Operational Behavior Chp16 Case

Chp.16 Case1 1. 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 the CEO, this leaves the CEO with too much responsibility and would not enable the CEO to make the right decisions. There needs to be some sort of centralization which would concentrate the decision making at a single point in the organization and control the plan managers more efficiently.

2. I do not think other organizations should replicate Nucro’s structure as it is not the CEO’s job to communicate with plant managers directly. Nucor implemented a new layer of management by adding the five vice presidents; this is not the only structure important for the organization. There needs to be some sort of authority as well as a unity of command which would coordinate the structure of the organization and maintain the communication process in the organization as smooth as possible.

3. Other organizations must have implemented a complex structure in terms of who reports to whom. This kind of structure is vital for every organization as it increases productivity and is