The paper "How Is Reinforcement Theory Used at Nucor" is an outstanding example of a finance and accounting assignment. First of all, I would like to explain a little bit about Reinforcement theory. Reinforcement theory actually explains about behaviors of a person. There are some kinds of consequences which also occur as a result of reinforcement theories. These types of theories basically tell about the negative and positive changes took place in behaviors or actions of individuals. Reinforcement theories may also be called “ behavior modification” theories. Positive reinforcement— strengthens behaviour. This is actually done through making that specific behaviour occur more frequently by presenting something very positive.
Examples are that in a working environment/ situation; money, time off, recognition, praise and fringe benefits may act as positive reinforcement. Negative reinforcement— maybe also called avoidance. This theory also strengthens behaviour by contingently retreating something which is displeasing. It is also called reinforcement in a sense because it also “ strengthens” behaviour. It does that because it allows the course to avoid an unpleasant consequence. Punishment— weakens behavior by displaying/showing something unpleasant. This might include decreases in pays, job transfer, conduct an oral reprimand, or even the dismissal. It could be also noted that at this point in time, the same unpleasant consequence could be used in both negative reinforcement and punishment.
Say, for example, if someone is endangered with being dismissed for turning up quite late to work, and so he/ she consequently turns up to work early in order to avoid being dismissed, then this action or behaviour shown by the person would be an example of negative reinforcement— strengthening the behaviour of turning to work on time. If somehow, the employees were dismissed only because of turning up to work late, then this would be an example of punishment because the unpleasant consequence has been presented. Extinction— also weakens behavior by making sure that it is not reinforced.
An example might be that if we ignore office clowns who may have previously obtained satisfaction by having people nobody responds, then it is most likely that they would not continue that sort laugh at their humour or humorous sort of things or activities. If of behavior since they are not positively reinforced by the office staff laughing. Now, if we have a look at the Nucor’ s approach regarding Reinforcement theory, then we come across many pleasing/ motivating and also at the same time quite displeasing actions to be taken as a result of outputs or behaviors shown by individuals at Nucor.
At Nucor, the art of motivation is quite high and an unblinking focus on the people at the front line of the business. It’ s like talking to them directly. The general pay structures at Nucor is relatively on a lower side as compared by its competitors or other related business companies. But at Nucor, if you do the good work, you get many benefits but at the same time, if you underperform, you also get penalized.
For the reason that not only does good work is rewarded, the bad work is also penalized. At Nucor, the steelworker earns around $10 per hour, but in any other company, he can easily earn $16 to $21 an hour. But at Nucor, the bonuses are tied up with the production of a defect-free shipment can also triple the average steelworker's take-home pay.
And, if they made a bad shipment and it goes to customers, then these steelworkers can lose up to three times of their guaranteed pays. So, all these types of fringe benefits, rewards, bonuses, and pay loses, transfers, etc. are all part of positive and negative reinforcement theories. This is how the reinforcement theories apply at Nucor.