Management: Organization and Plant Managers
How does the Nucor case illustrate the limitations of the simple organizational structure?
1.1 In this Nucor case, it illustrates that simple organization structure have their limitations. From this case we can see that Nucor only has three levels of management that makes the plant managers report directly to the CEO, and it makes the CEO hard to maintain the company using this simple structure and also hard to make decisions on trade battles. This is happened because the CEO can’t concentrate and focus to his mainly job which is making decisions, with this simple structure he has to maintain the report from the plant managers too. From this case, we can say that simple structure has limitations. When the organization size increases, decision making typically becomes slower and risky because the decision only depend on one person and it makes the information overload at the top management. It is also difficult to maintain in anything other than small organizations.
1.2 One of the major organizational structure flaws in Nucor is that the plant managers report directly to the CEO. The limitation Nucor is facing in terms of organizational structure is the absence of chain of command. Chain of command should be implemented in Nucor’s organizational structure as it would enable plant managers to report to a superior employee who would have the authority and unity of command. This system would enable the superior employee to give orders to the plant managers and create a systematic structure in terms of responsibility. Nucor also lacks a span of control as it would control the number of levels and managers in the organization. Since the organization only consists of 66 employees, Nucor should implement a wider span of control which would have fewer levels of employees that would work efficiently and be more productive. Another organizational structure which Nucor lacks is centralization. Due to the fact that plant managers report directly to
1.1 In this Nucor case, it illustrates that simple organization structure have their limitations. From this case we can see that Nucor only has three levels of management that makes the plant managers report directly to the CEO, and it makes the CEO hard to maintain the company using this simple structure and also hard to make decisions on trade battles. This is happened because the CEO can’t concentrate and focus to his mainly job which is making decisions, with this simple structure he has to maintain the report from the plant managers too. From this case, we can say that simple structure has limitations. When the organization size increases, decision making typically becomes slower and risky because the decision only depend on one person and it makes the information overload at the top management. It is also difficult to maintain in anything other than small organizations.
1.2 One of the major organizational structure flaws in Nucor is that the plant managers report directly to the CEO. The limitation Nucor is facing in terms of organizational structure is the absence of chain of command. Chain of command should be implemented in Nucor’s organizational structure as it would enable plant managers to report to a superior employee who would have the authority and unity of command. This system would enable the superior employee to give orders to the plant managers and create a systematic structure in terms of responsibility. Nucor also lacks a span of control as it would control the number of levels and managers in the organization. Since the organization only consists of 66 employees, Nucor should implement a wider span of control which would have fewer levels of employees that would work efficiently and be more productive. Another organizational structure which Nucor lacks is centralization. Due to the fact that plant managers report directly to