Nucor corporation is a large company in the united states that majors in steel production as the research study indicates that is one of the largest steel manufacturing industries if not the largest in the united states with a capacity of production of about 17 tons. It is the largest recycler of any substance and it recycling rate is very high compared to other steel producing industries in the region. It produces one ton of recycled material in a minimal duration of two seconds. Nucor Corporation made it during the world recession period in 1966, fought against insolvency due to bankruptcy later emerged as the fastest growing steel industry in the world (Arthur, Strickland & John, 2010).
Steel industry in the world is very dynamic as it has been characterised wild mass changes as the level of technology improves throughout the world. The trends are such serious that the companies currently produce the highest number of steel products may not be among the top in the future competition is very high and each company is looking for better ways of mass production. Some companies have also merged in order to increase their production capacity; acquisition of firms by larger ones has also been evident in this sector. The changing trends of steel industries have contributed to the shift from labour intensive industries to capital intensive.
The steel industries in the United States have experienced technological competition as the new firms in the market had an advantage of newer technology. The fact that some governments were subsidizing their steel industry also had an effect on steel producers in the United States as the cheap imports almost made the firms to collapse. The threat of lower imports has reduced demand levels for steel and thus the company should consider how to deal with this scenario (Hill & Gareth, 2007).
Structure of Nucor Corporation
The structure of organisation of Nucor Corporation is simple decentralized and streamlined such that it constitute of very few personnel in the management level, recruitment process is such that it does not look only in the qualification and skill acquired by an individual but also looks into the willingness of the employee to perform. This helps to recruit the right people in the organisation who can communicate effectively and coordinate well with others toward meeting the organisation goals and objectives.
Nucor Corporation did motivate the employees through fair compensation the rewards were relatively higher than those offered by the other competitive industries. Nucor corporation incentive plan not only did it encourage workers to perform it also brought about inter-plants competition which resulted to greater levels of working together as groups and not individuals (Dess, Lumpkin & Eisner, 2009).
The success of Nucor Corporation is attributed to the eleven thousand employees, there are four levels in the management starting from the head which consist of the general managers who are in mandate for overall management, and the second level is the head of departments followed by the third level which consist of supervisors who are responsible for supervision of the lowest and fourth level of the corporation which is the general employees. The company’s reward scheme is such that the lower level employees benefit much from the rewards compared to higher level employees, this encouraged strong company performance. Nucor Corporation advocated for effective communication and use of appropriate technology for better results and ensures workers safety. The employee principles are four and are; Management should rule in such a way that employees should earn according to their efforts, employees should be confident of job security, right to be treated equally and fairly, employees should have an avenue to table their grievances.
The strategies laid down by the company require management and team work of human resource from the top management level to the lower employee levels. Thus human resource management is essential in a company eager to get good results, in Nucor Corporation there some human resource issues that need to be improved such as the inter plant competition, decentralisation of management and division of labor. Inter plant or departmental competition have created a scenario of duplication of marketing agents and sales persons since they compete for the same customers this generally is like reducing the number of employees and it generally increases the cost of running the company (Arthur, Strickland & John, 2010). Decentralisation of power and authority has negative impact on the company as there is no room for long term strategy objectives as each department is trying to outsource the other at the expense of the long term organisation goals. The Corporation rather should work as a group and be able to meet long-term organisational goals as a team, decentralisation of management should note hinder growth it should be a way that it creates room for collective decision making.
Diversity of the corporation is inevitable in terms of production, technology and management in order to meet with the high completion from cheaper products, increased demand, environmental issues and maintenance of profits. The corporate managers should improve their functional skills to merge with the improved technology.Nucor corporation also should diversify its products rather than the sole steel production. This is because of ‘cyclical market’ in the United States. The corporation mission which is ‘taking care of our customers’ should be achieved nevertheless (Joseph, Peggy & Jeff, 2002).
In conclusion Nucor Company should consider acquisition of other companies producing steel this would reduce competition and increase benefits to the firm. The Corporation should also adapt and conform to the latest technological advancements this will enhance cost effectiveness and help the management to cope with competition.
Reference list
Arthur, A. T., Strickland, A. J. & John, G. E. (2010). Crafting and executing strategy: The quest for competitive advantage. New York: McGraw-Hill-Irwin.
Dess, G., Lumpkin, T. & Eisner, A. (2009). Strategic management cases. New York: McGraw-Hill.
Hill, C. & Gareth, J. (2007). Strategic management: An integrated approach. New York: Houghton Mifflin Company.
Joseph, P., Peggy, G. A. & Jeff, B. (2002). Vertical Integration and Economic Performance: A Managerial Capability Framework. USA: University Press of America.