Question

What is the leadership structure and approach for Walmart?

This section is the structure of the leadership of Walmart which would be in an organizational chart to show the positions and who reports to whom. Then be specific on the leadership approach that creates the culture of the company. How involved are the employees in decision making, what is communication like in the organization? Does the organization have an entrepreneurial spirit such as Google or is it more traditional with the executives and management making all decisions?

Answer 1

The organizational structure of Walmart is hierarchical and functional in nature. Here are 6 levels in the organizational structure of the Walmart. The level one denotes the topmost level of organization whereas the level 6 denotes the operational level of organization which is purely based on the functions. The arrow shows the power of control from top to bottom whereas in opposite direction the below one is controlled by above one.

The leadership approach at Walmart varies from transactional to transformational this is because there is hierarchical and functional approach followed in organization structure. The transformation level of approached at the top level of the company in order to give the company direction and vision. The transactional leadership approach is used at the operational or functional level to run daily operations. Transformational approach of leadership contributes to the culture of the company as

1. The CEOs visits the stores to know the ground reality of the business,

2. Project impact was taken into consideration based on the customers feedback,

3. Tougher decision-making willingness

4. Building leadership pipeline in the firm so that new leaders comes in a row.

The transactional leadership contributes to the culture of the company as

1. It promotes the high performer individual

2. It balances the standard and freedom

3. It builds good relationship with supplier as by getting cheapest prices and give or assured orders in huge quantities to its suppliers.

With these leadership approaches the culture of the company is build as the company Service to customers with value, it Respect for the individual, Strive for excellence and Action with integrity.

The employees are very less involved in decision making process as its operations are controlled by their managers decision making. The communication is very formal and customer oriented among the manager and the employee. It is more traditional with the executives and management making all decisions less entrepreneurial spirit as compared to Google. This is because the company clearly defines roles of employees and lines of authority. Hence the employees completely dependent on the higher management level.

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