Creation and Maintenance of the Business Culture at Lincoln Electric

842 Words Jun 16th, 2018 4 Pages
In order to gain an understanding of the Business culture at Lincoln Electric, I will create a model describing how the culture was created and continues to be maintained. I will attempt to show also that Lincoln has a strong culture which affects the way the employees think and behave. There are several factors are involved in the creation of their Business culture:
Founder's Value (Carpenter, Erdogan, & Taylor, 2009) is the first factor and is exemplified through the philosophy of James Lincoln. He believed that you should treat others the way you want to be treated. James Lincoln believed that the customer's need is the reason for our existence. He believed that ultimately the worker and management have the same needs. Lincoln says
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Maintenance of

the cultural values was achieved by teaching the operational values to every new employee. The maintenance process of transferring the cultural values at Lincoln Electric will now be analyzed by examining four distinct processes proposed by Carpenter et al. (2009):

i. Attraction-Selection-Attrition (referred to as ASA) is one process through which the culture at Lincoln Electric was maintained. Jobs at Lincoln are premium and every vacant position is advertised internally first. Promotions are filled internally and only entry level positions are available persons outside the company. Lincoln Electrics hiring is done on the basis of a personnel interview, by vice-presidents and superintendents, Personnel Department then the supervisor has the final say. The attrition rate is the lowest in the industry, with employees being lost only to retirement.

ii. New Employee On boarding according to transfers values, norms to new employees. Lincoln’s new employees learn new skills and cultural norms through on the job training. Sales personnel train at a regional sales office. Production workers train on the job then they are placed on payroll.

iii. Leadership is at the forefront of creation and changing of culture. Lincoln’s managers claim to exercise complete power. Employees nevertheless participate in management by receiving more responsibility from management. Employees
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