Group 6

Chapter 13
Motivation & Performance
Case Study : Nucor Corp.
 Psychological forces that determine
the direction of a person’s behavior
in an organization, level of effort
and persistence.

Intrinsically motivated behavior is performed for its

own sake.

Extrinsically motivated behavior is performed to

acquire material or social rewards, or to avoid
punishment.
Prosocially motivated behavior is performed to
benefit or help others.
The Motivation Equation
Expectancy, Instrumentality, and
Valence

Bringing It All Together…

High Motivation results from High Levels of Expectancy,
Instrumentality and Valence
 Equity Theory
Focuses on people’s perceptions of
the fairness of their work outcomes
relative to their work inputs

Goal-Setting Theory
Focuses on identifying the types of
goals that are most effective in
producing high levels of motivation
and performance and explaining
why goals have these effects
 Nucor Steel
Nucor Steel, with 7000 non-union employees and
nearly $4.5 billion in sales, is one of the few
remaining steel companies in the U.S.
To remain competitive in its industry…
Nucor builds a working model which encourages
and motivates employees to perform their job at
the peak of productivity.

To achieve its goals:

Nucor has a streamlined and decentralized
management.

Nucor allows each plant to operate as

independent business units.
 Nucor has eliminated hierarchy, as part of
its organizational culture
Headquarters’ staff of less than 95 people

Just 5 layers of management, from the

CEO to the front-line employee to facilitate
easy and efficient communication.

“Employees –not managers –

drive our success”
Nucor promotes the equality and importance of every person
In hard times they believe in “PAIN-SHARING”. Top
Management takes a pay cut before anyone else. It encourage
performance instead benefits.
If employees do their job well today,
they should have a job tomorrow.
(Fact: They haven’t laid off employees
in 28 years.)
Employees have a right to be treated
fairly. Nucor listens to employees
through meetings, shop dinners and
employee surveys.
At Nucor, everybody’s paycheck goes up & down based on their
teams performance… and company performance. Their employees enjoy
pay above the industry average.

Empowerment has become a way of life at Nucor. They turn everyone

into a Decision Maker.

At Nucor, workers excel because they are allowed to fail. Managers
encourage employees to try out new ideas.
“Motivation is the art of getting
people to do what you want them
to do because they want to do it.”

Dwight D. Eisenhower