Home Depot vs. Lowe's Home Improvement

Introduction 

The organizational behavior of an organization is a study that evaluates the impact of groups and individuals within the business. This field of study also defines what the organization is made of regarding internal processes and systems management. Organizational behavior is also very crucial since it explains what strategies are creating success in a business ( Switzer, 2015) . It also distinguishes one organization from the other. Through organizational behavior, culture and routines of an organization are efficiently distinguished. In this research paper, two organizations, which are competitors, will be evaluated, which are Home Depot and Lowe’s Home Improvement. The two companies deal with home equipment and both are the leading in global markets. The research paper will also evaluate the effectiveness of respective organizational cultures. 

Home Depot vs. Lowes Home Improvement 

Overview of the two Companies 

Lowe's Company is an organization that is operating and dealing with home improvement equipment. This company performs a variety of stores in Mexico, Canada and US. The organization was found in the year 1946 in northern Carolina. The company manages over 2000 stores of home appliances; it has employed over 250 000 people in all of its branches. This is the second largest organization in the US. The first one is Home Depot. However, it is ahead some of the similar companies operating in Europe. 

Home Depot is another competitive company that deals with home appliances and improvements. The organization originates from Georgia, Atlanta. This is the leading company in the world regarding home improvements retailing. Currently, the company has more than 1700 stores including 1600 Home Depot stores, over 50 EXPO centers for designing and many other HD supply stores in the US (Price, 2015) . The business has recruited more than 280000 happy employees in all of its branches (Price, 2015) . Home Depot offers a variety of products and services to its clients. The company serves three types of customers who are categorized as do-it-for-me clients, Do-It-Yourself and Professional Customers in a single classic store it accommodates approximately 50000 items of various sizes and colors. Major products that the company deals with include building materials, lumber materials, paint, wall coverings, floor coverings and electrical appliances (Price, 2015) . 

Organizational Culture Analysis 

Both Home Depot and Lowe's Home Improvement have different but similar culture, which makes them stand out as the leading companies in home improvement products. The culture of an organization is the approach through which the business, social conduct, and other symbols define an organization and influence its growth. The two companies observe various artifacts and beliefs. Each organization operate in its way to achieve their vision and mission. According to the website of Home Depot, they have defined their core values, purpose, and mission. 

Home Depot’s Core Values 

The company has eight core values, which are used to guide its management and employees to work towards achieving its goals. The core values include creating shareholder value, building strong relationships with its members, respect for all, and care for their people, excellent customer service, and entrepreneurial spirit. 

The core value of taking care of the customers is demonstrated through the Homer Fund initiative. This is an effort that allows the employees to contribute a certain amount of money towards a shared pool. This money is allowed to accumulate and is distributed to employees during an emergency. The needs for these funds can be either in case of a funeral or example of a disease or food shortage. This is the core value that not only is stipulated in its website, but many of the workers have testified how this has helped them in case of critical emergencies. 

The other core value, which defines the culture of Home Depot, is the value of excellent customer service. This core is taken very seriously by the organization. Every time a customer purchases a product, either online or from the store, he is allowed to submit genuine feedback on the service rendered. Through this feedback, the company gathers relevant information that they use to better the approach of customer service approach. The surveys and feedbacks from the customers are reviewed on a weekly basis (Bianchi & Arnold, 2014) . The managers from all the levels of management are then allowed to consider the customer feedbacks and point out the areas and the departments which need to improve regarding service delivery to the clients (Bianchi & Arnold, 2014) . This core value not only benefits the business to offer valuable services but also promotes morale for the individual who is reviewed positively by the customer. Additionally, the positively reviewed associates can be rewarded with promotions or other relevant rewards, which lastly promotes hard work among the employees (Bianchi & Arnold, 2014) . 

The other core values include respect among the members and doing the right things at the right times. This has been portrayed as the company is closely working with its lower associates to achieve success. Example of these values in action is depicted in the organization norms. Organization norms are the rules and regulations that guide the employees and managers on how they must behave while in the workplace. The most common pattern in Home Depot in the orange box in the company name and logo. As an employee of Home Depot, you must wear an orange apron while at work (Bianchi & Arnold, 2014) . As an employee, you are also required to adhere to the regulations and the policies of the company and maintain respect for all. Doing the right things at the right time is a core value that mandates the employees to respect and relate well to other employees as well as internal and external clients (Bianchi & Arnold, 2014) . 

Home Depot’s Culture 

The corporate culture in this organization is emphasized along teamwork and respect for all. Home Depot works very hard towards ensuring that everyone in the organization as well as the customers feel respected all the time (The Home Depot, n.d). The business respects and values all their customers all the time. They believe that customers are the most critical stakeholders in the overall business because they are the core consumers (Bianchi & Arnold, 2014). The company also give equal opportunities for growth and development to its employees. According to Home Depot values, the company believes that everyone has a value irrespective of the gender, age, educational background and ethnic background (Bianchi & Arnold, 2014). A stable relationship with the community, associates and the customers makes one of the factors that make up the culture of this organization (The Home Depot, n.d). Under the leadership of the CEO Frank Blake, the company maintains its culture and hopes to keep its values strong all through (Bianchi & Arnold, 2014). 

Lowe’s Home Improvement also has its own culture that guides the management and the employees. In most cases, the culture of Lowe’s Home Improvement is derived from its vision, mission and core values. The purpose of Lowe's Home is to remain what it has been for the last 50 years (Gagné, 2012) . The vision of Lowe is to be the best and the customer’s choice for home improvement in all the markets they serve, providing valued solutions to customers through products and services and the best prices (Lowes.com, 2007). 

Corporate Culture at Lowe’s 

Organizational corporate culture ensures that the organization meets the organization requirements for any candidate seeking employment. This culture determines if the company is hiring specific candidates or not. When an individual is evaluating which organization to search a job, the corporate culture is one of the factors, which dictates if the applicant can fit what the organizational demands or not (Gagné, 2012). The corporate culture at Lowe’s is not exposed to the outside researchers as it may be used by competitors to outshine them it a secret that they use to ensure that they only hire the qualified persons and they run the internal processes successfully (Gagné, 2012). However, from a critical point of view, it can be realized that the corporate culture of Lowe’s depends on inclusion and diversity. However, the corporate culture for Home Depot is readily available for the outside persons. 

Benefit Packages 

Both organizations offer some benefit packages for its employees. Most of these benefits are unique. 

Lowe’s Benefit Packages 

The benefit package in this company is the leading selling point. For full-time workers, the benefits include life insurance package, health insurance Plans and lastly a 401k plan (Gagné, 2012) . The company also has an open retirement plan for the retiring employees. This plan ensures that even after an employee has retired, the process is transitional is comfortable for them. These plans are offered at the lowest prices ever offered globally. The company matches 4 percent out of the 6% taken out of the employees check weekly (Gagné, 2012) . This is typically for any employee who wishes to purchase the shares of the company to be the stakeholder. In the case of part-time employees, they are offered with a variety of plans, which includes a limited health insurance plan, term life assurance, dental insurance and short-term disability insurance plan (Gagné, 2012) . In addition, the company offers a discounted automobile purchase plans assimilation with Ford and GM companies. Lowe’s also provides some corporate rewards such as laundry and dry-cleaning services, cafeteria, health fairs and onsite shower services ( Lowes.com , 2007). 

Home Depot Benefits 

The plans offered by this company are among the top benefits in the field of home equipment companies. Home Depot has all the services that are offered by their competitor Lowes. The employees in this institution can retire comfortably and benefit from 401k plans and Employee Stock Purchase plans. The company provides 15 percent as a discount to any employee who purchases the shares and stocks (Gagné, 2012). These services are offered for the full-time employees only. They are offered these services starting from the time they are recruited in the company. They also get medical services like the dental insurance and medical insurance in full package (The Home Depot, n.d). For the sake of part-time workers in the organization, lite packages of insurance are available for them. Just like Lowes, the company also offers relocation assistance for those employees who decide to relocate and stay near the organization (Homedepot.com, 2007). 

Both companies have almost similar benefit packages. In my opinion, some disparities make Lowes better than Home Depot in this case. There is an extra discount on the employee discount purchase at Lowes. This gives employees some more morale and motivation. Also at Lowes, the employees are given an additional advantage, if they purchase an automobile from either Ford Company or GM, they are offered a discount, and this motivates the workers mostly. This is an initiative that is not present in Home Depot (Price, 2015). 

Customer Involvement & Shareholders’ Services 

Both Home Depot and Lowe's Home Improvement offer a Direct Stock Purchase Plan (DSPP). Both of the companies have a Dividend Reinforcement system that they use alongside the Direct Stock Purchase Plan. Lowes has been paying its quarterly dividends since the year 1961 (Price, 2015). Both companies offer their DSPP online, with mobile phones and electronic mails, this makes the external and internal investors utilize the opportunities efficiently,(Price, 2015). However, the packages differ regarding the minimum amount paid by the new investors. For the case of Home Depot, minimum amount is $ 500 while for Lowe the minimum amount is $250. However, in both the companies, the DSPP is almost similar. 

Customer and Employee Opinions and Attitudes 

When an individual is soliciting for a form of employment, he must perform a preview. This form of the preview is aimed at evaluating the present or the past employees about the policies and the working environment of that particular organization. The opinions gathered are considered at both employee level and corporate level. The management of both companies is supposed to set a conducive tone for the employees to gain the relevant opinions ( Becker-Olsen, Cudmore & Hill, 2016). When determining whether the company is upholding what it says in its mission and vision, the research should be done by, evaluating the employees at all levels ( Becker-Olsen, Cudmore & Hill, 2016). 

Lowe’s Customer Views 

The store employees at Lowes are having issues with the customers. One of the problems is that the employee can assure the customer in the presence of an item at the store, upon arrival the product was missing. Several customers have complained about this issue. One customer experienced this problem more than four times, regardless of all these tribulations; the management did not make any effort to sort the customer’s grievances ( Becker-Olsen, Cudmore & Hill, 2016). The reports from the victims of circumstances say that most of these employees at the store are unknowledgeable; they are not ready to help the clients in case of such inconveniences. The stores at Lowe's have been installed with several “Help” buttons that are used by customers in cases they need any immediate help; the switches are connected with speakers to alert to the employees that help is required at a certain point ( Becker-Olsen, Cudmore & Hill, 2016). Although this installation is aimed to aid the customers with immediate help, it has come out that the employees do not respect this system; they are too sluggish to attend to this alert. Most of the customers have now turned to the competitor company, which is Home Depot company for convenient services. 

Employee Sentiments on Lowe’s Company 

Gathering the feedback from the employees at Lowe's resulted in a mixture of reactions. Employees working with Lowe's are enjoying what they get from the employer. The employer has provided the best working conditions and the best incentives for the workers. The corporate behavior, in this case, emphasizes on teamwork and respect for all. Employees are treated equally and are given equal chances for growth ( Becker-Olsen, Cudmore & Hill, 2016) . Some employees said that the change of management at the stores was so frequent hence; they had to experience worst cases in terms of employee management from the new administration. At the corporate level, most of the employees had positive feedback about Lowe's. Many described the place as very conducive, and nobody works beyond 5 pm. 

Organizational Diversity 

Both Home Depot and Lowe's enjoy the global market dominance. Both companies have realized that maintaining a particular organizational behavior and diversification of the business is the key to the all-around success. Both companies have developed many initiatives that encourage diversification and offering employment opportunities for the less fortunate persons in the community. 

Lowe’s Home Improvement believes that for the consistent success of the organization, it must maintain its organizational behavior through diversity. As a result, the customers will be more satisfied as the employees will enjoy working in such an organization. The organization is also considered the community through with they operate from; the company maintains good relationships with the community collaborates (Cho & Perry, 2011) . There is also sufficient diversity among the workers and suppliers; there is also quality assurance in such departments as the HR, market and research departments (Cho & Perry, 2011) . 

Being the diversified employer, Lowe’s Home Improvement does not discriminate candidates while hiring. They hire a diversity of employees of all races, tribes, colors, genders, origins, religions and other characteristics formulated under the federal laws (Cho & Perry, 2011) . The company believes in inclusivity programs. That is why the company has set the equal employment opportunities through initiatives like the annual Gallup. In this case, employee survey programs, which is aimed at the searching of the talented employees, other applications, include open door policy; complain line for workers and employee publication (Cho & Perry, 2011) . The company also hires managers who are well trained and educated in diverse educational fields to ensure that they adequately manage the organization (Lowes.com, 2007). 

Currently, the association has multi-cultural marketing strategies. Through this innovative and creative plan, the company has been able to target the most significant multicultural market for its products. To emphasize on real-life diversity, the company has come with the initiative that allows minority suppliers to be given priority in supplying the products; the company maintains a healthy business relationship with female-owned businesses (MWBEs) (Cho & Perry, 2011). 

Home Depot also focuses on diversity as a tool for business success. The company believes that difference is part of the organizational behavior that the organization must embrace. The organization has collaborated with non-governmental organizations and other agencies. The partnerships allow the organization to reach out to the communities that they operate from; through this kind of diversity, the company can tap qualified persons with diverse educational backgrounds for employment (Cho & Perry, 2011) . 

Home Depot has participated in many programs that are aimed to achieve diversity of production. One of the initiatives include Diversity through Culture. This is an initiative that was created in 2001 (Cho & Perry, 2011) . The purpose of this program was to encourage the workers to share cultural and behavioral experiences when at the stores. The result of it was aimed at educating employees about different employee cultures and promoting positive working vibes within the stores (Cho & Perry, 2011) . The company also provides diverse cultural events throughout the year. 

The other diversity initiative is the Home Depot Inclusion Council. This program looks clearly at how diversity affects the company's productivity and customer satisfaction in general. The committee is mandated to examine the processes of the organization and the relevant effects to the outside world. Then the commission recommends the best practices and procedures to adopt for the business. The Home Depot also aims at creating a diverse relationship with other organizations, which support the different cultures in the industry (Homedepot.com, 2007). The company also produces the same relationship with suppliers to diversify the operational approaches. 

Home Depot Client Thoughts 

Citizens in the state have concluded that they are trying hard to seclude Home Depot from the community. Many people have protested in some countries seeking to bar the company from building more stores in their locality. The reason behind the fight is that if the company is allowed to expand more in their regions, it will dominate and finally kill the small-scale retailers in the area ( Ramlall, 2014). For instance, some small organizations like Handy Stores and True Values have collapsed and disappeared entirely due to the expansion of Home Depot ( Ramlall, 2014). There have been many demonstrations by people in North Carolina and Burlington. For instance, the people of Burlington did not want the establishment of this organization in the area; in fact, they do not need it entirely. The Home Depot was using its competitive advantage to establish a sore in the area; this led to the relocation of a church and several other homes. 

Employee Opinions 

Through the survey and feedback received from the employees at Home Depot, it can be generalized that almost all the employees are enjoying their stay and working with Home Depot. Some individuals feel the negativity in working with Home Depot, but the percentage is virtually negligible (Cho & Perry, 2011). The workers at the store level report that there is maximum cooperation between the sores and the central offices at the corporate level. The employees described the corporate culture as conducive and considerate of all the individuals ( Ramlall, 2014). 

Support, Encourage, and Reward 

Both companies have strategies for support management and reward for the employees and customers. Comfort for workers is the activity that begins when the company provides the necessary training for employees. Home Depot and Lowe’s Home Improvement have invested a lot in ensuring that there is significant development among employees. The departmental supervisors are also trained on how to link with the junior employees and other team members ( Ramlall, 2014) . The supervisors are also trained on how to conduct conflict resolution initiatives through sound decision-making processes. In both companies, the team members help one another (Price, 2015). In case there is a new member, they support that individual to learn the working basics and adapt as fast as possible. Each employee is allowed to exhibit his skills while working with both of the companies. The supervisors then are allowed to recognize the best employee and reward him accordingly ( Ramlall, 2014) . Each employee is encouraged to solve any problem that may arise while conversing with the customers. 

Conclusion 

Through the research, the Home Depot and Lowe’s Home Improvement companies have depicted success in their business. The two companies have a similar organizational behavioral with little disparity. This factor is making them the leading producers and merchandisers globally. However, the best-recommended company to focus the future in is Home Depot. The two companies are the leading in the employee retaining and stability. They work carefully to ensure that the products they supply are of high quality. The customers are satisfied with what they get. Being a multinational business makes the companies strive well in the competitive markets. Secondly, the companies are leading when it comes to benefit packages for their employees. The benefit packages are almost similar in the two corporations. However, Home Depot has an excellent retirement plan with the inclusion of 401k plan and employee stock purchase; these features are better than what Lowe’s has. The companies also incorporate the community through some development plans, which helps the communities they operate from. The employees are also granted initiatives that help them to grow in career. In both companies, they believe in the maintenance of a particular behavior and culture as the keys to success. Home Depot should invest in stocks. The company has been outshining Lowe’s with its excellent return on investments. Home Depot also has lower risks as compared to Lowe’s. In both companies, the team working aspect has been depicted as a powerful tool for any successful company. Any other organization that need to be operating successfully must work like the two companies. 

References 

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