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Nucor Corporation - Case Study Example

It will also discuss the organizational structure and management policy at Nucor Corporation. It will identify three HRM issues related to the strategy implementation at Nucor Corporation and recommend actions to address these issues. Fourthly, it will suggest if a related or unrelated diversification must be applied by the company. Finally, it will identify the organizational structure issues that Nucor needs to address to implement this diversification. Trends in the Steel Industry, and How They May Impact Nucor’s Strategy The steel industry appears to have stabilized, but several rising trends threaten to bring further disruption to both minimills and its integrated firms (Thompson & Strickland, 2010). Some of the trends include minimill overcapacity, scrap prices, euro productions and antidumping rulings. With regards to minimill overcapacity, in the early 90’s, Nucor Corporation was the only company able to produce flat-rolled steel with the use of minimill technology. In the recent days, many steel companies have ventured into this technology putting more competition to the Nucor Corporation that has led to a decrease of their annual sales. In scrap prices, because of the increased demand for scrap metals, its prices have grown to be highly unstable (Thompson & Strickland, 2010). ...
This also meant that the sales of Nucor Corporation went down. Organizational Structure and Management Philosophy of Nucor Nucor’s management has a decentralized structure (Thompson & Strickland, 2010).

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It has only four management levels as shown below. Chairman / Vice Chairman / President Vice President / Plant General Manager Department Manager Supervisor / Professional Its management philosophy is founded on a strict culture that can be summarized into five key areas. They include the decentralized management philosophy, democratic benefits, performance based compensation, quality, and technological leadership as well as customer service. Nucor is extremely decentralized in its functions. There are only four managerial stages at Nucor. A majority of the company’s decisions are made at the division level. In addition, Nucor declared that its corporate office staff members were around 75 workers. This was possibly the smallest number of corporate office workers among any major company. HRM Issues Related To Strategy Implementation and Recommend Actions to Address These Issues Some of the HRM issues that are related to strategy implementation are: poor coordination within a company’s management, a case where the employees are not buying into the strategy of the company and inadequate changes within the work unit. Poor coordination within management could be brought about by inappropriate goals, policies or strategies among the executives (Achtmeyer, 2005). A scenario, which the employees are not buying into the strategy of the management, could arise from a case where the employees do not understand the plans of the company. The company should look to unify all goals of its executives and create
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Nucor Corporation Date: Introduction Nucor Corporation refers to a steel production company in the United States (Boyd & Gove, 2000). Its headquarters are located in Charlotte, North Carolina. The company claims to be one of the largest of the minimill machinists…
Nucor Corporation
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