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Human Resource Essay

2763 words - 12 pages

ORGANIZATIONAL CULTURE AND WAL-MART SUCCESS

Introduction

The paper analyzes the corporate culture of Wal-Mart in the context of its establishment by its owners as well as its future changes due to operational needs (e.g. outsourcing marketing to external people). The structure can be somewhat futuristic that will serve as a guide for companies that have adopted or will change their corporate culture. The paper contains overview of Wal-Mart’s culture and related organizational culture theories while the latter part analyzes Enron scandal and Standard/ relating them to cultural issues related to Wal-Mart. There is a conclusion to elaborate on findings and implicate results ...view middle of the document...

With this general framework, Wal-Mart is doing business in ever-changing industry and economy. Recently, it unveiled new ad agency portfolio wherein it aligned its marketing and merchandising businesses to selected advertising agencies. The outsourcing of one of the most significant area of the business to outside parties can have changes or “shocks” in the present cultural structure of the company especially of its known low-pricing strategy. Wal-Mart should be able to guard its business partner selection to maximize the strategy and prevent untoward occurrences. This would not be done without strategic leaders who implement best practice in decision-making.

Overview of Corporate Culture

Organizational culture is the personality of a firm which can be indicated by the feedbacks of the partners and third parties. Culture is based on values and assumptions about organizational resources where some outcomes can be formed (e.g. new technology, innovative processes, and good manager). In every culture, there is an evaluative element which involves social expectations based on certain standards. A firm that is explicitly stating its culture should be able to represent them through symbols and actions in order for expectations to recognize them and include in evaluation process. In this course, social interaction is the best medium to show how the company embodies and execute its culture.

According to Deal and Kennedy (1982), culture is the single most important measure of success of the organization where four dimensions are involved; namely, values, heroes, rites/ rituals and cultural network. Peters and Waterman (1982) elaborated this citing link of organizational culture and business performance where culture can be seen as form of reward or sacrifice. This suggests that culture is both a cause and also an effect which places an organization between a double-edged sword. As such, this makes culture problems less exposed to evaluation and to determine strategic actions.

The tone of Wal-Mart about its culture is that it is innovative, thus, it requires adopting a culture of change. However, tools to be able to run this strategy are demanding and challenging. First, cultural change requires awareness of its consequences, leadership inclination in building strong cultures and ability to balance culture to some form of corporate formalities. Culture is a unifying symbol that reflects the general processes of the organization. In this view, the concept of culture can aid in making corporate changes or simply making a specific culture for an organization to follow.

Culture should be Ethical

In definition, “ethics is a set of principles of right conduct. It is a moral philosophy that conforms to standards of what is right or just in behavior” (Questa Dictionary). The irony is that it has number of definitions but in sense, no theory or philosophy had really elaborate...

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