Home Depot is acompany that has more than 330,000 employees. The company has 206warehouses that are used as centers for distribution. It has morethan 2,254 stores worldwide with a $77 billion. The hardware and homeretailer company deteriorated in terms of revenue, and they decidedto slash the human resource position and remained with one manager ineach and every department. The company is facing a lot of challengessince even the services are lagging behind those of the competitors.The luxury post that Home Depot could not afford had to be eliminatedso that it will address the issue of human capital.
Pros of Home Depot
The Human ResourcesManagers who were hired in each and every department role wasstaffing. By this implied that the human resource had to hirecompetent individuals who were supposed to bring change in HomeDepot. It was the role of human resource to ascertain that thedepartment was productive by making sure that the employees werecompetent. The second pro of the human resource was to motivate theemployees. When Nardelli was hired as the new Human Resource in 2001,he made sure that motivation of the employees and customers was notoperational again (Robert, 2008). The company continued to experiencechallenges in human capital, and thus they had to come up withcost-cutting strategy and make sure that the customer services areimproved. The next advantage of the human resource in Home Depot wasto ensure that training was conducted to the recruited staffs. TheHuman Resource had to ensure that interviewing was conducted and hadto be among the interviewers. Additionally, the human resource had tocoach and ensure that the employees were counseled so thatperformance in the organization could be noted.
Cons of Home Depot
The disadvantage ofemploying each human resource in each and every department was thateach human resources employed non-competent employees. The humanresource manager employed in each department did not consider meritand competence of the employee but used to hire depending on how theyknew each other. Additionally, the 1200 posts that were allocated thehuman resource managers made the company to incur loss since theywere supposed to be paid as professionals. This is the reason HomeDepot experienced challenges in how it was transacting its business.
The dimension of theretail industry that made Home Depot started from the chief executiveof the company. Frank Blake was the chief executive officer while TimCrow was the vice president of human resource (Robert, 2008). Theother dimension was the store managers followed by human resource ineach and every department and the employees. The delivery of HumanResource was not desirable based on the fact that each and everydepartment had a human resource. The approach used was notappropriate because human resource increased the cost of running HomeDepot.
The idea ofeliminating the Human resource position by Home Depot was the rightstrategy based on the fact that the company was collapsing due lossthat was incurred. The manager who could motivate the employees andcustomers to ensure that the Home Depot remained competitive in themarket applied the strategy that did not work for the company. Thecost reduction measures were not observed and the company experiencedchallenges instead of attaining profit.
It is possible totransfer the experience of Home Depot to Kuwaiti organization bymaking sure that the managers are presented by a case scenario ofHome Depot. If the chief executives, managers, and human resource canread the case scenario, it is possible to implement it so that theycan come up with cost reduction strategy and thus stabilize theKuwaiti organization. The obstacle that I would experience is fear ofchange. The chief executives and the managers may be afraid whatwould happen when the Human Resource position is eliminated fully. Acompany cannot run without the human resource though it is importantto consider the cost for the people who are employed in the company.The solution to deal with this is to employee a part-time humanresource who is supposed to be consulted when the need arises. Theaim of this strategy is to cut cost of the profession who is paidhigh amount of money (Robert, 2008). The second obstacle is theculture of the company. Many organization do not like to emulateother organization how they carry their transactions and thus itwould be difficult to convince the Kuwaiti organization to use mystrategy. Different countries have diverse culture on how they handleissues relating to management in the organization. I can deal theobstacle by first training the top management on how culture mayaffect the organization and its importance. By training the topmanagement implies that afterward they will train the employees sothat they will accept the change that is emanating from anothercountry.
It is the role ofmanagers to ascertain that auditors are employed as part-time orpermanently so that they will direct where and why cost in managementis increasing. Cost reduction strategies should be applied so thatthe company will continue to run since if the strategy is not usedthen the organization may collapse.
Robert, G. (2008). Remodeling HR at Home Depot: After Cutting1,200 HR Jobs, the Retailer’s Leaders Found That Less May Be More.HR Magazine, 53 (11), 67-72.