Oneflyer said:
I just think its odd that the only consistantly profitable steel company in the last 20 years has been NUCOR and they are the only non-unionized, while all the rest are unionized and they went broke. Of course i'm sure that Nucor had smart management and and the rest had stupid management.
[post="175490"][/post]
No, they have less management and a better philosophy. Unlike the typical over managed airline company's. Management Philosophy. Unlike your belief that all unionized companies fail.
The company's success comes from its more than 9,900 employees. Nucor seeks to hire and retain highly talented and productive people. Nucor has a simple, streamlined organizational structure to allow employees to innovate and make quick decisions. The company is highly decentralized, with most day-to-day operating decisions made by the division general managers and their staff. The organizational structure at a typical division is made up of only three management layers:
* General Manager
* Department Manager
* Supervisor/Professional
* Hourly Employee
Employee relations at Nucor are based on four clear-cut principles:
1. Management is obligated to manage Nucor in such a way that employees will have the opportunity to earn according to their productivity.
2. Employees should be able to feel confident that if they do their jobs properly, they will have a job tomorrow.
3. Employees have the right to be treated fairly and must believe that they will be.
4. Employees must have an avenue of appeal when they believe they are being treated unfairly.
By implementing these four basic principles within a relatively simple organizational structure, Nucor has been able to attract and retain highly talented and productive employees.
Performance Based Compensation
Nucor provides employees with a performance related compensation system that rewards goal-oriented individuals. All employees are covered under one of four basic compensation plans, each featuring incentives related to meeting specific goals and targets.
1. Production Incentive Plan: Operating and maintenance employees and supervisors at the facilities are paid weekly bonuses based on the productivity of their work group. The rate is calculated based on the capabilities of the equipment employed, and no bonus is paid if the equipment is not operating. In general, the Production Incentive bonus can average from 80 to 150 percent of an employee's base pay.
2. Department Manager Incentive Plan: Department Managers earn annual incentive bonuses based primarily on the percentage of net income to dollars of assets employed for their division. These bonuses can be as much as 80 percent of a department manager's base pay.
3. Professional and Clerical Bonus Plan: This bonus is paid to employees that are not on the production or department manager plan and is based on the division's net income return on assets.
4. Senior Officers Incentive Plan: Nucor's senior officers do not have employment contracts. They do not participate in any pension or retirement plans. Their base salaries are set lower than what executives receive in comparable companies. The remainder of their compensation is based on Nucor's annual overall percentage of net income to stockholder's equity and is paid out in cash and stock.
In addition to these established bonus plans, Nucor has periodically issued an extraordinary bonus to all employees, except officers, in years of particularly strong company performance. This bonus has been as high as $800 for each employee.
Egalitarian Benefits
Nucor takes an egalitarian approach to providing benefits to its employees. That is, the upper levels of management do not enjoy better insurance programs, vacation schedules, or holidays. In fact, certain benefits such as Nucor's Profit Sharing, Scholarship Program, Employee Stock Purchase Plan, Extraordinary Bonus, and Service Awards Program are not available to Nucor's officers. Senior executives do not enjoy traditional perquisites such as company cars, corporate jets, executive dining rooms, or executive parking places.
Customer Service and Quality
Nucor is committed to uncompromising quality, responsive service, and competitive pricing. Through continuous innovation, modern equipment, dedication to the customer, and concentration on productivity from a highly motivated work force, Nucor has distinguished itself as a leading producer of quality steel and steel products. Many Nucor locations are ISO 9000 Certified. Nucor employees are committed to providing customers with the highest quality levels at the most competitive prices. And, while steel and steel products are Nucor's business, the real business of Nucor is its commitment to each and every customer on each and every order.
Technological Leadership
Nucor's strong emphasis on employee communication and commitment carries with it the commitment to provide the work force with the best technology available to get the job done right in a safe working environment. As evidence of that commitment, Nucor aggressively pursues the latest advancements in steel making around the world to determine what technology it can adapt in its facilities.
