Identifying Structural Configurations Walmart

Identifying Structural Configurations Walmart

Introduction

After the industrial revolution there had been research on understanding the business and the environment in which it is carried out. The studies focused on the structure of the organizations and a need for understanding the properties of and features of the each type of setup was required. Henry Mintzberg proposed a clustering of different functions of an organization and concluded that most functions of an organization can be grouped together in five core functions (Mintzberg, 1980). He classified them as operating core, strategic apex, middle-line managers, technostructure and support staff. He proposed that the five types of organizational structures and concluded that most organizations consist of one of these structures. The five structures were simple structure, machine bureaucracy, professional bureaucracy, divisionalised form and adhocracy. Most companies start off from a simplistic structure and end up in developing a hybrid structures comprise of multiple structures at each level. We will look at the organizational structure of Wall-Mart. We will look into as to how this has contributed to the success of the world's largest retailer and how does it shapes the strategy and operations of the organization. We will be looking into the effect of the organizational structure on the efficiency of the organization and will review if it is contributing to the success or failure of the organization. We will be providing our recommendations on the organizational structure of Wal-Mart and will look for ways if can increase its profitability.

Discussion

Henry Mintzberg proposed a classification of the organizations based on the clustering of job roles and functions performed in an organization (Mintzberg, 1980). He proposed the following structures of organizations with their modern day examples:

Simple structure, ( Usually found at initial startups)

Machine bureaucracy, (routine mass manufacturing)

Professional bureaucracy, (consultants)

Divisionalised form, (All MNC's)

Adhocracy, (Project Management)

“Simple Structure”

The structure is composed of no or little technostructure and has few staff members. The labor is not very strictly divided. In this structure the main decision making lies with the chief executive. The actions of this construction are not formal and neither scheduling, preparation, nor also cooperation devices are least employed in these structures.

Management carried out in the simple structure is mostly by straight regulation. Particularly, control over all significant choices, is usually consolidated and are in management of the officer. Therefore, the strategic peak materializes as the important part of the arrangement.

Many companies take this structure as their initial structure and most of the complex and multinational companies of now have started their operations using simple structure. The atmospheres of the structures are typically dynamic and simple. An easy atmosphere can be understood by a lone character, and consequently allows making of decision to be formulated and managed by that particular character.

“Machine Bureaucracy”

The machine bureaucracy structure tends to be found in environments where the environment is not dynamic and routine tasks are performed. Most of the industrial complexes and setups tend to have this kind of organizational structures. The tasks are highly specific and the procedures ...