Nobody downloaded yet

Innovation, Change and Motivation at Nucor Corporation - Essay Example

Comments (0) Cite this document
The organizational culture of Nucor Corporation is a devolved management system where rewards are based on performance. The organization attempts to achieve wage parity, embrace technology leadership, and foster effective customer care. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Innovation, Change and Motivation at Nucor Corporation
Read TextPreview

Extract of sample "Innovation, Change and Motivation at Nucor Corporation"

Download file to see previous pages Apart from these cultural values, none of the company’s employees is unionized. Nucor does not approve of unions, as it believes the culture is counterproductive, especially where building of a strong workforce whose objective is to serve the steel company’s interests is concerned. Nonetheless, the employees remain committed to quality of service and lay-offs are minimal. (a) Devolved Management system Nucor is heavily devolved in its operations, a culture that enables the employees to be innovative in their work and develop a feeling that they are owner-operators. In light of this, the company encourages most of the decisions about the business operations to be made at the lower level. In addition, Nucor’s claim that only 65 employees work at the headquarters is quite telling about the company’s lean culture. (b) Performance-driven rewards Nucor has established general rules of compensation which apply to all employees. The policies provide for a uniform compensation for individual employees who meet particular incentive-specific objectives. Apart from these common bonus plans, Nucor Corporation has periodically awarded extraordinary rewards to all employees, in the financial years when the company has made the highest amounts of profits. For instance, the company’s record sales of $23.6 billion in 2008, which was up from $4.6 billion in 2000 trickled down to the employees’ pockets, with the Chief Executive earning a whopping $ 5.24 million (Ivancevich, Konopaske, & Matteson, 2007). The uniform treatment of employees has tremendously reduced the gaps between the earnings of senior executives and lower ranking employees. (c) Egalitarian perks The company’s senior executives are not guaranteed traditional high bonuses such as company cars, executive parking slots or executive dining rooms (Ivancevich, Konopaske, & Matteson, 2007). Additionally, the publication of all the names of the company’s employees at the back of Nucor’s annual reports is a clear indication of the company’s egalitarian culture and inclusiveness of the decision-making processes. This is also a sign that the company values all of the employees, irrespective of their position within the organization. (d) Effective customer service Although, the text rarely mentions sound customer service at Nucor, it can be inferred. Effective customer service and quality can be explained by the simplicity and courtesy, which the Chief Executive cultivates. The culture of inclusivity, teamwork and appreciation of every person’s effort is a clear indication that all the stakeholders in the company are assured of respect and recognition. (e) Technology-driven culture Nucor Corporation is undeniably banking on the technological edge in its production of steel products. The process of using electric arc furnaces to liquefy scrap metal is the first of its kind in the twenty-first century (Ivancevich, Konopaske, & Matteson, 2007). Currently, Nucor’s association with two multinational steel companies in the running of the Crawfordsville facility, which specializes in the manufacture of sheet of steel from liquefied steel without necessarily deploying heavy, costly, and energy-inefficient rollers, is in itself a technological breakthrough that many steel companies have not yet adopted. Question # 2 Nucor has maintained the gap between executive pay and that of lower-ranking employees to the bare minimum as compared to other American companies. Since 1980s, the level of growth recorded by companies has been growing at almost the same pace as that of executive compensation (Ivancevich, Konopaske, & Matteson, 2007). Globalization makes highly performing executives more likely to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Innovation, Change and Motivation at Nucor Corporation Essay”, n.d.)
Innovation, Change and Motivation at Nucor Corporation Essay. Retrieved from
(Innovation, Change and Motivation at Nucor Corporation Essay)
Innovation, Change and Motivation at Nucor Corporation Essay.
“Innovation, Change and Motivation at Nucor Corporation Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Innovation, Change and Motivation at Nucor Corporation

Cycle of Knowledge Management

...and Chuang, 2011, p.687-688). Again in another company Nucor Steel it is found that shifting of the organisational culture to include reward systems based on generation of financial incentives motivated the employees to work in a more productive fashion. These people thus endeavoured to gain more amount of knowledge resources to help develop their skills and efficiency so as to perform in a more productive and efficient manner in the concern and thereby gain recognition. Reward culture within the organisation can also be viewed in regards to the case studies of Samsung Life Insurance Company which worked in designing a knowledge web portal in the concern. The employees were encouraged to log in their...
14 Pages(3500 words)Assignment

Innovation and change

...? Innovation and Change Innovation and Change Unlike product innovation, the concept of service innovationis normally an intricate matter that presents businesspeople with myriad challenges in its development. In the context of service innovation, customers are normally seen to demand better services in life. However, the major challenge arises out of the fact that these consumers cannot specifically define the kind of service they expect to receive. It is often realized that people seek to achieve much satisfaction without a clear sense of knowledge on such satisfaction. It therefore creates a challenge for businesspeople to seek ways...
3 Pages(750 words)Essay

Innovation & Change

...sources are much influential than internal ones in change initiation. These external forces can be political, economic, social and technological. Talking about change specifically from the perspective of healthcare organizations, Harris (2005, p. 68-71) stated that government and other policy making authorities affect healthcare practices in a country; country’s GDP and government budget for health impacts cost of health; people’s perception and general culture of a country affects healthcare provision; and changes in ‘global technological and information innovation’ affect ‘clinical diagnosis and intervention, as well as management and communication strategies’...
16 Pages(4000 words)Essay

NUCOR Corporation Case Analysis

...? Analysis of Nucor Corporation and recommendations to Dan DiMicco, CEO. Introduction In the contemporary environment of global recession and highly competitive business dynamics, Nucor Corporation faces huge challenges from myriad quarters. The escalating cost of raw material and low cost production of steel in emerging economy like China are major factors that are adversely impacting US steel producers in general. But Nucar, based in Charlotte, North Carolina has been able to maintain its leadership position in domestic steel market. The lean production strategy of Nucor has been one of the major elements of its success. Its flexibility to approach and...
3 Pages(750 words)Case Study

Nucor Corporation

...customers and will fight for a control on the market share (Nilsson & Rapp, 2005). The fight for market share is a zero sum game where if one firm increases its market share then the others will lose their share. In the US industry, there is threat of entry of very new firms or formation of partnership, alliances, or mergers that will make the competition stiffer. Nucor Corporation has therefore increased its acquisition of new firms and reduced the bureaucracy to ensure flexibility and better performance. The industry is thus highly competitive. The bargaining power of suppliers also exists in the industry because of the many firms in the industry. In this industry, firms have to look for scrap metals...
4 Pages(1000 words)Essay

Nucor Corporation

...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...
3 Pages(750 words)Case Study

BUSINESS RISK, INNOVATION & CHANGE : Introducing Expert Systems at a Corporation

...? Business Risk, Innovation & Change: Introducing Expert Systems at a Corporation and The Expert System (ES) technology has shifted from the previous research laboratory to application in the workplace as can be seen from intense implementation and positive trend in ES utilization. ES is used in work environment and as such, the end user must be prepared to face implementation challenges of the new technology. Bailey Charles (1992) recognizes the ES system as one that assists end users in making diagnosis, scheduling, designing and planning processes and activities. Nevertheless, to take advantage of the benefits and avoid the prevalent pitfalls, the end user is required to understand...
4 Pages(1000 words)Case Study

Nucor Corporation

...Running Head MBA Case - Nucor Corporation MBA Case - Nucor Corporation Nucor is one of the leading steel companies operating in the USA and Canada. The driving force behind world economic growth has changed from manufacturing volume to improving high quality. As a result, the key success factor for many firms including Nucor is maximizing high quality. Rather than price, quality has become the dominant influence on customers' perceptions of value (Nucor Corporation 2008). Thus, strategy refers to the means a firm uses to reach its ends. Fundamental to every firm's mission and competitive...
8 Pages(2000 words)Case Study

Innovation & Change

...Innovation and ChangeInnovation is the introduction of something new; a new idea, method or device” (Innovation - What Is Innovation?). Many people misinterpret innovations and discoveries as same things. The word “discovery” is associated with the things which already existed in the world whereas innovation is entirely new things. Innovation is something which did not exist in the world till that time. For example Columbus discovered America. It is wrong to say that Columbus innovated or invented America since the American continent was already there from the beginning of earth itself...
4 Pages(1000 words)Essay

Innovation & Change

...Innovation and Change Introduction The of innovation is an essential factor in the progress that can be made in various companies and organizations and thus cannot be ignored when dealing with the growth of a business. The various implementations that are applied to achieve a particular objective can be seen as types of innovation and this brings out the relationship between change and the element of innovation when striving to bring about positive changes to a company. When looking at innovation from what can be termed as an organizational aspect, it can be seen as the differences that bring about a...
5 Pages(1250 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Innovation, Change and Motivation at Nucor Corporation for FREE!

Contact Us