Case Study Art of Motivation

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Human Resource Management MRB 2032

Case Analysis 3



This article is about the art of motivation in Nucor, about strategy and action plan to motivate the people such as talking to them, listening to them, taking a risk on their ideas, and accepting the occasional failure. It's a culture built in Nucor with symbolic gestures with unblinking focus on the people on the front line of the business in order to maximize profitability. Nucor has foster one of the most dynamic and engaged workforces around. The nonunion employees at Nucor don't see themselves as worker bees waiting for instructions from above. Nucor's organizational structure that flattened hierarchy and emphasis on pushing power to the front line lead its employees to adopt the mindset of owner-operators. Nucor has proven that effective strategic highflier is an outstanding strategic execution to creates knowledge alongside employees and consequently maximize steel production. It means that Nucor trust their people, and do a much better job of sharing corporate wealth. Nucor emphasize on performance based compensation and result oriented strategy where employees with good work will be rewarded with gave out in profit sharing and bonuses to the rank demand, whereas employees with bad work is penalized accordingly either they lose the bonus they have made or imposed salary retention. High-stakes teamwork, customer focus and goal setting strategy which generally related to safety, efficiency, or output have become crucial part of their life culture. Nucor grows, existing facilities making products that overlap with those of acquired plants may need to find new businesses to branch into. So Nucor’s employees have to innovate themselves out of tough spots and into more profitable ones so call In-house entrepreneurs. Nucor deals with a leading steel manufacturer, the steel industry, and the trends that face each but is currently facing the fast changes associated with new technologies and the rise of globalization. The cyclical economic effect in the industry has proved challenging for many steel businesses. Nucor has firmly moved this business cycle to maintain a positive profit margin in every quarter since 1966. Question 1

What business is Nucor in and how is its business strategy different from that of its competitors?


Nucor is the main producer of a greater variety of steel products than did any other steel company in the United States—both low-end (non-flat) steel, such as reinforcing bar, and high-end (flat) steel, including motor lamination steel used in dishwashers, washers, and dryers, as well as stainless steel used in automotive catalytic converters and exhaust systems. Nucor is a leader of steel manufacturer, the steel industry, and the trends that face each. Steel manufacturing is an old business, but is currently facing the fast changes associated with new technologies and the rise of globalization. The extremely efficient ‘mini mill’ is a prime example of Nucor which was the first to pioneer this technology of small factory production of a specific product and eventually increase its capacity utilization.

Nucor’s major segmentation were in the construction industry (60 percent), the automotive and appliance industries, (15 percent), and the oil and gas industries (15 percent), with the remaining 10 percent divided among miscellaneous users. All the company’s low-end steel products (50 percent of its total output) were distributed through steel service centers. Its high-end products (the other 50 percent) were sold directly to original equipment manufacturers (OEMs), fabricators, or end-use customers.

The different of Nucor business strategy from its competitors can be summarized as follows:-

Nucor’s strategy focused on two major competencies:
• Building steel manufacturing facilities economically and • Operating them...
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