Robert Nardelli -- a Controversial Leader
Leadership landscape has evolved greatly over the last few decades. Where there has been an extensive research performed in this area, major emphasis has been levied on distinguishing managers from leaders. And, in today's robust and diversified workplace, leaders with exceptional motivating power and business management ability is what every organization needs. This is the reason why obsolete leadership styles when exercised, tend to bring out disastrous results. This is precisely what happened when Robert Nardelli of General Electrics was made CEO of Home Depot, a leading store with a glorious history of excellent customer service and major customer satisfaction. Although Nardelli brought a rich experience to Home Depot but the ideology he was following had major clashes with the original vision of Home Depot which later on made him declared as one of the worst CEOs in the history of United States.
Before analyzing the leadership style of Nardelli, it is important to understand the culture that in which he was operating and grew throughout his career. It is acclaimed fact that the culture of General Electric is driven by numbers reflected in the balance sheet. Without criticizing this culture, one may agree that this work model works for GE due to its enormous size and highly extensive operations. Secondly, this culture is rooted in the foundation of GE. Whereas, if the case study of Home Depot is considered, the founders Bernie Marcus and Arthur Blank, had introduced a culture of entrepreneurship in this organization. For decades, employees were made responsible for their respective work domains with complete independence in terms of decision making and creativity. Hence, the motivation level of the employees was different prior to Nardelli. It was the difference between two sets of ideologies which made Nardelli a failed CEO.
After joining Home Depot, Nardelli introduced various measures which redefined not only the culture but also the business model of Home Depot. Some of these measures were replacement of a major number of skilled permanent workforce with contractual labor with relatively less experience (Colvin,...
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