Nardelli's Leadership Style

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Business Ethics

Being in a leadership position doesn’t always make you a leader. It’s what you do, and how you act while you’re in that position that makes you into a strong leader. Making a distinction between the terms "leadership" and "management" has been an ongoing focus of organizational behavior authors. John Kotter (1990) argues that management focuses on coping with complexity through the use of the basic managerial functions of planning, organizing, and control. Robert House and R. J. Aditya (1997) link the concept of management with the use of formal authority that arises from a person's organizational rank. In contrast, leadership concentrates on coping with change and providing guidance. Leaders establish direction by communicating …show more content…

He was overly criticized for the style of leadership he portrayed while working for Home Depot. After he resigned, many employee’s were filled will overjoy and excitement, which proved that his employee’s weren’t too fond of him as a leader. "It's amazing the reaction of people on my floor. People are openly ecstatic. High-fiving," said an Atlanta store operations manager only hours after the Jan. 3 announcement. "There's a group talking about going to happy hour at noon" (Grow, B., Foust, D., Thornton, E., Farzad, R., McGregor, J., & Zegal, S., …show more content…

Nardelli was a strong headed and stubborn individual. He was very money driven, and refused to give up any of his salary for the benefit of the company. I believe that was his downfall, and the reason in which led to his resign. In the end it came down to the headstrong CEO's refusal to accept even a symbolic reduction in his stock package. Home Depot Inc.'s (HD) board of directors wanted their controversial chief executive, Robert L. Nardelli; to amend his whopping compensation deals for recent years. After he pulled down $38.1 million from his last yearly contract, angry investors were promising an ugly fight at the company's annual meeting in May. Nardelli agreed that he would continue to receive a guaranteed $3 million bonus each year, but not more. When board members asked him to more closely tie his future stock awards to shareholder gains, he refused, according to people familiar with the matter (Grow, B., Foust, D., Thornton, E., Farzad, R., McGregor, J., & Zegal, S., 2007). According to trait theories, there are particular traits in which a leader posses. These are traits that make a leader truly stand out against a follower. Leadership traits are physical and personality characteristics that differentiate leaders from followers. In the early 1900s, one assumption was that certain people

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