How Is Reinforcement Theory Used at Nucor - Assignment Example

How is reinforcement theory used at Nucor? First of all, I would like to explain a little bit about Reinforcement theory. Reinforcement theory actually explains about behaviors of a person. There are some kinds of consequences which also occur as a result of reinforcement theories. These types of theories basically tell about the negative and positive changes took place in behaviors or actions of individuals. Reinforcement theories may also be called as “behavior modification” theories. Positive reinforcement—strengthens behaviour. This is actually done through making that specific behaviour occur more frequently by presenting something very positive. Examples are that in a working environment/ situation; money, time off, recognition, praise and fringe benefits may act as positive reinforcement. Negative reinforcement—maybe also called avoidance. This theory also strengthens behaviour by contingently retreating something which is displeasing. It is also called reinforcement in a sense because it also “strengthens” behaviour. It does that because it allows the course to avoid an unpleasant consequence. Punishment—weakens behavior by displaying / showing something unpleasant. This might include decreases in pays, job transfer, conduct an oral reprimand, or even the dismissal. It could be also noted that at this point of time, the same unpleasant consequence could be used in both negative reinforcement and punishment. Say, for example, if someone is endangered with being dismissed for turning up quite late to work, and so he/ she consequently turns up to work early in order to avoid being dismissed, then this action or behaviour shown by person would be an example of negative reinforcement—strengthening the behaviour of turning to work on time. If, somehow, the employees were dismissed only because of turning up to work late, then this would be an example of punishment because the unpleasant consequence has been presented. Extinction—also weakens behavior by making sure that it is not reinforced. An example might be that if we ignore office clowns who may have previously obtained satisfaction by having people nobody responds, then it is most likely that they would not continue that sort laugh at their humour or humorous sort of things or activities. If of behavior since they are not positively reinforced by the office staff laughing. Now, if we have a look at the Nucor’s approach regarding Reinforcement theory, then we come across many pleasing/ motivating and also at the same time quite displeasing actions to be taken as a result of outputs or behaviors shown by individuals at Nucor. At Nucor, the art of motivation is quite high and an unblinking focus on the people at the front line of the business. It’s like talking to them directly. The general pay structures at Nucor is relatively on a lower side as compared by its competitors or other related business companies. But at Nucor, if you do the good work, you get many benefits but at the same time, if you underperform, you also get penalized. For the reason that not only does the good work is rewarded, the bad work is also penalized. At Nucor, the steel worker earns around $10 per hour, but in any other company, he can easily earn $16 to $21 an hour. But at Nucor, the bonuses are tied up with the production of defect-free shipment can also triple the average steel workers take home pay. And, if they made a bad shipment and it goes to customers, then these steel workers can lose up to three times of their guaranteed pays. So, all these types of fringe benefits, rewards, bonuses, and pay loses, transfers, etc. are all part of positive and negative reinforcement theories. This is how the reinforcement theories apply at Nucor. What role does equity theory play in the case? Discuss. Equity theory basically tells us about “Distributive Justice” and “Cognitive Dissonance”. Homans suggests that ‘distributive justice’ explains that how people’s consider both inputs and outcomes when evaluating any social exchange. He also explains the inputs into a social exchange 'investments' and the outcomes from such an exchange 'profits', and says that if the profits and investments are about equal, then people practice distributive justice and hence are satisfied with that sort of exchange. But however, if they receive distributive injustice, they tend to be dissatisfied, and then have two choices e.g., they could either try to restore a state of justice, or leave the situation. Cognitive dissonance is also called psychological discomfort. Cognitive Dissonance is a form of relationship in which you compare that how much you get out of a relationship compared to what you put into it. You would tend to be reasonably happy if you feel that you are getting out of a relationship approximately the same what you are putting into it. However, you would definitely feel unhappy if you feel that you are putting a lot into a relationship and getting little out of that. According to Homan’s concept, you could either try to get more out of the relationship, or you could leave it. At Nucor, equity theory plays a significant role in a sense that every year; each individual’s name goes directly on the cover of company’s annual report. This is a big motivation factor and also a big plus for all employees at Nucor. Profit sharing at Nucor is also evenly distributed. The pays or salaries of managers at all levels, front line staff and also the CEO’s pays are all at stake whenever any average or bad shipment goes on board. So it’s not the case that Nucor’s CEO gets quite high salaries regardless of the bad shipment. Everybody bears the consequences. Nobody is left behind. Pay disparities are modest at Nucor. Executive’s pays are geared towards team building. Nucor has created a healthy competition among different facilities and shifts. There’s also a nice working environment. But there’s always some room for improvement. And Nucor knows it quite well. So, plant managers regularly set up contests for shifts in order to try to out do another on a set goal. This is a healthy activity and they all like that. All the staff is happy and contended and love to work willingly at Nucor, moreover, there’s plenty of other company’s workers are constantly joining Nucor due to bonuses and rewards. They know that if they perform well, they will be benefited exclusively but not the top management alone. To what extent is Nucor’s approach to employee motivation consistent with expectancy theory? Nucor’s approach towards employee’s motivation is quite much consistent with expectancy theory. Firstly, I would like to give a brief introduction about expectancy theory. Expectancy theory tells us that people are not just motivated or de-motivated, but that there is a certain level of motivation which depends on the work environment. Meaning that any effort will lead towards a performance and that performance will lead towards an outcome perception. And all these factors combine together to influence the motivational force within an employee. At Nucor, the motivational factors are pay raises, bonuses, time-offs, shifts-based working environment and other incentives as well. And more importantly, the good employee’s names get silver or gold printed in the annual report of the Nucor. That’s also a big achievement of all staff members at Nucor. It’s all about the “us guys” atmosphere at Nucor. Nobody says I or he has done that work. Managers at Nucor don’t just ask their employees to work wonders to put a big chunk of their pay at risk, but also their own take-home pay is at risk. Department managers at Nucor typically get a basic pay that’s 75-90% of the market average pays. But in worse days, they earn quite little as compared to their peers in other companies. When things are worse, DiMicco (CEO) also suffers too. Read More