Assignment #4

     The four modes of knowledge conversion is socialization, externalization, combination, and internalization.
Nucor Steel managed to create knowledge activities through all forms of knowledge conversion.

     Socialization was achieved through locating plants in rural areas, away from the busy bustling cities. They branched out and received workers of a different caliber, with far more potential.

     Externalization was achieved through their investment in continuous, on-the-job, multi-functional training. Creating the urge for more knowledge about not only a single job, but multiple jobs.

     Combination was achieved when they decided to adopt the minimill technology. Although it was a risky move, the break-through success of the technology allowed Nucor to achieve an advantage over many of their competitors.

     Internalization was achieved when recession hit the company. Through a recession they implemented a reduced workweek and reduced pay system instead of laying off workers. To counteract the tension between the company and employees, and preserve employee loyalty, they implemented a "share the pain" program. The program made sure that if the workers compensation were to be reduced, then the managers compensation would be reduced even more, and greater reduction would be placed on executive compensation. Although it was a risky move, it resulted in the lowest turnover rate in the industry during that recession.