Culture Of The Lincoln Electric Company

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.

Primary features of the Lincoln Electric business model and employment system are displayed through the company’s overall strategy, philosophy, compensations and benefits policy, leadership, and communication within and outside the organization.

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 Lincoln Electric Employees ' Association was formed in 1919 to provide health benefits and social activities. This organization continues today and has assumed several additional functions over the years. By 1923, a piecework pay system was in effect, employees got two-week paid vacations each year, and wages were adjusted for changes in the Consumer Price Index. Approximately 30 percent of

Over the decades and since it was first created, the ongoing guidance and encouragement of the management towards their employees made Lincoln’s expansion possible to a global level. The ideas and philosophy of the founders are still at the core of the organizational culture because they strongly supported the company in its initial stages and helped distinguish it from others. “Thus, by providing a competitive advantage, these values were retained as part of the corporate culture and were taught to new members as the right way to do business.”

The Lincoln Electric Company is a company with a very strong culture that dates back to when it was first started in 1895 by John C. Lincoln. When their doors opened, all John had was $200 and some really big dreams. The company stayed relatively small for a little over a decade, until 1906, when John moved the company to a much larger building that was located in East Cleveland. He also hired some more employees, rounding out their employee count to 30. The Lincoln Company is one that many other companies strive to be like. It is also a company that many people in the surrounding areas would love to work for. This is mostly due to the way the company is run and the culture that has been around since the beginning.

The Lincoln Electric Company is a welding company that has been around since the late 1800’s. Not only are they known for their prospering business, but they also are known for their management plan. A company’s culture has so much to do with their success, and The Lincoln Electric Company is definitely a business to look up to in that regard. They are a company that succeeds through their sturdy history, their incentive plan for their employees, their management style, and much more.

Lincoln Electric is a world-renowned manufacturer of welding equipment. The company has experienced success year over year since the early 1900s. Their success can be attributed to the unorthodox way in which the company is led and managed.

Lincoln has grown in size due to its management style such as how its leadership has been structured and company ethos never being compromised. The founder James F Lincoln and his family members that followed after him, have always tried to maintain the morale and productivity of the company through innovative leadership and organisational skills.

The effectiveness of the company’s doctrine is attested to by its continued growth after James F. Lincoln’s death in 1965. This illustrates that the culture he had founded was strong enough to ensure the company continued to prosper even in his absence. When still in infancy, the company suffered major setbacks including being gutted down but bounced back to employ about 30 workers by 1906 while sales kept growing too. James Lincoln pioneered an advisory committee that was elected from the staff members. The innovation, akin to a tradition, has persisted to date whereby the CEO meets with the Advisory Board twice every month. This kind of representation is critical in ensuring that the employees’ interests are taken care of. This certainly is a disincentive for go-slows and strikes as the grievances can be routinely handled at the highest

James believed that the interests of customers are best served by high employee 's performance and productivity. Therefore, he had implemented several plans and processes. The very first step he took was founding the Advisory Board to represent employees ' voices. This Advisory Board is the one who proposed "famous Lincoln bonus plan” which has been the backbone to Lincoln 's management system. Furthermore, Employees ' Association was formed to provide social activities and health benefits. Wages are paid on piecework system and adjusted to Consumer Price Index. One of best move taken by James was developing a "stock purchase plan” for all employees. The motive behind is to provide incentive to help run company efficiently by sharing the sense of ownership.

In those early years, James F. Lincoln implemented a number of programs and initiatives with served to define a company culture that was unique in its day and which has persisted for a century. Those programs and initiatives grew out of a stated mutual respect between workers and management, based largely on James F. Lincoln’s Christian beliefs and apparent genuine respect for the people who developed, manufactured and sold the company’s products. Among those programs was the creation of an Employee Advisory Board, a production based employee pay structure, and a group insurance program which was a rare benefit in its time. Today, Lincoln Electric continues to thrive and according to its 2014 Annual Report, generated revenues on the order of $2.8 billion resulting in net income of $255 million. The Cleveland, OH-based company now employs 10,000 worldwide where it operates 40 manufacturing facilities in 20 countries. Lincoln distributes its products to 160 countries.

The case study for Lincoln Electric Company located near Cleveland, Ohio USA, shows a company with a distinctive organization culture of people oriented and team culture. The founder of welding products and equipment (machines and electrodes), with more than two thousand four hundred (2,400) workers in two us factories and six hundred (600) factories in three (3) global factories. It is considered to be one of the best managed manufacturing companies in the world.

First, I examined the ongoing influence that has been exerted by the founders of the company. Lincoln Electric was founded by James F. Lincoln at the turn of the 20th century. His influence in leadership and his approach toward the customer has stood the test of time. James believed that the success of his company lay with the customer and a motivated labor force.

The general outlook of The Lincoln Electric Company shows that it was a successful company regardless of the death of James F. Lincoln in 1965. The many college management texts refer to the Lincoln plan as a model of achieving high worker productivity.