Case Study on Lincoln Electric

The strategy of Lincoln electric is known for its highly unique ideas for paying working according to the number of pieces they produced at works which means higher performance and productivity leads to higher pay roll. He believed in generating the best productivity and utilizing the company’s resources properly. A global organization is complex and has different task and requirement which needs different skills, education, experiences, knowledge and background. And that is why there is different kind of degree and education is available. Each major requires specific knowledge, like marketing, management accounting etc. the companies have segment in its organization also which divides the members into different groups each group have

Lincoln Electric Company has a very strong culture based on shared assumptions values and beliefs. This is evidenced by the attitudes of both the company management and employees towards the organization. The unchanged policies, practices and products point towards a very strong corporate culture. High employee performance and productivity over the many years of the company’s existence is also another indicator of a strong culture.

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

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.

Established in 1895 and specialized in producing and selling electric motors, Lincoln Electric Company rapidly developed after the movement to welding equipment and consumable welding products in the USA. By 1995, this company first hit $1 billion in sales and became the world largest company in welding industry. With the differentiate strategy by providing premium -price -products , this company got 60% sales in the North American and expanded internationally since the period of 1986 and 1992. Although this company is facing problems in global expansions, its overall strategy as well as practices in human resources, marketing, technology development, and international expansions is a useful lesson for other businesses.

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.

Lincoln serves their customers first, and stockholders last. Lincoln's goal is to evolve continually to offer better quality products at a lower price point. These views have not changed since the very humble beginnings of the company. The company's motto is the actual is limited, but the possible is immense. James Lincoln began managing this business by asking employees to elect members to weigh in decisions about company operations in a twice-monthly meeting. This practice still continues. The turnover is nearly nonexistent, with the exception of retirements and employee relocations. And the list of benefits available to employees is extensive, including job security for a guaranteed amount of hours and stock purchase option, bonuses, and

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.

Elements of Lincoln Electric’s management system that made it so popular in the U.S. such as piece-rate work, bonuses, and

Lincoln Electric is an American multinational and a leading global manufacturer of arc-welding equipment and electric motor, is the biggest company among its related types of business in the world. Lincoln Electric has the advantage on its production. The board of directors of Lincoln Electric believes that the company can make high quality products with lower costs compared to its competitors. Their general strategies are to reduce the cost, and to reach consumers with sustainedly low price. Lincoln Electric has conceded that the source of growth of the company depends on consumers, they thus aim at offering high quality products with low price, and this sales policy has been lasting until now.

While there are several contributing factors aiding the Lincoln Electric Company to excel in creating a wonderful business culture, there is a constant evolution of progress. During its startup in 1895; the founder (John C. Lincoln) was able to experience moderate success and growth through the standard business practices of the day.

The company, Lincoln Electric was created way back in the year 1895 by Mr John C. Lincoln, with the production of manufactured goods being its centre activity. For many decades, the firm has been a top leader, in the production of arc-welding goods the world over. By the time World War II come to an end, over fifty producers of arc-welding goods were present in the United States of America, but presently, roughly only six major manufacturers still exit. The Huge majority, that include huge top firms such as General Electric and Westinghouse, pulled out of this from of manufacturing mainly, due to the fact that Lincoln, sold high-value, top-quality products at lower rates that came with outstanding customer service.

James Lincoln had a vision, he understood how to give and get the most and the best out of people. Lincoln Electric’s success is a direct result of the investment of James Lincolns’ belief and vision that ultimately produced a well established highly productive organizational culture. We’ve now seen examples of what I deem as an exceptional organizational culture, but it is best written by Charles G. Herbruck, found in the Prologue of James F. Lincoln’s last book, he wrote “they were expressions of mutual respect for each person’s importance to the job to be done” (Sharplin 1989)

Lincoln Electric Company is a company who makes electric arc welders. These welders are known worldwide by a lot of businesses who use them, they are the leader in welders and welding supplies. In 1906, John C. Lincoln started the company. Later on his brother, James came on and became the General Manager for the company as John had moved on to other business ventures.