The Nucor Company: Organizational Behavior

Introduction

Organizational behaviour is an interdisciplinary ground enthusiastic to the better thoughtful and management of individuals at their occupations. Organizational behavior is essential since it helps in better interact-action and more efficiently with others in business. Every employee needs to have this at his work place since personal skills harmonize the industrial ability. Also in the organizational behavior, there is administration, which is a procedure of operating with and through others in order to attain managerial purposes professionally resourcefully and morally (Wertheim 2009).

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In the Nucor company, there were primary roles for the precedent managers who always gave instructions to their employees, were freedom influential, controllers and at the same time organizers. Also in the same company, there are also the prospect managers who are speculated to be assistors, team associates, supporters, guarantors and also instructors as there primary role. There are other big and different differences in the managers of Nucor in terms of their education and acquaintance, reimbursement principle, main foundation of authority and finally, their observation of workers (Wertheim 2009).

Motivation behaviour

Reinforcement theory

The Reinforcement theory is a procedure of influencing the performance of an employee by simply conniving to the penalty of the actions. In this strengthening theory, there is a mixture of remunerations together with the penalties that are used to strengthen the preferred actions or even put out the unnecessary deeds. Any conduct that draws out an effect is known as the operant activity, for the reason that the person works on his or her surroundings. Therefore the Reinforcement theory focuses more on the connection connecting the operant deed and the connected penalties. The behavioural theory of erudition and inspiration concentrates on the outcome that the penalties of precedent performance have on prospect behavior. In the case of Nucor, the reinforcement theory is clearly indicated on the response of the workers, where the workers worked in 20hours shifts in order for them to get the plant up running in three days instead of one week (Porter 2002).

The crucial attitude towards the theory of reinforcement is the strengthening. In general, reinforcement is either constructive or unconstructive. The positive strengthening results occur when the incidence of an appreciated behavioral outcome has the outcome of escalation and the likelihood of the performance is recurring. An example is portrayed in the Nucor company in the case of bonuses where by the employees are required to work extra hard for them to earn bonus that will top up their salaries which are quite small despite their hard work (Allen, Harris & McDonnell 2008, p.238). This therefore, encourages the workers to continue applying the essential attempt in the prospect (Ivancevich, et al 2004).

There are also negative results for strengthening the employees in an organization. This are encountered when there is an unwanted behavioral result that is in remission hence leading to repetition of the effect of reinforcing the likelihood of the performance. In negative corroboration there is frequent confusion with penalty that is different. These punishments try to diminish the prospect of exact deeds thus negative strengthening endeavors to add to preferred performance. Both the constructive and unconstructive reinforcements have different consequences of escalating the likelihood that a specific performance is likely to be erudite and recurred. An example of unconstructive reinforcement like in the case of Nucor is whereby the employees share ideas and portray cooperation that leads to healthy competition among facilities and shifts. This therefore reassures the employees that there is a possibility of them maintaining there positions without them being reassigned to an undesirable route at their work places (Ivancevich, et al 2004).

The role played by equity theory case

In trade, the Equity Theory of worker motivation explains the connection among how reasonably an employee recognizes his treatment and his hard work together with how he is aggravated to labour. The essential thought behind the Equity Theory is that the employees have an effort of stabilizing what they have put in to their occupations and also the accomplished benefits from work hence instinctively allocating principles. Additionally, apart from their moment in time, employees donate their understanding, their experience, and also their potential together with their individual power such as sharpness and aspiration. Therefore, money is the most important inspiring outcome for a worker, though it is not the only thing, and in some instances it’s the most important, aspect. For instance, in the case of Nucor, the pay for employees as compared to other companies was quite low in such a way that the workers were required to work extra hard for them to earn a living (Cory 2006).

The other prime motivators are authority and position together with suppleness, privilege and assortment. Therefore, according to the Equity Theory, there is an indication that the most exceedingly aggravated employees are the ones who recognize their recompenses that are equivalent to his assistance. Therefore, if a worker experiences that he is functioning and being rewarded at about the same rate as his peers, then he will judge that he is being treated fairly. The best example is in the Nucor Company where employees are not given an equal pay hence portraying that there is an unfair treatment at work (Cory 2006).

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Therefore, this doesn’t imply that it is a guarantee every director should offer equal treatment to every employee indistinguishably, since every worker does not measure his inputs in the same manner For instance, supple hours for working are likely to inspire the working employees even more than a pay move up. Equally, while a comprehensive wage augment may pleasure most workers, hence the uppermost makers may become less aggravated if they distinguish that they are not being satisfied for their objective. This therefore, entails that the, over-rewarded workers are likely to manufacture more and that of higher excellence than will under-rewarded, less aggravated workers. For instance, in the case of the Nucor company, this is clearly indicated since the most hardworking employees are rewarded more that those who do not produce more. This is because of the art of motivation that is putting more focus on the people on the frontline of the business (Cory 2006)

On the other hand, it has to strategise on its marketing plan since expert study has revealed that most companies’ implementation of marketing strategy perspective should be done on a company by company basis because it’s considered that what works for one locale may not necessarily succeed in another. In Nucor Company the specific steps of marketing approach is often dictated by the overall strategic plan which in turn is based heavily on marketing analysis done globally. In most occasions Nucor have used marketing analysis to meet customer needs. Over some years back Nucor have spent millions of dollars to build dealer, supplier, and service support network in United States and most parts of Europe. Nucor Company work hard to offer first class service and produce quality products that meet the international standards.

Nucor themselves also provide a good example of how the marketing process works, for instance their firms have followed a strategy of first building their market share at home and driving out imported goods. Then the firm moves out into a newly established market in the developing countries. Later, the firm can now move fully to developed countries ready to compete with the best available firms. This structure of implementing strategy has been used in marketing of its new brand products. Finally Nucor has gone to invest in developed and developing countries because its market is small and also to build international image of its products.

The implementation of marketing strategy of Nucor in the international arena is built around the well known ”four Ps” of marketing; promotion, product, price and place. As noted earlier, Nucor often develop and sell the product in the local market before expanding to major overseas targets. In the case the product is made to meet the overseas market demand the process will seem to be more direct. Price has been seen to be the function of market demand, for instance Nucor has found that foreign market is price sensitive hence by introducing lower price products, the company has been able to make a progress especially in its products. The remaining two Ps; promotion and place are most of the time controlled by local conditions and often left in the hands of the hands of those operating subsidiaries. Local management may implement customer sales incentives or make arrangements and salespeople who are helping to make the product locally.

Consistency of the expectancy theory to the approach of Nucor to employee motivation

The expectancy theory puts too much concentration on requirements, but instead focuses on conclusion. Anticipation is the principle that augmented endeavor will lead to amplified presentation. Therefore, this theory is exaggerated by some things such as presence of the right possessions available like time. Also there should be right proficiency for handling the job and also by having the necessary maintenance to get the job done, like administrator sustenance, or accurate information on the occupation (learns, grow, act 2006).

In reference to the Nucor Company, there is consistency of the expectancy theory to the approach to the motivation of the employees’ motivation. Therefore, with the new managers in place, there is likeliness expectancy theory being consistent. This will therefore ensure that there is an apparent accepting of the connection between presentation and conclusion, conviction in the workers taking the results on who gets what result and also intelligibility of the procedure that settling on who gets what result. Therefore, it is perceived by the expectancy theory that the amplified attempt of an individual will not add to his recital, increase in presentation will not raise my recompense and finally, the rewards on offer are not crucial (learn, grow, act 2006).

Nucor Competitive advantage

Competitive advantage refers to the ability of a firm to produce at low cost and sell at a fair price. It emanates from a low cost structure of the business. In other words, it is the low cost enjoyed by Nucor Company than its rivals thus enabling it to sell less or make greater profits at the same price level as its rivals because of large sales. Competitive advantage can be gained through many ways but it is important to note that it is the business strategies laid down that has provided Nucor with this advantage. Thomas Stewart once said, “Intellectual capital is the sum of everything everybody in a company knows gives competitive edge”. Thus intellectual power is one of the greatest sources of competitive advantage for any firm.

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Conclusion

From the conducted research, there is a fruition of the 21st century directors who totally have a big difference in their different patterns of communicating whereby the past managers, had a straight up one while the future managers are likely to have the multidirectional prototype. In terms of making choices, the past style was of partial contribution for personal decisions whereas that of the future is to be broad based contribution for combined conclusion. There was also the afterthought form of considering ethical in the past whereas the anticipation ethical deliberations are speculations for the prospect administrators. The past nature of interpersonal relationships for the past was aggressive which meant that one could either win or lose whereas in the future managers, it is expected to be supportive that is win-win.

References

  1. Allen, JW, Harris, R & McDonnell, I 2008, Festival and Special Event Management, 4th edn, Wiley, Milton, Qld, pp.238-239.
  2. Cory C 2006, Equity Theory and Employee Motivation.
  3. Ivancevich, JM., Konopaske, R & Matteson MT 2004
  4. Organizational Behavior and Management. 7th ed. Boston: Irwin/McGraw-Hill, Learn, grow, act 2006 Expectancy Theory of motivation.
  5. Porter, LW, Gregory B & Richard MS 2002, Motivation and Work Behavior.7th Ed. New York: McGraw-Hill/Irwin,
  6. Wertheim, EG 2009, Historical Background of Organizational Behavior, College of Business Administration, Northeastern University, Boston, 2001, chapter 1.
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