Pay for Output, Kill the Appraisal

“We have no performance appraisals in Nucor. People earn according to what they produce, and those earnings are determined simply and objectively. tively. We also have no job descriptions. We let our employees define their own jobs as they search for ways to optimize their productivity.”

“Our relations with employees are based on these four clear-cut principles: 1. Management is obligated to manage the company in such a way that employees will have the opportunity tunity to earn according to their productivity; 2. Employees should feel confident that if they do their jobs properly, they will have a job 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.”