Submitted To: Rumanahuqluva Course: Mgt321 Section: 2
Submitted To: Rumanahuqluva Course: Mgt321 Section: 2
Submitted by
Dear Miss,
With all due respect, we the students of your Management 321, Section 2 course want to inform you
that we as a group have done the necessary things required for the assignments given to us.
Upon doing our report we have been assisted by various generous and humble people. So firstly, we
would like to thanks Mrs. Rumana Huq Luva, Lecturer (Department of Management) our
lecturer for the course for her task to make us do field work which helps to learn more than reading
from books. Secondly our appreciation goes to Milton Ahmed, Senior Assistant Director, Dept. of
Creative & Publications for giving us the necessary details that were required for our report to be
fully completed.
Lastly, it is on our stance that none of the information provided are farce. All information collected
regarding Walton and their OB strategies are based on factual and real time information.
Sincerely,
Ifaz Galib Mahmud Md. Saeon Rabby Samina Rahman
ID: 1220759630 ID: 1330477030 ID: 1411539030
It is always a pleasure to remind our Lecturer, Ms. Rumana Hug Luva, Lecturer, Department of
Management, School of Business, North South Universityto have given us the opportunity to do a
proper practical implication of what we learn from books. Her guidance throughout the course helped
us a great amount in writing our report.
Firstly, we would like to thank our parents for their constant support and motivation which truly is
priceless.
Second of all, we owe our heartiest gratitude to Mr. Milton Ahmed (Senior Assistant Director,
Dept. of Creative & Publications), He has been like a friend to us and it is he who helped us to reach
out to more resources and personnel which really made our report very unique and full of information
related to our topic.
Next, we want to express our deepest thanks to Mr. Firoj Khan (Sr. Deputy Manager.)for providing
us with a huge chunk of information regarding out report on Walton. His contributions to our report
are magnanimous and we appreciate each and every effort he made, both formally and informally that
made our report valid and reliable.
Lastly we apologize to a lot more unnamed people who helped us to contribute to our project.
TABLE OF CONTENTS
Walton is the latest multinational electrical, electronics, automobiles and other appliances brand with
one of the largest well equipped R & D facilities in the world carried out its production through
different subsidiaries under the banner of Walton group headquarters in Bangladesh. Walton had
entered into electronics business in 1994 with manufacturing of electrical and electronic items and
gradually expanded its operation in many other electronics field that provide the foundation for nearly
every aspect of modern life.
The key secret behind the success of Walton lays its variation of production capacity and customized
orientation of new product as per the demand of customer. World class machineries like
Thermoforming, Channel Extrusion, ABS/HIPS Sheet Extrusion, Magnetic Strip Extrusion, PP
Hollow Sheet Extrusion, VMC, 5 axis VMC, Ultrasonic Welding, Injection Molding, Styrofoam
Making, Hi Speed Power Press, Fin Press,
Corrugation, SMT pick and place, SPG printing machine, AOI machine, Tamura wave solder
machine, Auto insertion machine are being used for the production of high quality products of
Walton.
On the basis of the above information we practically went to Walton and met their Directors and
Managers to discuss Organizational Behaviour factors such as Motivational processes, Power &
Politics, SWOT analysis, managerial style and a lot more which we have elaborated in our report.
With all the concentration on R&D and trying to remove public perception that Walton is a Chinese
brand, the analysis of Organizational Behaviour helped us to clearly understand Walton’s
organizational structure and their planning of the future to be the best selling electronics not only in
Bangladesh but also globally.
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INTRODUCTION
Walton has attained prominence as a leader in the field of electrical, electronics, automobiles and
other appliances brand with highest quality standards and recognized safety performance. Walton
bases itself in the heart of Bangladesh upon the production of hi-tech and high value added electronics
products focusing environment friendly operation and waste management system. Walton has a long
tradition of serving our valued customers to their complete satisfaction through efficient management,
excellent workmanship and after sales service, which we continue to maintain with our untiring
efforts.
Their HR policies and practices are among the best in the industry, valuing the essentials in attracting,
inducting/engaging and retaining the high quality professional and they also believe in employee
satisfaction, upgradation of their skill levels and for this purpose, the group invests a lot in training &
development, incentive schemes, bonus, etc.
In an era of advanced technologies and new techniques, Walton continuously strives for innovation
and enhanced efficiency. They are offering a wide range of advanced technology spanning products
from Refrigerators, Freezers, Air Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones to
Other Appliances.
Walton is the preferred choice of millions of customer across the world because of its reliability and
commitment to quality and price. Walton is operating many countries in the world and in the process
of setting up new operation in markets such as USA, Europe, Latin America and Africa where we see
emerging opportunities.
Walton believes that they will emerge on a stronger footing, through a series of management
initiatives targeted at strengthening our core operations including investment in compressor factory,
home appliances and mobile phones.
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COMPANY PROFILE
In 1977 Walton Group of Industries was founded by S.M Nurul Alam Rizvi as a trading company.
Thirty years after running the trading business Walton group shifted operations into steel, textiles,
electronics and automobiles. Walton entered into the steel industry in late 1970s and the electronics
and automobiles in early 2000s; these areas would drive its subsequent growth. As of early 2000s,
Walton has expanded towards electronics and automobiles which gradually became its most important
source of revenue.
Along the way, Walton has earned domestic and global recognition for its experience and proven
track record in a variety of electronics fields. Walton is the pioneer of developing state of the art
designs and modern technology having leading market share specializing in Multi-Stored
Refrigerators, Freezers, Air Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones and
Home Appliances. WALTON has established a milestone as the highest exporting Bangladeshi
enterprise in the field of electronics, with a universal presence in over 20 countries and by 2020 the
presence of Walton will be ensured almost every country in the world.
o Operations
Walton distributes 4,500 types and models of electric, electronic, and automotive goods that it
imports, assembles, or manufactures. As of 2017 handsets it assembles in China had captured 5% of
the mobile phone market in Bangladesh. In 2015, it manufactured 80% of the refrigerators, 30% of the
televisions, and 6% of the motorcycles sold in Bangladesh. It also has the capacity to manufacture
300,000 air conditioners a year. Walton’s Innovation is dedicated to building a more advanced society
through the fusion of sophisticated technologies having the capacity of 3.00 million refrigerator, 0.30
million Air conditioner, 0.15 million Motorcycle and 1.5 million Television per annum respectively.
The entire Walton Group having more than 21,000 direct & indirect employees are working together
to overcome the challenges to go top most market and meet customer demands throughout the world
by implementing its unique Social Innovation globally. The retail organs of Walton run through more
than 4000 plazas, exclusive distributors and dealers. Walton has more than 57 modern and well
equipped after sales service points along with ISO certified central service point. It enables to address
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the issues customer face from a common point of view to develop solutions that combine the required
products.
Walton is one of the highest taxpayers in Bangladesh and has a strong impact on the country's
economy. Walton has received the Best Taxpayer Award at the just-concluded Dhaka
International Trade Fair (DITF) 2015 for the seventh time.It was awarded for its export revenues.
Walton received awards at the 2013 Dhaka International Trade Fair (DITF), including one for
paying the most taxes.
Walton has been maintaining 100% compliances since its inception and certified ISO 14001:2004
Refrigerators & Air Conditioner Division, ISO 9001:2008 Refrigerators & Air Conditioner
Division and OHSAS 18001:2007
o Awards
Walton has achieved many international & national awards and recognitions like some recent
prestigious and best business awards are: The Golden Globe Tiger Award 2015 in the category of
Excellence & Leadership Brand, DHL-Daily Start Bangladesh 15th Business Award 2014 for Best
Enterprise in Bangladesh, Asia Best Employer Brand Awards in 2015, Six times 1st Prize for
Highest VAT Payer at DITF-2015, 2014, 2013, 2012, 2011 & 2010 respectively, Second Prize for
Premier Pavilion Category at DITF-2015, Best Refrigerator Brand Award-2014, Best Television
Brand Award-2014, Best Local Brand Award-2014, 1st Prize for Premier Pavilion Category at DITF-
2014, The Global Brand excellence Award in 2014 for brand excellence in consumer electronics, 1st
Prize for Premier Pavilion Category at DITF-2013, Best Sponsor Award-2012, Creative Media Ltd.
BABISAS Award-2012, Best Brand (Refrigerator) Award-2011, 2nd Prize for Premier Pavilion
Category at DITF-2011, 2nd Prize for Premier Pavilion Category at DITF-2010, 1st Prize for Premier
Pavilion Category at DITF-2009, 1st Prize for Premier Pavilion Category at CITF-2005.
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o Company Mission
1. Guarantee customer satisfaction and retention in the electronics and automobiles
department.
2. Creating an environment that brings spirit, friendship, enthusiasm and innovation
among employees and the managers.
o Company Vision
1. Making global operations stronger
2. Establish a name around various countries
Why do people behave a certain way in an organizational environment? What factors affect job
performance, employee interaction, job commitment, leadership and managerial styles? Individuals
have studies this very topic over decades in order to find ways in increasing organizational
performance. Hence, Organizational Behavior is the study of both group and individual performance
and activity within and organization.
This area of study examines human behavior in a work environment and determines its impact on job
structure, performance, communication, motivation, leadership etc. Internal and external perspectives
are two theories of how organizational behavior can be viewed by companies.
As you can see from the definition above, OB encompasses a wide range of topics, such as human
behavior, change, leadership, teams, etc. Its purpose is to build better relationship by achieving human
objectives, organizational objectives and social objectives.
LEADERSHIP MODELS
Under Kurt Lewin’s theory Walton follows a Democratic style of leadership where the employees
are highly involved and participates strongly, upon which there are feedbacks available to the top
level managers.
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Walton’s top management level also adopted the Consideration dimension of leadership where
ideas and feelings are shared mutually with trust and respect. This is one of the major reasons why
Walton is excelling.
Lastly the leaders of Walton are both Directive and Supportive leaders. This means that the leaders
assign tasks clearly to bring about more structure among the employees. This sort of leadership also
helps the inexperienced workers to understand tasks.
The leaders are also Supportive Leaders as they look to cutoff their employee’s stress by arranging
cricket matches and arranging annual picnics.
MOTIVATIONAL FACTORS
Walton believes in employee satisfaction, upgradation of their skill levels and for this purpose, the
group invests a lot in training & development, incentive schemes, bonus, etc.
Gainsharing – Walton puts a lot of emphasis on training and developing their employees
which motivates them to become successful workers. This sort of motivation is not monetary
or profit based but an incentive for workers to become specialized, which can also be useful
in their future careers.
Skill Based Pay – Walton group ensures that the employees who are skilled and have various
other talents are rewarded accordingly, thus motivating them in the process.
Bonuses – The employees receive bonuses and often promotions on the basis of their recent
performances in the organization. Since Walton Group focuses on the idea of innovation they
do not consider an employee’s past performance, rather the employees are given chances to
prove themselves worthy of bonuses.
Job Sharing - One of the best motivational factors for the employees of Walton Group is that
they get the advantage of job sharing. With over 21,000 + employees the arrangement of Job
Sharing is a very common practice especially for the managers who otherwise would have to
work very long hours.
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Telecommunicating: The employees of Walton are given the opportunity to work from home
in case they cannot come to office. They are given google drive databases that are available to
everyone in the organization.
COMMUNICATION
Chairman
Director Director
As we analyzed Walton Group through OB, communication has been a big factor in such a large
organization. Here, we are talking about communication inside the organization by all the members of
the company.
Walton Group follows informal channels that spontaneously get transferred to the receiver. By the
usage of technology, Walton Group has their own personal SMS delivery system through which all
the employees, managers and the leaders can connect to one another.
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The direction of Walton Group’s communication is Lateral/Horizontal Communication whereby
the members of the same group of managers by pass messages and focuses on relying on each other to
make a decision as quickly as possible.
For Walton Group, this direction of communication is very important since Walton Group is involved
with various products that serve one major company vision.
Interpersonal Communication occurs in Walton Group as well. From our study we found out that
the top management personnel use Video Conferencing while managers use a lot social media for
communication. This method saves time and gives clear messages to the receivers. Along with it the
messages are written in a way that is understandable by all in the organization.
One other aspect of Organizational Communication in Walton is that in small groups Chain Network
is mostly used. As said earlier that the organization follows informal channels such as SMS system
for all. This ensures a moderate time to reach with very high accuracy where both Emergence of a
leader and Member satisfaction is moderate.
ORGANIZATIONAL CULTURE
Upon our survey on Walton Group we have noticed a very aggressive form of Organizational Culture.
Walton Group mainly focuses on Innovation and risk taking culture where employees and
managers are engaged with innovation and risk taking. In an era of advanced technologies and new
techniques, they continuously strive for innovation and enhanced efficiency.
Walton Group are offering a wide range of advanced technology spanning products from
Refrigerators, Freezers, Air Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones to Other
Appliances.
Walton Group believes that they will emerge on a stronger footing, through a series of management
initiatives targeted at strengthening our core operations including investment in compressor factory,
home appliances and mobile phones.
In such a case Cultural Liabilities are rarely seen as the employees and managers constantly strive to
adhere to Walton’s culture and for individuals they know they will be rewarded for it.
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Another culture that has been established by the employees is the process of forming a Problem-
Solving Team where the employees meet for a short time to discuss ways to improve quality,
efficiency and the aggressive work environment that the organization follows. Since Walton is facing
more turnover rates lately, the managers encourage the employees to sit down together and find
solutions so that they feel a sense of belongingness in the organization.
Walton believes that such cultural aspects will improve some factors in the organization in the
company that requires development and improvement.
Walton Group emphasizes heavily on employee involvement or participation during decision making.
Thus they follow the Participative Management Process by which employees are allowed to take
part in decision making with their superiors. According to the Assistant Director of Walton Group,
took on this process because in proper conditions it gives higher stock returns, lower turnover rates
and higher labor productivity.
This is a form of Employee Involvement that intends to increase the employee’s dedication and
commitment towards organizational goals and achieve success.
In addition to the orthodox way of employee participation process, Walton arranges at least 3 Cricket
matches a year where all the members of the organization are allowed to play. In such a process, the
senior members allow junior employees (who are interested and capable of playing well) to be the
captains of the teams, so that they gel with the seniors and feel good about themselves.
According to one senior representative of Walton, this act has causes employees to feel free to
participate in official matters and give their opinions without hesitation.
It also helps them to understand one another well and participate in decision making processes
knowing the ins and outs of the organization well. The employees feel as if they are participating in a
bigger thing than they are designated to.
Further analysis shows that the some employees with a high tenure can actually act like a friend with
the directors and this is good, because it helps to shorten the power gap between mangers/seniors and
employees.
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EMPOWERMENT PROCESS
Empowerment process in Walton Group completely relies on trust. If employees are committed to
his/her task and help their seniors with logical and proper decision making they are often trusted and
given more responsibilities. For this, authentic leadership is required and Walton has successfully
managed to empower some of their subordinates who are still in tenure with the trust that they have
earned.
Furthermore, with more than 70 service points across Bangladesh, the manager we spoke to said that
he analyzes the service providers and gain feedback. If their services meet the organizational needs
for multiple services they have provided then they earn the trust of the manager. Those individuals are
given more crucial tasks which require proper supervision and thus empowering them in the process.
CONFLICT MANAGEMENT
Conflicts and disagreements arise in almost all institutes and Walton Group is no exception when it
comes to conflicts. Conflicts arise when one party assumes that the other party’s decisions or actions
will negatively affect the organization as well as the members of the organization.
Walton has taken a few steps to manage conflict. They are elaborated below:
Authoritative Command: This method involves top level management to interfere in the
conflict that arises. Hence, the seniors of Walton get together with the conflicting parties and
find a way to make a win-win situation for both parties.
Problem Solving: In this process, a face to face meeting is set up where both parties identify
the problems and tends to resolve it by discussing the problems openly. Walton Group
arranges such processes to ensure conflict minimization. Also, Walton operates outside of
Bangladesh where conflict arises a lot among employees who come from different cultures.
Hence, this method is said to be effective in order to restore conflict.
Expansion of resources: With over 21,000 members Walton sometimes face problems with
employees in conflict for salary increment and promotion. The top management then decides
to settle the conflict by giving incentives.
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Overall, Walton faced a lot of conflict issues inside the organization but according to a senior member
these conflicts are minimizing as they are focusing on satisfying the employees so that they are
satisfied with the work that they are assigned to do.
Moreover, the representative told us that since Walton makes varieties of electronics and automobiles
that these two sectors remain free of conflict as there are the two most important things that Walton
earns through.
Power practices are instrumental in Walton Group. Below are the types of power practiced by them as
per our observation and information given by their Senior Assistant director. Their bases of power
comprises of both Formal and Personal Power
Formal Power:
Legitimate Power: S.M Nurul Alam Rizvi, the Chairman of the company is in the
Page| 11
topmost position in the formal organization hierarchy. As the founder of the company
back in 1977 he has been in legitimate power.
Personal Power:
These two power practices lead to series of power tactics such as Rational Persuasion, Consultation
and Personal Appeals.
Politics:
Upon consulting with the representatives of Walton Group they were very frank about the politics that
goes on inside the organization. We were informed that in the past there were issues regarding
Illegitimate Political Behaviour by the members mainly through whistle-blowing. Whistle-blowing
is a tactic to give away confidential information to others who were not supposed to know. This took
place between the Directors mostly.
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However, after early 2000s Walton Group faces more Legitimate Political behavior by the employees
and managers. Complaining has been ever going but very soon gets resolved due to proper
management.
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Source: Md. Abdur Rouf, Assistant General Manager, Corporate Sale & Marketing, Walton
Huge Distribution Channel: Walton has over 7000 plazas across Bangladesh. This means
Walton is accessible anywhere. Starting from the rural areas and mainly in the city one can
find a Walton showroom almost in any area, according to the manager.
Low Tax and Vat: Walton is the biggest manufacturer industry in Bangladesh and for this
reason they have to pay lower tax and vat to the government.
Service points: According to the manager there are currently 70 operating service points
around Bangladesh. More so, if you do not have a service point in a rural area and a
complaint is made technicians personally go and provide service.
Weaknesses:
Unable to retain “the tech guys”: Since Walton is an electronics and automobile company
they recruit engineers naturally. However, these engineers, after gaining some experience
leave the organization to pursue their PH.Ds.
Assimilation of Chinese phones in Bangladesh have increased from 3.8% to only 5 %
from 2015 to 2017: The price of Walton phones were initially planned to be kept low.
However, they had to assemble in China which put a heave on the costing.
Opportunities:
Technological Boom: As Bangladesh is moving towards being a digitally rich nation Walton
can use this opportunity to take more help get lobbying support from the government as they
are top manufacturers in Bangladesh.
New Product Development: Walton is looking forward to the new age of Digital
Bangladesh and start making cars just like Malaysia makes locally made cars. As they have
the technology to make motor bikes and smart phones they can go even further as we see the
growth of digitization in Bangladesh.
Threats:
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Government Barriers: Although Walton enjoys reduced tax and vat payment to the
government, there are some government barriers that don’t allow Walton to retain resources
like man power, land and resources.
Government Benefits on Imported Products: The Bangladeshi Government gives
incentives to imported products and this allows the low priced Chinese products to enter the
market. Hence, the price sensitive market will drawback Walton somewhat.
CHANGE MANAGEMENT
One of the most important forces for change in management for Walton Group is technology. As we
know that technology is ever changing and progressing, Walton has to go with the flow of
technological changes as they go about operating electronics and automobiles.
This change management has to be a Planned Chang whereby activities are proactive and purposeful
with an intentional, goal-oriented activity. Improving the ability of the organization to adapt to
changes in its environment can lead to positive outcomes.
If this technological change in the management is not made proactively, Walton may lose their
imagery globally initially and then locally.
However to avoid making drastic changes, Walton can adopt Organizational Resistance mainly in the
form of:
1. Group Inertia
2. Threat to expertise
3. Structural Inertia
CONCLUSION
Along the way, Walton has earned domestic and global recognition for its experience and proven
track record in a variety of electronics fields. Walton is the pioneer of developing state of the art
designs and modern technology having leading market share specializing in Multi-Stored
Refrigerators, Freezers, Air Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones and
Home Appliances. Walton has established a milestone as the highest exporting Bangladeshi enterprise
in the field of electronics, with a universal presence in over 20 countries and by 2020 the presence of
Walton will be ensured almost every country in the world.
14
Walton's Innovation is dedicated to building a more advanced society through the fusion of
sophisticated technologies having the capacity of 3.00 million refrigerator, 0.30 million Air
conditioner, 0.15 million Motorcycle and 1.5 million Television per annum respectively.
The entire Walton Group having more than 21,000 direct & indirect employees are working together
to overcome the challenges to go top most market and meet customer demands throughout the world
by implementing its unique Social Innovation globally.
The retail organs of Walton run through more than 4000 plazas, exclusive distributors and dealers.
Walton has more than 57 modern and well equipped after sales service points along with ISO certified
central service point. It enables to address the issues customer face from a common point of view to
develop solutions that combine the required products.
RECOMMENDATIONS
In light of our observation at Walton Group regarding their OB there are a few recommendations that
we can humbly give. Although they allocate their investments carefully we would like them to invest
less on training employees and choose their staff in the higher ranks that have a good amount of
experience in the R&D field. They can then increase their budget on promotions outside of
Bangladesh.
Some of Walton’s showroom lack the attraction needed for a customer to enter and buy something.
More so, some of the employees in the stores are very uncooperative.
Hence, these are somethings Walton can work on, although they have over 4000 showrooms and
plazas they need to make sure all of them maintain a proper standard.
Walton Group can put more emphasis on Individual decision Making Abilities such as:
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REFERENCES
c) Mr. Milton Ahmed, Senior Assistant Director, Dept. of Creative and Publications
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APPENDIX A
An interview was held on April 7th with Mr. Milton Ahmed that lasted for 20 minutes. The questions
asked are as follows:
Questions:
1. What types of Motivational factors are applied by Walton for their employees?
2. What is the Leadership Model is followed by Walton Group?
3. What types of communication processes are used by Walton Group, outside and also inside
the organization?
4. SWOT analysis
5. What sorts of Power Politics are used inside Walton Group?
APPENDIX B
Walton Group’s website and their company’s yearly magazines where used to collect information for
the report. A casual meeting was also held with the Senior Assistant Director who gave us information
in a very friendly manner.
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OUR VISIT TO WALTON
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CONTRIBUTION PAPER
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