Read the closing case and answer the two questions that follow.
CLOSING CASE Holding True at Nucor Steel them as handsomely as possible Today, the basics of the company's HR model are summed up in its Employee Relations Principles'”: Nucor Steel For the most part, the watchwords in US business since the 2008- 2011 recession have been cutting payroll reducing head count, and eliminating jobs. But Nucor, the country's largest steelmaker, stil has all its jobs. Hit by a 50-percent plunge in output that had begun n September 2008, the U.S. steel industry laid off some 10,000 work ers by January 2009 and another 5,000 by 2010. Nucor, however,has refused to follow suit in lay- ing anyone off Whenever they don't have enough steel orders to fill their workweek, Nucor employees have been performing other tasks: rewriting safety manuals, getting a head start on maintenance jobs, mowing the lawns, and cleaning the bath- rooms, but they're still drawing paychecks. “Financially,”says one employee at the company's facility in Crawfordsville, Indiana, “Nucor workers are still better off than most Management is obligated to manage Nucor in such a way that employees will have the 1. opportunity to earn according to their productivity Employees should feel confi- dent that if they do their jobs properly, they will have a job 2. tomorroW 3. Employees have the right to be treated fairly and must believe that they will be. 4. Employees must have an avenue of appeal when they believe they are being treated unfairly The lverson approach is based on motivation, and the key to that approach is a highly original pay system. Step 1, As far as top management is concerned, the company's ability to weather the recent economic downturn is based on several factors,most importantly, the firm's employees and culture. What's that culture like? It originated in the 1960s as the result of policies established by Ken iverson, who brought a radical perspective on how to manage a company's HR to the job of CEO. Iverson figured that workers would be much more productive if an employer went out of its way to share authority with them, respect what they accomplished, and compensate which calls for base pay doesn't seem like a promising start, but the Nucor compensar below the industry average, probably tion plan is designed to get better as the results of the work get better. If a shift, for example, can turn out a defect free batch of steel, every worker is entitled to a bonus that's paid weekly and that can potentially triple his or her take-home profit-sharing payouts.In 2005, for instance, Nucor had an pay. In addition, there are one-time annual bonuses and especially good year; it shipped more steel than any Continued

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