Walmart, a leading retailer in the United States, always sells products at a low price and thus depends on a high volume of sales to gain profits. The organization's objective is to save people money in order to improve their lives. The way of thinking for Walmart’s top management has long been followed a management approach. While the regulations and rules are made by the top management, the decisions have to be made through all management levels in the organization. The leaders in this company are in a position to make tough decisions, although guided by the efforts of the respective workforce. This empowers employees to make decisions, without fear of the consequences, as the decision they make corresponds to what the leaders want. As such, the lines of communication are open, giving the organization an opportunity to develop, and involving all the employees in the decision-making process.

Which theory is applied in this case? Explain briefly with evidence from the case.