Nucor case study employee motivation

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Evidence says that the unrealistic depreciation schedules, high corporate taxes, excessive regulation and jaw-boning for lower steel prices have make it difficult for the U.

Although Nucor pays lower than average, it facilitates its workers with large-scale bonuses and profit sharing. One of the reasons of the growth rate of U.

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Some of the challenges are described below: They buy their raw material, which is steel, in bulk. If you take a typical organization chart, it is the typical pyramid. But later, that expensive plant was deemed unsuccessful and closed. Nucor follows the most decentralized management strategy in each of its plants.

However, none of these specifically provide an approach or method of motivating employees.

Nucor Case Study

S firm were not able to do so. How does Nucor's approach to motivation build on recommendations from Maslow's, Alderfer's, and McClelland's need theories? S companies failed to do the things necessary to be competitive on cost and price.

High labor and energy cost: The strategy of using scrap from open market purchases meant that Nucor could keep its processes small, introduce the latest technology, keep cost low and meet the needs of tis customers.

By rewarding productivity rather than job title or higher-level degrees, organizations are able to empower every employee to work as hard as he or she possibly can.

They are self-directed and committed to the company. By reducing the cost of key resource inputs, the companies can reduce their overall cost and earn profit. The bonuses were paid only for work that met quality standards and were specific to work groups, rather than individual output.

Nucor does both of these activities to reduce their cost and earn revenue. Risks and rewards alike are shared, and ultimately all stakeholders benefit. Thus they will be able to come out of the consequence of low cost provider strategy.

The article discusses the company's approach to shifting the balance of 'real' power away from the "C-suites" and placing it at the front-lines of production in order to "nurture one of the most dynamic and engaged workforces around".

It allows Nucor more time to watchfully define the target market and wait for a matured and proven thin-slab casting technology.

Study on Nucor Corp.

What role does equity theory play in this Case? So if Nucor acquire plants in foreign countries where there is demand for steel products than they will be able to sell more of their products and earn profit. Nucor was very innovative in steel and joists.

However, when the desired results are not met, employees receive less pay than they would in a similar role at another company p. The steel industries of U.

So to balance these high fixed costs and earn profit, they need to sell their products in bulk. Similarly, the salary structure for top management reflects the same performance-based philosophy and principles. The steel industry of U. But minimill technology was too unsophisticated to manufacture any more than a narrow range of low-value steel products- reinforcing rods, structural bolts, angle iron and fasteners.

In addition too their base salary Nucor case study employee motivation employees were paid weekly production bonus based on their total output. Also it is fair to assume that one theory is not better than the other.

Why has Nucor performed so well? Benefits of vertical integration vs. The company has consciously developed a culture where the art of motivation is about an unblinking focus on the people on the front line of the business. Plant managers regularly set up contests for shifts to try to outdo one another on a set goal related to safety, efficiency or output.

So it was a big issue for the firm to sustain in the market. Two options are there through which the companies can make profit from the low cost strategy. What role does organizational culture play in this case? This implies that no job dissatisfaction exists there and even if exists it is very low.As I understand it, the main problem in this case is employees of Nucor do not feel they have balanced equity.

This is due to a performance based compensation model which allows for employees who put in more effort on the job to receive the same compensation as employees who do not put in as much effort simply because they are a part of the same team.

CASE OVERVIEW The case NUCOR: The Art of Motivation holistically describes how NUCOR is able to manage people, strategize its business and adapt to changing economy situation. In the case study, NUCOR is described as a company that runs business on 3 separate segments which are Raw Materials, Mill Operations and products developed out of steel.

Innovation, Change and Motivation at Nucor Corporation Student’s name Course/Number Date Instructor’s name Question #1 The organizational culture of Nucor Corporation is a devolved management system where rewards are based on performance. Nucor Case. NUCOR MEMORANDUM To: F - Nucor Case Nucor Case Study on Approach to Employee Motivation ; Nucor in ; Case Synopsis: A Steely Resolve The Case Study G20 Maketing Decision ; Rubbertech Case Study ; Nivea Case Study ; Robert Mondavi and the Wine Industry Case Analysis ; Nuclear Corporation of America Analysis.

Starting back as early as the ’s and early ’s Nuclear Corporation of America was involved in the nuclear instrument and electronic business - Nucor Case Study on Approach to Employee Motivation introduction.

After consecutive years of struggling financial performance, Nucor evaluated their management structure and decided it was time for a change in leadership. Nucor’s employee pay structure is another tangible and striking departure from typical management practice.

In terms of base salaries, the average Nucor steelworker makes $10 per hour, as opposed to $16 to $21 an hour for workers at comparable firms.

Nucor case study employee motivation
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