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Although the practice of Nucor and the appreciation of both managers and employees have revealed that this system seems to be working, the situation must be changed in order to increase and to maintain efficiency.
The company's motivational system is another area of interest in relation with HRM practices. This is because the company admits to not believing in a formal motivational system that would refer to formal rewards and punishments. The company's managers consider that a formal motivational system would be less efficient than the one implemented by Nucor. Also, employees probably feel more at ease with an informal system rather than with a formal one.
Another HRM issue is represented by the company's intention of creating an egalitarian culture within the company, and therefore increasing employee motivation. Although such an approach may seem like a good thing, on medium term and on long-term it may produce the opposite effects.
This is because employees may be more likely to satisfy average efficiency and productivity standards that most employees reach, rather than trying to reach higher levels of individual performance.
Related or Unrelated Diversification
Addressing a strategy...
Given the economic and financial crisis that is affecting all industry sectors and all geographical areas, and the situation of the steel industry, it would be more efficient to focus on related diversification for the moment.
Recommendations
In order to develop and implement a successful strategy at Nucor, the HRM problems must be solved. This is because the human resources represent the most important resource that the company can exploit.
For example, the company must develop job descriptions for each position. This can be achieved through the collaboration between HR people, managers, and employees. The implementation of job description is intended to increase productivity, and to protect both the company and its employees.
In addition to this, the company must develop and implement a formal motivational system. By having clear rewards, employees will be motivated to reach the established objectives. Also, employees must be aware of the punishments they could receive in case they do not reach these objectives. This is also helpful for potential employees that should have an idea regarding such aspects at the company.
Three human resources management tactics that can help to address these issues are the fostering of corporate culture, the integration of new companies and JVs and lastly the path of promotion in the company. The corporate culture is essential to the success of a company like Nucor, which must attract talented individuals from throughout the industry in order to maintain its leadership position. In addition, in an industry focused on
The second HRM issue is that of training. The steel industry being characterized by mature firms, often supported by government, can breed complacency. Nucor needs to ensure that management at its acquisitions and joint ventures has a high level of training in the systems and techniques that Nucor uses to drive its innovation. This training needs to be diffused throughout the organization. This increases risk, however, in the joint ventures
Given this situation, alongside with the other features and strengths of Nucor -- such as an efficient human resource policy, an efficient operational system, vast expertise or fruitful market strategies -- the advice to the investor is that of purchasing the shares in Nucor, as he will soon be presented with the ability to capitalize on his investment. 6. Recommendations Before actually making the recommendations, it is useful to mention that
This is a delicate balance for any organization to attain, and Nucor has been able to keep the variation in production process balanced with the need to keep employees motivated while changes in their business model are implemented. Based on your recommendation for related or unrelated diversification, identify the organizational structure issues that the company would need to address to implement that diversification. With related diversification the recommendation, organizational and structural
Business Study Nucor Steel Historical Performance Review vs. Goals The performance of Nucor Steel has been one of volatility in their earnings and demand for their products. Part of the reason of for this, is because of the sharp contraction in demand for steel (due to the server implosion in economic activity). At the same time, the traditional volatility of industry would cause the company's earnings to become even more unpredictable. A
However, there are changes in customer tastes, which influence steel demand. Moreover, the new technology is increasingly influencing the production of steel and many companies are gaining competitive edge using the latest technology in the steel manufacturing. Moreover, the cost cutting is another trends happening within the industry because organizations are increasingly source for high quality materials at lower costs to produce at low costs thereby offering the product