nucorcorporationdelldhwanimeghapurohit-111208065935-phpapp01

8/12/2019 nucorcorporationdelldhwanimeghapurohit-111208065935-phpapp01

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Prepared By,Shreyank parekh (1229)

Aamir Mansuri (1223)

Bhadra Mehta (1224)

Vinay Savani (1249)


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INTRODUCTION

Nucor started as a auto manufacturing company than later

converted itself into the Nuclear and Electronics business in 1950s

and early 1960s

After the firm suffered several money losing years Ken Iverson took

charge as the president

After Iverson took charge he consolidated company on two

businesses viz making steel from recycled scrap metal and

fabricating steel joists for use in non residential construction


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Cont

In 1972 the firm changed its name to Nucor corporation

By 1998 it became Americas second largest steel maker and also

was in Fortune 500 company

Nucors sales during Iversons tenure grew at an annual compound

rate of about17% per annum

In the corresponding years both Nucor CEO John Correnti and

Iverson were named steel maker of the year


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Operations of Nucor

Nucor located its diverse facilities in rural areas across the United

States

It established strong ties to its local communities and its workforce

Nucor selected operations in states with tax structures that

encouraged business growth


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Cont

Nucors top management favoured the companys commitment to

remaining union free.

Nucor and its subsidiaries consisted of nine businesses, with 25

plants.


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Organization Structure

Decentralized system

Four management layers:

Chairman/Vice chairman/President

Vice President/Plant General Manager

Department Manager

Supervisor


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Cont

Autonomy to the General Manager in decision making

Nucors board of directors had only six members

The decision making was done by the individual plants General

Manager and they were not liable for the Headquarters to respond

to the problems

There were a total of 6800 employees working in the company


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Human Resource Policies

Employee relations at Nucor were based on 4 principles:

Employees would earn according to their productivity.

Employees should feel confident that if they do their jobs

properly, they would have a job tomorrow.

Employees have the right to be treated fairly.

Employees have an avenue of appeal when they believe they are

being treated unfairly.


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Cont

General manager were required to hold annual dinners with every

employee.

Commitment for no lay off during recession period.

No unionism.

Policy of team work.

Suggestions from lower level employees are taken into consideration.


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Compensation

Four compensation plans:

Product incentive plan

Department manager incentive plan

Non-production and non-department manager incentive plan

Senior officer incentive plan


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Information systems

Each plant has to submit a snapshot of the plants basic operations

on a weekly and monthly basis

Managers do not have to submit voluminous reports instead theyneed to submit the actual and budgeted figures

The plant General managers met as a group with head quarters

management three times a year to review each plants performance


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Benefits Profit sharing

Scholarship programmes

Stock purchase plan

Commitment of providing equal status

On the job training

Job referrals through existing employees


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Technology Use of mini-mill technology.

Backward integration.

Modernizing the existing plants.

Technology management.


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Application of MCS

Responsibility centre

Expense centre

Goal congruence

Management performance

Economic performance


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Conclusion Nucors overall approach towards organization and control has paid

rich dividend in the growth of the company

Their ability to be a successful first mover in the adaption of new

technology is remarkable

Although the company has done well for the last 25 years but still

with the prevailing market conditions they need to think about

diversification and mergers & acquisitions


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Thank You..

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