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Nucor Corporation Case Study

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Nucor Corporation Case Study

Objectives and goals at Nucor relate to the planning face of the P-O-L-C framework

because they give a clear plan in both the vision and mission. They also offer clarity as to how

they are going to use strategy to get company at the top. The goals of Nucor align with the

employee’s objectives and give them real power to act. Besides, employees act like owners of

the company and have the mandate or real power to fix different aspects which are wrong. The

aims of Nucor relate to the planning face of the P-O-L-C framework because during 2009, when

the company suffered loss, it did not lay off its employees. Moreover, employees do not work

overtime but volunteer to do it. The management listens to lower level employees and strategizes

to routinely put their new ideas into practice. Ultimately, Nucor’s reward system evaluates and

encourage employees to work even harder at their duties.

Tying pay to company performance might yield negative consequences at Nucor

Corporation. Informing more than one employee that they have the mandate or authority over a

certain aspect or field could lead to a certain group of employees not successfully working in

unity hence lack of productivity, innovation and creativity. According to Sitzmann & Weinhardt,

(2018) the notion of an employee getting the opportunity to earn more money if the company is

doing well could lead to an unimaginable amount or limit of how much one can make. The

employees will perform poorly than their friends in other mills. As such, it would create

unfairness between bad and good employees. Employees should be paid based on their

performance and not just how the company is performing. The company goals must be aligned

with the employees’ goals.

The corporations reward system is unique and employees are paid highly based on their

performance. Similarly, the same concept applies across all levels of the Corporation. Penalizing
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low performers will make them loose their bonus for the day, week or entire month. The

employees will be discouraged, lose morale and commitment to the company or envy the high

performers. Others will even quit their jobs, hate the company or plan evil schemes to get their

revenge (Ogunsiji & Ladanu, 2017). Treating employees with dignity, respect and encouraging

them to perform better at their workplace boosts their morale and input. In essence, the company

and Nucor employees will either perform poorly or increase their commitment to the company.

Employees are motivated to increase productivity using various ways. Treating workers

with respect, dignity and care enables them to feel better at the workplace. Empowering

employees encourages them to take charge in their duties. For instance, the company ensure

employees have the power to make things happen and do not get fired or penalized when the

business is not performing at its peak (Williams et al., (2018). Such aspects make the employees

committed to ensure that the company is back on track. Nucor is famous for its decentralized

structure and for pushing authority and responsibility down to lower levels in the hierarchy.

Giving employees the power to control different aspects of the company and production is the

best way to motivate them.

The different reward systems at Nucor motivate people differently. Employees feel

motivated differently because each person loves to be appreciated and awarded for their input or

contribution at the workplace. It encourages them to move forward by getting recognized for

doing different aspects (Collings & Cascio, 2019). Apparently, Nucor Corporation are the

highest earning employees across the globe. In 2005, an average employee earned $79,000 plus a

$2,000 bonus and $18,000 profit share. Individual empowerment and economic incentives

motivate employees differently because they are human beings who love it when they are

awarded at the workplace.

Lastly, unionization at Nucor would impact the organization’s dynamic differently.

Apparently, the company has low employee turnover rates and lacks unions in a manufacturing

environment. The employee’s interests are skewed and causes much distraction in their interests

and alignment with the company’s goals. Unionization would impact the company’s dynamics

positively by creating perfect management, an aspect that would ensure employees know who is

in charge in the large work environment of about 20,000 team mates committed to take care of

their clients. By protecting the employees’ benefits and rights, the company has achieved profits,

and loyalty from both its customers and employees.

References

Collings, D. G., Mellahi, K., & Cascio, W. F. (2019). Global talent management and

performance in multinational enterprises: A multilevel perspective. Journal of management,

45(2), 540- 566.

Williams Jr, R. I., Pieper, T. M., Kellermanns, F. W., & Astrachan, J. H. (2018). Family firm

goals and their effects on strategy, family and organization behavior: A review and research

agenda. International Journal of Management Reviews, 20, S63-S82.

Ogunsiji, A. S., & Ladanu, W. K. (2017). A theoretical study of performance measures in the

strategic and corporate entrepreneurship of firms. International Journal of Life Sciences

(IJLS), 1(1), 49-57.

Sitzmann, T., & Weinhardt, J. M. (2018). Training engagement theory: A multilevel perspective

on the effectiveness of work-related training. Journal of Management, 44(2), 732-756.

Van Zanten, J. A., & Van Tulder, R. (2018). Multinational enterprises and the Sustainable

Development Goals: An institutional approach to corporate engagement. Journal of

International Business Policy, 1(3), 208-233.