Political Activity and Government Relations Policy The Home Depot strives to be the employer, retailer, investment, and neighbor of choice in the home improvement industry. Corporate governance is part of our culture and is founded on our daily commitment to living values and principles that recognize our ethical obligations to our shareholders, associates employeescustomers, suppliers, and the communities in which we operate. We understand our responsibility to behave ethically, to understand the impact we have on people and communities and to fairly consider the interests of a broad base of constituencies. Aligning with this mission is the Company's longstanding commitment to strong corporate governance practices.
Learning Objectives Explain the role of formalization, centralization, levels in the hierarchy, and departmentalization for employee attitudes and behaviors. Describe how the elements of organizational structure can be combined to create mechanistic and organic structures.
Understand the advantages and disadvantages of mechanistic and organic structures for organizations.
Explain what a matrix structure is, and the challenges of working in a structure such as this. Define learning organizations and list the steps organizations can take to become learning organizations.
Building Blocks of Structure What exactly do we mean by organizational structure? We will review four aspects of structure that have been frequently studied in the literature. Then we will examine how these building blocks come together to form two different configurations of structures.
Centralization Centralization is the degree to which decision making authority is concentrated at higher levels in an organization. In centralized companies, many important decisions are made at higher levels of the hierarchy, whereas in decentralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question.
As an employee, where would you feel more comfortable and productive? Decentralized companies give more authority to lower level employees, resulting in a sense of empowerment. Decisions are often faster, and employees believe that decentralized companies provide greater levels of procedural fairness to employees.
Job candidates are more likely to be attracted to decentralized organizations. Because centralized organizations assign decision making responsibility to higher level managers, there are greater demands on the mental and physical capabilities of CEOs and other high-level managers.
Many companies find that the centralization of operations leads to inefficiencies in decision making.
For example, in the s, Caterpillar Inc. At the time, all pricing decisions were made in the corporate headquarters in Peoria, Illinois. This meant that when a sales representative working in Africa wanted to give a discount on a product, they needed to check with headquarters. Headquarters did not always have accurate or timely information about the subsidiary markets to make an effective decision.
At the other end of the spectrum, organizations can suffer from extreme decentralization.
For example, some analysts believe that the Federal Bureau of Investigation FBI experiences some problems because all its structure and systems are based on the assumption that crime needs to be caught after it happens.
Over time, this assumption led to a situation in which, instead of following an overarching strategy, each unit is completely decentralized, and field agents determine how investigations should be pursued. Hitting the right balance between decentralization and centralization is a challenge for many organizations.
At the Home Depot Inc. Before the transition, Home Depot store managers made a number of decisions autonomously and each store had an entrepreneurial culture.Reality Check: A Review of key programs areas in the BLAC Report for their effectiveness in enhancing the educational opportunities and achievement of African Nova Scotian learners.
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Squadrons. There are two types of Squadrons, Squadrons of the RAF, which whilst subordinate to higher authority are technically independent, in that if the station on which they are based is closed down, they can continue to operate by moving to a new base.
A Directors' Resolution is also referred to as a Consent to Action Without Meeting. It can be used in place of a corporate meeting to formally record the binding decisions of the board, so long as all directors agree and authorize the resolution. Home Depot Corporation Introduction The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant facts and figures relating to the topic of organizational structure at Home depot.
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