A Case : The Lincoln Electric Company

Lincoln Electric Company was founded by John C Lincoln in 1906 starting with a start up business in a one room, 4th floor factory to a bigger building and started to expand his workforce to 30 people and had a great expand in their sales as it grew over $50,000 a year. He was humble, preferably to be an engineer and inventor rather than sitting around being labelled as manager. The company also gave each of their employee as paid-up life insurance policy in the 1915. After 2 years, welding schools are introduced. A year after the success of forming a welding school, employee bonus plan was attempted.In the 1919 's, Lincoln Electric 's employees association are formed to introduced some social activities and health benefits to care for the workers. After becoming General Manager, in 1925; a purchase stock plan are enable for all employees. Lincoln bonus plan was finally accepted as a trial by the Advisory Board in 1934.

In a book titled Principles of Management; Carpenter, M., Taylor, B., Erdogan, B. (2009) define Organizational culture as “a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior (p. 184). They argue that organizations have identifiable characters just like people do but that in case of organizations these characters are usually known as organizational cultures (p.183).

The Lincoln Electric Employees' Association was formed in 1919 to provide hearth benefits and social activities.This organization continues today and has assumed several addittional functions over the years.

The Lincoln electric company was founded by John C. Lincoln in 1895 and has grown over

The founder, James F. Lincoln used his Christian upbringing as the basis for his vision of how he defined entrepreneurial success. The customers ' needs are first priority, the employee second, and the stockholders are last. Quality and cost efficiency are the two most important factors considered in their product engineering and manufacturing. The hierarchy is stringent, however, the culture of the company is greatly people-oriented. This company has a strong culture that is instilled in new employees from the beginning and continuously practiced by every member of every facet in the organizational structure.

With the years going by, Lincoln Electric Company, despite its excellent performance in production, has been growing in a very steady speed, and never really grew to a large scale company.

The Lincoln electric company founded by John C. Lincoln is known as the world’s largest manufacturer of welding machinery and electrodes. The Lincoln electric company, is one of the influential and leading manufacturers of welding machines and electrodes as compared to other companies located around the globe that are known for the manufacturing of welding machines and electrodes. This company has several outlets in different countries that also engage in the same production of the electrodes and the machinery.

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.

One of the first things that stands out in reading the article as it relates to continuing influence on the company is that James Lincoln asked employees to help him with company operations and formed a committee that met two times a month. This committee helped in getting the number of hours worked each week reduced from 55 working hours to 50 working hours. Seeing the need to continue to make the workplace a desirable one, the company decided to provide a fully paid life insurance policy as well as starting a welding school. The founders continued to have influence on the company by continuing to make it a great place to work. The developed vacation plans and workplace benefits to keep morale high and retain quality workers. They even created a pension plan and a system that allowed the promotions to occur from within. Founders remained engaged in seeing the company prosper and never lost

AurtherSharplin wrote a case study on Lincoln Electric Company [1]back in 1989 to document their success and what led to it. The company was very successful at the time of this study and it is a well written document. The case study finds many factors for the success of the company which appears to have a truly altruistic approach to business. In my case analysis I will not only look at the positive and negative attributes of the company, but I will also look at modern available data to see how well has the company faired and compare corporate policy changes. Meeting with a company and discussing with its leadership its success is not the only factor which should be considered now that we have an additional 24 years’ worth of data. The

The Lincoln company from its start in 1906 began business under destitute circumstances. The company was started with a mere $200 after the founder, John Lincoln, couldn’t gain footing in the family company. He took a patent ideas he had developed with him and later recruited his younger brother to oversee most of the business side of the company while he was more or the creative brains of the duo. With their partnership, the business transformed from a fledgling small business to a people centered production staff. The company instituted an advisory board of employees. “The Advisory Board, elected by the workers, meets with the Chairman and the President every two weeks to discuss ways of improving operations.” and “every Lincoln employee has access to

James F. Lincoln founded The Lincoln Electric company and he died in 1965. Based on

James F. Lincoln was the founder of The Lincoln Electric Company that is well known all around the world now. Of course, the company’s organizational culture was not established by just one person but with efforts of many coworkers. Values of the founder were a guiding light for all workers and the managerial staff. When Lincoln died in 1965, the employees of the company were frightened that old system of the founder would not work as well as before, but since the company had its long history and it was an already formed organizational culture, they successfully gone through the death of the great founder and succeed. The values of the man are still alive. The founder was a great believer and he had the golden rule that sound as following “The program that Christ announced, ‘As ye would that others would do to you do ye even so to them’ is the complete answer to

Getting started during an economic depression in the late 80s, that too with a capital investment of just $200.00, John. C Lincoln introduced his own new design for electric motors in the market. Moreover, after the joining of John. C’s younger brother, James F. Lincoln. The company not only expanded its product line but, introduced the world’s first portable wielding machine as well. After turning over the company fully to James, he established an Employee Advisory Board which later on help the employees cover up in a group life insurance, later on introduced a piece rate pay method and made them earned paid vacations for the first time in the country’s history in 1923. The company also launched an Employee Stock Ownership Plan, which helped them received their first annual Incentive Bonus in 1934.

Lincoln Electric’s founder, a John C. Lincoln, was a man of sound business practices who, after being frozen out of Elliott-Lincoln Company in 1895, built his own company from the ground up, starting with one of his patents and building improved motors from its design (Sharplin, 1989). James F. Lincoln, John C. Lincoln’s brother, joined the company after John had a battle with a bout of typhoid, in 1907. He became acting head of the company in 1914. James was a man of sound, ethical business practices who valued customers first and employees second, and who put exceptional emphasis on fairness of compensation and humane treatment of his employees.