Essay on Business Ethics

1498 Words Jul 5th, 2014 6 Pages
Business Ethics
MGT 610 – Organizational Behavior
Instructor –
Jun 9, 2014

Business Ethics
This paper will attempt to decipher the leadership style and techniques used by Robert Nardelli during his tenure as the CEO of Home Depot. To help decipher his leadership style, the paper will incorporate three leadership theories discussed within our text. The first leadership theory is the “Trait Theory”. Assumptions from the great man theory lead us to believe that people are born with inherited behaviors; certain traits, characteristics, and behaviors indicate that an individual is a born leader. A great leader is also born with a natural mixture of leadership traits. The second leadership theory is
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He ruled Home Depot with an iron fist; Nardelli was unyielding, inflexible, and lacked basic empathy and emotional intelligence. As mentioned in the introduction, the trait theory examines the different innate leadership personality characteristics that a person has. It dives into how a person will think, react, and function under various conditions. The purpose of the trait theory is to help employees visualize and utilize their special skillsets. Baack explains, “As a modification of the great man approach, one trait-based theory suggests that although certain character traits may be innate, leaders can be developed through experience and learning thinking/feeling, and judging/perceiving personality characteristics in individuals” (2012, pg. 8.2).
Robert Nardelli’s leadership techniques were unique, and if you only consider profits and organizational structure this style worked quite well. Nardelli definitely enhanced Home Depot’s bottom line figures, but his short-term objectives damaged the reputation of the organization. In the end, he tainted potential future sales with elimination of the quality customer service Home Depot once garnered. Somewhere along the way, Nardelli forgot the golden rule, that people are the most precious commodity. Maybe he never cared

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