Leadership in Organizations: Walmart

Leadership In Organisations
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Component 1
Introduction
Leadership is not a static concept in the ever-changing business world; instead, it is complex and varies depending on the level of the organization. The hierarchy of leadership is critically examined in this report, emphasizing how leadership is conceptualized at the organizational level. Leaders are expected to demonstrate visionary abilities at this hierarchy level, guiding entire conglomerates and influencing broad corporate strategies. Their choices influence the organization's ethos, culture, and course throughout the entire organization. Their responsibilities extend beyond operational effectiveness, including broad goal-setting, conveying a unified vision, and ensuring alignment with external stakeholders (Yukl, 2013). This in-depth examination of organizational leadership examines the particular difficulties and demands that these top executives must meet, offering insights into the vital elements that support effective leadership in today's tumultuous business environment. Further, the focus of the analysis would highlight the leadership of Walmart, considering the hierarchy and how business leaders responded to the transforming business environment.
Walmart’s Overview – Leadership Analysis
Walmart's leadership framework is multifaceted, reflecting the complexity of managing a multinational corporation. The retail giant, which was started by Sam Walton in 1962, has come a long way and requires a hierarchical-functional organizational structure, also called a matrix structure, to function efficiently. Yukl (2013) states that an organization is led by a Chair, a Board Director, and the Chief Executive Officer at the organizational level. Thus, the conglomerate's direction in the global market is significantly impacted by its capacity to make wise decisions. This hierarchy ensures that the company's strategic vision is shared by its 2.3 million associates worldwide (Iskandar, 2021). The 12-member Board of Directors, which includes members of the founding Walton family and other notable people, is crucial in determining the general direction of the business (Walmart, 2023). Thus, those leaders’ decisions impact the collective level, affecting the company's overall performance in specific industries or regions.
However, Walmart's leadership has faced criticism, particularly regarding how it treats its employees. The company's strong focus on cost reduction to maintain its commitment to "Everyday Low Price" has sometimes taken precedence over its employees' well-being, resulting in discussions regarding inadequate wages and healthcare benefits. In essence, Walmart's leadership structure is woven from functional and hierarchical threads, with the CEO at its center.
Walmart's Organisational leadership
Level
(Yukl, 2013)

Position at Walmart

Role and Analytics

Organization

Chair, Board Director, Chief Executive Officer

* Highest decision-making authority in the corporation.
* Influences the conglomerate's direction on the global stage (Yukl, 2013).
* Doug McMillon, as the current CEO, stands without a direct superior, making him pivotal in the decision-making process.

Group

Senior Manager

* Coordinates the activities of different units or regions.
* The Senior leadership team of 39 executives oversees domains such as technology, compliance, and international strategy (Brahma, Tripathi & Sahay, 2021).
* Their decisions directly influence Walmart's performance in distinct industries or regions.

Dyadic

Supervisor/Team Leader/Line Manager

* Crucial at the store level, impacting daily operations and workers' productivity.
* Ensures the implementation of decisions made by higher management.
* They are the link between top management's decisions and ground-level operations.

Table 1: Walmart's Organisational leadership
Walmart General Managerial Work Functions Evaluation
Businesses should be agile and creative to survive today's dynamic economic, technological, and social environments. Such as Walmart, the biggest retailer in the world, is not immune to these pressures. Walmart's Chair, Board Directors, and Chief Executive Officer are crucial in navigating these challenging environments. Yukl (2013) proposes a leadership framework focusing on leadership roles at the organizational level, representing the highest level of a managerial hierarchy. Walmart has started a significant digital transformation process under the current CEO, Doug McMillon (Ragas & Culp, 2021). McMillon has led the business to increase its e-commerce presence, focusing on integrating online and in-store shopping experiences. Therefore, this addresses the increasing popularity of online retail and its impact on traditional physical retail stores. Walmart's strategy relies on data analytics, particularly consumer behavior insights, to remain responsive to changing customer preferences. The Board of Directors, composed of diverse members, including the Walton family, is crucial in guiding the organization's direction. Collectively, they make decisions that protect Walmart from external shocks with the help of data from real-time market analytics, global supply chain data, and risk assessments. Their recent efforts into sustainable supply chain practices show that they recognize environmental challenges and are acting in response to the uncertainty they present to global businesses.
Yukl (2013) indicated that the leadership must interact with stakeholders not part of the direct chain of command. Walmart's approach has relied on external interactions with various stakeholders, including suppliers and government agencies. The top leadership at Walmart effectively utilizes extensive networks to obtain essential information for making adaptive decisions, particularly during unexpected events such as the worldwide pandemic. Walmart's leadership aligns with transformational leadership theory. A charismatic and transformational leader takes this approach, prioritizing inspiring their team with grand goals and new ways of doing things.
Besides, the top leadership has demonstrated a transformative vision for future generations by adopting e-commerce, sustainable practices, and a stakeholder-centric approach, effectively addressing immediate market demands. Consequently, Walmart's Chair, Board Director, and CEO have played crucial roles in guiding the company through the current challenging climates by employing data analytics, extensive networking, and strategic foresight (Korngold, 2022). By integrating their strategies with the principles of transformational leadership, the organization not only addresses current challenges but also safeguards the long-term success and adaptability of the retail company.
Organisational Leadership Theory in Walmart's Senior Management
In retail, Walmart is a titan requiring a solid and adaptable leadership style. Senior managers at Walmart play a crucial role in coordinating complex operations between units and regions (Yukl, 2013). They oversee 39 executives and make tough technological, compliance, and international strategy decisions. This crucial leadership certainly shapes Walmart's performance across various industries and regions. According to Schmid and Morschett (2023), The Situational leadership Theory and the senior management at Walmart closely align, as seen from their strategies and actions. According to this theory, the most influential leaders adjust their leadership style to the maturity or capability of the person or group they are trying to lead or influence. This theory explains that effective leadership is task-relevant.
Additionally, senior managers at Walmart have demonstrated remarkable flexibility, adapting their leadership styles in line with the principles of the Situational leadership Theory to meet the challenges of a dynamic and ever-changing retail environment. Walmart has taken a proactive approach in response to criticisms of its labor practices. Senior management wisely adjusted the course, instituting pay raises and extensive training programs for its U.S.-based workforce to help it weather the subsequent storm. The company's actions were not simply a response but a deliberate plan to improve its public image and boost employee morale. A further example of senior leadership's situational adaptability is Walmart's foray into online retail, competing against industry giants like Amazon (Babin, Feng & Borges, 2021). Rather than developing new strategies, they wisely acquired established e-commerce companies such as Jet.com. This strategic acquisition shifted Walmart, not just an expansion, away from its traditional retail roots.
Correspondingly, both successes and challenges have marked Walmart's international journey. By the tenets of the Situational leadership Theory, top management took lessons from the company's struggles in challenging markets like Germany and South Korea. However, the company adjusted its international strategy, exemplified by acquiring a significant share in Flipkart, a prominent e-commerce platform in India (Fowler et al., 2023). This move reflects their alignment with the growing e-commerce trend in the country. While various leadership theories could echo throughout Walmart's vast operations, Situational leadership Theory resonates deeply in senior managers' strategies and actions. Walmart has overcome industry challenges and strengthened its global retail dominance by adapting its leadership style to situational needs.
Dyadic Leadership in Turbulent Times
Different levels of an organization's hierarchy call for different styles of leadership. The Yukl (2013) model focuses on leadership at various organizational levels, particularly at the dyadic level, which includes supervisors, team leaders, and direct reports. Leaders interact directly with their subordinates at this level. The Leader-Member Exchange (LMX) theory, which is relationship-based, is particularly relevant in this context. It suggests that the rapport between a boss and an employee can affect productivity, job content, and loyalty. In dyadic leadership, the leader's methods for dealing with each subordinate can differ, creating in-groups and out-groups based on the effectiveness of their interactions (Kariuki, 2020). This is crucial in high-stakes situations requiring swift action and decisiveness.
Furthermore, Walmart serves millions of customers every day and spans vast geographic areas, so its business environment's dynamism is not overstated. Walmart faces various difficulties in the retail sector, including changes in consumer behavior and technological advancements. The function of line managers becomes crucial in such situations. For instance, online sales spiked dramatically when the COVID-19 pandemic first appeared. The quick adaptation to this change by Walmart's line managers was crucial. They made rapid choices on stock allocation based on in-depth knowledge of local demographics and consumption patterns and set up protocols to handle the unexpectedly high volume of online deliveries.
Yukl (2013) highlights the practical application of the LMX theory. Line managers with strong dyadic relationships were more effective in eliciting commitment and flexibility from their team members during challenging circumstances (Bannya & Bainbridge, 2022). Their relationships improved their ability to communicate changes, build trust, and motivate their team under pressure. It is essential to acknowledge that dyadic relationships can enhance individual performance but can also create perceptions of favoritism or inequity among team members. In Walmart, a line manager who prioritizes e-commerce over in-store operations can generate perceptions of bias, which could be harmful. According to Yukl (2013), the conceptualization of leadership levels, specifically at the dyadic level, provides valuable insights into the functioning of organizations in turbulent environments. As postulated by the LMX theory, strong leader-subordinate relationships were crucial to Walmart's response to the COVID-19 pandemic.
Recommendation and Implications for Walmart
In the fast-changing global market, Walmart's history demonstrates leadership based on serving overlooked communities. This fundamental goal laid the foundation for Sam Walton's store creation 43 years ago (Schirnhofer, 2022). However, as the uncertainty of the modern business environment grows, Walmart's top management must adjust the company's long-term goals to reflect these new realities. According to Ozanne and Ozanne (2021), Walmart's response to Hurricane Katrina showed how it could use its vast resources in emergencies. Such examples showed the company's adaptability and social responsibility. Walmart's leadership acknowledged the importance of environmental stewardship as they shifted their approach from reactive to proactive in addressing global events. Despite their aspirational nature, Walmart's forward-thinking approach is evident in its ambitious renewable energy and zero waste goals. Sustainability experts advise Walmart to regularly assess and revise its eco-friendly goals to keep them in step with the ever-evolving state of the planet.
Walmart's initiatives regarding product sourcing and international partnerships show that its leadership is highly conscious of its impact on the global supply chain. Separating the factory certification function from the purchasing organization helps to enhance operational efficiency and prioritize ethical sourcing. Walmart should increase its investment in promoting transparent and ethical supply chains and partner with international organizations to establish standardized practices.
Furthermore, Walmart has demonstrated its awareness of its social responsibility towards its employees by addressing concerns related to wages and healthcare. It is encouraging to see efforts made to improve health care and wages for all workers. However, it is essential for the company to consistently communicate with its employees, comprehend their changing requirements, and take proactive measures to address them. It is crucial for Walmart to consistently demonstrate its dedication to diversity across all levels of its organizational hierarchy. Walmart can establish an inclusive culture by ensuring its leadership reflects its workforce. Walmart's leadership is in a privileged position to learn from the company's storied past and adapt to future challenges.
Conclusion
In conclusion, Walmart's leadership structure requires it to evolve in response to the challenges of the modern global landscape despite its historical effectiveness. As the most significant global retailer, Walmart must effectively manage its economic objectives while fulfilling its social obligations. The company's adaptability in different areas is essential, but its continued relevance and success in the future will depend on its consistent commitment to transparency, sustainability, and workforce welfare.
Component 2
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