Stakeholder management and organizational structure at Walmart

Organizational Research and Theory

A person or group with legitimate, tangible interest in a company is referred to as a stakeholder. Employees, managers, directors and investors constitute internal stakeholders. The staff wants to stay employed and earn money. Owners, on the other hand are interested in most profit that can be made from the business. Investors are also keen on deriving profit from their investments (Boundless, 2016).

The directors of Walmart influence the strategies of the company, bearing the responsibility of the business dynamics. Consequently, they seek to prioritize their interests through the management of the company. Walmart has a wide range and number of stakeholders; owing to its massive organizational size and their global scope of business operations. Only a fraction of Walmart\'s stakeholders has a direct impact on the company\'s activities. If managers are to internalize the nature of the dynamic relationship between the business and the stakeholders, it is imperative for managers to identify the mentioned group of stakeholders that influence the company, and their preferences. This information is useful for Walmart because it provides a basis for making decisions and become leaders in management of stakeholders.

The stakeholders at Walmart can be classified based on their common interests. The groups have a range of priority levels guided by the beliefs and policies of the company.

Order of priority

• Investors

• customers

• employees

• Suppliers

Figure 1 - Source: Boundless, 2016

The organizational structure at Walmart is hierarchical. There are two distinct features in this structure, i.e. hierarchy and definition based on function. Hierarchy has to do with the vertical command lines and authority across the organizational structure. For instance, except those at the top, each staff member has a superior. The middle level managers and those below, including the employees follow orders and instructions that come from the top echelons of Walmart\'s management and put them into practice.

The function-based feature, on the other hand, involves groups of staffs that fulfill specified functions. The HRM (human resource management) function at Walmart is an example in case. The IT (information technology) department and the marketing department, among others, are more examples of function-based definition (Lombardo, Aug). Comment by GL: Bib entry missing

Ethics

Reinforcing the code of ethics has emerged as a critical instrument to enhance corporate governance; the significance of ethics in corporate governance assumes pronounced implications given the expose of many recent corporate scandals (Daft, 2010).

The employees and their managers have an ethical duty to implement their portfolio demands as directed by the stakeholders. The decisions they make and the activities they engage in, must conform to the expectations of the stakeholders. The suppliers, on their part must provide materials as scheduled and in the shape, quality, and form it is desired (Daft, 2010). Right since its inception by Walton, Walmart Stores Inc. has lived true to a value and ethical-based business entity. The cornerstone values that guide decisions at Walmart are three primary beliefs

• Striving for excellence (Walmart, 2016) Comment by GL: Pl. add Bib entry for this citation

• Respecting individuals

• Providing service to customers

Material interest of the workers should be incorporated with the objectives of the organization that enable the usage of human resource in the most beneficial manner. This will help to optimize profits, reduce operational and production costs and maintain the ideal number of workers required for the best results. Such goals are attained through a proper reward system that is designed to enhance and motivate and elicit satisfaction from their activities (Chepkwony, 2014).