Home Depot Organizational Structure

  • Home Depot utilizes a matrix organizational structure with some aspects of the divisional and functional structures. There are geographic divisions, with further sub-divisions for stores in the United States.
  • Home Depot features numerous functional groups that are headed by a Senior Vice President or Executive Vice President. Examples include Technology, Finance, Culture, Business Transformation & Product Management, and Supply Chain.
  • Home Depot also has a clear hierarchical chain of command with the CEO, Executive Leadership Team, Senior Leadership Team, and Board of Directors. At the store level, employees report to store managers who then report to regional managers in turn.

Introduction

The Home Depot, Inc., is an American home improvement retail chain headquartered in Cobb County, Georgia. The company was founded in 1978 by Bernard Marcus, Arthur Blank, Ron Brill, and Pat Farrah with a vision to provide exemplary customer service and give back to society.

Home Depot utilizes a matrix organizational structure with aspects of the divisional and functional structures. In the following sections, we will explain Home Depot’s combination approach in more detail.

Geographic divisions

Home Depot is comprised of three core divisions that support approximately 2,300 stores:

  1. U.S. Stores – stores in the United States are further divided into three “sub-divisions”: Northern Division, Southern Division, and Western Division.
  2. Mexico, and
  3. Canada.

Both the Mexican and Canadian divisions are led by a company President, while the United States division is led by an Executive Vice President.

Functional groups

Like most other organizations of a similar size or nature, Home Depot also contains various functional groups that support specific business needs. These include:

  • Customer Experience.
  • International Operations.
  • Supply Chain.
  • Product Development.
  • Human Resources.
  • Merchandising.
  • Building Materials.
  • Outside Sales & Service.
  • Décor. 
  • Technology.
  • Finance.
  • Culture.
  • Global Brand.
  • Business Transformation & Product Management. 
  • Online & CMO.
  • Home Services & Sales Operations.

Each functional group is headed by a Senior Vice President or Executive Vice President.

Global hierarchy

Home Depot’s global hierarchy is far less prominent than its geographic divisions and functional groups. But it still deserves a mention.

At the store level, employees report to a store manager who then reports to a regional manager in turn. Home Depot is somewhat different from other retailers in that it places customers and employees (which the company calls “frontline associates”) at the top of an inverted pyramid.

By prioritizing these two groups, Home Deport believes the other levels in the pyramid will take care of themselves. These are Field Support, Corporate Support, and CEO.

At the global, corporate level, there is a clear chain of top-down command from the CEO with the following levels:

  1. CEO – at the time of writing, The Home Depot CEO and President is Ted Decker.
  2. Executive Leadership Team – a nine-member team of Executive Vice Presidents. Some lead functional groups while others have titles such as Chief Financial Officer, Chief Information Officer, and General Counsel & Corporate Secretary.
  3. Senior Leadership Team – the Senior Leadership Team consists of 29 Senior Vice Presidents who, as we noted earlier, are responsible for all other functional groups and regional divisions.
  4. Board of Directors – Home Depot’s Board of Directors is comprised of fourteen individuals. One of these is the current CEO, Ted Decker.

Read Also: IKEA Effect And Why It Matters In Business, IKEA Competitors, Cost Leadership And Porter’s Competitive Advantage.

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