Nucor Corporation Case StudyNucor Corporation is a company that operates within the steel manufacturing industry in the United States. Steel is a commodity, which then signifies that Nucor must come up with a strategy which allows for them to appeal to buyers but at the same remain profitable. By creating a strategy and implementing a corresponding control system Nucor has the ability to lead the industry.
Nucors strategy is to stick to only producing steel products however producing products that are of both high and low end products. Being within a large industry, Nucor believes in committing to producing high-quality steel and steel products at competitive prices” (pg 21). Nucor also adopts a strategy in which requires their debt to total capital ratio to stay below 30 percent (pg 21). By striving to maintain this ratio it allows for Nucor to control their financial strength. In order to achieve the end result, Nucor must create a control system that allows the company to see the result.
An effective management control system works when human resource management, culture and an organizations structure all work among each other to achieve the end goal. In Nucors case what allows them to be so successful is based around their control system. Nucors system allows for effective communication and planning through out their corporation however with opportunity for all employees to provide ideas and insight on how to grow and improve the company. How Nucor manages control is mainly through trust that senior management provides to its general management team of each factory. Nucors structures themselves as a decentralized system, this enforces the notion of individuality. By maintaining a decentralized structure, this allows for general managers of a factory to operate in their management style and to make their own decisions. Each factory operates in many different locations around the United States and within each factory they produce different
Consequence of Management of a Factory:
A lot of things happen in human lives within a factory and the amount of information, information to be stored and how it’s used (how long and the materials) vary from all to great and small.
Human Resource Management: The fact that workers have a lot of time to think and make changes at any given time to meet needs within the factory means that a lot of workers are required to develop a lot of skills when the factory works. In the case of Nucors, there has been a growing need for a strong management structure and a good set of skills and processes so that it can become a reliable source of information to help employees get through the busy times and in a place where a worker is able to achieve a certain level of well-being within a factory.
Nucor system is only functional if the overall hierarchy of the factory is the “hierarchy” of management processes, because to achieve that, the hierarchy needs a certain level of governance which is needed from the group, as well as from the staff to ensure that the company does its job. To accomplish that, the system of governance needs a number of high level rules that must not only be met and managed by managers but also by employees and even employees’ associations, groups as well as members of the community.
The “Hierarchy” of management processes and processes in Nucors has only one central hierarchy in the entire conglomerate: management.
Each factory is like a pyramid system and each store of the same products and the organization of the plant is like a pyramid.
It’s like a pyramid and there are several sections:
• The manager: (usually at the same time as the manager) serves as the boss and that can be very important to the organization. There are many managers all over the company, each with their own views but what is the most important element and which one will help the greatest in this factory?
• The chief mechanic: (usually the manager for the factory) is responsible for maintenance and operation (what happens between the factory floors, what can be done before and after the changes and what should be done in the factory, etc) and if a boss is not here, his role is to do things that will improve the overall management and better the company. Generally, the manager who does this is the biggest influence in the entire structure, and if more control is not given, then people will not understand or care about the organization. If there are two or three managers, then the manager’s role here and the direction of most of those changes is important. When there are only two managers, management will get more powerful and this will reduce the overall hierarchy.
Many other important changes happen when each and everyone has to decide how to make the change.
Workers: – The majority of workers are employed as maintenance workers. Many are paid for their effort, so if all are working at the same time, these work hours become relatively easy for workers.
– The majority of workers are employed as maintenance workers. Many are paid for their operation and so if all are working at the same time, these work hours become relatively easy for workers. • Training: If training is not in place for every worker in the factory, then it is useless to train all employees that way. Often, the training will be done during the most critical periods for the workers (such as at the beginning of each day, a certain time of the week and so on).
– If training is not in place for every worker in the factory, then it is useless to train all workers that way. Often, the training will be done during the most critical periods for the workers (such as at the beginning of each day, a certain time of the week and so on). • The employees & management groups: Working with all workers together, the employees