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Home Depot became the world's largest home improvement retailer largely through the service skills of its employees. It often hired former plumbers, carpenters, and other skilled tradespeople who understood the products and took pride in helping "do-it-yourselfers." However, to cut costs in recent years, Home Depot began hiring more part-time employees and established a salary cap that made the work less appealing to experienced and skilled workers. In addition, managers began measuring every aspect of the stores' productivity, such as how long it took to unload shipments or how many extended warranties each employee sold weekly. What got overlooked, though, was how well employees were providing service. Customers began to complain that they couldn't find anyone and if they could find someone, he or she was not knowledgeable enough to help them. Home Depot began to lose customers. As a result, managers are hiring more full-time employees and instituting new training pro- grams. The CEO even approached the founders of Home Depot for advice on how to restore its previous lustre.70

Home Depot became the world's largest home improvement retailer largely through the service skills of its employees. It often hired former plumbers, carpenters, and other skilled tradespeople who understood the products and took pride in helping "do-it-yourselfers." However, to cut costs in recent years, Home Depot began hiring more part-time employees and established a salary cap that made the work less appealing to experienced and skilled workers. In addition, managers began measuring every aspect of the stores' productivity, such as how long it took to unload shipments or how many extended warranties each employee sold weekly. What got overlooked, though, was how well employees were providing service. Customers began to complain that they couldn't find anyone and if they could find someone, he or she was not knowledgeable enough to help them. Home Depot began to lose customers. As a result, managers are hiring more full-time employees and instituting new training pro- grams. The CEO even approached the founders of Home Depot for advice on how to restore its previous lustre.70

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Home Depot became the world's largest home improvement retailer largely through the service skills of its employees. It often hired former plumbers, carpenters, and other skilled tradespeople who understood the products and took pride in helping "do-it-yourselfers." However, to cut costs in recent years, Home Depot began hiring more part-time employees and established a salary cap that made the work less appealing to experienced and skilled workers. In addition, managers began measuring every aspect of the stores' productivity, such as how long it took to unload shipments or how many extended warranties each employee sold weekly. What got overlooked, though, was how well employees were providing service. Customers began to complain that they couldn't find anyone and if they could find someone, he or she was not knowledgeable enough to help them. Home Depot began to lose customers. As a result, managers are hiring more full-time employees and instituting new training pro- grams. The CEO even approached the founders of Home Depot for advice on how to restore its previous lustre.70
Transcribed Image Text:Home Depot became the world's largest home improvement retailer largely through the service skills of its employees. It often hired former plumbers, carpenters, and other skilled tradespeople who understood the products and took pride in helping "do-it-yourselfers." However, to cut costs in recent years, Home Depot began hiring more part-time employees and established a salary cap that made the work less appealing to experienced and skilled workers. In addition, managers began measuring every aspect of the stores' productivity, such as how long it took to unload shipments or how many extended warranties each employee sold weekly. What got overlooked, though, was how well employees were providing service. Customers began to complain that they couldn't find anyone and if they could find someone, he or she was not knowledgeable enough to help them. Home Depot began to lose customers. As a result, managers are hiring more full-time employees and instituting new training pro- grams. The CEO even approached the founders of Home Depot for advice on how to restore its previous lustre.70
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