Assignment #4: Hrm Issues/Diversification Strategies Essay
BUS 599 Strategic Management
Conduct an Analysis of Case #10 Nucor Corporation and prepare a (4-5 page report).
Discuss the trends in the steel industry and how it may impact Nucor’s strategy.
The trend had been major steel production using blast furnaces. New technology using arc furnaces adopted by Nucor led to increased production and cost savings. The arc furnace technology took less labor, increased production, and was considered the new most cost-effective strategy among the steel industry. It was Nucor’s decision to adopt this process and be the first to introduce this new process to the United States. Many steel companies were going out of business due to reduced demand …show more content…
This simple structure is evident as Nucor held plant managers and their staff responsible for day to day operations. Each plant ran by the plant manager was seen as its own entity and operated independently of other plants. These plant managers reported to 4 executive vice presidents. The accountability of each plant coupled with the bonus compensation structure passed responsibility and accountability on to everyone including the hourly employees. Bonuses were paid on a weekly basis based on output exceeding the standard. Immediate rewards were received by employees and managers who exceeded the standard. This helped drive a healthy corporate culture that promoted efficiency, and competition. This strategy also drove innovation and increased morale indirectly as all employees want to earn more money.
Identify three HRM issues related to strategy implementation and recommend actions to address these issues.
One of Nucor’s successful strategies was acquisitions. Nucor would acquire firms who were in trouble are already operating in the negative and revamp their procedures and product lineup to go along with Nucor’s lineup. An acquired firm would be operating on a different pay structure than Nucor’s pay for performance incentive structure. Nucor would post what employees would make if they were under the pay for performance structure. Many times the Nucor pay structure paid a great deal more than their