Organizational structure concepts and applications

Organizational structure of a large, international or multinational company is important, and must be one that works well in all ways. If the structure of the organization is not handled properly, the entire company can be put at risk. The organization studied here is Wal-Mart, because it is so large and represents what many people think of when they think of a multinational corporation that is generally successful. The organizational structure of this corporation works, and there are several reason why that is the case. The most significant reason is that the organization's structure has been kept simple (Fishman, 2006). While Wal-Mart is a huge corporation that operates all across the globe, it has stayed small and humble in the way it has organized itself. Because it has done that, it has been able to continue to build itself up and use the profits made through sales to put back into the company (Gereffi & Michelle, 2009). Under the company president is the senior vice president, followed by the regional vice president and the market managers (Fishman, 2006).

Those are the only people seen above the store managers, meaning those who want to climb the corporate ladder have limited opportunities. That can mean picking the brightest and the best, but it can also mean that there are not so many layers of people to go through in order to get answers or have issues resolved (Vance & Scott, 1997). This becomes exceedingly important for large corporations that operate in a number of countries, because these corporations are aware of the fact that cultures are often very different depending on where a person comes from and how he or she may interact with others. The culture of the organization is important, but so is the culture into which that organization is moving by setting up stores in various countries (Fishman, 2006). The culture of Wal-Mart does not change that much no matter what country the company moves to, however.

In the stores themselves, there is a manager (and sometimes a co-manager), along with an assistant manager (Fishman, 2006). These are the people to which workers and customers turn when there is a serious problem. Additionally, these are also people who are called upon to make sure things are running smoothly, and who must place orders, handle scheduling, and work with a number of people throughout the store to coordinate promotions, seasonal changes, and other adjustments that must be made throughout the year (Fishman, 2006). It is vital that these managers, co-managers, and assistant managers all work together, so they are able to help the company succeed. Often, though, they come from different places and different cultures, so they have more than just their job titles and designations that set them apart (Fishman, 2006). The differences in cultures and belief systems can make it complicated for people to work together, but Wal-Mart's training incorporates cultural issues and how to address them, mitigating those types of problems (Fishman, 2006).

With an organizational structure that is more of a straight line and less like a tree with many branches -- a sight that is common in the organizational structures of many corporations -- Wal-Mart is better able to keep moving forward (Vance & Scott, 1997). The company does not need to make many changes, since what it has been doing is clearly working for it. Profits continue to rise, and people continue to work with the retailer not just for part-time jobs but for their careers (Gereffi & Michelle, 2009). The way Wal-Mart has made bold moves into countries that would not have been expected has shown the value of cultural diversity, and how well the company is able to make the shift between what it does in the United States and what it does in countries where the culture is often far different (Gereffi & Michelle, 2009). It is not just about the low prices or the large selection, but about making sure the people who shop at the store have the right experience to keep them coming back.

As with any corporation, though, there are things that could be improved upon. The main issue for Wal-Mart is that it has a reputation that many people -- and some governments -- find unacceptable (Fishman, 2006). That can keep the retailer from getting into countries in which it would probably be profitable, and can also stop it from showing off its understanding of culture and diversity. The reason some countries say no to Wal-Mart is that the retailer has been seen to push out smaller stores, and has also been known to move in and basically take over an area. While that works in the United States because it is part of the culture, many other countries operate very differently (Gereffi & Michelle, 2009). Wal-Mart has made adjustments in countries into which it has moved in the past, but the countries that are still resistant are much more difficult to get into without more significant adjustments being made (Fishman, 2006). It can be difficult to convince one country that things will be done very different there than they are done in other countries, since a pattern has been established.