MNG3702
Assignment 2 Semester 1 2023
Student number: 47627445
, Question 1
Explain Walmart's organizational culture using Edward Hall's Iceberg analogy from 1976. Briefly
explain the various layers of organizational culture and then apply them to Walmart. (6 marks, with
1 mark awarded for the correct explanation of each layer and 1 mark for applying it to Walmart for
each layer)
Edward Hall's iceberg analogy of organizational culture (1976) suggests that some cultural aspects
are visible (above water), while a more significant portion is hidden beneath the surface (below
water). The layers are briefly explained and applied to Walmart as follows:
1. Visible Artifacts: These are the tangible aspects found throughout the organization. In
Walmart, the company aims to provide superior customer service, create an excellent front-
line work environment, and improve performance to fulfill its mission of saving people
money for better lives.
2. Espoused Values and Norms: This layer encompasses the shared values and norms among
individuals and groups within the organization, including beliefs and behaviors. Walmart's
values include customer service, respect for individuals, striving for excellence, and acting
with integrity. They promote a culture of integrity upheld by global ethics and adhere to
their ethical behavior policies worldwide.
3. Taken-for-Granted Assumptions: Organizational artifacts, values, and norms lead to
assumptions that shape employee behavior within the organization. When a solution to a
problem works repeatedly, it becomes taken for granted. For Walmart, the company is
guided by principles such as creating a winning work environment, staying true to their
identity, and enhancing the customer experience.
Question 2
2.1 Define the concept of absorptive capacity. (2 marks)
Absorptive capacity is an organization's ability to identify, assimilate, transform, and apply external
knowledge, research, and practice. In essence, it measures how quickly an organization can learn
and utilize scientific, technological, or other knowledge existing outside the organization.
2.2 Assess Walmart's absorptive capacity based on the four dimensions that determine an
organization's absorptive capacity. (8 marks: 1 mark for each of the four dimensions of absorptive
capacity and 1 mark for applying each dimension to Walmart)
Zahra & George (2002) identified four dimensions of absorptive capacity: acquisition, assimilation,
transformation, and exploitation.
Acquisition of external information
Acquisition refers to an organization's ability to recognize, comprehend the significance of, and
obtain external knowledge necessary for its operations. It can be viewed as a knowledge generator
for the organization. Acquisition can occur through R&D investment or prior knowledge. In the case
Assignment 2 Semester 1 2023
Student number: 47627445
, Question 1
Explain Walmart's organizational culture using Edward Hall's Iceberg analogy from 1976. Briefly
explain the various layers of organizational culture and then apply them to Walmart. (6 marks, with
1 mark awarded for the correct explanation of each layer and 1 mark for applying it to Walmart for
each layer)
Edward Hall's iceberg analogy of organizational culture (1976) suggests that some cultural aspects
are visible (above water), while a more significant portion is hidden beneath the surface (below
water). The layers are briefly explained and applied to Walmart as follows:
1. Visible Artifacts: These are the tangible aspects found throughout the organization. In
Walmart, the company aims to provide superior customer service, create an excellent front-
line work environment, and improve performance to fulfill its mission of saving people
money for better lives.
2. Espoused Values and Norms: This layer encompasses the shared values and norms among
individuals and groups within the organization, including beliefs and behaviors. Walmart's
values include customer service, respect for individuals, striving for excellence, and acting
with integrity. They promote a culture of integrity upheld by global ethics and adhere to
their ethical behavior policies worldwide.
3. Taken-for-Granted Assumptions: Organizational artifacts, values, and norms lead to
assumptions that shape employee behavior within the organization. When a solution to a
problem works repeatedly, it becomes taken for granted. For Walmart, the company is
guided by principles such as creating a winning work environment, staying true to their
identity, and enhancing the customer experience.
Question 2
2.1 Define the concept of absorptive capacity. (2 marks)
Absorptive capacity is an organization's ability to identify, assimilate, transform, and apply external
knowledge, research, and practice. In essence, it measures how quickly an organization can learn
and utilize scientific, technological, or other knowledge existing outside the organization.
2.2 Assess Walmart's absorptive capacity based on the four dimensions that determine an
organization's absorptive capacity. (8 marks: 1 mark for each of the four dimensions of absorptive
capacity and 1 mark for applying each dimension to Walmart)
Zahra & George (2002) identified four dimensions of absorptive capacity: acquisition, assimilation,
transformation, and exploitation.
Acquisition of external information
Acquisition refers to an organization's ability to recognize, comprehend the significance of, and
obtain external knowledge necessary for its operations. It can be viewed as a knowledge generator
for the organization. Acquisition can occur through R&D investment or prior knowledge. In the case
