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Nucor Case Study

1683 words - 7 pages

How is the reinforcement theory used at Nucor? Nucor has used the reinforcement theory in order to motivate its employees .First let me explain a little what the reinforcement theory is this theory is dependent upon the rewards offered for tasks. It is based on the fact that the degree of achievement is directly related to the reward which is given. The reinforcement theory relies on positive reinforcement and recognizing the impact of different schedules of reinforcement on behavior.Nucor realizes that rewarding a behavior with recognition immediately following that behavior is likely to encourage its repetition. The recognition can take many forms, whether it is a pay raise, an award, or simply a pat on the back. They also know that Rewarding desirable behavior is important to a business to keep the motivation of the employees high that is why they do not use a control and command model with their employees, instead they trust their people and share the corporate wealth. We can analyze Nucor by Robbins (2001), reinforcement theory ignores the inner state of the individual and concentrates solely on what happens to a person when he or she takes some action. Significant research indicates people will exert more effort on tasks that are reinforced than on tasks that are not this statement is definitely proven by Nucor as pay day is always a time to celebrate for the employees in 2005 they distributed $220 million and this made the employees work even more hard for them. Thus as Robison pointed they exert more efforts in their takes. Nucor realizes this shares its profit with its employees so that they can get the maximum from them. Reinforcement theory will work well for Nucor's employees because they thrive on individual recognition and with little time and effort will become comfortable with being recognized as part of a team.Reinforcement theory works well for Nucor because employees are likely to put forth more effort if they know that same effort will be rewarded when the task is finally completed. The reward itself is not as important as knowing that there will be a reward.Q2).What Role Does Equity Theory Play In The Case?Let us starts by explaining exactly what this theory is all about the equity theory states: employees weigh what they put into a job situation (input) against what they get from it (outcome) and then compare their input-outcome ratio with the input-outcome ratio of relevant others (Robbins, 2001 p115). It can also be said that Equity theory gives complete attention to on the feelings of employees of how fairly they have been treated in contrast with the treatment which other employees get " (Laurie 2007 p.435).Equity does play a huge role in the case , as Nucor knows that Equity plays an important role for employees. If an employee feels equally treated, he or she will sense fairness. If an employee feels they are treated unfairly, they may feel they are not being treated well enough. Thus when the company does not make...

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