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The Ethics of Leadership

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The Ethics of Leadership

David Draper

Ashford University

BUS 610- Organizational Behavior
Dr. Gary Shelton

March 18, 2013

ABSTRACT
The paper explores the leadership of Robert Nardelli at home depot during the years of 2000 through 2006. The paper focuses on his methods and actions in the context of leadership theory in an effort to define his specific leadership style. Once defined the paper examines his methods and actions to determine if they were ethical or unethical. Nardelli’s performance at Home Depot was statistically successful but his authoritarian leadership style, which he obtained while being very successful at GE did not mesh with the culture that existed at Home Depot during his tenure.

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The meeting was over in 30 minutes. Anyone who wanted to ask a question was limited to just one question and was given just one minute and when the time expired the microphone was cut off. He revamped all store reporting and logistical systems in order to capture more and more data. He held each store manager accountable for achieving plan as they called it at Home Depot. Making plan was achieving your sales numbers for each and every designated measurement period. Each of these interactions demonstrates the transactional style of leadership. I would also argue that his style falls into the behavioral theory as well. Specifically, referencing the leadership grid developed by Blake & Moulton in 1985. (Baack, 2012) He is focused on production and has an authoritarian type approach. Almost all articles written on the subject of Bob Nardelli and his tenure at Home Deport, reference his tenure as a failure. Almost every article points to his leadership style that caused this failure. One such article by Bruce Nussbaum states;
“Nardelli came into Home Depot with a managerial style that was already obsolete and being replaced at GE by Immelt with his emphasis on eco-imagination. Autocratic top-down, command and control works great when you focus on process—cost and quality. Six Sigma measures all that stuff wonderfully. Nardelli couldn’t see beyond this” (Nussbaum, 2007, para. 2).
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