1. Presentation By,
Parth V. Purohit

2. INTRODUCTION
• Nucor started as a auto manufacturing company than later
converted itself into the Nuclear and Electronics business in 1950’s
and early 1960’s
• After the firm suffered several money losing years Ken Iverson took
charge as the president
• After Iverson 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

3. Cont…
• In 1972 the firm changed its name to Nucor corporation
• By 1998 it became America’s second largest steel maker and also
was in Fortune 500 company
• Nucor’s sales during Iverson’s tenure grew at an annual compound
rate of about17% per annum
• In the corresponding years both Nucor CEO John Correnti and
Iverson were named steel maker of the year

4. Operations of Nucor
• Nucor located its diverse facilities in rural areas across the United
States
• It established strong ties to its local communities and its workforce
• Nucor selected operations in states with tax structures that
encouraged business growth

5. Cont…
• Nucor’s top management favoured the company’s commitment to
remaining union free.
• Nucor and its subsidiaries consisted of nine businesses, with 25
plants.

6. Strategies
• Continuous Innovation
• Usage of modern equipment
• Individualized customer service
• Usage of scrap metal
• No acquisitions and mergers
• Usage of low debt in total capital
• No diversification

7. Organization Structure
• Decentralized system
• Four management layers:
Chairman/Vice chairman/President
Vice President/Plant General Manager
Department Manager
Supervisor

8. Cont…
• Autonomy to the General Manager in decision making
• Nucor’s board of director’s had only six members
• The decision making was done by the individual plant’s General
Manager and they were not liable for the Headquarters to respond
to the problems
• There were a total of 6800 employees working in the company

9. Human Resource Policies
• Employee relations at Nucor were based on 4 principles:
 Employees would earn according to their productivity.
 Employees should feel confident that if they do their jobs
properly, they would have a job tomorrow.
 Employees have the right to be treated fairly.
 Employees have an avenue of appeal when they believe they are
being treated unfairly.

10. Cont…
• General manager were required to hold annual dinners with every
employee.
• Commitment for no lay off during recession period.
• No unionism.
• Policy of team work.
• Suggestions from lower level employees are taken into consideration.

11. Compensation
• Four compensation plans:
 Product incentive plan
 Department manager incentive plan
 Non-production and non-department manager incentive plan
 Senior officer incentive plan

12. Information systems
• 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 the actual and budgeted figures
• The plant General managers met as a group with head quarters
management three times a year to review each plant’s performance

13. Benefits
• Profit sharing
• Scholarship programmes
• Stock purchase plan
• Commitment of providing equal status
• On the job training
• Job referrals through existing employees

14. Technology
• Use of mini-mill technology.
• Backward integration.
• Modernizing the existing plants.
• Technology management.

15. Application of MCS
• Responsibility centre
• Expense centre
• Goal congruence
• Management performance
• Economic performance

16. Conclusion
• Nucor’s overall approach towards organization and control has paid
rich dividend in the growth of the company
• Their ability to be a successful first mover in the adaption of new
technology is remarkable
• Although the company has done well for the last 25 years but still
with the prevailing market conditions they need to think about
diversification and mergers & acquisitions

17. Thank You..