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Home Depot Case Study Great Basin College

Line and staff relationships consist of two types of authorities that work hand in hand in order for a company to work in an efficient manner. Line authority deals with the ability to make decisions over production, sales, or finance, while staff authority deals with the assisting of those who have line authority, by helping with the performance expected by workers (Certo). In the Home Depot case, the relationship between these two authorities, before CEO Nardelli, was unknowingly miscommunicated. Headquarters would apparently send out messages to these individual locations which were then overlooked or disregarded by store managers. They continued to have what is referred to as do-it-yourself management (Certo). The co-founders of the company would tell store managers to dismiss headquarter changes and do what they thought was best for their store. Tom Taylor, who joined the company, agreed that store managers were aggressive and independent, pushing hard to build sales by giving local customers what they wanted and included they were a little bit rebellious, a little bit dangerous (Certo). Authority was mainly in the control of the independent store managers. After Mr. Nardelli

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