BHS312 - Principles of Management
Introduction to Management
Module 3 – Case
Directing and Controlling: Control and Change
Dr. Someone, PhD
Module 3: Case Assignment: Control and Change
Home Depot Inc. is one of the largest and best known US companies. Former GE executive, Robert L. Nardelli was hired in 2000 as CEO of Home Depot Inc. At the time, the company was still dominated by the entrepreneurial spirit of the founders. The control measures that Nardelli took in order to streamline Home Depot, Inc. are well documented. http://www.businessweek.com/magazine/content/06_10/b3974001.htm Case Study Assignment Expectations:
After reading the background materials, conduct additional research and respond to the following: 1. What are the most important aspects of the controlling function? 2. What steps did Nardelli take in renovating Home Depot?
3. What role did the mid-level or department managers have in ensuring the success of the CEO’s plan? 3. How can Nardelli's approach be applied in the health care setting? (Apply critical thinking skills) The page length for this assignment should be between 3-5 pages (not counting your title page and references). Please utilize at least 3 references. Be sure to properly cite all references both within the text (at the end of paraphrased paragraphs) and at the end of your paper. I will grade your paper on your ability to address the assignment criteria listed above with depth and breadth of discussion. I will also critique your writing format (i.e. proper reference citations, spacing, etc.). Please be sure to provide citations of sources consulted in preparing your paper in the body of the actual document itself (i.e. in addition to furnishing a reference list). Remember, any statement that you make that is not common knowledge or that originates from your synthesis or interpretation of materials you have read must have a citation associated with it. For guidelines on in-text citations, visit the following web site: http://owl.english.purdue.edu/handouts/research/r_apa.html Top of Form
Bottom of Form
What are the most important aspects of the controlling function? Carter McNamara, in the Field Guide to Leadership and Supervision, put it simply when he stated that “many people are averse to management ‘Control’." He goes on to say that “more ‘organic’ forms or organizations allow organizations to be more responsive and adaptable in today's rapidly changing world. These forms also cultivate empowerment among employees, much more than the hierarchical, rigidly structured organizations of the past.” (McNamara, 2007). He hypothesizes that “any form of control is completely counterproductive to management and employees.” (McNamara, 2007). Robert L. Nardelli has decided to overlook this ideal by instilling a form of complete control within his current company, Home Depot (HD) by way of turning the once, ‘manager run’ system to an all-out military command style. Nardelli’s ‘managerial’ tactics may have been the main reason HD sales have soared, from $46 billion in 2000, the year he took over, to $81.5 billion in 2005, an average annual growth rate of 12%, but it came at a significant price. (Grwo, Brady & Arndt, 2006). His business model, a militaristic command style, has proven lucrative for HD overall, but has created much animosity and discord amongst employees; directly leading to customer dissatisfaction. The only important aspect to Nardelli’s controlling function is that he was able to increase HD’s footprint in the market share and make HD a force to be reckoned with.
What steps did Nardelli take in renovating Home Depot?
Nardelli, a former Army commander, took over management of the HD Corporation in 2000, and since then HD has shown a steady increase in the market share. He turned the once, ‘manager run’ company into a more ‘commander’ run company, idealizing the militaristic style he is used to. As stated...