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 enough profit or a bad batch of steel goes into market every one looses out on the bonus and profit sharing. By everyone I even mean the CEO and top management what more equity could the employee ask for
Since each employee is an individual, equality is an important aspect of maintaining an effective. When there are individual differences among employees, there are also potential workgroup conflicts but Nucor solves this problem by making sure that bonuses are calculated every week so that every employee gets a bit of the cash.
Robbins (2001) states that there are five different choices an individual might make if faced with inequity. They are as follows: distort either their own or others' inputs or outcomes, behave so as to induce others to change their inputs or outcomes, behave so as to change their own inputs or outcomes, and/or choose a different comparison referent or quit their job (p.