MGT Module 5 Case

Running Head : Home Depot under Robert Nardelli

Name

Course

University

Tutor

Date

Principles of management : Controlling

Home Depot under Robert Nardelli

Introduction

Home Depot is an American home improvement and construction retailer with its headquarters at Vinings , Atlanta , Georgia . It employs close to over 355 ,000 people operating over 2000 big-box format stores in and outside the U .S . It has stores in such countries as Puerto Rico , Virgin Islands , Canada , Mexico , China and the Island of Guam . The Home Depot is rated as largest home

improvement retailer in the whole of the U .S . and is also rated as the second largest in the U .S . in general retailing behind Wal-Mart . Its main rival in the home improvement retailing is Lowe (Grow B . et al 2006

Bernie Marcus , Ron Brill , Arthur Blank and Pat Farrah founded home Depot in Antlanta , Georgia in 1978 with the proposition to build a home improvement warehouse larger than the competition , that dream was partly fulfilled . Robert Nardelli was to take over from Marcus and Blank when the latter two retired in 2000 . Despite the fact that he lacked any previous retail experience , Robert became the new chairman , CEO and president up to 2007 when he resigned after a six-year tenure and replaced by Frank Blake . Nardelli stepped down after being ousted by the board of directors because of his style of leadership (Grow B . et al 2006

During his tenure so much changed especially in the management style that it soon started looking and feeling like an army (Grow B . et al 2006 . As a first step towards controlling , he started hiring soldiers changing the management model from the previous one that was more decentralized to an autocratic leadership style that put off many of the employees despite achieving some success . Nardelli 's strategy is to build a disciplined corps , one predisposed to following s operating in high-pressure environments and executing with high standards (Grow B . et al 2006 . Just like in the military , staff members are drilled how to treat customers ' which has seen its ranking plummeting compared to the competition (Grow B . et al 2006

The advantage of hiring from the military is that the organization is assured of precision , loyalty , discipline , and hard work regardless of the mounting pressure . Soldiers thrive well under authoritarian leadership style and do not frequently question authority from the superiors . This was exactly what Nardelli was looking for , the more reason why the Home Depot expanded so fast within a short time . However the system of hiring from the military despite its various advantages cannot be well utilized when striving to offer exemplary customer service . This is very evident in this case where the customer service is waning , this has been brought about by the fact that majority of staffs are not used to such leadership style thus are generally demoralized As a former employee put it , what is to blame for the dismal customer service is that instead of inspiring good customer service Nardelli...