Introduction
The practices and behavior of management are significant aspects of the operation of any business and organization. It includes leadership style, communication, a form of government, a management model, and other aspects regarding the interaction of management with subordinates. Depending on the direction of the company and the contingent of workers, each organization needs its own management model. Moreover, the actions of management have physical and moral consequences for employees and partners, which the profitability of the company and the efficiency of performance depend on. It is crucial to combine liberality and respect for workers, however, at the same time, not to give the opportunity to show arrogance or disrespect for superiors. Therefore, it is necessary to analyze the practices and behaviors of management and senior officials and the effects they have on employees/associates in the example of Walmart.
Walmart’s Strategies
Walmart is an American public company that operates the world’s largest retail and wholesale network. It is most common in the US and Mexico, however, there are also stores in Canada, South Africa, South America, Japan, and China (Ferrel et al., 2021). Walmart includes supermarkets and hypermarkets selling food and industrial products. The main advantages of the network are low, almost wholesale prices, due to which the middle class and low-income people prefer this store (Ferrel et al., 2021). It was achieved due to a well-developed logistics structure, which makes it possible to simplify the delivery process. In turn, it reduces the cost of products, and one has the ability to set low prices, which formulates a significant competitive advantage.
Moreover, in addition to wholesale prices, Walmart applies a strategy of maximum assortment. In other words, by going to a hypermarket, one has the opportunity to buy practically everything that is necessary for use (Ferrel et al., 2021). It can be groceries, tools, bags, shoes, tracksuits, gardening supplies, and a variety of other products. Thus, units are concentrated in one place that covers all the basic requirements of customers at a low price. Due to this, Walmart has high sales figures, making it one of the most profitable retail chains. Besides, by keeping prices closer to the lowest in comparison to national trends, the chain is attracting more and more price-sensitive customers.
One should mention that Walmart is a leader in the implementation of various management and logistics optimization technologies, including RFID tags. It is a special device that allows one to quickly track any marked product, its location, and key data about an item. When the RFID tag is in the range of the reader, which may vary from 1 to 300 or more meters and depends on the strategic objective, the data is read. For example, when delivering from warehouses to stores, products pass through the reader, and if the required quantity is not collected, one can rapidly notice this. Such a strategy allows Walmart to save a significant amount of time and effort and make the logistics structure simple and efficient (Ferrel et al., 2021). In turn, as it was indicated, it makes it possible to set prices lower than those of competitors.
Management’s and Senior Officials’ Practices and Behaviors in Walmart
The practices and behaviors of the company’s management include various styles of leadership on which relationships with subordinates depend. A worker’s attitude is a crucial factor as the management style affects the motivation of employees, work efficiency, and, consequently, the profitability of the company (Chidiac, 2018). There are many styles of management, from liberal, which is more of democratic nature, to authoritarian, where discipline and strictness are emphasized. In addition, depending on the company’s field of activity, one should be able to choose the appropriate leadership style. Moreover, it also depends on the contingent of workers in the company, their preferences, character, and profession.
For example, in companies that produce intangible products, such as Google, a liberal management style will be more appropriate. It is formulated by the fact that intellectual work comes to the fore, respectively each of the employees can offer something of value. Moreover, the specialization of workers implies knowledge in many areas related to the work of the company. Thus, it is necessary to give every employee a chance to offer some decisions, as it can reveal one’s potential (Chidiac, 2018). Conversely, in construction companies, it is necessary to maintain discipline, and each worker should perform exclusively those duties related to one’s profession. It is articulated by each employee having a narrow specialization and skills, which increases the importance of performing their functions.
Despite the fact that Walmart is a chain of retail stores, the liberal management style contributes to the efficient operation of the company. However, much attention is paid to the discipline, motivation, and fair work of employees (Ferrel et al., 2021). Walmart management tends to let each employee realize one’s importance to the company. Moreover, in some cases, an ordinary worker, like a cashier or a loader, can suggest actual effective solutions. Thus, it is common practice at Walmart to collect information about workflow processes from non-management personnel (Ferrel et al., 2021). Data assembly is performed in the form of meetings, surveys, online surveys, or face-to-face conversations that increase motivation and industrious work. In some cases, one builds strategies for solving the problem or development based on the advice of employees.
Informal communication with the team is a key management strategy for Walmart. It includes corporate parties, meetings, and various events where both working and extraneous moments are discussed. Moreover, management is interested in the lives of employees, their habits, preferences, opinions about wages, and work processes. All this makes staff more self-confident and courageous for new achievements, active work, career growth, and decision-making. In turn, it has a positive effect on the profitability of the company since every employee acts in its interests (Grabner, 2021). Whether it is a department head or a cashier, each of them not only performs their functions but also improves the work of the organization globally.
The practices and behaviors of Walmart’s management are designed to ultimately build a team with high synergy. Synergy includes a process in which each of the team members ideally complements the activities of the other. As a result, the maximum efficiency of the work of both each member of the team and the group as a whole is achieved (Chidiac, 2018). For this, the concept of “leader-servant” is used, which implies a worker and coach rather than a worker and boss model of cooperation. For example, tasks are set with an emphasis on the offer of help and not as an order; moreover, the leader demonstrates a willingness to complete the task oneself. The leader manifests a sincere interest in the worker’s life, empathy, the reward for achievement, trust, respect, and honesty. Finally, any of the employees have no limits on career advancement, and a loader can become a store director if one demonstrates efficiency.
Mental and Physical Effects
As one has already mentioned, management practices, behaviors, and leadership styles are crucial aspects as they affect employees and the company as a whole. It includes the impact not only on the productivity of the organization but also on the physical and moral condition of the workers (Chidiac, 2018). In turn, depending on the physical and mental state of employees, the profitability and image of the company will vary. An improperly chosen management style can lead to the fact that employees will show insufficient focus on tasks and discipline. Moreover, negative attitudes towards superiors can lead to the fact that most of the workers quit, thereby having negative consequences for the organization.
Talking about how management style affects employee morale, one can identify several factors. Firstly, a correctly chosen leadership style increases friendship, motivation, cohesion, and the desire to work with the team. It is due to the fact that under the appropriate style, each employee feels one’s importance to the company and that one’s work is evaluated honestly (Chidiac, 2018). There is a desire to go to work, and the workplace becomes a territory that brings pleasure when one visits it on the workday. A friendly team demonstrates support and empathy, and the authorities instruct, support and care. Thus, the general morale of the employee, mood, and motivation rises, and the employee demonstrates the desire to do tasks that are not mandatory in order to benefit the company.
No wonder it has an impact on the physical condition of workers as well. Positive emotions promote the production of hormones that increase productivity and add energy. The general physical condition improves, and the worker becomes more efficient and resilient. However, it can also be harmful if there is an incorrect or negative leadership style at work. It involves unfair assessment of work and a lack of interest and sincerity, the employee feels lonely and experiences negative emotions in relation to one’s superiors (Grabner, 2021). The team does not have unity and cohesion since some of the employees do not feel like working with superiors, and the other part is afraid of losing their jobs. Such conditions can be formed under an authoritarian or narcissistic leadership style where the opinions of employees are not significant.
The impact on the physical condition is also formulated by the fact that a person can be fired or quit oneself. Dismissal may be due to poor relations with superiors under the wrong leadership style, the inability to work in such conditions, and not accepting the team. Quitting, in most cases, is accompanied by negative emotions, which in turn negatively affect the body. Moreover, it can be followed by depression, taking sedatives, or alcohol, which also negatively affects the physical condition of a person. At the same time, with a positive leadership style, an individual may have the motivation to bring one’s physical form back to normal (Grabner, 2021). Moreover, one will always have time for sports because one can coordinate it with one’s superiors. Good mood, sports, and communication with the team have a positive effect on all indicators of the body, improving not only the moral but also the physical condition.
Based on the factors mentioned above, one may conclude that the appropriate management style has a positive effect on the physical and moral condition of employees. Moreover, it increases the profitability of the company since motivated workers demonstrate increased efficiency (Grabner, 2021). Thus, given Walmart’s liberal leadership style, management practices and behaviors have a positive impact on employees at all levels. It is worth mentioning that at the same time, management maintains discipline, which makes the network efficient and profitable. The key strategy of Walmart’s authority, namely informal communication with subordinates, makes employees realize that they are important to the company. All this has a positive effect on the physical and moral condition of the chain’s officials, increasing motivation and attracting new qualified personnel.
Talking about the long-term effects that employees can have as a result of certain management practices and behaviors, it includes several aspects. First, the negative impact, in the long run, can significantly harm both employees and the company. It can cause depression, irritability, and reluctance in the person to work in the future. Such consequences may occur due to the fact that one received a negative work experience. Thus, at best, one will try to open one’s own business, and at worst, the person simply will not want to work anymore. Conversely, a positive impact in the long-term perspective will lead to an improvement in the performance of the company and in the development of the individual (Grabner, 2021). One will have a positive experience that will increase the motivation to move up the career ladder and make useful decisions.
In the case of Walmart, similarly to the effect on the morale and physical condition of employees, the leadership style of the chain management has positive long-term consequences. Primarily, it concerns the possibility of unlimited development of employees. Thereby, in the case of effective decision-making or proposed strategies in the organizational or managerial aspect, one will be promoted depending on the field of activity (Chidiac, 2018). Walmart’s strategy lies in the fact that each person has unlimited possibilities, and the task of management is to unleash one’s potential. It formulates a reason for all employees to be given a chance to prove themselves on a large scale. As a result, in the long-term, one has the opportunity to get rapid career growth, and the company will get another professional with a positive impact on profitability.
Further, the ‘boss-servant’ strategy has positive long-term implications for both employees and Walmart company as well. It is characterized by the relationship between subordinates and leaders as the cooperation between the team and the coach. The leader demonstrates support, interest, sincerity, and participation in the development of each team member (Grabner, 2021). Moreover, the leader does not give orders but asks for help or offers to participate in a particular task. Thus, employees develop trusting and friendly relations with each other and with superiors. Moreover, it reinforces a fair and positive attitude towards life and towards others outside of work. Thereby, the appropriate style of leadership, practice, and behavior has positive global consequences for both the physical and moral condition of employees.
Physical and Psychological Consequences
This issue is vital in terms of the implications that a workflow will have under a particular leadership style. Obviously, it is divided into positive and negative consequences, however, it is worth noting exactly how it affects psychology and physiology. For example, a common problem is bullying in the workplace, showing disrespect, or unfair pay. No wonder it has significant implications for the person that can affect the life of the individual (Chidiac, 2018). Long-term exposure to bullying in the workplace can lead to depression and even suicidal thoughts. Unfair evaluation of work affects the self-esteem of a person, and further life successes, such as career growth, starting a business and achieving goals. Underpaid individuals show less success in life and courage in making decisions.
The lack of informal communication with subordinates increases the gap between the employee and superiors. It reminds the employee that one is lower in rank than the chief, which affects mood and self-esteem. In such cases, one may feel hostility towards superiors and even secretly commit acts that will harm the company. Moreover, it can cause feelings of loneliness, decreased motivation, sadness, and, as a result, depression. It is especially acute in case of any personal life problems or incidents with an employee when one wants to share with someone. Thus, informal communication helps not only build trusting relationships with employees but also helps solve some psychological problems (Grabner, 2021). Moreover, employees have respect for superiors who are sincerely interested in the problems of subordinates. In turn, respect for superiors encourages honest, efficient, and diligent work, as one will be motivated to benefit the company.
A good attitude towards subordinates has a positive impact on the performance and profitability of the company. It is especially noticeable in companies where there is direct employee-customer contact. It is due to the fact that highly motivated employees demonstrate a polite, sincere, and participatory attitude towards customers (Grabner, 2021). Accordingly, the client feels it and gets a positive experience of using the company’s services. Subsequently, the client will most likely recommend the services of this company, which will generate additional income and improve the financial situation. In addition, it acts as self-advertising, when one advises the company to other people for free. Finally, it will have a positive impact on the image of the company, which, as already indicated above, is an important aspect for attracting investments and for general activity.
Conclusion
On the other hand, Wal-Mart is using a successful strategy of setting prices as low as wholesale prices. This allows you to cover a large audience of price-sensitive customers and attract new customers. In addition, the network uses the tactics of maximum assortment, having products on the shelves that cover a wide range of needs. However, the main advantage of Walmart is the internal management strategy formulated by the liberal leadership style. In addition, management maintains discipline and a friendly mood among the staff. Each of the team members supports the others and knows that, if necessary, they will be provided with assistance.
The liberal leadership style allows one to unleash the potential of employees to the maximum and make the experience of working at Walmart positive. It includes informal meetings with subordinates through which trust is built. In addition, leaders show respect, support, and sincerity to the team. These practices and behaviors have been found to have a positive impact on both employees and network performance, including profitability. It improves the moral and physical condition of employees, increasing their motivation, mood, and attitude to work. Finally, it has positive consequences in the long term, developing employees, discovering new talents, and improving performance.
References
Chidiac, E. (2018). Strategic management of diversity in the workplace: An Australian case. Routledge.
Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing strategy. (8th ed.). Cengage Learning.
Grabner, D. B. (2021). Strategic retail management and brand management: Trends, tactics, and examples. Walter de Gruyter GmbH & Co KG.