Lincoln Electric Company Essay

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.

Every organization has values and beliefs that define what they do and how they do things in the organization. These values have significant influence on how the employees behaves and the general performance of the organization – it is these set of values and beliefs, rooted deep in the company’s organizational structure that depict the “dos”, “don’t” and the “hows”, of the organization and these unequivocally represents the culture of the organization. This concept became popular in the 1980s when Peters and Waterman in their book: “In search of Excellence” presented the profound argument that, the success of any organization is inextricable linked to the quality of its culture. (Carpenter, M., Taylor, B., Erdogan, B. 2009 p183). The purpose of this paper is an attempt to analyse the impact diverse cultures played in the success of the Lincoln Electric Company.

Organization culture which is a system of shared assumptions,values,and beliefs showing people what appropriate and inappropriate behavior can best be analysed in the Lincoln Electric Company from the P-O-L-C Framework as below.

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

3. Lincoln’s culture could not be imposed but must be nurtured. “Willis retained the existing managers of most of the acquired companies to take advantage of their local knowledge, but directed them to implement [underlined by author]Lincoln’s incentive and manufacturing systems [p 6].” While Willis appreciated the benefits of implementing Lincoln’s systems, he did not consider James Lincoln’s caveat that “All those involved must be satisfied that they are properly recognized or they will not cooperate – and

After taking the chance to read the Lincoln Electric Company Harvard study case, it is interesting how they viewed taking care of their employees throughout multiple decades, while business today focuses more on outcome-oriented cultures, where employees tend to not have that many benefits, or any benefits at all. The Lincoln Electric Company started poor, but as they took excellent care of their employees, they flourished into a successful entity in the world of business in America. With the enactment of a variety of programs such as health benefits, annual bonuses, paid vacation and a suggestion system that paid workers for great ideas, it is clear that their team-oriented system has paid off in the long run and kept their turnover rate at an all-time low.

Culture, or shared values within the organization, maybe related to increased performance. Researchers found a relationship between organizational cultures and company performance, success indicators such as revenues, sales volume, market share, and stock prices. Retrieved from, The Principle of management. (Understanding organizational culture, ch. 8, p.184). What is the continuing influence of the founders of Lincoln Electrical Company: This influence is their strong-willed in which the value has been imposed on their firm. Virginia P.Dawson (1999). Lincoln Electric. A History. Retrieved from https://www.h-net.org/reviews/showrev.php?id=4370.

The Lincoln Electric Company was created by John C. Lincoln in 1895 after being forced out of the Elliot-Lincoln Company. The Lincoln Electric company would go on to become the world’s largest manufacturer of welding products and machines. This all came to be due to the business culture instilled by the founders and continued up to the present. A Harvard case study done by Arthur Sharplin, shows the organizational culture within Lincoln Electric is unique to any single ordinary business culture. There is evidence that points to the use of all seven OCP (Organizational Culture Profile) principles, in order to maintain one of the world’s most successful and efficient companies.

This paper summarizes the culture of The Lincoln Eclectic Company. First we take a look at the influence of the company founders and how their beliefs/values exits today. Then we will review various topics such as, the companies golden rule, the performance appraisal system, the way people communicate in the company, and bonus plan, to name a few, all of which make up and highlight the companies culture.

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

A company’s culture is inevitably tied to the personality, background, and values of its founders. The way these people want to do business determines the organisation’s rules, the structural set up, and the people they hire” (Uopeople.edu, 2016). Looking at the influence James F. Lincoln had on the Lincoln Electric Company, it is clear the things he implemented decades ago, continue to be part of the Lincoln Electric Company’s culture.

While Lincoln Electric’s does not possess a formal organizational chart its objective of maximum flexibility and open door policy have encouraged personnel to take the problems to the persons capable of solving it. Such an organizational structure is deemed to be one which improves efficiencies, integrate operational and product development processes in an effort to better serve customer needs. “This structure also leverages the functional and technical strength the organizations core teams in developing markets, speed up profitable growth.

Upon review of the Lincoln Electric Company case study conducted by Arthur Sharpish of Harvard University, I came to find that the culture within the company is what elevated Lincoln Electric above all other companies in that field. When analyzing the report I considered many aspects of the company in order to determine what exactly that separates Lincoln from their competition.

The creation of the Lincoln Electric Company organizational culture which is instrumental to it many years of existence and immerse growth, prosperity and benefit to the world originated from James F. Lincoln. According to the text book, it outlined that a company 's culture is inevitably tied the personality, background and values of its founder or founders, as well as their vision for the future of the organization. From The Lincoln Electric Company case study, the Company Philosophy of James F. Lincoln, who was the son of a congregational minister and who Christian principles were at the center of his business philosophy. In his statement, "The Christian ethic should control our acts. If it did control our acts, the savings in

There are plenty of reasons why Lincoln Electric Company (LEC) is successful, and a big one that people usually credit the success to is the way it’s managed. While reading the Lincoln Electric Company Harvard Case Study by Arthur Sharplin, we learned a lot about the echo of the founder’s philosophies still very present in the company, we looked at the highly rewarding merit pay plan, and we learned about LEC’s authoritarian management style. There are plenty more reasons why LEC has been so successful over the years but these three are mostly responsible for the productivity, efficiency, morale, and overall satisfaction of the factory level employees and all the way up to the President’s office.