An Effective Social Ecology

The article, Knowledge Management's Social Dimension: Lessions From Nucor Steel, focuses primarily on the effectiveness of the social ecology at Nucor Steel Corp. In order for an organization to become an efficient knowledge base, they will need to understand the premise of what defines a social ecology.

1. Drives an organization's formal and informal expectations of individuals
2. Defines the types of people who will fit into an organization
3. Shapes individuals' freedom to pursue actions without prior approval
4. Affects how people interact with others in and out of the organization

Nucor gained access to superior human capital through the location of their plants, while offering lofty compensation to select the best workers. Through shared incentives, they were able to boost productivity, share knowledge interplant and intraplant, and increase acceptance of new practices across the company. The social ecology at Nucor turned the company into a knowledge powerhouse, creating a competitive advantage and increase profits for 30 years in the shrinking steel industry.