You are on page 1of 19

THE NATURE OF MANAGEMENT

CONTROL
SYSTEMS
&
Case study -Nucor Corporation
PRESENTED BY:
NAME ROLL NO
NAMRATA 58
KIRTI 80
SONALI 02
NILEKHA 70
SUNMIT 98
PAWAN 13
VARUN 43
ATUL 35
Basic Concepts

1-What is Control?
- Elements of
Control…..

2-What is
Management?

3-Explain about
Systems?
Boundaries of Management
Control

1-Management Control Activities?

-Planning
-Co-ordinating
-Deciding and Influencing
-Communicating and Evaluating

2-What is Goal Congruence?

3-Explain Strategy Formulation?


Task Control

What is Task Control?


Distinctions between Task and Management
Control
Impact of Internet on Management Control
-Instant access
-Multi-targeted communication
-Costless communication
-Ability to display images
Nucor Corporation
Founded in 1904 – by Ransom Eli Olds

Started as a motor car manufacturer under the name “REO”

In 1950 & early 1960,became Nuclear Corporation of America

1962-Iversion joined Nuclear Corp. Of America as vice


president & three years later appointed as president

1965-suffered several money-losing years, bankruptcy

1972-changed name to Nucor Corporation

1998-became second largest steel company


Strategy
Focused on two major competencies
-building steel manufacturing facility economically
-operating them productively

First in its industry to adopt a number of new products &


innovative processes

Produced variety of steel products.

Customer segments

Did not believe in acquisition or mergers

No plans to diversify
Organization structure

Decentralized, Flat structure

Chairman /vice-
chairman /
president

Vice-president/ Department
plant general manager Supervisor
manager
HUMAN RESOURCE POLICIES
• Selective in recruiting employees and was able to choose from a
large applicant pool.

• Employee relations at Nucor were based on four principles.

• Key aspect of Nucor’s relationship with its workers was its


commitment not to layoff employees in periods when business was
down.

• Nucor listens to its employees through monthly crew meetings


,annual dinners, and employee surveys.
NUCOR COMPENSATION

• Production Incentive Plan.

• Department Manager Incentive Plan.

• Non – Production and Non-Department Manager


Incentive Plan.

• Senior Officers Incentive Plan.


Information system

• Weekly data sent to headquarters on the six operations related


variables: bids ,orders, production, backlog, inventory,
shipments.

• Iverson’s observation:”we don’t look over the shoulders of


general managers doesn’t mean not paying attention and no
delegation.”

• Detailed performance data oneach plant distributed to all plant


managers.
Benefits
• Nucor took an egalitarian approach towards employee benefits.

• Co. maintained profit sharing plan for employees

• It had monthly stock purchase plan featuring 10%Nucor


matching contribution.

• For Emp 5shares of Nucor’s common stock

• Company’s commitment to education


Technology
• Teams composed of managers, engineers, machine operators decided what tech
to use.
• Nucor adopted “mini-mill” concept .
• They converted scrap steel to finished steel using small scale furnaces.
• Nucor’s investment in the Crawfordsville plant represented 5 times co. earning.
• Nucor's philosophy was to build ,rebuild at least one mill a yr .
• In 1991 President Bush awarded Iverson the National Medal of Technology,
America’s highest award for technological achievement.
• Iverson said ,“Business is like a flower : you either grow or die”
Why has Nucor performed so
well?
 Nucor used plant location and growth to
its advantage
Unique organizational structure
Always acknowledged the importance for
employee relations and satisfaction in the
work place
Competitive advantage and a unique
strategy
What are the most important aspects of
Nucor’s overall approach to organization
and control that help explain why this
company is so successful?
Recycling steel in efficient mini-mills is the
secret of Nucor’s success
Location has also played a part in Nucor’s
success
Strategy has been one of the biggest factors
of success for Nucor
Would you like to work for
Nucor?
Yes because it not only take care of employees but also
take care of employees family.
Nucor provides various benefits plan of employees.
Nucor provides performance based compensation
Why have competitors not been to imitate
Nucor's performance so far?
Adopted the technological advancement.
Manufacturing facilities economically and
operating them productively.
Nucor has effective HR policies.
Sale 1997 Return on Debt/capital 5-year sales Profit
equity 1993- % 1997 growth margin%
97 1997
Nucor $4.1 18% 7% 23% 8%

Texas 1.0 12 22 12 8
industries
National 3.1 7 27 6 7
steel
Usx-us steel 6.8 10 21 7 6

Bethlehem 4.7 Deficit 28 3 Deficit


steel
Ltv 4.3 11 18 3 1

Northwestern 0.6 2 71 7 Deficit


steel
Thank you