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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 low cost production, corporate culture is often a key driver of cost reductions (as at Wal-Mart, Southwest Airlines, Costco and other low cost providers). In order to implement a low cost strategy, the culture must support that strategy (Mindtools.com, 2010). The integration of new companies and joint ventures into the Nucor fold is partially a strategic issue, but it is one with many HRM applications, from integration of compensation policy to establishing company-wide training programs and the aforementioned cultural initiatives. This has worked in the past, such as tying up with BHP and IHI in the commercialization of Castrip (Campbell, et al., 2004). Human resources can play a strong supporting role in the development of organization-wide consistency despite the large number of subsidiaries and JV within the Nucor organizational structure. Lastly, human resources must ensure that talented people make their way into the best positions. With so many subsidiaries and a relatively flat organizational structure, there are many great internal candidates for key senior management roles. It is critical, then, that the human resources department be able to identify the best talent and move that talent efficiently through the system.
It is recommended that Nucor engage in related diversification. The company has considerable experience absorbing related steel companies and setting up joint ventures with others. There is a need for geographic diversification as, beyond the JV program, Nucor has very limited international exposure. It has technological advantages that, if combined with lower operating costs overseas, could result in even cheaper...
The company has no experience outside of the established steel markets. They may be innovative within the framework of the steel industry, but that is a low bar to hurdle in the grand scheme of things. Neither is Nucor an exceptionally proficient low-cost provider. It is part of their culture but only recently have they faced true competition on price, as evidenced by the fact that all of their domestic competitors are in poor financial health the minute some cheap imports arrived on the market.
Implementing the recommendation to engage in related diversification would not necessitate a change in organizational structure, unless the focus was on the geographic element. If that was the case, Nucor would be recommended to move towards more of a matrix structure, whereby it leveraged its international capabilities in distribution and production with its presence in multiple product markets. Such an organizational structure is more complicated than the existing structure but allows for better function in a truly international company, which is the ultimate direction for Nucor under any sort of diversification scenario.
Works Cited:
2008 Nucor Annual Report. Retrieved March 24, 2010 from http://media.corporate-ir.net/media_files/irol/10/107115/2008AnnualReport.pdf
No author (2003). Nucor Corp's organizational culture. ICMR. Retrieved March 24, 2010 from http://www.icmrindia.org/Casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/Nucor%20Corp%20Organizational%20Culture-Human%20Resource%20Management-Case%20Studies.htm
Campbell, P., Blejde, W., Mahapatra, R. & Wechsler, R. (2004). Recent progress on commercialization of Castrip direct strip casting technology at Nucor Crawfordsville. Metallurgist. Vol. 48 (9-10) 507-514.
No author. (2010). The cultural web. Mindtools.com. Retrieved March 24, 2010 from http://www.mindtools.com/pages/article/newSTR_90.htm
Works Cited:
2008 Nucor Annual Report. Retrieved March 24, 2010 from http://media.corporate-ir.net/media_files/irol/10/107115/2008AnnualReport.pdf
No author (2003). Nucor Corp's organizational culture. ICMR. Retrieved March 24, 2010 from http://www.icmrindia.org/Casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/Nucor%20Corp%20Organizational%20Culture-Human%20Resource%20Management-Case%20Studies.htm
Campbell, P., Blejde, W., Mahapatra, R. & Wechsler, R. (2004). Recent progress on commercialization of Castrip direct strip casting technology at Nucor Crawfordsville. Metallurgist. Vol. 48 (9-10) 507-514.
No author. (2010). The cultural web. Mindtools.com. Retrieved March 24, 2010 from http://www.mindtools.com/pages/article/newSTR_90.htm
HRM Issues One of the most important HRM issues that must be addressed is represented by the fact that the company does not use job descriptions. 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
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
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
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
Nucor Corporation Steel industry is one of the oldest industries and has been the backbone of many industries. In the 19th century, advent of steam engines, cotton gins and mechanized farming led to the strength and growth of steel industry. Between 1875 and 1920, the production of American steel increased to 60 million tons. In 1900s, the annual growth of the U.S. steel industry was 7.0%. Following the post World War
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