Home Depot Value Wheel Management Essay Research Paper

The Home Depot Wheel
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The Home Depot Wheel
Home Depot has grown to become the largest home-oriented retail chain since its founding on February 6, 1978. Leadership has played a large part and contributed to this success. Whether it is CEO Bob Nardelli or the current CEO Craig Menear, the leaders have always maintained the same commitment to the company's values and mission. The organization has been consistent in its efforts to provide seamless and interconnected shopping experiences for consumers. It leverages its stores' convenience to blend physical and technological experiences, promoting innovation in its products and delivery options. This essay analyzes leadership, different styles of management, and its effects using Home Deport as the case point.
Leadership theories are a school of thoughts conjured up to explain how and why certain individuals become leaders. In the Home Depot, leadership has been a crucial factor for the organization's success locally and globally. Contingency leadership theory best explains how Home Depot has been able to withstand the test of time to become the largest home improvement retailer in the United States. This theory supposes that their leadership style must suit a particular situation for a leader to be successful. The contingency aspect of the theory acknowledges that an individual can be effective in one circumstance but ineffective in another CITATION Ind20 \l 1033 (Indeed, 2020). A leader must be quick to examine different situations and what challenges each of them poses to maximize the possibility of productivity. It will require leaders to possess traits such as self-awareness, objectivity, and adaptability. Consequently, a leader will know when to delegate tasks and responsibilities to other entities that are much more capable of dealing with the situations at hand.
Modern workplaces present leaders with numerous factors that can affect their effectiveness. They include the size of teams, the scope of a project, individuals' personalities, and expected deadlines. Leaders are unique in their styles of management. Therefore, they will respond to such variables differently. For example, James, a project manager, believes communication to be the most important aspect of leadership. Therefore, his leadership style relies heavily on communication through writing. James sends his team encouraging and thoughtful emails regularly. However, recently there has been a new addition to the team, and the employee is less responsive to written communication. James feels the need to change his communication method to connect with the new employee. As such, he makes an effort to reach out to the employee in person and explain the roles and expectations of joining the team. Likewise, James would have found it fit to delegate this responsibility to the assistant manager that is more qualifies on reaching out to employees on a personal level.
The ability to influence others characterizes the qualities of a good leader. Influence is the individuals' ability to change or affect other people's actions, behavior patterns, opinions, and thoughts. Conflict, defeat, and success give rise to the need for an influential and powerful figure to lead an organization. There are five sources of managerial powers that a leader can use to influence the employees. Legitimate power, also regarded as formal or bureaucratic power, is power assigned through a verbal or written contract. It gives the assigned individual the responsibility and power to command, with which the employees might face retribution if they oppose. This type of power causes resentment and curbs motivation and creativity if utilized to the extreme. However, the lack of formal authority causes lackluster performances from the employees and prolongs the organization's decision-making. Therefore, excess or lack of formal power is detrimental to the success of any project.
Formal authority prevents ambiguity that can cause employees to challenge a manager's authority. With fewer conflicts, managers can exercise their reward power based on performances. Reward power grants managers the ability to offer or withdraw rewards such as status, money, promotion, or privileges in the organization CITATION Ama09 \l 1033 (Singh, 2009). Studies have found that reward management practices motivate the employee, consequently nurturing a collective sense of commitment to the organization. It is completely different from coercive power that revolves entirely around fear. Therefore, employees undertake responsibilities, not from the point of interest rather from a point where they feel they have more to lose if they don't comply. This form of influence derails the employees' motivation and makes them afraid to innovate due to the perceived punishment for lack of compliance.
Expert power is a type of influence where the employees respect a manager based on their superior knowledge, expertise, and proven ability to perform. It is proven that most personnel prefer to work with competent individuals to develop their careers and expand their knowledge sphere. For managers that lack this type of influence, referent power can be called upon. This type of influence is based upon shared identity and culture, personality, and hero worship. In most cases, junior employees secretly desire to be in senior positions; therefore, they seek to emulate a manager's behavior. Balanced ambition is a virtue that self-aware individuals have; therefore, they are not easily influenced and fall into blind loyalty. However, misplaced ambition can be seen in individuals with less developed emotional psychology. In this case, junior employees are vulnerable to influence by father figures, senior managers.
Lastly, managers can use reciprocal power, which is highly recommended for use in an organization. This type of influence is effective because it is based upon fundamental Cristian values, do unto others what you would like done unto you CITATION Ama09 \l 1033 (Singh, 2009). This includes fulfilling people's requests, being friendly and approachable, doing favors, and offering help. A manager can forge a cohesive environment, and in return, he or she can solicit help from the employees who will be ready to assist.
Yes, the employees are receptive to the strategies being implemented by Home Depot. The organization takes care of its people with the same effort it does the customers. This has been made possible by the efforts of diversity and inclusion where everyone feels at home. In the organization, individuals are respected for who they are and what they can do. The organization utilizes reciprocal power to maintain cohesion among employees, which has made employees receptive to collaborations. As a result, the organization was voted best employer for diversity by Forbes in 2020. In 2019, 50% of the hires were ethnically diverse, 33% were women, and 30+ languages are spoken.
The organization has happy employees if 2020 Happiest Employees Large Companies List is anything to go by. This can be attributed to the business model of the organization is based around improvement. There is a feeling that no matter where individuals are in their careers, there is room for improvement and exciting opportunities in the organization. Home Depot registered that 120,000+ associates moved to different departments in 2020. Overall, this strategy is effective because it challenges the employees to be at their best. Consequently, they are self-motivated because they buy into the vision and leadership of the organization. Consequently, the clear path of improvement and career advancements keeps the employees positive and more likely to remain at the company for longer.
No, I would not recommend another strategy. Taking care of people covers the important areas of the organization, employees, and the customers. Currently, the organization has done a great job by creating an inclusive environment for the organization. Giving back to the community is an important part of the strategy, which retains and brings a new customer base to the organization. The organization's values state that when they see the need to help, they pitch in. Through their foundation, they have proudly shared resources to help veterans and rebuild communities after disasters. One of the cases was when Hurricane Maria ravaged the Caribbean. The hurricane was responsible for fuel shortage, power and telecommunication failures. Home Depot made an initial $500,000 commitment pledged to the community, followed by shipment of 2,500 containers to Puerto Rico and more than 1,300 more to the US Virgin IslandsCITATION H...