Study on Nucor Corp.

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An Organization’s productivity and efficiency depends to a large extent on what employees think or perceive about their organization. It is a well-known concept that “If you keep your employees happy, they will make your customers happy”. So to make them happy or motivated, challenging jobs, tasks, assignments are to be provided along with better or superior environment to excel in. As a result, we can have two benefits; on one hand it will enhance the employees’ job experience and on the other hand organization’s productivity will increase. Turnover and absenteeism will be low, employee commitment will be high. In short, job satisfaction and dissatisfaction play a major role behind overall employee motivation. Herzberg’s Motivator-Hygiene theory is a good way to understand the concept of job satisfaction and dissatisfaction in an organization. Frederick Herzberg’s Motivator-Hygiene Theory tries to determine specific factors responsible for job satisfaction and dissatisfaction. His study found separate and distinct cluster of factors associated with job satisfaction and dissatisfaction. Achievement, recognition, characteristics of the work and advancement are considered to be the motivators which mean job characteristics associated with job satisfaction. On the other hand company policy and administration, technical supervision, salary, interpersonal relations with one’s supervisor and working conditions were most frequently mentioned by employees expressing job dissatisfaction. These are categorized under hygiene factors i.e. job characteristics associated with job dissatisfaction. The hygiene factors and motivators influencing employee behavior at Nucor are presented below: Hygiene Factors:

Pay and Security| * Nucor has an unusual pay system. The company pays lower salary than the market average for a worker. The average market salary is $16- $21 an hour, where a Nucor employee gets $10 per hour. Although Nucor pays lower than average, it facilitates its workers with bonuses and profit shares. So that, an employee’s entire shift can triple the average steelworker’s take-home pay. Nucor gave out more than $220 million in profit sharing and bonuses to the rank and file in 2005. The average Nucor Steel worker took home nearly $79000 last year. In addition, each got $2000 onetime bonus to mark company’s record earnings and almost $18000, on average, in profit sharing. * Such huge bonuses make their workers think that “It’s like I got a second job, and I’m doing the same one” * For this unique facility, the employees feel more motivated towards productivity and efficiency.| Company policies and Administration| * Company policy is structured in such a way that people at the company always feel like being on the front line of business. Top level managers talk to common workers time to time, listen to their problems, hope and aspiration, thoughts and ideas; also take risks on their ideas and accept occasional failure. * The company not only rewards good work but also penalizes bad work. Bonuses are calculated on every order and paid out every week. If workers make a bad batch of steel and catch it before it has moved on, they lose bonus the otherwise would have made on that shipment. But if it gets to the customer, they lose three times that. * Compared with other companies pay disparities are modest at Nucor. A typical CEO makes 400 times what a factory worker takes from; whereas Nucor’s CEO makes only 23 times that of his average steel worker. Like general worker CEO and top managers also suffer when performance is low| Technical Supervision and Interpersonal Relationship| * Supervisors and employees also count themselves as parts of the company. For a instance, as mentioned in the case, three Nucor electrician move to Hickman (Ark) plant as soon as possible, when they got to know about the accident happened there. Nobody asked them to make the trip, but they went there on their own, leaving behind...
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