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Essay / Evaluating Bob Nardelli's Leadership Frameworks Applied at Home Depot
Home Depot employees and shareholders may not have been fans of Bob Nardelli's leadership style, but his single-frame behavioral approach to leadership was one of the main factors in the company's transformation. into a “profit heavyweight”. Nardelli took a structural approach when he moved from GE to Home Depot. He was a task-oriented CEO who focused on setting goals that he accomplished by any means necessary, rather than maintaining employee morale. It was evident from the start of Nardelli's tenure that he was obsessed with the company's numbers. Even Home Depot co-founder Kenneth Langone said he "is a stickler for goals, objectivity, and achieving within the bounds of the company's values." “Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay From a leadership perspective, this style can be effective when used in the right situation. Nardelli made it clear to employees that everyone had specific goals and that they were expected to achieve their goals. This is an example of how he began to structure the work of individuals. If employees failed to meet his demands, he would replace them with more specialized managers to create a more efficient work environment. Nardelli ensured that these replacements were specialized since 56% of all replacements were hired from outside companies. He also set another goal: to reduce expenses and created a cost reduction program to achieve this. Despite replacing many full-time workers with part-time workers, Nardelli managed to significantly reduce costs and increase the company's gross margin by 3.8%. During his tenure, he also took on the role of institutional architect by moving home. Filing in a new direction. Nardelli wanted to diversify Home Depot's operations by creating Home Depot Supply, which provided a service to homeowners and helped increase the company's revenue. This was a major initiative for Home Depot, but it proved successful as now approximately 15% of all revenue came from this service. This is a similar framework to that used by Muhtar Kent at Coke when he was trying to further develop the brand in Africa. He mainly focused on how to grow and set goals regarding how much Coca-Cola he wanted to see the continent consume per year, how much money he wanted to invest in developing countries d 'til 2020 and trying to keep the Coke 'cold and close'. to consumers to increase their sales. In conclusion, it is clear that using a single leadership framework can be effective if one looks specifically at the numbers. Using only the structural leadership framework, Nardelli transformed Home Depot into the retail giant we know today. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay In Nardelli's case, the structural leadership framework helped make Home Depot the giant retailer it is today, but it came at the cost of employee morale. Nardelli should try to adopt an HR framework alongside this to ensure that it focuses on the needs of its employees, which would most likely lead to higher productivity in the company and could increase its workforce without reduction..