Analysis Of Lincoln Electric 's Website

The Lincoln Electric company, under the leadership of James F. Lincoln saw a major shift in the way business was to be directed and operated with visionary mind-set emulating companies like Ford, Wal-Mart, Merck, 3M as focus was towards the customer’s needs and employee’s compensation. Philosophically customer needs become critical as the reason for being in business and the employees also being the vehicle in achieving the needs of the customers as the case study by Sharplin, A (1989, p.3) clearly positions the companies aspirations. James Lincoln places much importance on the relationship with employees that is guided by mutual respect and individual effort.

The founders of the Lincoln Electric Company left a legacy of an organization culture that promotes high productivity through sound management policies which have stood the test of time. The exponential growth of the company after the death of James F. Lincoln was a direct result of the establishment of a rich culture mix based on values that were widely shared and accepted by the members of the organization. Management empowered employees to become part of the decision making process through the contribution of ideas through the Advisory Board which was elected by the employees from amongst themselves. Reward management systems and all the other artifacts of the Lincoln Electric’s distinguished strong organizational culture will be analyzed in greater detail in this essay.

It is the world’s largest manufacturing company that primarily makes welding products. It has also become one of the world’s leading manufacturers of arc welding equipment since World War II. The company’s organizational culture and philosophy is still consistent and continues to persist. Lincoln’s culture and philosophy has made it remain successful over the years. The company’s approach to motivate employees is both simple and unwavering. It has built a condition that that fosters individual growth, continual improvement, and productivity and has implemented a clever incentive

Lincoln Electric (LE) has been a producer of electrical and welding technology products since the late 1800's. The company remained primarily a family and employee held company until 1995, then approximately 40% of its equity went to the public. James Lincoln, one of the founders, developed unique management techniques that effectively motivated the employees. These management techniques were implemented as an unusual (for the era) structure of compensation and benefits called "incentive management". The incentive management system consisted of four key areas: factory jobs based solely on piecework output; a year-end bonus that could equal or exceeded an individual's regular pay; guaranteed employment; and limited benefits. Management

Primary features of the Lincoln Electric business model and employment system are displayed through the company’s overall strategy, philosophy, compensations and benefits policy, leadership, and communication within and outside the organization.

The Lincoln Electric Company was a legacy company from which the families ' personal values were incorporated in the beginning and continue to be the fundamental beliefs compromising the company 's culture. By creating and implementing a culture of service, respect, and loyalty, the Lincoln Electric Company has become an institutional leader in American business standards. Lincoln 's culture cannot be summarized by a single dimension of cultural analytics because of its multifaceted culture that is innovative, outcome-oriented, people-oriented, and team-oriented

Lincoln electric’s approach to management contributes to its employee’s high motivational rate. According to (Draft, 2010), Lincoln electric motivates it’s staff with “strict performance goals to achieve pay, precisely defined task and a powerful incentive control program which is based on a piece-rate bases and merit-pay which is based on performance”(p.562). Other motivating factors are annual bonuses and stock purchase plans which all employees are offered (Draft, 2010). Another contribution to its success is their organizational culture which is “based on openness, trust, shared control and an egalitarian spirit” (p. 562-563).

Besides, managers in Lincoln Electric Company were not high in the sky, they worked and lived with workers in daily life, they had free atmosphere at work and they strengthened the feeling that workers were managing themselves.

In order to make future international plants more successful than previous acquisitions, Lincoln Electric’s managers may consider re-evaluating their management control approach; carefully evaluating the international labor laws and regulations of the plant prior to deciding whether or not to invest in it; and providing increased training and development to managers and workers of both the parent company and host company to ensure understanding of both sides’ cultural values and beliefs.

In order to help leaders embrace this philosophy, all GE managers spend time at a place called the Croton-on-Hudson campus, or, Crotonville, for short. At Crotonville, the extensive training program is infused with informality, a key element put in place by Welch, that sets the pace for instilling the culture (Byrne, 1998). Each member of the organization’s management team is indoctrinated into the company’s culture. It is on the Crotonville campus that GE leaders are taught that everyone must do whatever it takes to produce. “…employing 340,000 worldwide does what it has always done best – cultivating strong leaders before they step into the spotlight. Succession planning is a key part

The Lincoln Electric Company 's culture is a wonderful example of how to create an exceptional culture within your business. Lincoln Electric has been a leading manufacturer in welding machines and electrodes for over 100 years. During this impressive tenure, the Lincoln Electric Company has adhered to its founders’ philosophy that the customer always comes first, the employee always comes second, and stockholders come third. This philosophy is upheld throughout the entire organization, from the executive team down to its factory line workers and is evident in their daily business culture. Displayed through a plethora of initiatives; including employee compensations, a concentration on productivity, encouragement of management and supervisors to participate in active leadership and a general appreciation for its employees ' input and feedback; the working culture in this organization is the backbone of the company’s continued achievements. Through the demonstration of their philosophy, Lincoln 's founders and management team have created a culture that has become a timeless model of employee productivity for the world.

In this case analysis I will be analyzing and summarizing my understanding of the organizational culture of the Lincoln Electric Company, based on key pointers and a Harvard Case Study by Arthur Sharplin. In my analysis I will be using the framework from chapter eight of the textbook “Principles of Management” by Carpenter, Bauer and Erdogan to discern aspects of the company’s culture. The company is said to have a distinctive management culture and manufactures welding equipment. It is located near Cleveland, Ohio USA. Lincoln Electric Company is considered to be one of the best managed manufacturing companies in the world.

The Lincoln Electric Company was founded in 1895 by John C. Lincoln, who then partnered with his younger brother James in 1907. The focus of the company originally was manufacturing electric motors, which then expanded to include battery chargers and in the early 1900’s to portable welding machines. (Lincoln Electric, 2016) The company was founded originally on a construct of Christian values, which may have played a role in creating the dominant culture of the corporation. (Sharplin) This paper presents an evaluative analysis of the business case study presented by Arthur Sharplin, with a focus on determining the overall corporate culture of Lincoln Electric categorically.

Besides showing traits of a transformational leader, Welch undertook the management of General Electric with a somewhat “ruthless toughness” (Thompson, 2004:44-45) that was highly frowned upon, and deemed to be far from an ideal model of leadership. The organisation’s culture made leaders

The Lincoln Electric Company is a shining example of an effective organizational structure. In this analysis, summarized from Arthur Sharplin’s case study from 1989, several different aspects of the culture will be discussed and how they have propelled the company in to success. The first aspects will be the company’s mottos, long standing traditions and way of communication; afterward, the pay structure, including bonus programs and performance reviews and to conclude, the management style. The Lincoln Electric Company’s management and culture have been researched and referenced by many, nearly any company could benefit from at least one of the key aspects of the welding equipment manufacturing giant’s strong culture.