cannot control, and have an important impact in the planning process of the corporation. These study most be done locally and internationally, and should include economic trends, social trends, government regulations, technology advancements, global market, and the Internet business, which is constantly growing. With the local elements as examples above Wal-Mart will have to analyze and expose issues, limiting factor and hypothesis that may have some weight on the integrated planning function to get a foot hold on making solutions of problems when they arise.
Today the world’s most largest retailer, Wal-Mart, four functions of management are essential to the organizations successfulness. To secure the organizations success, managers must learn ho to plan, organize, lead, and control. Along with the four functions of management, there are also internal factors that can either make or break the company. Internal factors arise in Wal- Mart’s management, marketing, finance, accounting, production, operations, research, development, and computer information systems of the business.
Within Wal- Mart’s availability of supplies to associates in which managers are in charge of is an example of the organizations internal factors. Lack of supplies affects the planning and organization function because without proper supplies it makes it difficult for staff to prepare for an event. Training is another example of an internal factor, this affects the leadership function of management at Wal- Mart. Management must use their skills and certifications to train associates how to do a particular job. Without the proper training associates may not complete jobs or assignments accurately. When associates do not complete jobs properly like stocking, signage, pricing, and displaying, this can cause the store to lose sales and losing sales can affect the company. At Wal- Mart, the manager’s particular style of managing has an impact on the control function. For example, if the manager does not display enough control, associates will lose respect for the manager, on the other hand, if the manager is too insensitive, this will result in associates choosing to leave the business. It is the responsibility of the manager to take those factors into consideration, in order for the business to be successful and remain a success.
Globalization, Technology, and innovation all are reasons why management is constantly demanding change in order to keep up with the times. Wal-Mart is a top business and a prime example of a company that effectively uses the four functions of management. According to Britt D (2010), globalization brings opportunity to a broader market, but at the same time, promotes more competitors that will require a superior level of competence for any organization that will take advantage of it. When Wal-Mart planed to take the advantage of globalization and inter the Indian market place its management functions to work. They study the Indian market size and trends, change their strategy, designated the responsible persons to run that site, how that person will run the site and even the way a person will be controlling the site to ensure the company goals have been meet. With globalization Wal-Mart has been able to work in many foreign territories and increase its profits.
Technology is constantly changing and staying ahead of things is becoming harder to do with each new day. Wal-Mart is successfully keeping up or possibly passing other competitors with the decisions they make on how to keep up. In 2001 Wal-Mart decided to renovate its technology by changing all of its mainframes and storage products to IBM. In doing so it is keeping its own technology ahead of the curve. It is decisions like choosing to change over all of the older technology to newer technology that allows Wal-Mart to keep up with all of the consumer demands. There are a lot more people shopping on line which means it is necessary for them to the necessary technology that will allow them to keep up or stay ahead (Deango B, 2001).
Wal-Mart is constantly bringing new products to consumers giving them what they want at lower prices than competitors. As a part of innovation Wal-Mart has to constantly adapt to the changes and demands of the consumers. Coinciding with the four parts of management it takes careful planning to know what products should be sold and when. It takes good leaders to get employees ready for the new things to come, and listen to the feedback coming from internal and external costumers. Wal-Mart's management and its four functions take the new innovated ideas from its employees and put them in practice stimulating them to bring even more ideas that help them keep ahead of theirs' competitors (Deango B, 2001).
With being a well known corporation, Wal-Mart managers have two things to consider that can affect planning, organizing, leading and controlling; diversity and ethnics (Bateman & Snell, 2009) Wal-Mart went through many of changes in the period of growth but some things are the same. "First, Sam Walton never lost sight of the importance of maintaining a strong corporate culture based on three core principles: (1) service to the customer; (2) striving for excellence; and (3) respect for the individual" (Mars T, 2004). As time pass by these principles are still the base of Wal-Mart’s culture. In the present, Wal-Mart culture is still based on the same principles (Mars T, 2004). Wal-Mart managers worry about the ethnical diversity when it comes to planning, organizing, leading and controlling to continue to stay profitable. Wal-Mart’s code of ethics do not discriminate under any condition. Regardless of race, religion, gender or disability if a person is willing to work and Wal-Mart has an open opportunity the person will be hired. Wal-Mart’s ethnical diversity can affect planning because issues can arise with consumers and workers due to the different types of cultures they may have. Organizing can be affected when you try to accommodate the staff, as some cultures may not be able to work on specific days and hours.
Ethnical diversity plays apart, that changes and affect the way Wal-Mart management lead their staff. For example, there may be a manager that is easy going and understanding, on the other hand, a manager finds themselves leading a staff that is lazy, not cooperative, and does not care about the work, they might find another way to lead the team. This may cause the manager to micromanage the staff in order for the job to get done. Ethnical diversity can affect control when managing a staff because it can involve handling problems differently, and the way managers communicate with their staff. If managers don’t follow or enforce rules, then the workers may feel that the rules are not important, which may result into losing the control and respect of the staff.
Delegation and Function of Management
Delegation is having the management authority to assign tasks and responsibilities to other people, usually subordinates within your group or organization. Although the tasks and responsibilities are transitioned to these other persons, the ultimate responsibility of completion still lies within a higher level manager. Within Wal-Mart, the use of delegation is widely utilized in the managing of the functions leading and controlling. Chart “A” displays the hierarchy of management and staff within Wal-Mart operations and stores. 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.
Wal-Mart is 40% controlled by members of the Walton family (Bateman & Snell, 2009). 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. Planning requires management to evaluate where the company is currently at, and where it would like to be in the future (Rane S, 2007) in the function of organizing it typically follows planning and reflects how the organizations try to accomplish its goals and objectives.
Today, Wal-Mart is clearly more aggressive in offering low prices than excellent service. Those low prices are the result of planning and organizing, including the use of automated data collection and analysis. Wal-Mart divides their employees into different sections in the store to keep things in order. But, everything starts from when the employees in shipping and receive place everything in order for each department. From that point each employee has a task to carry out with placing everything in their department by pricing and organizing everything. Wal-Mart has information systems that keep track of its inventory from receipt to shelf placement to purchase. With the new technology in place the lower level manager can delegate the task according to each department section.
The four management function are affected by many internal and external factors that will impact the way in which the company operate and Wal-Mart is not an exception. Factors such as globalization, technology and innovation help Wal-Mart extend its operation to foreign territories and increase their profit margins. Keeping in that it basic code of ethic and use the diversity of its external and internal customers Wal-Mart had solidify as one of the word largest corporation that keeps its customers as their priority number one over any profits they can make. The best and only way that Wal-Mart is been able achieve its goals is the way Wal-Mart delegates throughout the organization making feel every employee an essential asset for the organization success.
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