Evaluation of Leadership Theories and Application in Walmart’s Management
Strategic leadership refers to a practice in which executives employ various management styles and develop a vision to sustain competitiveness in an evolving economic and technological landscape. Leadership can be understood through various theories, including transformational leadership, Goleman’s six leadership styles, and French and Raven’s five forms of power.
Six Leadership Styles
On the one hand, transformational leadership refers to an approach whereby leaders work with followers beyond their immediate self-interests to recognize the needed change. Additionally, they establish a vision and direct it via inspiration. This is similar to how management operates at Walmart, as employees are inspired to perform to accomplish both organizational and personal goals (Boddy, 2014, p. 5). This leadership approach aligns with the authoritative style often adopted by visionary leaders and is included in Goleman’s classification.
Another leadership style within this typology is coercive leadership, which is characterized by a command-based approach and is appropriate when addressing issues such as employee misconduct. Affiliative is another style where the manager creates a conducive environment for employees, and good work is highly acknowledged. Goleman mentions democracy as a style of leadership whereby all members have a valued opinion that management wants to embrace. This is often the case in many firms, including Walmart, which is known to delay decision-making (Mullins and Christy, 2013, p. 560).
The fifth style is pacesetting, where managers or leaders set the example for employees to follow, for instance, reporting early to work to encourage punctuality (Pitelis and Wagner, 2019, p. 235). The sixth approach focuses on development and may pertain to employees, team members, or followers. This tool is utilized in various departments at Walmart to assist new employees (Naylor, 2004, p. 11).
Five Forms of Power
Lastly, according to French and Raven, there are five forms of power: legitimate, reward, expert, referent, and coercive (Shao, 2019, p. 98). The primary power source at Walmart is experts, who are accorded leadership roles based on their capabilities (Fulop, Linstead, and Lilley, 2009, p. 414). Legitimacy and coercion have failed many businesses, resulting in lawsuits filed against the firms for violating human rights (Galli, 2018, p. 125). Referent and reward have been applied more frequently in many organizations, as executives claim that it is easier for people to follow directions from those they connect with or respect.
In 2005, during an interview, Terry Lundgren, the CEO of Federated Department Stores, emphasized that listening skills and accepting that one does not possess the answer to every problem are essential (Kalyani, 2018, p. 7). A manager can listen, understand, and implement, increasing the success rate (Jindal et al., 2021, p. 270). This creates respect that prompts employees to be guided by particular individuals.
Performance of the Company in eCommerce
In the first quarter of the 2020/2021 fiscal year, the company achieved a financial performance that exceeded analyst projections, which had predicted a poor outcome due to the COVID-19 pandemic. Thus, Walmart was a significant winner during this period, causing many companies to struggle. Customers are believed to have stocked up exceptionally on home supplies and other products, as most had to remain at home for an extended period (Dzwigol et al., 2019, p. 5). Alongside organizations that have reacted to evolving consumer shopping habits, such as Amazon, the business maintained a strong market position (Birasnav and Bienstock, 2019, p. 142). This pertains to buyers who were shopping in brick-and-mortar stores even during the peak of the pandemic.
In a recent report, the company stated that similar store sales had increased by ten percent for the quarter, primarily due to higher sales of food and wellness products (Fincham and Rhodes, 2005, p. 5). The success can be attributed to one key factor: the company’s eCommerce sales, which rose by 74 percent due to strong results from Walmart.com, as well as grocery pickup and delivery services. The statistics from other earnings reports are ridiculous, but the organization’s current growth seeds existed even before the pandemic.
Driving Force Behind the Company’s Interest in eCommerce
A few years ago, Walmart invested significantly in its e-commerce capabilities to enhance its competitive position in the market, particularly against companies like Amazon. Many retail firms opted for a digital approach to trading as they discovered they could reach more people in a shorter time. Additionally, the rapid advancement of technology has made the transformation of most of them easier. This drove Walmart to act without delay and acquire Jet.com, a company that was primarily an e-commerce platform.
The acquisition enhanced the company’s virtual business, transforming it into a multidimensional retailer capable of competing in both online and in-person markets. Investing in Jet.com, the firm demonstrated that it can learn quickly and deploy a basket economics strategy (Fulop, Linstead, and Lilley, 2009, p. 412). This eCommerce technique presupposes efficient, transparent, and local packing and delivery products to consumers. By embracing the online delivery outlook, which enabled local shops to offer pickup, the business began to establish a winning strategy.
Even though eCommerce did not initially serve Walmart’s interests, during the COVID-19 pandemic, they reaped the benefits as fewer people were interested in in-person shopping. At a time of unprecedented challenge, business leaders often do not need to rely on extraordinary ideas (He, Ding, and Liu, 2021, p. 353). It is essential to consider the strategies or methods they have developed and used to counter market problems (He, Ding, and Liu, 2021, p. 355). While not all businesses, such as Walmart, have the capacity to establish approaches such as acquiring Jet.com, all leaders can still succeed.
Personal Reflection
Reflecting on my leadership style, I have realized I have been using coercion in every situation, which explains why I have been unsuccessful at leading others to accomplish a common goal. I have learned that it is essential to trust team members or followers after giving them direction and a goal, similar to an authoritative leader. This leadership style is key to creating a bond and good relations between leaders and those under them.
From Walmart’s leadership, I have learned that everyone in an organization needs to be on the same page to accomplish a required change. Understanding what a company is trying to achieve is essential, as it reduces the waste of resources, such as time and money, on activities that do not matter. Through exploring Goleman’s six leadership styles, French and Raven’s five types of power, and transformational leadership, I have come to realize the importance of inspiring others and being approachable. It empowers followers to perform more effectively in their respective roles.
Reference List
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