An Effective Manager of Home Depot Essay

According to Robbins and Coulter (2005), telling foursome-in-hands all over the human acknowledge the role that strategic management plays in their governings performance. Moreover, Drucker (2004) said that the gauge of an useful manager or executive is the ability to get the right things done. This typically entails doing what other individuals have cut in addition to avoiding what is unproductive. Imagination, intelligence, and knowledge might all be wasted in an executive line of credit with egress the attained habits of mind that form them into results.I believe that Bob Nardelli is exhibiting these characteristics and management style of an effective manager as he leads crustal plate terminus 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 strategy, stem Depot is now has now increased sales by 60 percent and earnings per touch by 105 percent (Business Week Online, 200 6).During his first day as CEO at Home Depot in the year 2000, the company has various problems to deal with, some of which, were as follows it lacked the necessary al-Qaida to send even a companywide electronic mail, Home Depot stores were already run- go across and was being cognize as a store with poor customer service, the stores shipments were logged using pencil and clipboard, and Home Depot stores did non have automated inventory systems (Sellers, 2001). Being a visionary leader that he is, Nardelli believed that better buttes essential lead to better quality ad higher profits for Home Depot.He assiduous strategic management in planning to improve the company. As asserted by Robbins and Coulter (2005), the prevailing depression in management theory and society on the whole is that managers are completely responsible or accountable for an placements success or failure. However, Nardelli demonstrated that aside from the fact that much of an organizations success or fail ure is because of external forces outside of the managers control, the manager has a big responsibility in making decisions for the success of the organization.A major component of Nardellis far-reaching cause 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 direction less. He believes that it is a vital aspect of his strategy to lead in a cumbersome 2,048-store range and get ready for its next leg of growth (Business Week Online, 2006).In an uncertain and dynamic environment, legitimate world organizations employ strategic decision-making when making decisions offers managers with a comprehensive and systematic means for taking into friendliness the external environment, concentrating on an organizations strength, reducing 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 model might help create a pattern for other CEOs who have been extremely frustrated and disillusioned by their lack of success in harnessing engine room. In transforming Home Depot to what it is now, Nardelli increased information technology spending by almost 20 percent (Sellers, 2001). Then in year 2003 Nardelli spent a total of $400 million on inventory shipping and tracking systems (Sellers, 2001). Aside from these, Nardelli also spent around $250 million refurbishing Home Depot stores (Pellet, 2001).This included the installation of self-checkout systems in 800 stores to lessen customer lines and ease up salespeople. This also included the asylum of two-way cordless scanners, which enabled products to be price-scanned in the shopping 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 rank what rewards will succeed for specific employees at any given time.Even though supervisors and managers might non be able to have power over certain rewards like benefits or wages, they have the conversancy 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 individualnel from the CEO down and salaries were derived from the scores.Then during a period when Home Depot was planning to hire approximately 100,000 new employees, Nardelli did not automatically fire those employees with poor scores (Pellet, 2001). Nardelli first requested for the advice of others and informed underperform ers precisely what they were doing wrong. This way, Nardelli showed that it is important for a manager to vigorously seek opposing opinions and inquire regarding the basis for those opinions before selecting a course of bodily process is being stressed, instead of acting on the basis of tacit or pre-arranged agreement.Necessarily, this needs constantly auditory sense with real curiosity so as to promote development of different opinions and supporting rationales, instead of precisely 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 require both themselves and their staff or subordinates what they contribute presently to the organization and what they could contribute to the organization in the future.In Home Depot, Nardelli asserted that in spite of whether a persons belief of what he/she now contributes, or could contribute, equals his/her managers be lief, emphasizing and bringing out the importance of everybodys role as a contributor is necessary to the organizations world-wide 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 four 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 improving the companys try chain and logistics became apparent because the company is way behind other stores in these areas. Hence, he established a model called full truckload to the store, which means that the more you brought, the more it would oblige you to sell, since you get kind of jammed (Holstein, 2004).In terms of information technology, at Home Depot, Nard elli has established a system of checks and balances (Sellers, 2001). The manner is which Nardelli is managing the technological fault is attracting attention and interest 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 capability to influence people or groups toward the accomplishment of go als.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 Effective 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). lapse the Builder, Enter the Repairman Home Depots Arthur Blank Is Out. New CEO Bob Nardelli Is In. His business organization To Tackle the Companys Renovation after Two Decades of Nonstop Expansion, Fortune. Shafr itz, J. M. & A. Hyde. (2004). Classics of Public Administration, 5th ed. Belmont , CA Wadsworth/Thompson