Nucor Corporation Case Essay

SummaryFor more than 20 days the Nucor Corporation has been one of the leading(a) manufacturers of steel and steel related products in the world. With their applied science advancement, low debt ratio, decentralized type of organization and many more, this union salvage thrives to achieve better goals in their order. Aside from the positive views of the company, it as well faced problems like bankruptcy. (te pakidagdagan n lng)HistoryNucor traced its origins to auto manufacturer interchange E. Olds, who founded Oldsmobile, and later, Reo Motor Cars. Through a series of transactions, the company eventually became the nuclear Corporation of America, a company involved in the nuclear promoter and electronics business. In 1972, the firm changed its name to Nucor Corporation. By 1998, it had become Americas second-largest steel maker.OperationsNucor related its diverse facilities in rural areas across the United States, establishing strong ties to its local communities and its work force. As a leading employer with the ability to pay top wages, it attracted hard-working, dedicated employees. These factors also allowed Nucor to select from among competing locales, siting its operations in states with tax structures that encouraged business growth and regulatory policies that promote the companys commitment to remaining union-free. By mid-2008, Nucor operated 53 facilities passim the United States and one in Point Lisas, Trinidad. The company also retained operations through wholly owned subsidiaries, Harris Steel and the David J. Joseph Company (DJJ). strategyNucors strategy focused on two major competencies building steel manufacturing facilities economically and operating them productively.Organization StructureCompared to the typical pile 500 company with 10 or more management layers, Nucors Structure was decentralized, with only if the quad managementlayers illustrated below Chairman / wickedness Chairman / PresidentVice President / intentt Ge neral autobus plane section ManagerSupervisorHuman Resource PoliciesEmployee relations at Nucor were based on four principles 1. Management is obligated to manage Nucor in such a way that employee will bemuse the opportunity to throw according to their productivity. 2. Employees should feel confident that if they do their jobs properly, they will move over a job tomorrow. 3. Employees have the right to be treated fairly.4. Employees must have an avenue of appeal when they believe they are being treated unfairly. earningsNucor provided employees with a feat-related compensation system. All employees were covered under one of four compensation plan, each featuring motivators for meeting specific goals and targets.1. Production Incentive jut out* employees directly involved in manufacturing were nonrecreational weekly aides based on actual output in relation to anticipated production tonnages produced. The bonuses were paid only for work that met the quality standards and were pegged to work group, rather than individual output. 2. Department Manager Incentive Plan* Department managers earned an annual incentive bonus based on the performance of the entire plan to which they belonged. The targeted performance criterion here was slip away on assets.3. Non-Production and Non-Department Manager Incentive Plan * All employees non in the Production Incentive Plan or Department ManagerIncentive Plan including accountants, engineers, secretaries, clerks, and receptionists received a bonus based primarily on each plants production on assets. It could total over 25% of an employees base salary.4. precedential Officers Incentive Plan* Included all corporate executives and plant familiar managers. A portion of pre-tax earnings was placed into a pool that was dual-lane among the officers. If Nucor did well, the officers bonuses, in the form of stock (about 60%) and cash (about 40%), could meter to several times their base salaries. If Nucor did poorly, an of ficers compensation was only base salary and, therefore, significantly below the average pay for this direct of responsibility.Information SystemsBenefitsNucor took an egalitarian approach toward employee benefits. Nucors benefit program also attested to the companys commitment to education.TechnologyNucor did not have a formal R&D department, a corporate technology group, or a chief technology officer. Instead, it relied on equipment suppliers and other companies to do the R&D, and they adopted the technological advancements they developed whether in steel or iron making, or in fabrication. Teams composed of mangers, engineers, and machine operators decided what technology to adopt.FutureThe companys biggest challenge (in the future) is to continue to grow the company at 15 20% per year, and to keep earnings parallel with its growth. compendNucor Corporation became one of the top corporations in the steel industry because of their handicraft and technology innovation. This com pany also sees and takes care of its employees needs, which in return gives thema quality service in their work.ConclusionNucor, even though we can see it as a successful, almost perfect company, still faces problems like other businesses in the industry.ProblemThe company has lost terzetto to one-half of its market value when the stock reached its peak value (mid-2008), and has not recovered as of 2012.RecommendationWe can recommend change in the companys technology, like getting more advance equipments in making steel and steel-related products. Or the company could make a nuclear fusion to other company to utilize its resources to its maximum while keeping hail low.