Nucor Corporation Case Study Assignment Help

HRM Issues Case Study Assignment Help on Nucor Corporation  Introduction Nucor started its business as an auto manufacturing company than it was converted into a Nuclear and Electronics business in 1950. After continuous loss, company has focused on two businesses: making steel from scrap metal and fabricating steel joists for use in nonresidential construction (Hartnett & Ketellapper, 2011). In 1998, the firm became second largest steelmaker of America and its sales increased around 17% per annum. In this Nucor Corporation case study help paper, organization structure, philosophy and HRM issues related to strategy implementation are discussed.

Trends in Steel Industry In present, steel industry faces shortage of demand due to weakness of the global economy. If there is a recovery in the construction industry and in automotive industry, there will be an upswing in steel industry. In case of Nucor, it will be difficult for the company to sustain a growth up to 15-20% and profit level unless there is recovery in the construction and automotive industry (Gordin, 2007). The company faces various issues related to foreign competition, strained labor relations and shortage demand of steel. It may be required for the company to reduce cost and increase controls over its manufacturing strategy and compete on the basis of price. The increasing competition pressures on the company to become less innovative reduce duplication of efforts and reduce cost (Boyd & Gove, 2000). Along with this, greater controls may be helpful to gain economies of scale and cost leadership. Through this, Nucor can compete with cost competitors and increase its revenues.

Organizational structure and Management philosophy The management structure of Nucor was different than usual structure. In general, companies have a structured series of organization levels such as employees, supervisor, department manager, general manager. Nucor had a decentralized organization structure. The company has a simple, streamlined organizational structure that allows employees to innovate and make quick decisions (Evans & Lindsay, 2008). The company has 25 plants and general managers of these plants have great autonomy. Nucor has a well-defined management philosophy. The success of the company comes from its more than 11,000 employees. Nucor seeks to hire and retain highly talented and productive people. The company never lay off employees for reasons of not having enough work. As a highly decentralized organization, Nucor allows most of the day to day operating decisions made by divisional general managers and staff members (Bohlander & Snell, 2007). The management hierarchy is composed of four layers like, shop floor workers, supervisors, general managers and executive vice-presidents. Management is obligated to manage the company in such a way that employees can gain best opportunity for their career growth and improve their productivity.

HRM issues Nucor has developed effective HRM policies to maintain good relations with employees. According to the HRM case study help experts At the same time, company faces some issues related to HRM, these are as follow: Employee turnover: In decentralized organizational structure, managers are free to take decisions and implement their strategy. Company has developed a policy that indicates if a manager consistently produces unsatisfactory results, has to be fired (Hill & Jones, 2007). It is problematic for managers to execute new strategies. If they fail to show their performance successfully, the company will fire them or held back from advancement in the company. Low pay, high bonuses: In this company, managers can earn 75% extra of their salaries through bonuses that are tied to their unit profits. Along with this, hourly employees have a weekly bonus system that is based on the production of 8-20 members. If production is down, workers, who become accustomed to high pay, may leave the company (Walsh, 2012). For example, an employee can get a base pay of about $9 an hour and about $13.50 an hour in bonus that makes a total of $22.50 an hour. At the same time, new employees feel pressure from peers to improve performance for getting bonus pay. So, trainees are hurting from their peers for paycheck. Pay for performance scheme: Pay for performance scheme can help recruit and retain high performers into the organization, but it is not necessary that it improves organizational performance (Walsh, 2012). Nucor has best people in the world, but if market conditions fall into a tail-spin, then performance pay scheme will also fail. So, it is an issue for the company to implement effective compensation schemes to retain qualified and talented people in the organization.

Recommendations To retain and attract best people in the organization, company should examine the value of all its compensatory schemes and readjust them with the needs of employees. It will help to satisfy employee needs and remain competitive in the market. Profit margins of company are going down, so company should find a way to stabilize the downfall. Company should adopt more flexibility in human resource practices that depend on re-synthesize, reconfigure, and redeploy of HRM practices quickly (Bohlander & Snell, 2007). Along with this, company should examine the strategy and decisions of employees before firing the managers. Sometime, a new strategy fails at initial level, but it will be successful further.

Recommendations for diversification and Rationale Nucor has recently acquired various companies such as Auburn Steel, Birmingham Steel, Free State Steel, SHV North America, Harris Steel, and others. These acquisitions have positioned Nucor as a most diversified producer of steel and steel products in North America (Boyd & Gove, 2000). The company should move into unrelated diversification. The company should acquire a new company that is unrelated to steel production and within the metallurgical family. The company can expand and diversify into producing materials that are made from competitive metal such as aluminum that can be used to manufacture light weight vehicles. Through using unrelated diversification, company can expand and invest into other markets. Along with this, it would allow the company to explore new business options to meet the needs of customers and generate more revenue through various ventures (Hartnett & Ketellapper, 2011). It would give an opportunity for the company to increase the strength of the economy in different markets and develop competencies that can be shared between different markets and products. So, unrelated diversification would be beneficial for the company.

Recommendations to implement diversification Nucor has already made small approaches to implement diversification and acquisitions with other companies. In present, company holds exclusive rights in Brazil for strip casting technology (Hartnett & Ketellapper, 2011). The company has JV’s with several multinational companies to expand its business. For the unrelated diversification, company may face various HR issues that would be resolved through some actions and recommendations. Company should use the managerial skills in other operations, where these managerial skills and managerial procedures can be successful transferred in other markets. Company should implement same management structure in other organizations to make easy the settlement of employees. Through this, company can easily transfer its talented employees into other markets. Company should give opportunities for employees to learn new things and grow their careers (Boyd & Gove, 2000). Along with this our case study help experts says that, company should introduce different types of diversity within organization that helps to implement diversification in other markets. Company should motivate their employees for diversification through benefits, incentives and career growth. Conclusion On the basis of above discussion by business case study help experts, it can be concluded that Nucor has faced various challenges in steel industry such as shortage of demand, labor strained, reduce cost and etc. The company has developed effective HRM policies and compensation policies, but it faces some issues related to employee turnover, pay for performance and low pay, high bonuses. This company is heavily dependent on natural resources and infrastructure, so it should expand its business in unrelated areas. To implement successful diversification, it is important for Nucor to align their employee’s efforts to the mission that should be changed and redefined.

References Bohlander, G. W. & Snell, S. (2007). Managing Human Resources. USA: Cengage Learning. Boyd, B.K. & Gove, S. (2000). Nucor Corporation and the U.S. steel industry. Retrieved from: Evans, J. R. & Lindsay, W. M. (2008). Managing for Quality and Performance Excellence. USA: Cengage Learning. Gordin, R. (2007). Nucor Corporation: A Study on Evolution Toward Strategic Fit. Retrieved from: Hartnett, N. & Ketellapper, M. (2011). Nucor Steel. Retrieved from: Hill, C. W. L. & Jones, G. R. (2007). Strategic Management: An Integrated Approach. USA: Cengage Learning. Nucor Corporation (2000). Retrieved from: Walsh, D. J. (2012). Employment Law for Human Resource Practice. USA: Cengage Learning.  

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