Case Study Art of Motivation

5060 Words21 Pages

Human Resource Management MRB 2032

Case Analysis 3



This article is about the art of motivation in Nucor, about strategy and action plan to motivate the people such as talking to them, listening to them, taking a risk on their ideas, and accepting the occasional failure. It 's a culture built in Nucor with symbolic gestures with unblinking focus on the people on the front line of the business in order to maximize profitability. Nucor has foster one of the most dynamic and engaged workforces around. The nonunion employees at Nucor don 't see themselves as worker bees waiting for instructions from above. Nucor 's organizational structure
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Nucor was the first in the industry to adopt a number of new products and innovative processes. Nucor’s strategy can be elaborated as follows;
Performance Based Compensation Strategy
Compared to the other competitors Nucor provided employees with a performance-related compensation system. All employees were covered under one of four basic compensation plans, each featuring incentives related to meeting specific goals and targets. 1. Production Incentive Plan.
Employees those directly involved in manufacturing were paid weekly bonuses based on actual output in relation to anticipated production tonnages produced. The bonuses were paid only for work that met quality standards and were pegged to work groups, rather than individual output. Bonuses were tied to attendance and tardiness standards. If one worker’s tardiness or attendance problems caused the group to miss its weekly output target, every member of the group was denied a bonus for that week. If they are late, even only five minutes, they lose their bonus for the day. If they are thirty minutes late or they are absent for sickness or anything else, they lose their bonus for the week. 2. Department Manager Incentive Plan.
Nucor’s department managers oversaw the production supervisors and, in turn, reported directly to the general manager of their plant. They earned an annual incentive bonus based on
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