Keeping a thing simple makes it easier to understand for most stakeholders e.
Wikimedia Commons — public domain. Manufacturing steel is not a glamorous job. The industry is beset by many problems, and more than 40 steel manufacturers have filed for bankruptcy in recent years. Most young employees do not view working at a steel mill as their dream job.
The company is clearly doing well by every financial metric available and is the most profitable in its industry.
|Related BrainMass Content||Nucor is known for many things including its pay practices that base earnings on performance as well as the value and trust the corporation places in its employees. At Nucor employees are rewarded based on their effort, treated with great respect and empowered to make decisions based on their expertise and knowledge.|
How do they achieve these amazing results? NUE 12, employees acts like an owner of the company. Employees are encouraged to fix the things they see as wrong and have real power on their jobs. When there is a breakdown in a plant, a supervisor does not have to ask employees to work overtime; employees volunteer for it.
In fact, the company is famous for its decentralized structure and for pushing authority and responsibility down to lower levels in the hierarchy. Tasks that previously belonged to management are performed by line workers.
Management listens to lower level employees and routinely implements their new ideas. The reward system in place at Nucor is also unique, and its employees may be the highest paid steelworkers in the world.
At the same time, a large percentage of these earnings are based on performance. People have the opportunity to earn a lot of money if the company is doing well, and there is no upward limit to how much they can make. However, they will do much worse than their counterparts in other mills if the company does poorly.
The same incentive system exists at all levels of the company. CEO pay is clearly tied to corporate performance. The incentive system penalizes low performers while increasing commitment to the company as well as to high performance.
The results seem to work for the company and its employees. Evidence of this successful method is that the company has one of the lowest employee turnover rates in the industry and remains one of the few remaining nonunionized environments in manufacturing.
Nucor is the largest U. Based on information from Byrnes, N. The art of motivation. Retrieved April 30,from http: The best performers of Ways to really motivate people: Authenticity is a huge hit with Gen X and Y. The Secured Lender, 59, 62—70; Marks, S.
Incentives that really reward and motivate. Discussion Questions What are some potential problems with closely tying employee pay to company performance? Nucor has one of the lowest turnover rates in the industry.
At what point does a company become too large for profit sharing to make a difference in employee motivation?
Employees are beginning to feel the pinch of substantially reduced pay. What can Nucor do to keep its employees happy? This is a derivative of Organizational Behavior by a publisher who has requested that they and the original author not receive attribution, which was originally released and is used under CC BY-NC-SA.What does Nucor's approach to managing its people require of managers?
Students also viewed these questions Suggest several ways that a company might encourage its more experienced workers to listen to ideas from newer employees. Nucor Corporation: The Art of Motivation. 1. What does Nucor's approach to managing its people require of managers?
2. Suggest several ways that a company might encourage its more experienced workers to listen to ideas from newer employees. What Does Nucor S Approach To Managing Its People Require Of Managers. Manage Up, Managing the Manager In business, as well as life, everyone answers to someone.
Unless you are self-employed, your own boss, or an office of one, the likely hood is you report to another person. That person could be a frontline supervisor, office manager, . View Notes - Nucor A from BMA at BUPT.
Chapter 1 The Nature of Management Control Systems 19 Case Nucor Corporation (A) Basically when you are at the peak of the We are a cyclical 2 out of 3 people found this document helpful; Click to edit the document details; Despite these industry challenges, Nucor’s sales during Iverson 67%(3).
Nucor Corporation: The Art of Motivation Question 1. What does Nucor's approach to managing its people require of managers? Question 2. Suggest several ways that a company might encourage its more experienced workers to listen to ideas from newer employees. Question /5(K). Nucor: The Art of Motivation 2 Nucor’s approach to managing its people requires managers to take on the role of supervisory positions so the work that used to be done by supervisors has been pushed off onto the managers, according to CEO DiMicco the managers are like mini CEO’s%(9).