WAL-MART PLANNING AND CONTROL

Wal-Mart Planning and Control



Wal-Mart Planning and Control

Introduction

Planning and control mechanisms are regularly used with successful organizations to maintain and adjust processes and practices. Wal-Mart is a company that applies control mechanisms to its business functions to remain a global leader in the industry. The four types of control mechanisms that Wal-Mart puts into action are market control, clan control, audit control, and performance standards. Market Control is “the ability of buyers or sellers to exert influence over the price or quantity of a good, service, or commodity exchanged in a market. the next mechanism used is Clan control it “relies on values, beliefs, corporate culture, shared norms, and informal relationships to regulate employee behaviors and facilitate the reaching of organizational goals (Wal-Mart, 2008, p7).

Audit control is the process of self examination as it relates to accounts and products. Lastly, Performance standards are an organizational approved set of requirements, goals and expectations that employees must meet. These four mechanisms are paramount in today's business world for effectively and efficiently doing business to meet organizational goals. Wal-Mart has a responsibility to its employees, vendors and the customers to make changes where needed. The economy has influenced the frequency of the changes and requires constant monitoring. The application of these four mechanisms is why Wal-Mart remains a leader in the retail industry.

Discussion

In management, planning and control is a mechanism or a device that organizations use to regulate or guide operations. There are many different types of planning and control mechanisms that companies can use within their business. The four major control mechanisms that Wal-Mart uses are: clan control, audit control, market control, and performance standard control. In comparison, all these control mechanisms are used to help Wal-Mart to achieve its organizational goals. Another trait that these control mechanisms have in common is that they can be implemented before an activity commences, while the activity is going on, or after the activity has been completed (Wal-Mart, 2008, p6). Wal-Mart has designed these control mechanisms to maximize potential benefits and to minimize any impractical behaviors and this is what I believe is one of the most important comparison that can be made between the control mechanisms.

Fig.1

These mechanisms focus on different aspects within the scheme of management. Each has their own duty to perform. Clan control represents cultural values. It relies on beliefs, corporate culture, shared norms, values, and informal relationships. Market control consists of the use of price competition to evaluate output. Under this control mechanism profits and prices are compared to determine the efficiency of the organization. Audit controls are used to measures what the company has achieved and what it has done for its customers. Performance standard control used to determine the net worthiness of its employees.

According to ask.com Clan control relies on values, beliefs, corporate culture, shared norms, and informal relationships to regulate employee behaviors and facilitate the reaching of organizational goals. Wal-Mart's culture, honesty and shared values between employees make clan control ...