Lincoln Electric Company Case Study Essay

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.

Every organization has values and beliefs that define what they do and how they do things in the organization. These values have significant influence on how the employees behaves and the general performance of the organization – it is these set of values and beliefs, rooted deep in the company’s organizational structure that depict the “dos”, “don’t” and the “hows”, of the organization and these unequivocally represents the culture of the organization. This concept became popular in the 1980s when Peters and Waterman in their book: “In search of Excellence” presented the profound argument that, the success of any organization is inextricable linked to the quality of its culture. (Carpenter, M., Taylor, B., Erdogan, B. 2009 p183). The purpose of this paper is an attempt to analyse the impact diverse cultures played in the success of the Lincoln Electric Company.

“ Customers will never love a company until the employees love it first ” – by Simon Sinek, who is an author best known for popularizing the concept of "the golden circle” described by TED as "a simple but powerful model for inspirational leadership all starting with a golden circle” (Afshar, 2013). Sinek has brought an overview of an essential factor to all organization, which is organizational culture. It is the key to make a success of an organization, as well as the reflection of the company’s manager leadership. In this essay, the definition of organizational culture, how organizational culture can influence both the success and failure of an organization and what managers can do to create an encouraging and effective culture at workplace will be discussed.

Organization culture which is a system of shared assumptions,values,and beliefs showing people what appropriate and inappropriate behavior can best be analysed in the Lincoln Electric Company from the P-O-L-C Framework as below.

The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,

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

The culture of an organization is as unique and diverse as the individuals are who live and work within it. In fact, the above definition of organizational culture provided by Schein (1985a) suggests an image of a living, breathing and influential force engaged in a series of reciprocal interactions with its members. Furthermore, the culture of an organization does not simply appear but is one that is constructed and developed over a period of time. For example, Stackman, Pinder and Conner (2000) describe organizational culture as being comprised of a system of layering or as a “deep construct.” The idea being that the culture of an organization is similar to the skin of an onion encompassing layers of values, beliefs, assumptions,

Lincoln Electric Company is a manufacturing company, which has been focusing on welding products for the recent 30 years. The company had outstanding brothers leading the company to success. John was a technical genius and he brought the best skills in production and James was good at management and he was working on the employees ' incentives. The company gained its reputation through the world war till present as the welding equipment supplier with higher quality and lower price at the same time. For the production aspect of welding equipment, it is an advanced production line with continuous flow with high flexibility and low idling time.

All the founders of the company had a great deal of continues influence on the positioning of the company today, form John C. Lincoln to James F. Lincoln. John C. Lincoln started it all and James F. Lincoln, who is the younger brother of John, took over the company to another level. One of James Lincoln 's early actions as head of the firm was to ask the employees to elect representatives to a committee that would advise him on company operations. The Advisory Board has met with the chief executive officer twice monthly since that time. This was only the first of a series of innovative personnel policies that have, over the years, distinguished Lincoln Electric from its contemporaries.

The purpose of this paper is to analyze a case study related to issue of control and how organizations can utilize different approaches of control in order to improve quality and performance in all arenas, domestic and global. The focus of this case revolves around Lincoln Electric, an Ohio based company that has set the bar for how to develop and implement a successful management system. This paper will use the Lincoln Electric case analysis to present recommendations on how managers can use control methods to enhance employee performance, increase employee participation and empowerment, and improve organizational quality in

When discussing the organizational culture within a company such as GE, we can break management concepts down into three categories. According to Argenti (2002), organizational behavior in organizations is usually broken down into three main areas:

The discussion between promoters of best practice and best fit approaches has sparked widespread controversy in the human resource management (HRM) area. The topic has gained much scholarly attention because it not only addresses a theoretical controversy but also possesses a high degree of practical managerial significance. The essay has the aim to analyse best practice and best fit approaches in HRM of a multinational enterprise. The reader receives insight into Lincoln Electric's organization through a case-study analysis of practical HR approaches serving as a basis for developing practical managerial implications in the last part of the paper.

When discussing organizational culture, our first step would be to simply define “culture”, however, essays on its definition alone could be written so for the purposes of this essay the use of Schein’s (1997) definition will be

Study in organizational culture began in the early 1980s. Organizational culture is “work group culture” and involves organization’s personality. Organizational culture includes shared philosophies, ideologies, beliefs, feelings, assumptions, expectations, attitudes, norms and values (Fred Lunenburg, Allan Ornstein, 2012, p. 55). Most organizational cultures include observed behavioral regularities, norms, dominant values, philosophy, rules, and feelings. Organizational cultures includes certain input such as the energy imported by organizations from the environment in the form of information, people, and materials (Fred Lunenburg, Allan Ornstein, 2012, p. 55). This input energy must guide organizational behavior toward shared goals and process. Organizations produce an output because of the input into the