Paldym NUCOR'S HARRIS STEEL CORPORATION Stoney Creek, Ontario Nucor Corporation is the largest steel producer in the United States. Its mission statement is "Take Care of Our Customers, and to accomplish this, they aim to be the safest, highest quality, lowest cost, most productive, and most profitable steel and steel products company in the world. Nucor is known as Harris Steel in Canada, and has major operations in almost every province Nucor-Harris Steel is highly decentralized, and operates one of the leanest corporate organizations in the United States with only 75 corporate employees. Its organizational structure has just five levels of management: President and CEO, executive vice president, division general manager, department manager, and supervisor/professional. This streamlined chain of command allows the general managers at each division (Canada's Harris Steel being one of the largest divisions) to operate their facility as an independent business. With the day-to-day decisions made at the operating facilities, Nucor-Harris Steel can respond to suppliers, customers, and employees without waiting for a decision from the corporate office, Reducing the distinctions between management and hourly employees serves Nucor-Harris Steel well. The company is committed to not laying off employees during work shortages, and to date Nucor Steel has never laid off a single worker. The result is a committed team of Nucor Steel employees and high-quality products Nucor-Harris Steel uses only four compensation plans for all employees, from hourly employees to senior officers. These compensation plans motivate and reward employees for meeting and exceeding production goals Employees involved directly in manufacturing are on the Production Incentive Plan, and receive weekly bonuses based on the production of their work groups. These bonuses average 80 to 150 percent of the base wage and have no set limit. The Department Manager Incentive Plan sees managers at this level earn incentive bonuses based primarily on the return on investment of their facility. These bonuses can be as much as 80 percent of base salary. Professional and staff employees, such as accountants, engineers, clerks, and receptionists, are on the Professional and Clerical Bonus Plan, which rewards employees based on their division's return on assets, and can allow bonuses of up to 28 percent of salary There are several additional bonus programs available to Nucor employees (but not officers), such as profit sharing, scholarship programs, employee stock purchase plans, and service awards. In wears of extraordinary nerformance the company has issued houses to all emnlovees excent D Focus - T Normal T No Spac... Heading 1 Heading 2 Title Paragraph Styles de HUISSU Ciel Dos Pd, Wirewdus employees UdSU UBICHUIVISIOISTE on assets, and can allow bonuses of up to 28 percent of salary There are several additional bonus programs available to Nucor employees (but not officers), such as profit sharing, scholarship programs, employee stock purchase plans, and service awards. In years of extraordinary performance, the company has issued bonuses to all employees, except officers, of as much as $2,000 for each employee. Each annual report since 1975 has listed the name of each of Nucor's 18,000 employees Finally, the Senior Officers Incentive Plan does not offer senior officers an employment contract. Nor do they contribute to pension or retirement plans Nucor-Harris Steel senior executives are not provided with company cars nor executive parking spaces. Their base salaries are lower than industry averages, and the balance of their compensation is based on the company's overall percentage of net income lo stockholder's equity This bonus is paid out in cash and stock The base pay or Nucor-Harris Steel employees is significantly below industry average, but productivity bonuses make them among the highest paid workers in the world. The success of Nucor-Harris Steel has been due, in pellt, to unprecedented and unrelenting domestic and international demand for steel Growing economies, particularly China, have had an insatiable need for steel. Recently, however China has become self-sufficient in steel production, and not only produces enough to meet local demand but also is emerging as a major exporter of steel Chinese steelmakers are currently negotiating with indian steel companies to partner in joint ventures to produce high-quality steel. The worldwide Suboly of steel is catching up with demand 5 Four o # 5 7 8 steel. Chinese steelmakers are currently negotiating with Indian steel companies to partner in joint ventures to produce high-quality steel. The worldwide supply of steel is catching up with demand, and current inventories are higher than many industry analysts consider appropriate. As global supply increases, production at Nucor-Harris Steel will slow, which means bonuses will decrease and total compensation (base pay plus bonus) could fall below industry average HL Po EEE I . 1 No Spac... Heading 1 Heading 2 Find Repla Select 1 Normal Title EXIT Paragraph Styles Editing 21. 1 4 3 4 R 5 4 6 1 Describe how Nucor Harris Steel's compensation strategy leads to increased motivation from an expectancy theory perspective. 2. Nucor-Harris Steel relies almost exclusively on external rewards. As demand for Nucor Steel is expected to decrease, these rewards will also decrease. What can Nucor do to minimize the impact of decreasing bonuses on employee motivation? 1. What motivation need is met by listing all 18,000 names in the company's annual report? a equity theory b. intrinsic reward C. Over-reward d. extrinsic reward NUCOR'S HARRIS STEEL CORPORATION Stoney Creek, Ontario Nucor Corporation is the largest steel producer in the United States its mission statement is "Take Care of Our Customers and to accomplish this they aim to be the safest, highest quality, lowest cost most productive, and most profitable steel and steel products company in the world Nucor is known as Harris Steel in Canada and has major operations in Paldym NUCOR'S HARRIS STEEL CORPORATION Stoney Creek, Ontario Nucor Corporation is the largest steel producer in the United States. Its mission statement is "Take Care of Our Customers, and to accomplish this, they aim to be the safest, highest quality, lowest cost, most productive, and most profitable steel and steel products company in the world. Nucor is known as Harris Steel in Canada, and has major operations in almost every province Nucor-Harris Steel is highly decentralized, and operates one of the leanest corporate organizations in the United States with only 75 corporate employees. Its organizational structure has just five levels of management: President and CEO, executive vice president, division general manager, department manager, and supervisor/professional. This streamlined chain of command allows the general managers at each division (Canada's Harris Steel being one of the largest divisions) to operate their facility as an independent business. With the day-to-day decisions made at the operating facilities, Nucor-Harris Steel can respond to suppliers, customers, and employees without waiting for a decision from the corporate office, Reducing the distinctions between management and hourly employees serves Nucor-Harris Steel well. The company is committed to not laying off employees during work shortages, and to date Nucor Steel has never laid off a single worker. The result is a committed team of Nucor Steel employees and high-quality products Nucor-Harris Steel uses only four compensation plans for all employees, from hourly employees to senior officers. These compensation plans motivate and reward employees for meeting and exceeding production goals Employees involved directly in manufacturing are on the Production Incentive Plan, and receive weekly bonuses based on the production of their work groups. These bonuses average 80 to 150 percent of the base wage and have no set limit. The Department Manager Incentive Plan sees managers at this level earn incentive bonuses based primarily on the return on investment of their facility. These bonuses can be as much as 80 percent of base salary. Professional and staff employees, such as accountants, engineers, clerks, and receptionists, are on the Professional and Clerical Bonus Plan, which rewards employees based on their division's return on assets, and can allow bonuses of up to 28 percent of salary There are several additional bonus programs available to Nucor employees (but not officers), such as profit sharing, scholarship programs, employee stock purchase plans, and service awards. In wears of extraordinary nerformance the company has issued houses to all emnlovees excent D Focus - T Normal T No Spac... Heading 1 Heading 2 Title Paragraph Styles de HUISSU Ciel Dos Pd, Wirewdus employees UdSU UBICHUIVISIOISTE on assets, and can allow bonuses of up to 28 percent of salary There are several additional bonus programs available to Nucor employees (but not officers), such as profit sharing, scholarship programs, employee stock purchase plans, and service awards. In years of extraordinary performance, the company has issued bonuses to all employees, except officers, of as much as $2,000 for each employee. Each annual report since 1975 has listed the name of each of Nucor's 18,000 employees Finally, the Senior Officers Incentive Plan does not offer senior officers an employment contract. Nor do they contribute to pension or retirement plans Nucor-Harris Steel senior executives are not provided with company cars nor executive parking spaces. Their base salaries are lower than industry averages, and the balance of their compensation is based on the company's overall percentage of net income lo stockholder's equity This bonus is paid out in cash and stock The base pay or Nucor-Harris Steel employees is significantly below industry average, but productivity bonuses make them among the highest paid workers in the world. The success of Nucor-Harris Steel has been due, in pellt, to unprecedented and unrelenting domestic and international demand for steel Growing economies, particularly China, have had an insatiable need for steel. Recently, however China has become self-sufficient in steel production, and not only produces enough to meet local demand but also is emerging as a major exporter of steel Chinese steelmakers are currently negotiating with indian steel companies to partner in joint ventures to produce high-quality steel. The worldwide Suboly of steel is catching up with demand 5 Four o # 5 7 8 steel. Chinese steelmakers are currently negotiating with Indian steel companies to partner in joint ventures to produce high-quality steel. The worldwide supply of steel is catching up with demand, and current inventories are higher than many industry analysts consider appropriate. As global supply increases, production at Nucor-Harris Steel will slow, which means bonuses will decrease and total compensation (base pay plus bonus) could fall below industry average HL Po EEE I . 1 No Spac... Heading 1 Heading 2 Find Repla Select 1 Normal Title EXIT Paragraph Styles Editing 21. 1 4 3 4 R 5 4 6 1 Describe how Nucor Harris Steel's compensation strategy leads to increased motivation from an expectancy theory perspective. 2. Nucor-Harris Steel relies almost exclusively on external rewards. As demand for Nucor Steel is expected to decrease, these rewards will also decrease. What can Nucor do to minimize the impact of decreasing bonuses on employee motivation? 1. What motivation need is met by listing all 18,000 names in the company's annual report? a equity theory b. intrinsic reward C. Over-reward d. extrinsic reward NUCOR'S HARRIS STEEL CORPORATION Stoney Creek, Ontario Nucor Corporation is the largest steel producer in the United States its mission statement is "Take Care of Our Customers and to accomplish this they aim to be the safest, highest quality, lowest cost most productive, and most profitable steel and steel products company in the world Nucor is known as Harris Steel in Canada and has major operations in