An Effective Manager of Home Depot Essay

According to Robbins and Coulter (2005), trenchant managing directors every last(predicate) over the human beings acknowl process the role that strategical management plays in their presidential terms performance. Moreover, Drucker (2004) said that the gauge of an potent manager or executive is the ability to get the right things done. This typically entails doing what opposite individuals take a leak ignored in addition to avoiding what is unproductive. Imagination, intelligence, and knowledge competency all be wasted in an executive job without the attained habits of learning ability that form them into results.I believe that Bob Nardelli is exhibiting these characteristics and management style of an effective manager as he leads dwelling house terminal figure to become continually successful in its operations. As he triumphed over various problems in managing the company and a s a result oh his managerial dodging, berth memory board is now has now increased sales b y 60 percent and earnings per share by 105 percent (Business hebdomad Online, 2006).During his firstborn day as CEO at property repositing in the year 2000, the company has various problems to deal with, some of which, were as happens it lacked the necessary infrastructure to send even a companywide electronic mail, foot fund stores were already run-down and was being known as a store with poor customer service, the stores shipments were logged using pencil and clipboard, and Home Depot stores did not have automated inventory systems (Sellers, 2001). Being a grotesque leader that he is, Nardelli believed that better processes must lead to better reference ad higher profits for Home Depot.He employed strategic management in planning to improve the company. As asserted by Robbins and Coulter (2005), the prevailing belief in management theory and monastic order on the whole is that managers are completely responsible or responsible for an organizations success or failure. How ever, Nardelli demonstrated that aside from the particular that much of an organizations success or failure is because of foreign forces outside of the managers control, the manager has a big righteousness in making decisions for the success of the organization.A major component of Nardellis far-reaching move to reform Home Depot, which is considered to be the worlds third-largest retailer, into a more centralized company, include importing people, ideas, and platitudes from the military (Business Week Online, 2006). This might be an unwelcome concept in management circles however, Nardelli couldnt disturbance less. He believes that it is a vital aspect of his strategy to lead in a cumbersome 2,048-store chain and get ready for its next pin of growth (Business Week Online, 2006).In an uncertain and dynamic environment, real world organizations employ strategic decision-making when making decisions offers managers with a comprehensive and systematic instrument for taking into c onsideration the external environment, concentrating on an organizations strength, decrease weaknesses, and recognizing opportunities in which an organization can have a competitive edge (Shafritz & Hyde, 2004).As maintained by Holstein (2004), the Nardelli decision-making simulation might help defecate a pattern for other CEOs who have been extremely frustrated and disappoint by their lack of success in harnessing technology. In transforming Home Depot to what it is now, Nardelli increased information technology spending by almost 20 percent (Sellers, 2001). accordingly in year 2003 Nardelli spent a good of $400 million on inventory shipping and tracking systems (Sellers, 2001). asunder from these, Nardelli in like manner spent around $250 million refurbishing Home Depot stores (Pellet, 2001).This include the installation of self-checkout systems in 800 stores to lessen customer lines and ease up salespeople. This similarly included the establishment of deuce- trend cordle ss scanners, which enabled products to be price-scanned in the obtain cart, in this manner shortening lines. Being an effective manager, he also paid attention to motivating the organizations workers. Armstrong (2002) said that in providing rewards to employees, supervisors and managers should identify what rewards will succeed for specific employees at any given(p) time.Even though supervisors and managers might not be able to have power over certain rewards like benefits or wages, they have the self-direction to give out rewards like recognition and praise. In Home Depot, Nardelli instituted innovations in providing rewards and in human resource management. First, he substituted 157 different employee evaluation forms with two (Pellet, 2001). In addition, coworkers, above and beneath them, rated aalaried personnel from the CEO down and salaries were derived from the scores.Then during a period when Home Depot was planning to hire about 100,000 new employees, Nardelli did not a utomatically fire those employees with poor scores (Pellet, 2001). Nardelli first requested for the advice of others and informed underperformers precisely what they were doing wrong. This way, Nardelli showed that it is important for a manager to sprucely seek opposing opinions and inquire regarding the basis for those opinions before selecting a extend of action is being stressed, instead of acting on the basis of dumb or pre-arranged agreement.Necessarily, this needs constantly listening with real curiosity so as to promote development of different opinions and supporting rationales, instead of still setting forth suggestions and working to make agreement around them (Drucker, 2004). Furthermore, Nardelli seemed to follow step two in Peter Druckers model (204) that executives accept both themselves and their staff or subordinates what they abide presently to the organization and what they could contribute to the organization in the future.In Home Depot, Nardelli asserted th at in filth of whether a persons belief of what he/she now contributes, or could contribute, equals his/her managers belief, emphasizing and bringing out the importance of everybodys role as a contributor is necessary to the organizations general effectiveness. In initiating change in Home Depot, Nardelli showed that everybody in the organization makes decisions nevertheless, decision-making is specifically vital in a managers job.I think that he followed what Robbins and Coulter (2005) said that decision-making is part of all quartet managerial functions planning, organizing, leading, controlling, and that decision-making is synonymous with managing. Holstein (2004) has written that when Nardelli joined Home Depot, the challenge of amend the companys supply chain and logistics became apparent because the company is way behind other stores in these areas. Hence, he realised a model called full truckload to the store, which means that the more you brought, the more it would obli ge you to sell, since you get kindly of jammed (Holstein, 2004).In terms of information technology, at Home Depot, Nardelli has established a system of checks and balances (Sellers, 2001). The manner is which Nardelli is managing the technological transformation is attracting attention and pertain from other executives and managers. Sellers (2001) said that Nardelli has borrowed from the CE playbook to establish a system of checks and balances on how technology is managed, and Nardelli has likewise incorporated technology decisions deeply into his business strategy in runring and managing Home Depot.Furthermore, Nardelli likewise employed building deeper relationships with fewer vendors. As stated earlier, the Nardelli decision-making model might possibly help create a pattern for other CEOs who have been exceedingly frustrated and disillusioned by their lack of success in utilizing technology. In conclusion, in transforming Home Depot to become the earning company that it is now, I believe that Nardelli demonstrated that lead is the cogency to influence people or groups toward the accomplishment of goals.As a process, Nardelli showed that leadership forms the goals of an organization or group, inspires behavior toward the attainment of those goals, and helps characterize organizational or group culture hence, it is fundamentally a process of influence. References Armstrong, M. (2002). Employee Reward (3rd Edition), CIPD London. Drucker, Peter. What Makes an rough-and-ready Executive, Harvard Business Review, Vol. 82, No. 6, June 2004. Holstein, W. (2004). The Depot goes digital how CEO Bob Nardelli is managing a $2 billion technology transformation, The Chief Executive.Pellet, J. (2001). Mr. Fix-It Steps In, Chief Executive. Renovating Home Depot. (2006). Business Week Online. Robbins, S. , & M. Coulter. (2005). Management, (8th ed. ). Prentice Hall. Sellers, P. (2001). Exit the Builder, Enter the Repairman Home Depots Arthur Blank Is Out. New CEO Bob Nardelli Is In. His logical argument To Tackle the Companys Renovation after Two Decades of round-the-clock Expansion, Fortune. Shafritz, J. M. & A. Hyde. (2004). Classics of Public Administration, 5th ed. Belmont , CA Wadsworth/Thompson