Structure
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- Date Submitted: 05/01/2011 07:00 AM
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How does the Nucor case illustrate the limitations of the simple organizational structure?
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.
Do you think other organizations should attempt to replicate Nucor’s structure? Why or why not?
It depends on which type of the organizations. If the organization is still new and small business, it’s better to use the simple structure of organization just like Nucor did. Because it can simplify, fast, flexible and inexpensive to maintain the organization. And the accountability is also clear. But if the organization is big and the size is getting increase, it’s better to use more complex structure organization rather than simple, because with simple structure it’s difficult to maintain in anything other than small organizations.
Why do you think other organizations have developed much more complex structures than Nucor?
We think that the other organizations have developed much more complex structures than Nucor because of the other organizations have bigger size of business rather than Nucor. So they have to develop the structure to a more complex rather than simple structure. If they still...
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.
Do you think other organizations should attempt to replicate Nucor’s structure? Why or why not?
It depends on which type of the organizations. If the organization is still new and small business, it’s better to use the simple structure of organization just like Nucor did. Because it can simplify, fast, flexible and inexpensive to maintain the organization. And the accountability is also clear. But if the organization is big and the size is getting increase, it’s better to use more complex structure organization rather than simple, because with simple structure it’s difficult to maintain in anything other than small organizations.
Why do you think other organizations have developed much more complex structures than Nucor?
We think that the other organizations have developed much more complex structures than Nucor because of the other organizations have bigger size of business rather than Nucor. So they have to develop the structure to a more complex rather than simple structure. If they still...