Hendry picked the third-base coach known as "Q" over bench coach Alan Trammell, because Trammell apparently is not a candidate for the job next season.
"Alan's a tremendous human being, quality person, outstanding coach," Hendry said Sunday. "I spoke to Alan this morning and basically told Alan over the last few weeks, I've made a decision in the process moving forward that Alan would not be considered for the managerial job after this year.
"I had a very great conversation with him this morning, he understood that," Hendry said. "He has a close relationship with Mike, and he's happy for Mike and wants to stay, and Mike had no problem with that. He's a tremendously classy man.
"The decision I made was based on, if [Trammell] wasn't going to be the manager next year that we would be better served for him to not be the manager for the remainder of the season," Hendry said.
Quade, 53, a Chicago native, who has managed in the Minor Leagues for 17 seasons, has spent the last four on Piniella's coaching staff.
"It's probably not the way you envisioned it," Quade said about his first big league gig.
"First and foremost, I should thank Lou, because without him, my life is in a whole different place," Quade said. "His emotional sendoff, other than my mom's, was unbelievable."
Piniella met with the coaching staff prior to Sunday's game to tell them he was going to retire early to go home and be with his mother, who is ill.
"I'm proud to be a part of this," Quade said of the Cubs. "We'll work hard to do a good job and finish up these six weeks and see where it takes us."
There has been speculation that Triple-A Iowa manager Ryne Sandberg is the front-runner to take over for Piniella next season. The Iowa Cubs are in first place in their division.
"I don't have a front-runner and haven't had a front-runner," Hendry said. "I've said from the day Lou announced his retirement [on July 20] that I would take a long, extensive time to do what I thought was best for the organization in the future.
"It's a very important decision," Hendry said of the next Cubs manager, which will be his third hire, following Dusty Baker and Piniella. "There has never been a leading candidate and there isn't one as I sit here today in the month of August."
Hendry said Quade deserved the opportunity to manage the team for the remaining five weeks or so and will "be a strong candidate for the future."
"To label anyone as the favorite would be absolutely foolish," Hendry said.
Quade was the Iowa Cubs' manager from 2003-06.
"He's been a baseball guy his whole life, he grew up here," Hendry said. "He was an outstanding player in college, played a lot of Minor League baseball. A career lifer, paid his dues, coached in the Minor Leagues for a long time. ... We were thrilled to have him when he took over the Triple-A job when Oneri [Fleita] hired him.
"He's always been a tremendously respected guy -- up front, honest, hard working, played the game the right way, did the right thing," Hendry said. "As always, he's commanded a lot of respect from the players."
The Cubs will add one of their roving instructors to the coaching staff Monday in Washington when they open a three-game series against the Nationals.
Quade called his parents Sunday morning with the news.
"I'm also curious to see if people will pronounce my name right," he said, jokingly.
He appreciated the opportunity.
"If I started thanking people, it would be a bad Academy Awards speech," he said. "This staff, and Lou has said it a number of times, I'm proud to be a part of it and I will lean on them so heavily, it's unbelievable. I think that will make it easier."