A Case : The Lincoln Electric Company

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A Case: The Lincoln Electric Company In 1895 John Lincoln resolved to open a business with a second patent for electric motors. He founded this business with a mere 200 dollars. His start up cost was the earnings he received from redesigning a single motor for Herbert Dow. His business launched out of a small one room factory. In 1906 he spread his wings and erected a new 3 story factory. Consequently, he filled those three stories with 30 new employees and the sales shot through the roof. Shortly after, his younger brother came on board as the Vice President and General Manager. John was an engineer and inventor by heart so he ultimately detached from his company and handed over the reins to his younger brother James.…show more content…
This was just how his belief system provided the obvious to envision where his company could go. In addition to the base model and motto of the company, James had a particular view on the incentive management plan. This was directed at the stakeholders. They did not earn their bonuses and were considered absent from the whole project. Furthermore, they received undeserved profits from the company who worked hard for the products. The company was focused on the customers and employees before they were concerned with the stakeholders. There is also a performance based appraisal system, consequently known as the merit system. This is how each employee is reviewed on their personal performances. This occurs with their supervisors twice a year. It was based on the ideas, cooperation, and dependability of the workers. They did consider the output of the worker as a separate entity to be reviewed. The audits are based on a 100 point system. Most of their employees receive an average score ranging from 80-100. Occasionally a report would exceed 110 points. If this occurred there would be a letter sent to the top management for their reassessment. Quality not only focused on the quality of your work, but also any errors and chances to reduce scrap and waste. Dependability was being on time and achieving tasks that were set out for you. The ideas and cooperation aspect dealt with your
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