BUS 599 Week 4 Assignment HRM Issues Diversification Strateg…

HRM Issues in Diversification Strategies: A Case Study of Nucor Corporation


Effective human resource management is crucial for the success of any organization, especially in the context of diversification strategies. Diversification is a strategy that involves expanding a company’s operations into new markets or industries, typically to reduce risk and increase profitability. In this case study, we will analyze the HRM issues faced by Nucor Corporation, a leading steel manufacturer, in relation to its diversification strategies. We will examine the company’s approach to HRM and evaluate its effectiveness in supporting its diversification efforts.


Nucor Corporation is one of the largest steel producers in the United States. The company has a long history of success and has achieved significant growth through its strategic diversification efforts. Nucor has expanded its operations not only geographically but also into new markets and industries. However, such diversification comes with its own set of challenges, particularly in terms of managing human resources effectively.

HRM Issues in Diversification Strategies

One of the key HRM issues faced by Nucor Corporation in relation to its diversification strategies is the need to attract and retain a diverse workforce. Diversification strategies often require entering new markets or industries where the company may not have a strong presence or a well-established reputation. In such scenarios, Nucor needs to implement HRM practices that can attract individuals from diverse backgrounds and skill sets who can contribute to the company’s growth and success. This includes developing robust recruitment strategies, improving the diversity of its leadership team, and creating an inclusive work environment that values differences and promotes equal opportunities for all employees.

Another HRM issue is the need to provide adequate training and development opportunities to employees to support the diversification efforts. When entering new markets or industries, Nucor may require its existing employees to acquire new skills or knowledge. Additionally, the company may need to hire individuals with expertise in areas where it lacks competency. To address these requirements, Nucor needs to invest in training and development programs that equip its workforce with the necessary skills and knowledge. This includes offering specialized training programs, partnering with educational institutions, and providing opportunities for continuous professional development.

Furthermore, Nucor needs to ensure effective communication and collaboration across its diversified operations. Diversification often involves multiple business units or subsidiaries operating in different geographic locations or industries. This can create challenges in terms of sharing information, aligning strategies, and fostering a sense of unity among employees. Nucor must have effective communication channels, such as regular team meetings, internal newsletters, and online collaboration platforms, to facilitate knowledge sharing and collaboration among its diverse workforce.

Evaluation of HRM Approach

Nucor Corporation has demonstrated a strong commitment to HRM, which has played a significant role in supporting its diversification strategies. The company’s HRM approach focuses on empowering employees, fostering a performance-oriented culture, and promoting internal career development. Nucor’s compensation structure, which includes profit-sharing and incentives based on individual and team performance, motivates employees to contribute to the company’s success. Additionally, the company’s decentralized management style empowers employees to make decisions and take ownership of their work, fostering a sense of pride and commitment. Nucor also prioritizes internal promotions and career development, which helps in retaining talented employees and building a strong organizational culture.

However, there are areas where Nucor can further enhance its HRM approach to better support its diversification strategies. Firstly, the company needs to place a stronger focus on diversity and inclusion. While Nucor has made progress in this regard, it should continue to improve its recruitment and retention strategies to attract and engage diverse talent. Furthermore, the company can strengthen its training and development programs to better address the specific needs of employees in different markets or industries. This can be achieved by partnering with external training providers or implementing a more tailored approach to employee development.


In conclusion, effective HRM is crucial for supporting a company’s diversification strategies. The case study of Nucor Corporation highlights the HRM issues faced by the company and evaluates its approach in addressing these challenges. While Nucor has demonstrated a strong commitment to HRM, there is room for improvement in areas such as diversity and inclusion and tailored training and development programs. By addressing these areas, Nucor can further enhance its HRM practices and strengthen its ability to succeed in its diversification endeavors.