Robert Nardelli Home Depot Organizational Structure

Everyone can learn from the story of Home Depot and former CEO Robert L. Nardelli. One man can immediately change the foundation of a company's past. The peak of one person turned into a quick downfall on multiple levels from executives to employees.

According to Rothwell, roles are largely determined by their formal structure in large groups and organizations. “The roles each member will play have not been designated in advance but emerge from the transactions conducted among group members,” (Rothwell, 2013). Role emergence is primarily a concern to small, informal, leaderless groups without a history.

Nardelli emerged at Home Depot after losing out in a three-way race to succeed GE’s legendary Jack Welch in 2000. He then became one of Corporate

Although Nardelli brought his previous knowledge to the company, when it came down to the employees there weren’t too many that remained happy. The numbers were most important to Nardelli, “Nardelli’s data-driven in your face management style grated on many seasoned executives, resulting in massive turnover in Home Depot’s upper ranks” (Grow, et al., 2007). Nardelli wasn’t willing to change the process of how Home Depot was operating once he became the

In Nardelli’s case, he got to be on both ends of sending and receiving. His issues all started when Home Depot’s shareholders recommended he took a decrease in pay at their annual meeting, but he refused and decided he deserved more than what he was getting. Nardelli was furious about the proposed pay cut and loss of his stock package, and was seeking revenge. This added fuel to the fire and created tension between the investors and Nardelli, thus producing the status quo. Now, leading into It Takes Two to Tango, Nardelli and his shareholders still were not coming to an agreement. He was not willing to give in regardless of the poor situation he put himself in. He rarely followed protocol and was somewhat a heartless employer. Eventually, he was asked to resign, and didn’t have much of a choice in the matter. However, it still was agreed upon by both parties relating to the two-way