Organizational Transformation: The Case of Wal-

Mart

Walmart

culture

ThesisExamines the cultural transformation of Wal-Mart

embodied in a series of fundamental changes which have collectively created a paradigm shift in the ways Wal-Mart treats both its employees and its customers.

To understand the dynamics involved in recent transformation, this thesis provides an insider’s view of the traditional Wal-Mart culture, its components and structures that supported it, and the extensive makeover that has markedly reduced its influence.

ThesisLooks at the various programs that promoted

associate development within the stores, and the

identification process that created dedicated loyal associates.

It also addresses the role of store level management in promoting the culture, managing associates, and home office support.

Conceptual FrameworkWal-Mart Culture in terms of its emergence and

influence through charismatic leadership within a bureaucratic organizational structure.

Weber’s notion of power & authorityRitzer’s McDonaldization

The effect and significance of an ideological

culture on the WM workforce during this transformation.

Traditional Culture Originally premised on hometown, family values,

the company has been significantly redefining or eliminating altogether major components of its traditionally focused-culture.

Wal-Mart continues to extol the virtues of Sam Walton, despite the fact that most of the recent changes that have been implemented are clearly inconsistent with the philosophy that he promoted.

MethodsWal-Mart literature, company websites, media

reports, in-depth interviews conducted by various commentators, and

MSN internet groups A substantial amount of data were generated

through interviews with local associates employed with the company.

Former associates were also interviewed for the sake of establishing background and for ensuring consistency with the researcher’s understandings.

testimonials from depositions of current and former female employees involved in a class action sex discrimination lawsuit.

Major source of information was extracted from personal experience as a Wal-Mart associate.

Tranformation processDismantling the foundation of the Wal-Mart

Culture: The Partnership  Identification - Indoctrination to the Wal-Mart culture was essential for

generating employee buy-in to this partnership. Conventional wisdom among associates held that the longer employees remained with the company, the more dedicated they became in preserving workplace culture.

The Reduction Process  Gaining Control  Technological Change  Employee Response to Change

Three Basic Beliefs1. Respect the Individual

"Our people make the difference" is not a meaningless slogan it's a reality at Wal-Mart.  

2. Service to Our Customers 

3. Strive for Excellence Sam Walton was never satisfied ...

Source: http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=252

The Open Door Policy

“If you have an idea or concern, you can talk to your supervisor about it without fear of retaliation. Problems may be resolved faster if you go to your immediate supervisor first. However, if you feel your supervisor is the source of the problem, or if the problem has not been addressed satisfactorily, you can go to any level of management in the company. This policy promises that you will be heard, but it cannot promise that your opinion will always prevail.” Source: Wal-Mart 2006 Associate Benefits Book, Effective January 1, 2006

Wal-Mart Cheer

Give me a W! Give me an A! Give me an L! Give me a squiggly! Give me an M! Give me an A! Give me an R! Give me a T!

What's that spell? Wal-Mart!

Whose Wal-Mart is it? It's my Wal-Mart!

Who's number one? The customer! Always!

Source: http://walmartstores.com/AboutUs/320.aspx

CultureThe corporate culture of Wal-Mart is one of the biggest contributing factors that make it one of the world's most admired companies. When Sam Walton founded the company, he instilled in his people and his business a belief system that is still very much in place today.

Source: (http://walmartstores.com)

The Wal-Mart culture demanded observation as the company began to transform.

In transformation, it created perhaps inadvertently or intentionally, a massive shift from the traditional culture and established a new culture that is only beginning to take form

Growth no longer depends on some ideological “buy in” to “keep customers coming back.”

Wal-Mart maintains a systematic tracking of its customer base and their research shows that 85 percent of all Americans are in a Wal-Mart store during the year.

Source: Charlie Rose Transcript, Interview with Lee Scott

Internethttp://wakeupwalmart.com/http://walmartwatch.com/http://walmartworkersrights.org/http://www.aflcio.org/corporatewatch/walmart/http://walmartwork.org/http://www.walmartclass.com/public_home.htmlhttp://thewritingonthewal.net/http://walmart.bravenewfilms.org/http://www.walmartmovie.com/http://www.pbs.org/wgbh/pages/frontline/shows/walmart/http://www.reclaimdemocracy.org/walmart/http://walmartsucksorg.blogspot.com/

Internethttp://www.walmartassociatescentral.com/http://community.livejournal.com/walmart_empl

oye/http://www.unfairwalmart.com/http://walmartassociateblog.blogspot.com/http://groups.msn.com/W-WAssociates2005 CNBC Special, The Age of Wal-Mart

Q & A