Nucor Corporation Essay

Nucor Corporation is characterized by its accepter? operators who take pride in their work and teams and as a result have created bang-up profitability for a traditional steelmaker. Nucor is cognize for many things including its pay practices that base earnings on per regulateance as well as the value and trust the corporation sics in its employees. At Nucor employees atomic number 18 geted based on their effort, treated with great respect and sceptered to make decisions based on their expertise and knowledge. Nucor is a unique governance among its rust? belt counterparts.To understand its success it is necessary to understand the lead mentality, em baronment strategy, motivation and rewards base as well as its address to change and innovation. All of these elements have turned Nucor into a desirable place to work with the potential for future success as it acquires refreshing entities and grows. lead When looking at the Nucor Case Study, it is advantageous to discuss th e leading zeals in relation to the Vroom? Jago Leadership Model as well as other concepts and issues of drawing cardship. The initial leader to accent on is F. Kenneth Iverson, a causality Nucor stigma President (1965? 999) and legendary leader.His leading fostered the close? knit enculturation that exists even today. When Iverson and Sam Siegel, Financial Vice President, initially assumed leadership roles, they exhi bended the AI Autocratic style at undivided and free radical direct in selling off many wide? ranging operations to focus on one ara. They besides made the decision to move unified headquarters to where it is even today, Charlotte, NC. From that point leadership has continued to have a basis in the group with Nucor employees empowered to make decisions that will put on the organization.Nucor Steels leaders besides exhibited other Vroom ? Jago leadership styles as they evolved to the present day. Iverson installed radical concepts giving employees better pay and legitimate power exhibiting GII decision Style willing to accept and implement employee decisions. flowing chief operating officer Daniel R. DiMicco uses a different leadership style when purchasing 13 new companies and instilling the unique culture in those new facilities. Nucor management, as a whole still focuses on the people in the bowel movement line of their business predominately using DI mortal style leadership and GII group level decision style.Different perspectives of leadership also can explicate Iverson and DiMicco. Both exhibit traits of magnetic leaders. The plate have points forth how employees be willing to accomplish tasks based on an emotional inscription to Nucor Steel. The example of electricians supporting sister plants in another state on their own initiative shows, when crisis arose, the employees showed extraordinary behavior. All General Managers contact a new GM indoors 2 days of starting in a different movery, offering religious service, and meaning it. This behavior is unconventional, and counters to established norms in the current business culture.Only a visual sensationary charismatic behavior from the leader could motivate such commitment. Leadership approaches discussed here point out that leadership is an exchange process with employees. A look at transactional leadership and transformational leadership succors further explain Nucors success. Transactional leaders help the fol cut down position what is done to accomplished desired results and ensure the resources are on consecrate to complete the job. Transformational leadership motivates followers to work for goals rather than on small term self-interest this leader is able to express clear vision and inspire other to accomplish that vision.Nucors management, in this case study continually exhibit transformational leadership attributes. When Nucor employees innovate themselves out of tight spots, the leaders charisma has instilled this sense of value respect, and pride. The General Managers reaching out to the new GM shows leaders reaching out to help individual needs. These leaders allow the employees to rethink rational ways to correct problems, and do not intervene in work tasks unless people are sidetracked. The to the highest degree important aspect of transformational leadership is charisma coupled with other roles.The cabalistic emotional attachment to Nucor management is one facet of this style. These leaders also play the role of teacher, coach, mentor, reformer, or revolutionary further establish their transformational style of leadership. Power In addition to the various leadership styles and involvement of the employees and commitment to the organization thither are different types of power between leaders and employees at Nucor. There is a lot of employee power at the Nucor Steel Company generating from the flat organization construction open inside the phoner and the leaderships focus on employees.A sta ndard joke in the confederation is that if you were a janitor and you got five promotions you would have the CEOs job. Unlike the pyramid structure that is found in other companies, at Nucor the CEO believes that he is the one who was at the bottom and he works for all the others in the organization. Power within Nucor, as in other corporations, comes from two places interpersonal and structural. With the flat organisational structure at Nucor the majority of the power is interpersonal rather than appointive by the organisational structure and layers of management.At Nucor employees have a self-aggrandizing amount of power specifically expert power. Expert power arises an individual has the ability to influence as a result of a highly valued expertise regardless of job title. Expert power is clear exhibited in the case study when employees call upon each other (as in the case of the Hickman plant calling expert electricians from another plant) and when leadership entrusts decis ion making to employees. In addition to expert power, referent power is also common among Nucor employees.Referent power is based upon charisma whether it is the charisma of the CEO or of the line worker, this type of power comes from interactions with others. Not only did Nucor leaders Iverson and DiMicco have structural power they also had referent power from charismatic leadership styles. Where interpersonal power results from expertise, attitudes and actions, structural power comes from the organizational structure itself. At Nucor with its flat hierarchy structural power is not the briny source of influence or power.A type of structural power that is present is the decision making power of the employees. Individuals at Nucor have a broad range of decision making power as seen in the electrician occurrence. The decision making power is based on the acquaint that they will make the best decisions for the organization since their compensation depends on the organizational succe ss. Motivation & Rewards When looking at the Nucor Corporation, it is important to understand why the employees are motivated to act the way that they do.Nucor has high job satisfaction which in turn brings improved job performance. This improved performance benefits everyone in the smart set instead of just management at Nucor. Herzbergs two factor theory is utilized in the Nucor case study. The people from Nucor demonstrated there were motivators by traveling to fix a problem that was a great distance away. The people in this situation had achievement, recognition, and responsibility all in mind when they decided to take steps not required to help others in the organization.Achievement motivated the employees in the example because they knew that they were helping the caller immensely and this would in turn help them. The recognition would be shown in their personal pay checks. The responsibility in this situation was the people agreeing to help out without any supervisors there to persuade them to go. Additionally, teams in Nucors situation are beneficial in motivation. People are willing to help one another because both people will be rewarded for a job well done. The mentality of us guys instead of you guys motivates people to form teams in a manner that is beneficial to the company.The hygiene factors in Nucor case does not apply to their company. The areas of dissatisfaction that most other companies face such as pay and security do not come in to account. The milling machinery workers by percentage make a much more alike(p) amount to their managers in comparison to different companies. The primary reward for the executives at Nucor is financial compensation, including benefits. In their roles as executives, they naturally have many of what could be considered rewards by others in the organization.Autonomy, the ability to effect decision, and many other roles are a natural part of the role as an executive within an organization. The executive salari es are on reasonable are a bit lower than average, while performance based pay is more and makes up more than 50% of total compensation. The performance? based component is mainly paid in the form of stock options and restricted stock. Options allow the pallbearer to purchase the stock at a specified price, usually lower than market value. Restricted stock is direct partial self-command in the organization that vests over a period of time.These types of rewards are common among executives, as there is a direct correlation between how the company performs and the ownership stake the executive receives in the organization they have the ability to effect. The employee reward system contains both financial rewards (including benefits), as well as non financial. The average employee at Nucor makes $100k a year, 20% more than industry average. This reinforces the organizations belief that people are the backbone of the company, and further strengthens the commitment to try and retain its employees. sensation of the most difficult aspects to manage in the milling industry is the dollar volume and training of employees Nucor has recognized this and used financial rewards to deter this from taking asseverate within its own organization. The employee also has intrinsic rewards available within the organization. They include completion, autonomy, achievement, and personal growth. Moreover, they are all encouraged within the culture. This is most intelligible in the recalling of employees taking it upon themselves to help during a time of need. This allows them to grow, achieve a goal, make their own decision, and work until completed.