Buy term paper: Robert Nardelli, the former CEO of Home Depot

Robert Nardelli, the former CEO of Home Depot, maintained the steady development of the company but he raised a strong opposition to his leadership within the company. On the one hand, he maintained the competitive position of Home Depot, although the growth of the company and its stocks was not as fast as it used to be, but, on the other hand, his autocratic leadership style and negligence with interests of stakeholders undermined his position in the company and led to his resignation. In such a way, Robert Nardelli failed to manage the portfolio of stakeholder demands effectively and he had to quit.
In fact, stakeholders of Home Depot, including customers, employees, shareholders and subordinates of Robert Nardelli were dissatisfied with policies conducted by the CEO. To put it more precisely, Robert Nardelli had changed traditional human resource policies of the company. Experienced, well-qualified employees lost their jobs. Instead, Robert Nardelli employed part-time but inexperienced and low-qualified employees. Even though Robert Nardelli saved costs due to the employment of part-time employees but benefits from this measure were doubtful. On the one hand, employees were dissatisfied because they lost their jobs, whereas new employees doing part-time job were uncertain in their future. As a result, the company faced the problem of the growing dissatisfaction of employees and their uncertainty in their future in the company. On the other hand, customers were dissatisfied because the quality of services and company-customer relationships had started to deteriorate consistently after the introduction of changes in human resource policies in Home Depot. New employees doing part-time job could not maintain the high level of services and they were just inexperienced to meet needs and wants of customers and to maintain the high customer satisfaction level (Wilkins, 1999). As a result, both employees and customer of Home Depot were dissatisfied with new policies implemented by Robert Nardelli.
Furthermore, shareholders of Home Depot were dissatisfied even more than employees and customers because the stock price of Home Depot remained stable throughout the lead of Robert Nardelli. Even though he managed to increase the sale rate consistently and increase revenues of the company, but these positive trends failed to raise the stock price of the company consistently, whereas the major rival of Home Depot, Lowe’s, doubled its stock price (Peters, 2007). Therefore, shareholders felt Robert Nardelli being incapable to improve Home Depot’s performance to raise stock price consistently. The stumbling stock price and high compensation for Robert Nardelli and his negligence with interests of shareholders along with open disrespect to them led to the logical decision to dismiss Robert Nardelli and appoint a new CEO. This decision was encouraged by subordinates of Robert Nardelli, who suffered from his autocratic leadership style.
The new CEO of Home Depot became Frank Blake. Frank Blake changed consistently his attitude to stakeholders. He focused on the optimization of internal processes within the company. He sold some units of the company to make it more flexible and effective. In addition, Frank Blake refused from high compensation plan making it dependent on the company’s performance under his lead. As a result, Frank Blake attempted to focus on needs of stakeholders, instead of focusing on the personal benefits and development of the company solely as Robert Nardelli did while he was the CEO.

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