Comparing Walmart and Publix

Business

WalMart v. Publix

Weisbords Six Box Model

WalMart

Publix

WalMart

Publix

Comparison of the Two Firms

Potential Areas of Resistance

Weisbords Six Box Model

The analysis of an organization with the use of Weisbords Six Box Model involves looking at the organization from six different dimensions, which are all interdependent (Burke, 1992). The dimensions are purposes, structure, relationships, rewards, leadership and helpful mechanisms. The leadership dimension (or box) is at the centre with the reaming five boxes surrounding. Each organization will be assessed separately.

WalMart

Purpose; WalMart is a for profit retail operation, with a large number of shareholders. The purpose may be extrapolated as operating successfully as a retail operation, creating profit for the shareholders. The mission statement for WalMart is simple, and positions the firm in terms of its strategy. The mission statement reads "we save people money so they can live better" (WalMart, 2014). The purpose of the firm is clear as offering consumers a value proposition. The mission statement build on the initial purpose statement by Sam Walton, the founder, which stated "if we all work together we'll lower the cost of living for everyone" (quoted Farfan, 2014). This is supported with a significant number of helpful mechanisms.

Structure; WalMart uses a divisional structure, which operates on a matrix basis. The divisions are based on functionality, and people of different division have the ability to work together across those divisions. In the stores there is a relativity flat hierarchy, with a store manager, a co-store manager in the lagers stores, an assistant manager and then department heads. The structure appears to be well developed for the retail industry, although the cross departmental aspects may create some ambiguity with employees unused to matrix structures.

Relationships; Relationships can be considered between individuals, between functional departments, and between people and the nature of their jobs (Burke, 1992). Individual relationships may vary greatly, and will be impacted by local management and practices. However, respect for the individual and support for the employment relationship is provided with the firms' open door policy, and Sam Walton's value of "servant leadership," where leaders serve their departments. The matrix structure facilitates increased interdepartmental co-operation. The relationship of individuals with their jobs may be more problematic; the poor employee relations history of the firm, with low wages, and more recently job cuts and reduced hours and understaffing has placed stress in the relationship, with changes introduced recently aimed at changing those perceptions and improving the employment relationship (Marshall, 2012). There is also documentation that WalMart actively works to keep unions out of its stores (RT, 2014)

Rewards; Formal rewards include the wages, which remain low for hourly paid workers, but have included some improvements taking many workers off of welfare benefits. The formal rewards also include the potential for promotion, with 75% of management starting as hourly paid employees, and as well as compulsory benefits such as healthcare, the firm also offers additional benefits such as insurance, matching pension plan contributions, and a stock purchase plan (WalMart, 2014). The "Grass Roots Process" provides another source of recognition for employees, with a proactive suggestion scheme (Farfan, 2014).

Informally there is also a perception of punishment for those that speak out against WalMart as an employer; the National Labor Relations Board has made a formal complaint regarding the use of threatening and intimidating behavior, or even dismissal for employees that protest against the firm (RT, 2014).

Helpful mechanisms; The processes that are in place, including the control, planning and information sources include the Oracle database solution providing up-to-date information to the firm and its suppliers on sales levels and forecast different types of demand, including goods, labor, etc. (WalMart, 2014). The system also provides for scenario planning, accessible to the firm, and to relevant suppliers to assess the potential for changes and promotions. The HR and change processes are supported with tools and strategies such as an open door policy, the sundown rule which states that any query raised by an employee or customer should be answered that same day, the grass root policy and the organizational culture (Farfan, 2014). However, the system that enforces the values and good behavior may also support the firms desire to control employees and manage actions, such as reverent unionization and punishing employees who criticize the firm.

Leadership; leadership is undertaken at a local level as well as centrally. Changes have been brought in to increase the level of participative management that is taking place, so leaders listen more to the employees (Marshall, 2012). The leadership seeks to take decisive action to defend the firms' integrity even if this is controversial, and while respect may be retained, this has not always been without conflict, as seen with the many class action suits brought against WalMart by former employees.

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Publix

Purpose; The mission statement for Publix is clearer than the WalMart statement, providing aspiration statement on what the company was to achieve, but also definitions and how it is to be achieved. The mission statement reads the aim of the company is "to be the premier quality food retailer in the world." The mission statement is supported by set of commitments, which are clear to all of the employees, including the specifications specific values, including a passionate focus on customer value, and intolerance waste, high standards of stewardship for stockholders, and equipment actresses the citizens within their communities (Farfan, 2014).

Structure; the organizational structure of Publix is functional, were different departments created based on the similar areas of operation and resource usage. This may be seen as a relatively traditional structure, with different divisions such as marketing, human resources, and distribution (Publix, 2014). Within each store there are six departments, each with a department head, which are overseen by a store manager.