31-05-2013, 03:41 PM
Nucor Corporation
Nucor Corporation.ppt (Size: 81.5 KB / Downloads: 339)
How does Nucor create value?
Managers are given autonomy at each plant
Decisions are made quickly without the need to wait for decisions from headquarters
Plants can source there inputs from other Nucor plants or from the outside market.
Nucor is constantly innovating
Use modern equipment
produce high quality products
competitive prices.
Promote good customer service.
What is their competitive advantage?
Building steel manufacturing facilities economically and operating them competitively
Continuous innovation, modern equipment, individualized customer service and producing at competitive prices.
Mini-Mills
Large applicant pool to hire from because they are seen as an attractive place to work, allows them to be very selective for who they hire
Have a willingness to take risks.
How does Nucor’s HR policies contribute to their success?
Four tier management structure
Group-based bonus incentive plan that trickles up to management
They have a scholarship program for children of employees which promotes long-term employee retention
Managers have dinner with all employees with open forum for discussion on how to improve and increase innovation, allows employees to ask questions and managers to provide feedback
All managers, including CEO, wear same color hard hat at work
Policies promote teamwork and allow the company to grow from within because of open communication and experience from their employees
Employee relations principles
Employees will have the opportunity to earn according to their productivity
Employees should feel confident that if they do their jobs properly, they will have a job tomorrow – job security, reduce work week instead of fire or lay off employees
Employees have the right to be treated fairly
Employees must have an avenue of appeal when they believe they are being treated unfairly – grievance process
Benefits
No company cars, corporate jets, executive dining rooms or exec. parking spaces
All employees traveled in economy class
Not available to Officers
Profit-sharing
Nucor contributed 10% of pretax earnings per year
15 to 20% was paid out to employees in March
Scholarship program
Employee stock purchase plan
Monthly purchase plan
Nucor contributed a 10% matching contribution
Service awards
Holidays, vacation schedules and insurance programs were the same
All employees wore the same green hard hats
Company report contained the name of every employee
401K
Matching contribution of 5 to 25% of employee contribution based on return on shareholder’s equity
Each employee received 5 shares of stock for each 5 years they worked continuously
Encouraged workers to recruit their friends and family to work for the company