Organizational structure may be defined as the system of relations that subsist among a variety of positions and position holders. Formal structure is a blueprint of relations that has been knowingly deliberated and put into action. It includes a formal chain of command of power as well as policies and procedures and other premeditated attempts to control conduct.
Wal-Marts organizational structure consists of a divisional structure. A divisional structure has three different categories in which are product structure, market structure, and geographic structure. Wal-Mart falls under market structure. This is where groups function by types of customers so that each division contains the functions it needs to service a specific segment of the market (p.514, George, Jones). For example Wal-Mart offers vision, pharmacy, haircuts, grocery, crafts, clothes, electronics, house wares and etc…
Organizational design is the process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can achieve its goals (p.508, George, Jones). The organizational design of Wal-Mart both helps and hinders its organizational goals. Its strengths are that they offer products of all different types to satisfy a vas array of customers or you could call it a one-stop shop. It provides its customers with huge discounts for items that are of good quality, which is good for the higher income working class and low prices help the lower income working class.
Wal-Mart’s weaknesses are their incapability to gain knowledge of and acclimatize themselves to intercontinental and worldwide civilization, therefore not learning the general public, politics and legal matters.
If I were to change this organization, I would consider working on a way to gain the cultural knowledge of what everyone wants, not just individuals. By doing this I feel it would complete a really great organization in completing its overall goals and accomplish a great deal.
Change; The good, bad and ugly
The advantages of organizational change are that when you change your company you are doing so to make improvements. To update and bring forth your organization in which in return can bring in more profit. The disadvantages of organizational change are the fact that nobody likes change and employees can be very hard to convince this is the best way to go. So even though you are doing better for the organization it can be long tough road ahead for getting it the way it needs to be.
· George, Jones. Understanding and Managing Organizational Behavior. ©2002, upper saddle river, N.J.
· Student. Retrieved from. http://students.cs.tamu.edu/ssai/courses/mgmt-655-wal-mart.htm