The Home Depot’s Organizational Structure
December 10, 2012
To have a successful organization, companies need to have an organizational structure. Organizational structure is used as a foundation to ensure each department as well as employees knows the proper direction to take. The Home Depot is one of the largest home improvement retailers in the world. Home Depot is one company that incorporates organizational structure in their day- to -day business. The Home Depot organization will be evaluated to compare and contrast the impact of organizational structure. The Home Depot
The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. The Home Depot began changing consumers’ perspectives about how they could care for and improve their homes. The Company created the “do-it-yourself” concept, spawning an entire industry that at the present spans the globe. Today, Home Depot is the world's largest home improvement specialty retailer with more than 2,200 retail stores in the United States (including Puerto Rico and the U.S. Virgin Islands), Canada, and Mexico. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard and Poor's 500 index (home depot). One big investment that people make today is purchasing their home. The Home Depot’s goal is to help consumers create the home of their dreams, through the variety of merchandise and services. Organizational Structure
An individual and teamwork within an organization refers to the organizational structure. Organizational structure can also identify the positions in a company and define the individual job role. Individual work needs to be in line and managed to accomplish organizational goals. Structure is an important tool in achieving organization, for it breaks down relationship between the employer and employee and open communication channel. The Home Depot organizational structure consists of a divisional and functional structure. Divisional Organization
A divisional organization departmentalize around product structure, market structure, and geographic structure. In the product organization, function that contributes to a given product is organized under one manager (Bateman & Snell). Home Depot’s inventory consists of up to 40,000 different kinds of building materials, home improvement supplies, appliance, and lawn and garden products for all the consumers’ needs. In the market structure, Home Depot offers a low price guarantee to beat their competitors publicize specials. When a customer cannot find a product in the store, the customers also have the option to shop online. In contrast to customers, The Home Depot is structure around geographic regions. The Home Depot geographic distinction includes district, territory, regions, and country. The Home Depot has more than 2,200 locations throughout the United States, including the territories of Puerto and the Virgins Islands. By enhancing the direct relationships with quality manufacturers, and reinforcing the confidence with the global suppliers to provide products that offer Home Depot customers quality, value, and innovation, The Home Depot is dedicated to experiencing a global company. A primary benefit is to be able to focus on customers’ needs and provide faster and better service. Functional Organization
A functional organization departmentalize around specialized activities such as production, marketing, and human resources (Bateman & Snell). The functional form does have disadvantages. People may care more about their own function than about the company as a whole and their attention to functional tasks may make them lose focus on overall product quality and customer satisfaction (Bateman & Snell). Each Home Depot store has one store manager, assist store managers, and department supervisors. The leadership team is dedicated to serve the...