Management: Organization and Plant Managers

Topics: Organization, Structure, Management Pages: 2 (650 words) Published: June 13, 2013
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...
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