Company Culture : Lincoln Electric Company

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Company culture can have a major impact on an organisations success. This culture is known as organisational culture which is defined as a system of shared assumptions, value and beliefs that show people what is appropriate or inappropriate behaviour (Carpenter, Taylor, & Erdogan, 2009). These shared assumptions, values and beliefs strongly influence how well employees behave and how well a company will perform. “The factors that are most important in the creation of an organization’s culture include founders’ values, preferences, and industry demands.” (Carpenter, Taylor, & Erdogan, 2009). Different organisations have different and distinct cultures based on their needs. One company with a distinct organisation culture is Lincoln Electric Company. This essay look at the company’s culture by analysing the influence of the founders of the company, the performance appraisal system, the merit pay and bonus plan, the way people communicate in the company, and the management style of Lincoln Electric Company. Lincoln Electric Company was founded by John Lincoln and his brother James Lincoln. The company is now the world’s largest manufacturer of welding machines and electrodes (Sharplin, 1989). As stated previously, the founders’ values have a huge impact on what becomes of an organisation’s culture and James Lincoln (and his golden rule) is a good example. From early on he took a different approach to managing his company than others at the time. James Lincoln’s innovative
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