MGT / 330
December 24, 2012
Organizing functions are important to all organizations, making it one of the basic functions of management. Should a manager make or miss any mistakes in any area of business can and would affect business. These mistakes can create problems such as lose of business, an increase in operating cost, productivity decline, employee cutbacks, which results in profit loss. This paper will evaluate the organizing function of management as it relates to Wal-Mart and the following organization resources within its organization: * Physical assets * Knowledge * Human resources Wal-Mart has evolved into one of the largest retailer conglomerate in the world; with assets spread worldwide, which includes inventory, distribution channels, and multiple stores operating under several banners. The manner a corporation of this size uses its resources to implement plans and reach goals can be one of the most important decisions made. The wrong decision can and would cost them tremendously. Evaluating Wal-Mart effectiveness and efficiency in which organization resources are optimized within the organization gives a look into Wal-Mart managerial achievements through the use of organizational functions of management (Bateman & Snell, 2009).
Organizational resources are what makes and keeps any business operational; the allocation of organizational resources for a business should proceed with caution in a competitive environment (Organizing Functions of Management, (2009). “A business can acquire the resources they need appropriately through careful practice” (Ganly, 2010). Among several of the organizational resources that Wal-Mart uses these three (physical assets, knowledge, and human resources) are found to hold significant roles in Wal-Marts continues success.
Physical assets defined according to Investopedia Financial Dictionary, “as an item of economic, commercial or exchange value that has a tangible or material existence such as cash, equipment, inventory and properties owned by the business” (http://www.investopedia.com/terms/p/physicalasset.asp#axzz2HMhmgN1v). Wal-Mart is set up in a way that allows them to gain the most effect possible from their physical assets throughout the organization. Wal-Mart operates 4,253 retail stores worldwide with tens of thousands of products available in each of these stores (Wal-Mart, 2012). With this large of a number of inventory to maintain to ensure all stores are constantly stock to meet customer demands, without a plan would make it impossible. Through extensive planning and innovative thinking Wal-Mart management teams could shape business in a way that keeps inventory moving a low affordable price for consumers. By listening to associates recommendations, customers’ requests, and searching for inventory found to be constantly current with style, quality, and value they can stay ahead of the their competitors.
In an effort to meet customer demands Wal-Mart management team are actively using the organizing functional planning to maintain an adequate inventory level for all their stores worldwide. In keeping with the goals and plans established, they must have the means and knowledge to know which inventory item needs replenishing and when and how to deliver the items to the required stores in a timely manner. This requires a plan to know when and where all shipments are constantly. Wal-Mart has earned the reputation of possessing one of the most extensive inventories in the industry thanks to the endless effort of their managers.
In the 21st century business era, according to Zack, (1998) knowledge is, “Business organizations are coming to view knowledge as their most valuable and strategic resource, and bringing that knowledge to bear on problems and opportunities as there most important capability” (vol. 41, para.