Organization Structure at Nucor Highlights Thesis

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Large amounts of employees cannot be easily dealt with by one, or sometimes even a few, corporate officers, as the Nucor example makes clear. Corporate officers often can make better use of their time in other ways. If a company begins with a large number of employees, simple structure may not be the answer for them. Similarly, if employees in plants are large distances from the corporate headquarters, or the company has a variety of plants, a separate structure must be adopted for each plant in order to best deal with the problems that arise there. Relying on a single CEO or small group of officers in this case may lengthen reaction times and end up in financial or literal disaster for companies. Finally, a complex structure encourages a great deal of respect while a simple structure can be interpreted as loose and informal, with every day workers appealing decisions to the company's head or founder.

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Companies that want to achieve a greater level of respect for business and business leaders may choose a complex structure.

As time goes on, Nucor's structure will certainly start to look like other companies', but not necessarily because "new blood" has come in. Instead, the company will simply get too large to handle. Just as the large number of employees was too big for DiMicco for to deal with, the company's growth will probably soon exceed the five executive vice presidents. While simple structure is a good starting point, company founders need to be aware that structure should be fluid, changing with the shape of….....

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