Saturday, January 23, 2010
Connor Formed Metal Products Knowledge Management
Sloss’ focus on making quality products was ethically the right idea, but it may have cost Connor revenue. Due to Connor’s competitors both nationally and internationally, Sloss had to find a niche’ which was 100% quality. I think that by Connor having so many competitors who were much larger than them could have the same focus of 100% quality, but I also feel that there was no uniqueness factor in this niche. This was easily duplicated and accessible. The larger competitors also had more revenue to put behind making perfect products. In order for Connor to gain the upper hand on these companies they should have expanded to using refurbished goods, like Nucor using the scrap metal.
Connor was a great company to be employed by because of all the incentives, but I feel as though the rewards were much greater than the risks. Connor was giving the employees a chance to be stock holders, but stock was given away too often. The “stretch-goals” that Nucor used for their system would have been ideal here.
I think that the managers should have played more of a role in goal setting and monitoring the employees. It would have given the company a better idea of what innovations could improve productivity.
Thursday, January 21, 2010
Just-in-Time Delivery Comes to Knowledge Management
How Nucor Operates
Many of you, like myself before reading the Knowledge Management’s Social Dimension: Lesson from Nucor Steel case, may not know what Nucor Steel does, or may not realize why they are at the top of their industry. The videos are a great example of how Nucor produces their product as well as how the employees interact with each other. It also gives a brief explanation about their incentive program. Feel free to leave comments and add other videos relating to this topic.
Nucor breaks its net sales into 4 main segments: Steel Mills, Steel Products, Raw Materials, and All Other.
NUCOR'S JOB GROWTH
Knowledge Management’s Social Dimension: Lesson from Nucor Steel
I read an article, Knowledge Management’s Social Dimension: Lesson from Nucor Steel. This article was based around social ecology- that is, the social environment within which people operate. While most companies are lacking the social ecology, Nucor Steel is at the forefront of this. In my opinion social ecology is the way information is passed around throughout an organization. Information technology is probably the most viable and efficient way to connect, but it is not the only way and most companies overuse or misuse it. Nucor on the other hand, stayed in front of technology by taking risks and reaping the rewards. While developing these new technologies it is imperative that the information get disseminated throughout the organization, which Nucor was an expert at doing.
The reason for Nucor’s success at social ecology was their leadership style and management which was indicated as giving people the freedom, resources and training to do their jobs but not getting in their way. The way Nucor treated each individual that worked for them really impressed me. Not only were the employees motivated by incentives, they were also self motivated through the open performance records. Nucor also stayed away from the plague of “knowledge is power” in a sense. The reason why I say in a sense is because Nucor did realize that “knowledge is power”, but knowledge throughout the entire Nucor Steel Coperation.
The employee empowerment and incentives really was an effective tool to not only evoke the social ecology, but to also keep Nucor at the top of the steel industry. Giving employees the ability to explore new and more effective ways to be more beneficial also increase their moral, empower them, and also give them a sense of trust. If that wasn’t enough Nucor came up with the “share the pain” program: which stated that any reduction in worker’s compensation was accompanied by a greater reduction in managers’ and the CEO’s pay.
Nucor‘s ability to be effective in knowledge management social ecology came from its leadership.
