Walmart Organizational Structure

Wal-Mart individual organizational structure is a formal composition of task and reporting relationships that allows the company to control, coordinate, and motivate employees so a common goal can be achieved.

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-Mart is a divisional structure because it is made up of separate units or divisions. The manager oversees their division and is completely responsible for the success or failure of the division. Wal-Mart stores is organized by its divisions such as Wal-Mart Realty, Wal-Mart International, Wal-Mart specialty stores, Sam's Clubs, and Super centers.

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, and house wares.

This divisional structure and approach works to Wal-Mart's advantage because each division is open to focus its efforts on specific goals such as product, service, or customers. Narrowing the focus really allows the company to perform more effectively because they are allowed to pinpoint specific areas needing change and adjust appropriately (George & Jones, 2005, pg. 513).

Divisional structure is compared to Matrix Structure and Project Structure.

Matrix Structure is one that assigns specialists from different functional departments to work on one or more projects. In an organization there may be different projects going on at once. Each specific project is assigned a project manager and he has the duty of allocating all the resources needed to accomplish the project. In a matrix structure those resources include the different functions of the company such as operations, accounting, sales, marketing, engineering, and human resources. The project manager has to gather specialists from each function in order to work on a project, and complete it successfully. In this structure there are two managers, the project manager and the department or functional manager.

Project structure is an organizational structure in which employees continuously work on projects. This is like the matrix structure; however the project ends the employees don't go back to their departments. They continuously work on projects in a team like structure. Each Team has the necessary employees to successfully complete the project. Each employee brings his or her specialized skill to the team. Once

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