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This 3 page paper examines the structure of Wal Mart and whether or not it is consistent with the company's goals and leadership. Bibliography lists 4 sources.
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3 pages (~225 words per page)
File: RG13_SA103org.rtf
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bureaucratic models that are often used in the business world (Raelin, 1986). In essence, the matrix structure is not all that common. The bureaucratic model and formal organizational charts are
well known. There is a hierarchy in these well-known structures. For the matrix structure, managers in professional units are assigned specific tasks and must make decisions for each of
their sectors (Raelin, 1986). At least two sources will guide the company and make decisions (Raelin, 1986). The matrix design requires a great deal of collaboration and communication (Raelin, 1986).
The system is less competitive than the traditional model many associate with a corporate ladder. Instead, the structure values cooperation (Raelin, 1986). It sounds good on the surface. However,
Gannon (2007) argues that the Matrix structure is unstable. Indeed, it is easy to see how allowing different arms of a firm make large decisions by themselves can become dangerous.
It is true that the matrix typology can obscure the organizational hierarchy (Raelin, 1986). On some level, this can work well, but does this organizational design truly fit with Wal
Marts strategy and leadership? Wal Marts strategy is customer focused with a focus on low cost leadership ("Customer focused low cost leadership strategy," 2010). Wal Marts matrix design in some
way does not fit with its low cost focus. Of course, that is a general rule, but lately, Wal Mart has had to cope with negative publicity. Perhaps using a
matrix design is a better idea given Wal Marts present circumstances. This design allows individual decision-makers, who are more likely to be experts in their niche, alter the status
quo. Still, the concept does not seem to mesh with a firm that is otherwise old fashioned in myriad ways. Wal Mart is a company started many years ago
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