Organizing

Organizing

MGT/330

September 6, 2010
David Freeman

Organizing

A well-established organized structure not only is favorable to the consumers, but it is also very favorable for the employees. Having structure not only gives the employees a sense of security, but it also gives them an idea of what to expect at the job and what is expected of the employees. It gives them a method for direction, which in turn inspires them to follow the guidelines set forth for them and do a sufficient job. By setting a structure employees are aware of the consequences of their actions from the beginning of their hire time.
Wal-Mart is a very large corporation who has more than 7,800 stores worldwide and has over two million employees working in these stores. Wal-Mart serves more than 100 million customers every year (Wal-Mart, 2009). By being such a large corporation the importance of organization is important to the success of the company. If the company happens to be disorganized, chaos might occur. Customers are attracted to the brands that Wal-Mart sells and that the customers can trust and rely on. Long time customers do not like an unpredictable brand. The customers of Wal-Mart want to feel secure in putting their money into a store that they feel they can trust. Organization of a company builds the trust with the customer to keep the customer coming back.
Wal-Mart's monetary management is also an important factor in the organization. Wal-Mart is a billion dollar company and their purpose has always been, “We save people money so they can live better (Wal-Mart, 2009).” In order for Wal-Mart to save their customers money, the management of money has to be up to par. Wal-Mart always has purchased goods at a fraction of the cost and then passed on the savings to their customers. They do not mark up the price of their goods like some vendors do. With a corporation like Wal-Mart, they cannot afford for one cent to be unaccounted for, so it is very important for the accounting department to make sure that they double check all their work. Great organizational structure is definitely a requirement in this area of the organization.
Wal-Mart has an accounting department that takes care of all the money details and lets the other departments continue to serve their millions of customers that they have each year. Ideas on how to save the company and customers money is a constant discussion. They also spend money on tracking their customer’s purchases and their trends so they will be able to meet the needs of the customers better. Every detail is logged and recorded so that they can go back and do their research. The organization of Wal-Mart’s monetary management has contributed to its success and continued success.
Another key element of Wal-Mart is their human resources department. The purpose of this department is to help establish a certain in-house organizational structure that helps in the decision making process. Each company has an organizational structure, but they all differ and make up the organization. Having an organized internal structure helps the employees understand how Wal-Mart works from the inside. The companies can then divide and create groups however they believe necessary. Doing this helps to determine what jobs the employees will perform and what tasks will need to be completed and by which employee these tasks will be completed.
The human resource department is also the central hub for the creation of policies, practice, and procedure that comply with the law and are consistent with their organization’s culture (B. Gross, 1999). This contains the creation of employee handbooks, guidelines and performance reviews as well as pay and ranks among employees and also the process of hiring and firing employees and how to receive a promotion. It is vital that this department remains an organized and functional area for many reasons. Human resources require many avenues.
We live in a society of technology where the use of hand delivered mail is almost obsolete because of the use of computers and e-mail. So staying current is very important to Wal-Mart’s success as well as any business. Today the use of computers, faxes, e-mail, and video conferencing has changed and influences the way we conduct business today. We use computers to track all sorts of data like consumer habits or operational costs. This is very important to Wal-Mart’s structure. The use of computers can also help with inventory as well as ordering more goods. This is a more rapid way than mail.
Author David Chaffey (1997) defines efficiency as, “Judgments of efficiency are based on some idea of ‘wastage’. A relatively efficient process either requires fewer inputs or produces more outputs compared to a similar process, to achieve the objectives of the process.” efficiency and effectiveness are both crucial elements for the survival of a company. Wal-Mart does an incredible job in making sure that both these elements are included in their formula for success. They also do a wonderful job of always maintaining the competitive edge that keeps their customers coming back.
In conclusion, Wal-Mart has set the precedence for an effective organizational structure. The formula for success that they use has worked for them for many years and is responsible for their huge success. Having a strong organizational structure is very important and beneficial to the company and the company’s employees as well as the customer. Wal-Mart will continue to reach a level of success by continuing to be organized and as effective as they have been in the past.
Sam Walton, the founder of Wal-Mart, said “If you think about it from the point of view of the customer, you want everything: a wide assortment of quality merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable customer service; convenient hours; and a pleasant shopping experience. You love it when a store exceeds your expectations, and you hate it when a store inconveniences you, gives you a hard time, or pretends you are invisible” (Wal-Mart, 2009). As you can see, Sam Walton had a vision for success from the beginning. And with this vision he built a very powerful, successful business that continues to thrive from customers like you and I. But without the organizational structure Wal-Mart would not be as successful as it is now nor would it continue to grow its business.

References
Chaffey, D. (1997). Defining Efficiency and Effectiveness for Business Strategy. Retrieved September 3, 2010, from http://www.davechaffey.com/Business-Information-Management/Efficiency-and-effectiveness-explained
Gross, B. (1999). All Business: The Importance of Human Resources Audits. Retrieved September 3, 2010, from http://www.allbusiness.com/human-resources/2975416-1.html
Wal-Mart Stores Inc. (2009). About us. Retrieved September 3, 2010, from http://walmartstores.com/AboutUs/

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Organizing 8.6 of 10 on the basis of 2230 Review.