Part 1: Group dynamics3Section 1: Working in groups and team.3
Section 2: Conflict and negotiation.5
Section 3: Management and leadership.6
Part 2: The organization system.7Section 1: Organization structure7
Part 2: The organization system.9Section 1: Organization structure..9
Section 3: HR policies & practices11
Conclusion...12
References13
Introduction
Group dynamics in organizations revolve around the relations between employees and managers and how they interact in groups. These groups and teams may be formal or informal, and they may be set for specific tasks or for general tasks. Group dynamics determine the chances of success of an organization as far as team work is concerned. In this paper, Wal-Mart is the organization for the study. This multinational is the largest private employer in the US with at least 1.3 million workers as of 2013 (Edwardson, 2012). The concept of group dynamics will be very clear since this organization has many workers, and group dynamics are prevalent.
Part 1: Group dynamicsSection 1: Working in groups and team
One of the group dynamics in organizations is working in groups. For Wal-Mart, the management has applied this concept for over several years. This corporation applies the concept of working in teams across its international operations. Employees are introduced into this culture when they join Wal-Mart. As a result, this initiative has had an impact on the culture and staff management at Wal-Mart. This is crucial for Wal-Mart since its work force is characterized by multicultural and multiethnic employees (Calton & Hill, 2012). Working in teams has had an impact on the culture of Wal-Mart in that it has been removing cultural and ethnic prejudices in that organization.
Critically reviewing the behavior of staff at Wal-Mart, it is clear that working in groups has assisted in removing the barriers of built in biases and over confidence from some employees. In order to achieve this harmony, Wal-Mart applies team roles across its managerial structure. Employees from various departments operate in teams and are spearheaded by a team manager (Calton & Hill, 2012). The role of the team manager is to guide, motivate and steer the members to success. Therefore, employees are in a position of concentrating on the success rather than cultural and ethnic backgrounds. These steps have altered the manner in which the staff of Wal-Mart is managed.
The management concentrates on enhancing the success of teams rather than specific individuals. This improves the overall success of the organization and its effectiveness in managing its staff (Rogers & Senturia, 2013). The other way through which working in groups has altered the organizational culture of Wal-Mart is through a focus on communication. The management of this corporation realizes that clear and efficient communication is necessary to promote group dynamics. In order to promote success for these groups, Wal-Mart has had to include several communication means so as to avoid ambiguity (Calton & Hill, 2012). This has involved investments in IT infrastructure across its international operations to promote information sharing. At a branch level, members of staff are encouraged to use e-mails and shared documents to promote cohesion.
The theory applied by Wal-Mart in setting up these teams is the Belbin’s Team roles. These roles fall into three categories. The first is action oriented, followed by people oriented and thought oriented roles (Rogers & Senturia, 2013). Wal-Mart recognizes the roles played by the action oriented members since they promote group success. The shapers stimulate other team members to find the best solutions to problems. One of the challenges of operating internationally is that corporations have to solve the problem that are prevalent to some specific localities (Rogers & Senturia, 2013). Shapers stimulate other team members to approach such issues creatively. An example is the challenge that Wal-Mart faced in Brazil in an attempt to reinforce its culture overseas. In this case, employees were required to smile at shoppers. However, the cultural practices led the staff to interpret it as flirting. In this case, shapers had to encourage and advise their team members accordingly (Rogers & Senturia, 2013).
Section 2: Conflict and negotiation
Conflicts and negotiations characterize organizational culture and staff management practices in organizations. This is driven by the fact that management must react to conflicts in an objective way such that the parties will be brought back and succeed in their work. For Wal-Mart, conflicts have shaped organizational culture depending on the locality where such conflicts have occurred. In Europe, for instance, Wal-Mart faces different regulations regarding employee hiring and compensation (Rogers & Senturia, 2013). Therefore, the culture of the organization has been altered in these areas. One specific area where this effect has been phenomenal is the observation of holidays and cultural events. This has forced this corporation to close on such days or give its employees some hours off duty. Such holidays include The German Unity Day and The Assumption Day which are 7 days apart (Rogers & Senturia, 2013). This corporation has had to lose the opportunity of gaining revenue on such days.
In order to succeed in conflict and negotiation, the management of staff at Wal-Mart has been altered to a huge extent. The management of this corporation has dedicated efforts towards alleviating cross cultural misunderstandings. This has been done since there is the realization that employees may interpret the cultures of their counterparts through the lens of their personal cultures (Calton & Hill, 2012). As a result of this trend, the management of Wal-Mart has been encouraging its staff members to understand the cultures, customs and behaviors of their fellow employees. An improvement in coexistence of these individuals should be achieved by appreciating why such individuals have such behavior (Calton & Hill, 2012). Wal-Mart organizes annual galas that provide a platform for employees to interact in an informal environment. These efforts have improved conflict management and promoted the success of negotiation in Wal-Mart since cohesion and understanding have been fostered.
Conflict and negotiation practices at Wal-Mart apply the theory of dual concerns. It postulates that conflict management revolves around managing the desire to meet production goals for an organization against an individual’s concern for a personal relationship (Edwardson, 2012). With this knowledge, the management of Wal-Mart applies smoothing and problem solving in conflict and negotiation management. Application of these two techniques has changed both the culture of Wal-Mart and its staff management. Maintaining a smooth relationship among coworkers and management promotes self confidence from the perspective of the members of staff. On an overall basis, the culture of Wal-Mart has been altered since employees have improved their relationship with their seniors. Critically, this relationship has boosted the morale of the Wal-Mart staff and hence the growth in net income to over $ 11 billion as of 2012 (Edwardson, 2012).
Section 3: Management and leadership
The management and leadership of Wal-Mart applies the contingency theory in managing the entire corporation. This is based on the realization that the entire corporation cannot be run by the same managerial practices across its international operations. A contingency approach is used since decisions have to be made based on specific situations (Ibrahim & Dickie, 2010). This approach has affected the culture at Wal-Mart and staff management. The conceptual model that is used, in this case is that of interaction with employees. Wal-Mart has had to shift its operations from the system where managers acted as a disciplinarian to that where the system allows for interaction with employees (Ibrahim & Dickie, 2010). The change in staff management has been directed towards the culture of disseminated leadership.In comparison to its major competitors, this strategy has been phenomenal as far as growth in productivity is concerned. The impact of this strategy is that it has improved working relationships with employees. In addition, supervisors have had their work burdens reduced.
One of the factors that Wal-Mart uses when laying down its management strategies is that it focuses on the effect that such strategies will have on the organizational culture and staff management (Calton & Hill, 2012). The culture of Wal-Mart has been affected by managerial policies across its international platforms. In 2008, the senior management of this corporation decided to create an adaptive culture within Wal-Mart. The mindsets and behavior of its staff had to be refocused in order to sustain the efforts for a long period (Ibrahim & Dickie, 2010). The main area that the management wished to concentrate on is flexibility. This exercise was crucial in order to align its operations to meet international standards. In addition, the management wanted to improve its identity in its international markets as a store where the staff is courteous. Supervisors and unit managers undertook five day training. The skills were to be transmitted to the other organizational levels (Ibrahim & Dickie, 2010).
Critically reviewing such policies, the management took steps to improve its culture at the workplace. The effect that the policy shift had was that it altered the culture of sticking to traditional practices into a flexible culture (Calton & Hill, 2012). The management in Japan, for example, was able to make their staff members appreciate some meals such as pizza which were easy to prepare in comparison to Japanese cuisine. Flexibility for such a corporation is necessary in order to remain competitive (Rogers & Senturia, 2013).
Part 2: The organization systemSection 1: Organization structure
The organization structure at Wal-Mart has affected the organizational culture. Wal-Mart has made several expansions through acquisitions such as the entry into Brazil. In this country, Wal-Mart acquired 118 Bompreco stores in the Northern region and 140 stores for Sonae in the Southern region (Hawthorne, 2013). This has brought the need to change its structure. As a result, a multidivisional structure has been adopted. At the headquarters in the US; strategic direction and consolidated financial reporting are done (Hawthorne, 2013).
In the organizational structure of Wal-Mart, significant authority is delegated to each division. Divisions are determined on the basis of country. Therefore, managers are expected to guide their divisions based on their geographical, social and cultural dimensions (Rogers & Senturia, 2013). The only area where an entire streamlining is done is the area of applying technology. Since efficiency improvement is a major concern for Wal-Mart, any improvements must be executed across their international markets (Hawthorne, 2013). Given that efficiency improvements target technical aspects, there are no barriers with regard to application and use of such technology. An example is the introduction of automated of security systems across its international markets.
The effect on organizational culture is that employees feel safe and are more proud of their corporation than they were before the new security system was introduced. In turn, employee loyalty and behavior have improved substantially. The management of staff has shifted from the headquarters to divisional managers in each country (Rogers & Senturia, 2013). To go down further than in the previous set up, efforts have been laid down to transfer staff management to branch managers. Testing was done across 2 branches in each international country in 2011 to find out the possible effects of such a policy (Rogers & Senturia, 2013). Results indicated that, with a clear focus and the right branch managers, employees would address minor issues at the branches rather than the bureaucracy that was evident before the shift. Therefore, staff management has been spread out to each branch.
The conceptual model that is applied by Wal-Mart is the neoclassical organization theory. The management applies this model since it matches with a core value for this corporation – the work environment (Toole, 2009). With the realization that the model values coherence of values and also purpose, Wal-Mart management had to apply it within their management structure. This conceptual model has resulted in a highly cohesive environment within Wal-Mart.
According to Toole (2009), Wal-Mart has improved unity in diversity across its workforce, promoted cohesion and improved productivity from its workforce due to the neoclassical organization theory (Toole, 2009). As a result, employees respond positively to managerial authority. The only criticism to this theory for Wal-Mart is that some employees have been abusing authority by failing to respond to organizational requirements. These efforts have the potential to frustrate supervisors and employers hence hindering organizational success.
Section 2: Organizational culture
The organizational culture has had a profound effect on staff management in Wal-Mart. The primary reason is that business practices are founded on the extensions of cultures (Robbins & Judge, 2012). In its inception stages, organizational culture was not a major issue for Wal-Mart since it operated in the US only. During this period, the operations were domestic and, as a result, the culture was homogeneous. Each individual spoke the same language while values and norms were similar (Toole, 2009). Therefore, the issue of organizational culture was not a major concern.
However, with globalization and the resultant chance to do business on an international platform, Wal-Mart has done business in other countries successfully. Global expansion has meant that this corporation must address the issue of organizational culture critically (Toole, 2009). Therefore, Wal-Mart management is not restricted to the US business territory. This means that Wal-Mart must confront the issue of cultural diversity with every expansion into a new country. In order to align itself with specific countries, this corporation does not operate with the name ‘Wal-Mart’ across all countries. It alters it in order to have a local appeal. In china, for instance, it operates under the name Trust-Mart while it operates as Wal-Mex in Mexico (Hawthorne, 2013).
With international operations, the management of Wal-Mart realized that there would be confusion in the manner in which management is rated. Some managers may turn out to be quite directive while others may be seen as incompetent due to their relaxed approach (Toole, 2009). The behavior of staff in treating their employees has been changed, as a result. Managers must, therefore, encourage their employees to focus on the overall objectives of Wal-Mart. Failure to have the right perception on the management approach could be detrimental to the entire organization (Robbins & Judge, 2012).
The impact on the culture for Wal-Mart is that it has shifted to a situation based culture. The management has been guiding their members of staff based on the region of operations. Transfers across countries have been a major contributor towards this trend (Edwardson, 2012). If a manager is transferred from the US to Japan, for instance, he is advised to change their management styles. In the latter case, manager is expected to be directive to a high degree as opposed to the former case where the same manager is a problem solver. The conceptual model applied in organizational culture for Wal-Mart is the synergetic approach. It is applied since it gives room for managing with diversity. Despite the fact that cultural practices are predetermined, each division manager of Wal-Mart is made to understand that they have a role in shaping it (Ibrahim & Dickie, 2010). They are guided on their roles and responsibilities in creating and upholding a positive working environment. Critically, this is done in a view to improve customer satisfaction. The synergetic approach is applied in order to foster consistency and mentorship for Wal-Mart.
Section 3: HR policies & practices
One of the human resource policies that Wal-Mart applies is an excellent employee relations. This corporation emphasizes that its employees and management must interact in a highly conducive environment (Rogers & Senturia, 2013). The relationship between these two parties must be strong in order to have a reputable organizational culture. In all its branches, Wal-Mart fosters candid communication between employees and managers to address work related issues. In Brazil, for example, motivation is achieved by work benefits while, in the US, most workers are motivated by cash bonuses (Rogers & Senturia, 2013). In such a scenario, the manager is an advocate for the corporation and its employees. This has shifted the organizational culture by promoting the workers morale and the feeling of accomplishment and pride in their organization.
The other practice that Wal-Mart has adopted is workplace safety. Wal-Mart dedicates efforts towards a hazard free environment. The HR strategies include installation of firefighting equipment and design of buildings in a spacious manner so as to make an escape in such scenarios fast (Robbins & Judge, 2012). In addition, Wal-Mart employees are trained on disaster management including performing of drills on how to react to an earthquake. These practices have altered organizational culture by making the employees feel secure and less threatened. As far as staff management is concerned, Wal-Mart HR practices have a direct motivational effect. These policies are gaining ground as multinational corporations realize their value and impact on output (Calton & Hill, 2012).
The theory that is applied in these HR practices is the motivational theory. With its large size, Wal-Mart has applied the motivational theory for its HR Practices. This theory is applied to derive the highest output from workers (Robbins & Judge, 2012). With motivation, Wal-Mart realizes that members of staff will give their best efforts in their routine duties. The change in management of staff has been on benefits they receive from the corporation. This corporation rewards its best employees annually. Cash bonuses or benefits such as free goods are given depending on the country (Ibrahim & Dickie, 2010).
Conclusion
References
Calton, M. & Hill, A., 2012. Helping Your Team Work More Effectively. Improving Group Dynamics, IV(8), pp. 33-36.
Edwardson, A., 2012. The Good, the Bad, and Wal-Mart - Workplace Fairness. [Online] Available at: http://www.workplacefairness.org[Accessed 8 January 2014].
Hawthorne, M., 2013. How Management has Affected Organizational Culture for Wal-Mart. The New York Times, II(17), pp. 78-84.
Ibrahim, E. & Dickie, E., 2010. A Conceptual Model of the Human Resource Climate Dimensions that Influence the Development of Workplace Relationships. Research and Practice in Human Resource Management, XII(2), pp. 56-60.
Robbins, S. & Judge, T., 2012. Organizational Behavior. 15th ed. Massachusetts: Jones and Bartlett Publishers.
Rogers, P. & Senturia, T., 2013. How group dynamics affect decisions. Insights, II(5), pp. 7-8.
Toole, J. O., 2009. Connecting the Dots Between Leadership, Ethics and Corporate Culture. Ivey Business Journal, II(3), pp. 86-87.
