Case Study Of Lincoln Electric Company

876 Words4 Pages
Lincoln Electric Company Harvard Case study By Arthur Sharplin
1. Introduction
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.
2. Influence of the Founder on the company
All visionary companies have a semblance trail and influence of the founder through and
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(2009) the definition of outcome-oriented culture, “emphasize achievement, results and action as important values” (p. 196 pdf). This kind of culture reflects in Lincoln Electric Company with a critical management practice of using incentive to elicit employee contribution and commitment to the job, by providing bonuses which is the benchmark of the management system and introducing other benefits like pension plan policy, promotion from within policy hence insuring flexibility in the benefits structure and retention mechanism. The artifacts of open door policy and flat hierarchical structure of management with empowered employees were employee’s plan and organise their own work whilst management do not pay much attention to the operations Carpenter et el (2009). For example according to the case study, the office of the president was located within the plant location and uncarpeted symbolising equal platform of the work environment and relationships. The company does not have worker turnover except for retirement and other natural wastage like
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