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Home Depot’s Changing Competitive Landscape
- The impact of top management on Home Depot before, during, and after Nardelli’s tenure as CEO was always large. The top management was the decision-making and controlling body that issued directions, made up strategies and presented solutions. During Nardelli’s tenure as CEO the management started to gradually delegate some authority and despite remaining authoritarian it managed to boost productivity and employee loyalty. The tenure of Nardelli actually allowed Home Depot to modernize its chain of command and the communication lines. The company became more open to changes and innovation, ready to succeed in the global market with ever-changing customer tastes.
- The reason why Home Depot has chosen previous and its current approaches to confronting its competitive environment was simply because it wanted not only to survive in the long-run but also to beat the competitors. It is necessary to note that Home Depot was a rather dynamic and flexible corporation that learnt from competition and management books. It thus came up with a productive strategy to reduce the current corporate weaknesses and to capitalize on the corporate strengths. The company’s management was consistent and rational and that actually allowed Home Depot to stem the crisis and to succeed.
- The implications of Home Depot’s current strategy for human resource management at the firm were dual in their nature. On one hand the organization wanted and did carry out necessary changes. On the other hand it wanted to maintain satisfied personnel and motivated employees. Those who resisted changes and did not want to adopt the new approaches were fired and dismissed. The rest of the employees had to adapt and change in order to effectively function within organization. The employees were in some cases required to take their extra time and energy to achieve organizational goals and objectives, yet the corporate option/stock-sharing plans allowed to compensate and to slightly motivate the most committed team members.