Group number - 3

Introduction
Nucor Corporation, a Fortune 300 company headquartered inCharlotte, North Carolina, is one of the largeststeel producersin the United States, and the largest of the "mini-mill" operators . Nucor claims to be North America's largest recycler of any material, recycling one ton of steel every two seconds. The total annual steelmaking capacity of the company is 25 million ton. Daniel r dimicco chairman , ceo and president

History
In 1905 Ransom E. Olds, creator of the oldsmobile , had a dispute with stockholders, and left his own company olds motor work. He soon formed reo motor car company . Reo took over a tiny nuclear service company called nuclear consultants , Inc and reo emerged as nuclear corporation of America , Inc. 1962- nuclear corporation acquired a company called vulcraft an producer of steel joints and girders , and hired ken inverson as the manager , then later he became the president.

 . After inverson took charge he consolidated company on two businesses viz making steel from recycled scrap metal and fabricating steel joists for use in non residential construction. 1972- firm changed its name to Nucor Corporation and was listed on new york stock exchange . 1998- it became America's second largest steel maker and was also in fortune 500 company In corresponding year both Nucor CEO john correnti and Inverson were named steel maker of the year

Operations of NUCOR
Nucor located its diverse facilities in rural area across united states , establishing strong ties to its local communities and its work force . Nucor selected operations in states with tax structures that encouraged business growth . Regulatory policies that favored the companys commitment to remaining union free.

 Nucor and its subsidiaries consisted of nine businesses , with 25 plants . The businesses include Nucor steel Nucor-yamato steel company Vulcraft Nucor cold finish Nucor fastener Nucor bearing products, Inc. Nucor grinding balls Nucor wires Nucor building system

Problem
Company was on the verge of bankruptcy. Company fired the president and nobody wanted to head a corporation that was most likely going to go out of the business. Lots of sick business unit .

Reasons
Wrong decisions by the management Incompetent management Unable to get favorable prices from American steel manufacturers

Solution
Management control

Strategy

Organization al structure

HRM

performan ce

culture

Strategies
Focused on two major competencies : building steel manufacturing facilities economically and operating them productively. Continuous innovation Usage of modern equipment Individualized customer services High quality steel Competitive prices No acquisitions or mergers Usage of low debt in total capital No diversification

Organization structure
Decentralized structure with only four management layers
Departmentmanager supervisor manager Department supervisor

 Autonomy to general manager in decision making Nucors board of directors had only six members The decision making was done by individual plants general manager and they were not liable for the headquarters to respond to the problem Lines of communication were kept open and informal

Human resource policies

Employee relations at nucor were based on four principles: Employees would earn according to their productivity Employees should feel confident that if they do their job properly , they will have a job tomorrow Employees have right to be treated fairly Employees must have an avenue of appeal when they believe they are being treated unfairly

 General mangers were required to hold annual dinners with every employee gave employee chance to discuss problems . Commitment for no lay off during recession period No unionism Policy of team work Suggestions from low level employees are taken into consideration

Compensation

Four compensation plans :

production incentive plan- weekly bonus based on productivity of the work. Department manager incentive plan - annual incentive bonuses based primarily on the performance of entire plant to which they belonged. Non production and non department manager incentive plan received bonus on plants return on assets Senior officers incentive plan-based on Nucor's annual overall percentage of net income to stockholder's equity and is paid out in cash and stock.

Information system
Each plant has to submit a snapshot of the plants basic operations on a weekly and monthly basis. Managers do not have to submit voluminous reports instead they need to submit actual and budgeted figures The plant general managers meet as a group with head quarter management three times a year to review each plants performance

Benefits
Egalitarian approach towards employee benefits Nucor's senior officers are not provided traditional "perks" such as company cars, executive parking spaces, or executive dining rooms. several programs (such as Nucor'sProfit Sharing , Scholarship Program, Employee Stock Purchase Plan, Extraordinary Bonus, and Service Awards Program) are not available to Nucor's officers but only to lower-level employees. Commitment of providing equal status (even CEO wore green hard hats). On the job training . Job referrals through existing employees- encouraged employees to recruit their friends and relatives to work for the company .

Technology
Do not have formal R&D department. Adopted mini mill concept - to useelectric arc furnacesto melt recycled steel (primarily from junked automobiles). Nucor was first to make quality flat rolled using technology. Backward integration Modernizing the existing plant Technology management

Outcomes
Highly satisfied customers, shareholder and employees . The safest , highest quality , lowest cost , most productive , most profitable steel and steel product company in the world. As corporate citizen nucor takes responsibiity to create a cleaner environment , a safer workplace and a stronger community .