Structure Organization Choosing. Provide Organization Chart Top

¶ … structure organization choosing. Provide organization chart top levels organization Word, Excel, a .pdf format preparing organizational chart. (20 marks). As part evaluation, assess appropriateness method departmentalization (20 marks), implications authority (20 marks) job design (20 marks).

Organizational structure

Wal-Mart is the largest retailer in the United States and it has even increased its presence within the international market place. Throughout the past recent years, when numerous economic agents went bankrupt or were forced to downsize and restructure, Wal-Mart continued to thrive and followed and ascendant path in revenues and profits (Website of the Wal-Mart Stores, 2012).

The success of the corporate retailer is based on a multitude of strategies that form its overall business model, such as the emphasis on cost reduction, on the provision of the lowest price or the generation of scale economies and the adherent advantages. Still, at this level, it is also important to reveal the organization's structure and assess it in the context of the overall company. The chart below reveals the structure of Wal-Mart, and the following lines evaluate it.

Source: The Official Board, 2012

The chart above reveals the organizational structure of Wal-Mart at the executive level, with the presentation of the members of the board, the organizational divisions and the international offices. The structure of the organization seems more horizontal, rather than vertical. Specifically, all of the organizational divisions, such as global electronic commerce, corporate affairs, human resources and so on, are directly subordinated to Mike Duke, the company's chief executive officer. Still, the departments are not subordinated one to the other, but they seem to develop relationships and collaborations based on principles of equality.

At the level of the international offices, these are all subordinated to the International division, but they do not develop relationships between themselves, nor are they subordinated one to the other. The directors and the board members are also on positions of equality.

This organizational structure reveals an emphasis on openness and flexibility, in the meaning that each division and office is allowed its own freedom. Based on this chart, it would be concluded that the structure of the corporate retailer is rather flexible and allows and supports change and innovation at the top executive level. This structure reveals the narrow and specific focuses of each organizational department and office, which in turn allows it to best resolve the identified issues (Hitt, 2008).

The creation of the internal structure of Wal-Mart has been adequately created with the usage of the departmentalization method. This method virtually refers to the division of the organizational parties and their organization into groups and divisions based on common goals, shared knowledge, geographic areas, product management, customer relationship and approach, product and so on (Syfes).

At Wal-Mart, this principle was implemented in three specific areas, namely the executive level of the leaders, the tasks and functions of the divisions and the geographic positioning of the international offices. Still, in a traditional setting, the departmentalization method would be applied through the creation of a strict and vertically integrated structure, as revealed in the chart below:

Source: Syfes

Wal-Mart however applied the principles of departmentalization to a limited degree, in the meaning that it used the procedure to create its departments and clearly divide them, yet it did not integrate them in a vertical structure. Such a decision is not however to be condemned, since it represented the best solution to the company. In other words, the economic agents are always expected to consider and integrate theoretical models and frameworks within their operations and decisions, but they should tailor them to the specifics of the company and the industry in which it operates.

At the level of authority, as it has been mentioned before, the organizational chart mostly reveals departments and international offices on positions of equality. The departments do not respond to one another, but they are generally subordinated to a single unit, in charge of executive decision making. All organizational divisions are as such under the authority of the CEO, whereas all of the international offices are under the authority of the International division. The authority lines are simplistic, yet clear and they do not create cause for confusion.

Overall then, Wal-Mart's organizational structure seems rather open and flexible and this is an adequate solution at the level of top executives, who are all qualified and responsible professionals. This structure allows creativity and fosters evolution by allowing change to be continually implemented. Historically, Wal-Mart has been subjected to intense criticism from various stakeholders, such as customers for the lack of parking lot security or the decreased product quality; employees for low rewards or the community for running into the ground the mom and pop stores (Greenwald, 2005). As a result of these accusations, Wal-Mart has focused on reshaping its internal affairs and its relationships with all stakeholders -- customers, employees, business partners, the community, the government and so on (Freeman, 2010). This open and flexible structure then is perfectly integrated in the new Wal-Mart business model, focused on rapid change and adaptability to the needs of the various stakeholder categories.