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 because Nucor's management systems are a source of competition advantage and they are disseminating those systems to firms with whom they compete on the global market.
The third HRM issue that may arise is that of compensation. It is difficult to attract top talent in low-cost mature industries because sometimes the pay is not as high due to cost control measures -- particularly at Nucor where perks are few -- and because steel is simply not a sexy industry. Developing compensation packages that attract and retain top talent to steel towns in a low cost environment is a difficult proposition, but if addressed correctly would help HRM become a source of competitive advantage for Nucor.
Under the current situation, diversification would not benefit Nucor. There are two main reasons for this. Unrelated diversification would not be effective because Nucor's core competencies are not easily transferred to entirely new lines of business. Firms in mature industries are not worth buying unless they have synergies, which rules out unrelated diversification; firms in growth industries require a different set of managerial skills than do mature firms like Nucor. Related diversification is also not recommended because there is little room for the development of value-added products (forward integration) in a commodity business and there is little benefit to backward integration either has prices of raw materials are largely set by the market. Geographic diversification is the only option that has any merit, but given the sensitivity most nations take to their steel industries, there is little room for expanding into the world's growth markets; non-growth markets offer little potential...
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
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
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
Porter's 5 forces are threat of new entrants, bargaining power of buyers, bargaining power of suppliers, substitution threats and rivalry determinants. In my opinion, as a small food retailer, you can count disadvantages vs. major food retailers in all these categories. As such, first of all, entry barriers refer to such things as economies of scale, brand identity or access to necessary input information. As a small food retailer, you are
Full creativity allows the production of greater wealth, for a stronger and more evolved society. Further in defense of the moral systems or perceived lack thereof in terms of newly created wealth, D'Souza asserts that most wealth currently created is the result of personal effort, rather than means such as inheritance. The wealth can then indeed be seen as the reward for effort, rather than wealth as a result of
Teamwork The important features influencing the magnitude and composition of a team are quantity, type, and intricacy of the assignment concerned. Involvement in work is increasingly regarded a privilege of individuals in the offices and a manner to render establishments increasingly effectual and prolific. (Williams, 1996) Though a team must all the time possess sufficient members to deal with the tasks and not leave the associates experiencing subdued, a bloated workforce
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