ORGANIZATIONAL BEHAVIOR

Organizational Behavior

Organizational Behavior

Introduction

The study of behavior of individuals or group within the settings of workplace and the nature of the organization is denoted like organizational behavior. Though, there are different dynamics of organizational behavior, but this study would discuss the organizational behavior of the organization I work for. For the purpose of explaining organization I work for, I will describe the organization I work for on each of the basic design dimensions, while explaining, what changes in these dimensions I have seen in the organization due to pressures for improved cost/effectiveness or to meet other changes in the environment. The study will also discuss the nature of organization as mechanistic/controlled or organic/innovative. After the analysis, the study will finally present that are there any structural deficiency in the subject organization or not. The organization I work for is Wal-Mart, and it is pertinent to discuss its strategic history, as this will help in understanding the organizational behavior of the company.

Wal-Mart: Strategic History

When self-service and discounts have become successful business in the 60's, Sam Walton defined the rules and explained them incessantly to his employees, called associates and it established a new paradigm so powerful that only a few years in its early stages, the average discount stores were nearly doubled and tripled their sales. In 1992, the year of the death of Sam Walton, Wal-Mart had 1,900 superstores with more than 430,000 employees (Lewison, 2008). Sales reached USD $55 billion with earnings of close to two billion, thus formed the world's largest hypermarket. In 1985, Forbes revealed that Sam Walton was the richest man in America and Wal-Mart won praise for being one of the best-managed companies in the U.S. with Wal-Mart the power shifted from manufacturers to distribution channels. Then the same pattern was seen in Home Depot and Toys (Lewison, 2008).

From 1972 to 1990, the stock far exceeded the wildest dreams of those who bought it. Hundred shares, acquired in 1970 for $1650, were worth 2.6 million in 1992. In 1971, Sam Walton has developed the plan of profit sharing for all employees. With justifiable pride, Walton said several times that a truck driver for Wal-Mart that began in 1972 ended more than $700,000 profit sharing, 20 years later another worker would accumulate $475,000 at age 40. Although Wal-Mart tends to be cheaper than Kmart, Woolco, Target and other discount supermarkets and had to be different with respect to service because of the passion of its employees and that other stores offering a service, level low (Berry, 2011). The Wal-Mart personnel had to be friendly, enthusiastic and helpful because, Wal-Mart's success depended on customer satisfaction.

Basic Design Dimensions

Basic design dimensions are classified into five different categories, including, formalization, centralization, specialization, standardization and complexity.

Formalization

Wal-Mart is a complete formalizes company, because all of its policies, rules, regulation are available in documented form. Though, the company has a formal structure of management, like every company but it does not operate in a formal way (George, Edward, Sanderson and Kenny, ...