1. Describe how Nucor–Harris Steel’s compensation strategy leads to increased motivation from an expectancy theory perspective. 

2. Nucor–Harris Steel relies almost exclusively on external rewards. As demand for Nucor Steel is expected to decrease, these rewards will also decrease. What can Nucor do to minimize the impact of decreasing bonuses on employee motivation?

3. Employees on the Production Incentive Plan receive weekly bonuses based on the production of their work groups. What type of reinforcement is this?

Nucor Corporation is the largest steel producer in the United States. Its mission statement is “Take Care of Our Customers,” and to accomplish this, they aim to be the safest, highest quality, lowest cost, most productive, and most profitable steel and steel products company in the world. Nucor is known as Harris Steel in Canada, and has major operations in almost every province. 

Nucor–Harris Steel is highly decentralized, and operates one of the leanest corporate organizations in the United States with only 75 corporate employees. Its organizational structure has just five levels of management: President and CEO, executive vice president, division general manager, department manager, and supervisor/professional. This streamlined chain of command allows the general managers at each division (Canada’s Harris Steel being one of the largest divisions) to operate their facility as an independent business. With the day-to-day decisions made at the operating facilities, Nucor–Harris Steel can respond to suppliers, customers, and employees without waiting for a decision from the corporate office.

Reducing the distinctions between management and hourly employees serves Nucor–Harris Steel well. The company is committed to not laying off employees during work shortages, and to date Nucor Steel has never laid off a single worker. The result is a committed team of Nucor Steel employees and high-quality products.