Question

Why are formal groups so effective for CEO Sam Walton?

Answer 1

Formal groups tend to provide a constructive, structured and organised results to Sam Walton and are believed to be more productive, diligent and focused than the informal groups. Formal groups help Sam Walton to evoke concentration, productivity, accountability and responsibility in his employees which are must for accomplishing goals and meeting the deadlines. Sam Walton's formal groups are so effective because he gives value to professionalism and attempts to separate the person interests of employees and groups from the organisational interests and considers socialising during working hours as distraction. The structure of Wal-Mart built by Sam Walton promotes separate, semi autonomous units and divisions where only formal groups can operate effectively. The main aim of fostering formal groups in the culture of Walmart is that Sam believes formal groups maintain certain demarcations in the culture of organisation which prevents conflicts, differences in opinions and helps to encourage a interdependent culture where activities are properly synchronised with each other so as to ensure smooth flow of processes. Formal groups act as means for ensuring Systematic Working where each employee prioritise organisational objectives over personal ones and puts maximum emphasis on work thus eliminating all sorts of deviations.

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