Business Ethics Essay Example | Topics and Well Written Essays - 750 words - 15

Business Ethics - Essay Example The leadership style of Robert Nardelli is described as autocratic and directive. He was a task oriented and directive leader who employed severe strictness and inflexibility in Home Depot during his tenure as the CEO in the organization. The leadership style of Nardelli was characterized by centralized control without considering the behavior and acceptance of the employees and the customers. The incorporation of extensive technologies and new organizational procedures harmed Home Depot bringing down its stock prices in the long term and negatively affecting the shareholders. Though the immediate effects of his leadership were not erosive but after few years the growth of the company slowed down to a great extent due to the increased dissatisfaction of the employees as well as the customers of Home Depot (Baack, 2012). The management style of Nardelli was criticized to be inflexible and callous. But the leadership style of Nardelli was much influenced by his tenure at GE as a result of which he focused more on technology and goal driven business plans. But this kind of leadership was not suitable in the retail industry as the leadership style required in Home Depot needed to be more people oriented creating better employee and customer satisfaction. The reputation of home Depot suffered and the share prices feel whereas the competitor companies succeeded through the creation of better customer experience and satisfaction levels. Home Depot needed a constructive and participative leadership style as opposed to the autocratic leadership style of Nardelli. Due to the directive leadership style of Nardelli, the financial metrics of the company improved initially but the metrics of customer service and employee satisfaction declined. Home Depot need a situational leadership from the CEO but Nardelli was not able to respond to the requirements of the changing situation related to the