Nucor Steel

Nucor Steel

Answer 1

Steel is by its nature and multiple applications a product whose use is intensive and extended in a considerable number of industries, most of them in developing worldwide (Brian & Gove, 2000). Over time the supply of steel products had to meet the quality standards demanded by such consumer industries. In the early twentieth century the differences in quality steel products were significant across regions due to the deference in the steel, which has also had to adapt to these standards.

The impact of economic recession on the steel industry will have different characteristics from the previous crises, the growing role that China has accounted for approximately 38% of world steel output (Brian & Gove, 2000). It is also concern its policy of steel capacity increases, the high share of state ownership of steel companies, the existence of government policies aimed at promoting exports through financial and fiscal stimuli, and unfair trade practices (direct subsidies and indirect, and dumping). The Nucor Culture can be grouped into five areas: performance-related pay, decentralized management philosophy, customer service, equal benefits and quality and technological leadership.

Answer 2

Nucor is highly decentralized business. There are only four levels among the employees of Nucor (hourly employees, supervisors / Professional, Director and Senior Vice President). Division level is responsible for most of the decision making. Additionally, there are only 66 employees who work at corporate headquarters, which are possibly the smallest headquarters personnel among major companies (www.tuck.dartmouth.edu).

Performance-based remuneration

All Nucor employees from executives to hourly employees are (in addition to base salary) under a combined salary of four main systems that rewards employees for achieving specific goals:

Production incentive system: Weekly bonuses plan is present for the workers and their supervisors based on their productivity, based on their work group. The rate is calculated based on the capacity of the plant, and if the system does not work, will be paid a bonus. In general, the bonus may vary from the production bonus system from 80 to 150% of base salary.

Head of incentive system: Head to earn annual bonuses, mainly as a percentage of their net income as a function of the return on investment go to their department. This bonus can go up to 80% of basic salary of department heads.

Occupation bonus system: This bonus system is for the employees who do not fall under the production system of incentives and incentive system is based on the net assets of the department.

Incentive system for senior executives: The officers of Nucor have no employment contracts. They receive no pension or pension rights. Their salaries are lower than those of other companies. Their compensation is based on the annual net income to the shareholders that gets paid in stock and cash.

In addition to these established bonus systems, has launched Nucor periodically extraordinary bonus scheme for all employees except senior in years of great business success. This bonus was up to U.S. $ 1,000 for each employee (Brian & Gove, 2000).

Same benefits

Executives from Nucor received any traditional privileges, such as company ...