What are the most relevant concepts from the chapter reflected at Nucor? Comment especially on the following
The employee motivation is relevant concepts, which have been derived from the Nucor case. Interestingly, the company has a unique way to motivate employees, which also enables excellent performance, productivity and integrity (Barr, 2017). Following aspects are triggered by the case, and elaboration is as under
Maslow’s Hierarchy
Maslow’s Hierarchy is visible in this case due to self-actualization. The management intends to achieve the full potential of employees through creative activities such as profit sharing and other incentives. Psychologically, employees are satisfied, and these incentives are beyond basic needs (Kaur, 2013).
Herzberg’s Motivation-Hygiene Theory
According to this theory, Nucor has different factors, which lead towards the job satisfaction. For Instance, despite having different employees in different steel plants, the integrated system facilitates the employee-management engagement, even in critical situations (Dartey-Baah & Amoako, 2011). It enhances the visibility of job satisfaction in Nucor.
Expectancy Theory
Pertinent to expectancy theory, employees have different sets of goals to be motivated. Nucor’s employees believe that their performance is a key to get the valuable reward. The average salary of the steelworker in the company is $16 to $21 hourly. However, they contain efforts to get an average $79,000 from the management. The correlations between efforts and performance are quite lucrative (Lunenburg, 2011).
Equity Theory
Fairness with people at Nucor is the main theme of this theory. Employees are facilitated equally in the Nucor’s culture, as the management provides bonuses, profits, and other incentives equally instead of discriminations or inequalities, and t is a huge motivational factor (Al-Zawahreh & Al-Madi, 2012).
Goal-Setting Theory
Goal setting theory is visible when the firm suffers from the failure of the electrical grid system. Hickman’s electrician colleagues set tougher goals such as the development of skills and integration to repair the system as soon as possible. Finally, they performed well (Asmus, Karlb, Mohnen, & Reinhart, 2015).
References
Al-Zawahreh, A., & Al-Madi, F. (2012). The Utility of Equity Theory in Enhancing Organizational Effectiveness. European Journal of Economics, Finance and Administrative Sciences, 46(1), 158-170.
Asmus, S., Karlb, F., Mohnen, A., & Reinhart, G. (2015). The Impact of Goal-setting on Worker Performance – Empirical Evidence from a Real-effort Production Experiment. Procedia CIRP, 26(1), 127-132.
Barr, S. (2017). Prove It!: How to Create a High-Performance Culture and Measurable Success. John Wiley & Sons.
Dartey-Baah, K., & Amoako, G. K. (2011). Application of Frederick Herzberg’s Two-Factor theory in assessing and understanding employee motivation at work: a Ghanaian Perspective. European Journal of Business and Management, 3(9), 1-8.
Kaur, A. (2013). Global Journal of Management and Business Studies. Maslow’s Need Hierarchy Theory: Applications and Criticisms, 3(10), 1061-1064.
Lunenburg, F. C. (2011). Expectancy Theory of Motivation: Motivating by Altering Expectations. International Journal of Management, Business, and Administration, 15(1), 1-6.
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