Nucor Aligns Company Goals With Employee Goals

A successful company needs to take care of the comfort of employees so that they work more productively. If the business can provide a stable salary, which will be based on the efficiency and profit of the firm, then workers will be interested in performing their functions at the highest level. Therefore, providing social guarantees for the employee and maintaining economic benefits are essential conditions for a successful enterprise.

Goals and Objectives in Nucor that Correspond to the Planning Facet of the Framework of P-O-L-C

One of the types of preparation is operational planning, which assumes the presence of goals and objectives of the organizational or subdivision group and determines how to achieve them. Operational planning is short-term (less than a year) preparation to develop specific steps that support strategic and tactical plans (Thürer et al., 2019). Thus, the chosen course of Nucor corresponds to this type of planning. Ordinary employees in the company can emphasize a specific goal and present a plan for its implementation. The chief head of the firm can take into account the operator’s ideas, which creates motivation for all workers to make efforts to improve the company. Accordingly, if everyone is involved in creating aims and objectives, their implementation will be effective and fast.

Negative Consequences in Nucor Corporation as a Result of Tying Pay to Company Performance

Salary schemes according to the company’s profitability are a positive strategy in organizations. The main objective of such payments is to provide motivation and encourage employees to work effectively. Although, there are negative aspects of choosing such a system of determining wages. In Nucor, payments are generally calculated from business accomplishment (Nyberg et al., 2018). In fact, for salaries to be honest and encourage absolutely all operators to work, managers must have data about individual achievements, often unavailable. Therefore, administrators should rely partly on the employee’s reports on their personal contributions, which are likely to be biased. Therefore, the negative aspects are that it is not possible to objectively assess each employee’s work. However, when the organization pays monetary rewards, workers will exaggerate their successes and openly manipulate managers’ views to obtain higher financial benefits.

Consequences of Fines for Low Productivity of Employees

Nucor’s method of penalizing low-performance workers will affect people’s productivity because workers and the company will not be capable of working together. Employees’ earnings depend on the results of their work. As a consequence, the system of fines will be imposed on low-productivity workers while increasing the company’s commitment to active workers. If employees have low performance, for example, they are late for work, they will waste bonus for a day or for the whole week. Thus, the staffing system aims to explain the main principle of business (Nyberg et al., 2018). Employees will understand that if people do the quality tasks today, they can receive even more pay tomorrow. Although, in reality, Nucor does not need to split the team and fine employees, as this can break the close bond between the company and the workers.

The Motivation of Employees to Increase Labor Efficiency

In addition to monetary incentives, the organization may implement non-material ways to maintain the efficiency and interest of employees in work. For example, it is possible to create rules of communication in the team, according to which the policy of regard for human dignity will be widely applied. In this way, it will assist in establishing even more trusting relationships in the team. However, the company may assume additional obligations for supplementary insurance or social benefits (Omolawal & Bawalla, 2017). Another significant incentive is the creation of training and exercises for workers. This will aid increase the competence of employees to obtain higher profits and maintain the professional skills of operators.

Reward Systems That Can Motivate People

In a company, employees can potentially receive a variety of motivations through reward systems. First, Nucor’s premium practice is unique, and its employees are the highest-paid metallurgists in the world. The average Nucor worker earns a salary and bonuses determined by the company’s annual income. Moreover, operators receive an annual distribution of profits, so the monetary compensation stimulates labor efficiency, as the organization’s productivity affects the final payment to employees. Second, Nucor focuses on empowerment; employees are treated with dignity and respect, and the firm demonstrates its commitment to workers at every level (Omolawal & Bawalla, 2017). Management listens to lower-level staffers and regularly implements their new ideas. Obviously, Nucor is famous for its decentralized structure and for providing a comfortable work environment for employees. Thus, individual opportunities and economic incentives together affect employee motivation. That is, the result of increasing productivity from economic and individual benefits is similar.

The Influence of the Union

In the event of establishing a labor union in Nucor, there will be an essential impact on the company’s dynamics. Since even now, the organization protects the rights of employees and provides significant advantages over competitors in the industry. If the business creates a trade union, it will be easier to implement new initiatives for additional social security for workers and extra guarantees (Villajos et al., 2019). In this way, the already low staff turnover will be reduced, which will support the professionalism and experience of employees.

Nucor has created the right conditions for employees to understand their importance in teamwork. At the same time, they receive a high salary due to the success of the company, precisely because of their collective work. Moreover, if the firm provides additional individual support for workers, the company’s profits will rise. That is, Nucor has chosen the right way for business and organizing the workforce.


Nyberg, A. J., Maltarich, M. A., Abdulsalam, D. D., Essman, S. M., & Cragun, O. (2018). Collective pay for performance: A cross-disciplinary review and meta-analysis. Journal of Management, 44(6), 2433-2472.

Omolawal, S. A., & Bawalla, O. G. (2017). Performance and reward systems in organization. Human Resource Management Journal, 9(1), 73-82.

Thürer, M., Fernandes, N. O., Stevenson, M., Silva, C., & Carmo-Silva, S. (2019). POLC-A: an assessment of POLCA’s authorization element. Journal of Intelligent Manufacturing, 30(6), 2435-2447.

Villajos, A., García-Ael, C., & Topa, G. (2019). Job crafting among labor union representatives: Its impact on work engagement and job satisfaction. Social Sciences, 8(1), 20.

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