Nucor Case Study on Approach to Employee Motivation
Starting back as early as the 1950’s and early 1960’s Nuclear Corporation of America was involved in the nuclear instrument and electronic business. After consecutive years of struggling financial performance, Nucor evaluated their management structure and decided it was time for a change in leadership. As a result F. Kenneth Iverson was appointed as president and CEO of the company. Part of Iverson innovation for the company was drastically changing the direction of Nucor. The company soon exited the nuclear instrument and electronic business, and built their profits around their South Carolina based Vulcraft subsidiary, which was in the steel joist business. Part of Iverson’s vision was to capitalize on newly emerging technologies to produce steel at a lower cost, and in 1968 management decided to integrate back into the steelmaking business (Nucor Corporation, 2010). In 1972 the company adopted the name Nucor Corporation, which would soon become a well steel company within the U.S. As a well managed company, an accomplished low-cost producer, and one of the most competitively successful manufacturing companies in the country Nucor had become the U.S. seventh largest steel company. Nucor soon continued to climb the ranks and not too long thereafter managed to become the largest steel producer in thus. In 2006 Nucor employed 11,900 staff in 49 facilities dispersed amongst 17 states (Nucor Cold Finish, 2009). It has crafted and implemented an extremely successful low-cost leadership strategy driven by continuous innovation, quality systems, state-of-the-art facilities, a highly decentralized organizational structure and a unique corporate culture that has been responsible for extremely low staff turnover leading to low labor costs. The firm has consistently ranked as one of the most competitive and successful manufacturing companies in the country putting a strong emphasis on their employees. In...
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