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.

Organizational Structure Case Studies

Airbnb Organizational Structure

airbnb-organizational-structure
Airbnb follows a holacracy model, or a sort of flat organizational structure, where teams are organized for projects, to move quickly and iterate fast, thus keeping a lean and flexible approach. Airbnb also moved to a hybrid model where employees can work from anywhere and meet on a quarterly basis to plan ahead, and connect to each other.

eBay Organizational Structure

ebay-organizational-structure
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.

IBM Organizational Structure

ibm-organizational-structure
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.

Sony Organizational Structure

sony-organizational-structure
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.

Facebook Organizational Structure

facebook-organizational-structure
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams based on the main corporate functions (like HR, product management, investor relations, and so on).

Google Organizational Structure

google-organizational-structure
Google (Alphabet) has a cross-functional (team-based) organizational structure known as a matrix structure with some degree of flatness. Over the years, as the company scaled and it became a tech giant, its organizational structure is morphing more into a centralized organization.

Tesla Organizational Structure

tesla-organizational-structure
Tesla is characterized by a functional organizational structure with aspects of a hierarchical structure. Tesla does employ functional centers that cover all business activities, including finance, sales, marketing, technology, engineering, design, and the offices of the CEO and chairperson. Tesla’s headquarters in Austin, Texas, decide the strategic direction of the company, with international operations given little autonomy.

McDonald’s Organizational Structure

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

Walmart Organizational Structure

walmart-organizational-structure
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.

Microsoft Organizational Structure

microsoft-organizational-structure
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.

Read Next: Organizational Structure

Read Also: Business Model

Main Free Guides:

Scroll to Top
FourWeekMBA