Any organization's success whether it is based on objective criteria like profits, return on investments etc., or subjective perceptions of stakeholders like ratings by customers, public or employees is dependent on the right mix of some critical ingredients. In the case of Nucor, many of these ingredients can be seen to be present. Ideally, one should take into consideration employee ratings data on various aspects of culture. The reason for this is that it is the culture as perceived by employees which make an impact on employees and not the culture as understood by analysts or as intended by the management. In the absence of such data, I will analyze the several features of the Nucor culture from the viewpoint of another important concept, i.e., employee morale.
Nucor's comprehensive HR policies demonstrate the presence of almost all the essential elements required to build high morale within an organization. I will discuss each of these briefly along with the supporting evidence from the case. Job security: This was communicated to the employees when Nucor didn't layoff any employee and shut any of its plants, even when downsizing and layoffs were the order of the day.
Productivity linked remuneration: This was well appreciated by employees at Nucor as they earned more than their counterparts in the industry. This incentive plan was also perceived as equitable and fair because it rewarded performance and efficiency. Perhaps the transparency and objectivity of the plan too was well appreciated. This, I believe, is one of the key reasons of Nucor being listed as one of the 100 best companies to work for in the US. |
