Walmart and H-E-B Grocery Company (HEB) are the two biggest retail companies in the United States. They differ in leadership practices, which include community engagement, innovation and adaptability, customer focus, leadership style, and employee relations, which will be discussed in this paper. Brief background information on each leader and how each leader affects the performance of his or her company shall also be addressed.
Leadership styles are different in HEB and Walmart’s leadership practices. HEB is characterized by a decentralized approach to leadership, where store managers are free to make decisions in their specific field. On the other hand, Walmart is said to have followed a centralized approach for a period of time in their leadership, where decision-making is done at the corporate level downwards to store managers. Recently, there has been a push at the store level for more freedom in decision-making to improve the response in local markets.
Employee relations are the second leadership practice, which is not similar to those of HEB and Walmart. HEB majors in satisfying the employee, offering negotiable salaries, more benefits, and opportunities for advancement. HEB refers to the employees as ‘partners,’ which helps improve their commitment and loyalty(Green & McCann, 2011). On the other hand, Walmart needs to be appraised due to its unpleasant conditions, such as low wages and minimal benefits. Due to this, Walmart has faced criticism; as a consequence, the company is trying to improve employee satisfaction by providing educational opportunities for its employees and improving their wages.
Customer focus differs between HEB and Walmart. Walmart emphasizes satisfying customers more, especially by lowering prices and providing convenience. The size of the company and its scale make it possible to influence the economies of scale to maintain the low cost and, hence, more customers. However, HEB prioritizes customer service to meet the local community’s needs. This client-centric approach is shown in their extensive product selection and commitment to an admirable shopping service.
Innovation and adaptability in HEB are different from those of Walmart. HEB is popular due to its innovation in offering products and store layouts. Also, it adapts to changes to match the consumer’s taste in terms of market trends, and it investigates the impact of the new goods on the consumers before introducing them to the market. They ensure it is in favorable condition for their consumer’s consumption. Walmart has also shown some commitment to innovation, especially in areas like e-commerce. The company also has put more effort into improving customer service efficiency through technology, for example, in grocery pick-up and delivery services.
Lastly, HEB and Walmart have different levels of community engagement. According to (Koca-Helvaci,2015). In the past few years, Walmart has faced criticism for its effect on the local community and upcoming businesses or small businesses. However, some efforts have been made in recent years to improve social responsibilities by engaging in local charity programs. HEB, on the other hand, has greatly impacted the community as they are involved in charity in the communities, like supporting schools and disaster relief, among others. As a consequence, they get more support from the community.
Charles Butt is the chairman of H-E-B Grocery Company. He has been one of the most active employees since 1971 he joined the business. HEB has grown at a high rate under the leadership of Charles Butt, as he has innovated different aspects of retail and has ensured continuous commitment to the welfare of the employees and giving back to the community. He empowered employees by providing autonomy in decision-making, collaboration, and working as a team, hence creating a good working environment.
Doung McMillon is the president of Walmart, which is the largest retail corporation in the world. He was involved in this career as a summer associate and rose gradually through the ranks, later becoming the CEO in 2014. He has contributed to the growth of this organization, for example, through expanding its commerce presence and improving and empowering the employees by increasing their salaries and benefits. He has stressed the advantages of innovation and adaptability to promote the growth of their industry.
In conclusion, HEB and Walmart have different leadership practices that greatly impact the performance of the two companies. HEB stresses decentralized decision-making, giving back to the community, and employee satisfaction, while Walmart emphasizes efficiency, innovation, and cost savings. An organization’s leaders greatly impact the organization’s performance and, hence, should stress leadership practices that bring growth to the company.
Green, D. D., & McCann, J. (2011). Benchmarking a leadership model for the green economy. Benchmarking: An International Journal, 18(3), 445-465.
Koca-Helvaci, Z. C. (2015). Walmart and its employee relations: organizational stance-taking and legitimacy. On the Horizon, 23(4), 374-386.