HomeDepot Inc. was a game changer in the home renovation industry andbecame a major force to reckon with in the retail sector. The newCEO, decided to reduce the expenses on the expertises. This involvedthe termination of the human resource at the store level so as toreduce the expenditure as well as replacing them with retailemployees at a lower cost. Furthermore, the benefits package HomeDepot was known for was scrapped leaving the corporation to lessexperience retail worker with minimal supervision. The Human Resourcewas bundled up to a single central service centre (Grossman, 2008).
Theiron decision to revamp the Home Depot Inc had dire consequences tothe growth and stability of the company (Grossman, 2008). The ideawas far-fetched and had no proper mechanism of implementation of thefunctions of the Human resource. The human resource covers a load offunctions and centralization of the department led to relaxed servicedelivery at the store level. Home Depot grew on the concept qualityservice provision to the customers and as such the move choked thewhole idea that captured the attention of the industry in the firstplace. As noted by Grossman (2008), morale is a key element in anyworking environment, and the company built its reputation on theattractive and lucrative working niche with well paying benefits.During the restructuring the benefits were scrapped therebydemoralizing the employee workforce. Consequently, the move resultedin the poor customer service and eventually dissatisfactory customerrating. The once unique profitable entity plunged into a period ofpoor returns.
Asmuch as the move had it disadvantages, it had its ups with room formore hiring of retail employees providing quite a number ofemployment opportunity to Americans in Home depot books. Hiring spreewas able to provide jobs to less experienced skill set of employeesthat helped boost the economy. The disorganization of the humanresource and centralizing the functions of the department meant thatthe company cut down on cost exponentially thereby higher returns(Grossman, 2008). Also by doing away with the benefit packages, thecompany was inclined to spend less on its employee and shift theirresources to other ventures. A centralized human resource centrefurther ensured that top ranking had the most experience and hencethe best of the best made it to the centre. Greater experiencedworkforce meant better decision making strategies for the company.
TheHuman Resource department was key element of service delivery at HomeDepot Inc due to the numerous functions it upheld which includedtraining, recruitment, hiring, management, benefits, safety, andoverall organizational development (Grossman, 2008). Being an organin a large body, the devolution of some of these services to Humanresource managers at store level ensure that there was smooth runningat the money-making merchandise which is the stores. The managerialposition was vital in providing a conducive environment for retailworkers as well as provision of leadership mentality. Every grouprequires leadership for and organized and well defined progress thatis based understanding ones roles and the team lead guiding hiscollages to the achievement of these goals. Moreover the idea ofhuman resource had a motivating factor to customer confidence inrelation to customer sales frequency and service delivery to thecustomer (Grossman, 2008).
Theidea to remove the position of Human resource is brings much negativedrawback to the much the position represents as well as theachievement. Overall, the position is an asset to the company andholds merit in realizing the goals and objectives set by the company.Leadership is a component that is symbolized by the position andtherefore eliminating the position interferes with the many functionsit provides. Employees look up to the position and its holder forleadership and moral support as well as the assurity that theirwelfare is taken into account. It is also a link between theadministration and the employees and eliminating the post makescommunication difficult.
Itis possible to transfer the experience of Home Depot to a Kuwaitiorganization. The best way would be to find qualified and experiencedpersonnel within the country to facilitate the establishment. Recruitment should be concentrated to knowledge based education andoffer substantial lucrative benefits. Also outsourcing manpower couldhelp as much as it would be costly it would really assist in thejumpstart in Kuwait. The outsourced workforce will be able to providetraining and expertise for a period of time before the venture hastaken off. Language barrier as well as cost can be a setback in thetransfer. However this could be dealt with by recruitment ofemployees with a background in Kuwaiti culture language and traditionas employee would feel freer with someone of their own origin. Thiswould greatly help to deal with the language barrier as a problem.Also in terms of expenses the company could involve other stakeholders within the country to help them facilitate the establishmentfor a stake of the pie. This would also help in the management asthe other would have experience in the lay of the land as well as themarket and what the people need.
Grossman,Robert, J. (2008). Remodelling hr at Home Depot.  HRMagazine, 53(11), 67-72