Compensation and Benefits (Case Study of Nucor Steel)

Topic: Compensation and Benefits at Nucor Steel

Objective:  This assignment requires that you read the “Holding True at Nucor Steel” closing case at the end of Chapter 9 and then demonstrate your critical thinking and written communication skills by responding to questions posed below.  NOTE:  I have included more than the two questions at the end of the printed case!

Format:  2 full pages (no more and no less!), essay format, typed as a Word document, using 10-12 point font, double spacing, and one-inch margins. Paper must be written at the college level and free of spelling, grammar, capitalization, punctuation, and sentence structure errors.  Your paper should be properly labeled (your name, date, class, assignment name) and MUST be uploaded as a .doc or .docx or .pdf attachment by following the directions in Blackboard (see the “Assignments” and “How To’s” tabs).

Directions:  Read the “Holding True at Nucor Steel” closing case at the end of Chapter 9 in your textbook.

Next consider what you learned from your readings in Ch 9, and respond to these questions:

1. Would you want to work under a compensation system like Nucor’s? Why or why not?  Be clear and specific about the elements of the system on which you choose to comment.
2. Why do you think more firms don’t use an approach to compensation similar to Nucor’s? Again, be clear and specific; your points should be relevant to your argument.
3. Go online and research Nucor to find one other unusual element of their culture not already discussed in this case. What makes it unusual?  Do you think it is an effective approach for companies to take?  Why or why not?
4. Moving away the case itself, generally what are the positives and negatives associated with salary versus bonus? Create a table listing the positives and negatives about salary and then do the same for bonuses.  Include at least two items in each list, one from an employee perspective and one from the employer perspective (label them clearly; see example below).
5. Consider your own pay system. Make one constructive suggestion how your pay system could be more effective using concepts learned in this chapter.  Explain why you feel this way.  TIP:  Can’t just say “pay me more!”