Lincoln Electric Culture Case Analysis

Lincoln Electric Company was founded by John C Lincoln in 1906 starting with a start up business in a one room, 4th floor factory to a bigger building and started to expand his workforce to 30 people and had a great expand in their sales as it grew over $50,000 a year. He was humble, preferably to be an engineer and inventor rather than sitting around being labelled as manager. The company also gave each of their employee as paid-up life insurance policy in the 1915. After 2 years, welding schools are introduced. A year after the success of forming a welding school, employee bonus plan was attempted.In the 1919 's, Lincoln Electric 's employees association are formed to introduced some social activities and health benefits to care for the workers. After becoming General Manager, in 1925; a purchase stock plan are enable for all employees. Lincoln bonus plan was finally accepted as a trial by the Advisory Board in 1934.

But to have an insight on how a company reached its current level of success

     John C. Lincoln founded Lincoln Electric Company in 1895 with a capital investment of $200. At first he only

With the years going by, Lincoln Electric Company, despite its excellent performance in production, has been growing in a very steady speed, and never really grew to a large scale company.

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.

Lincoln Electric was founded by John C. Lincoln, an engineer and inventor, and was then managed later by his brother, James F. Lincoln, starting in 1907. James applied his christian principles to business management and how the company would be run as a whole. The core of these business practices revolved around honesty and service to the customer and employee. The assumption that he had about his employees was that they required a steady income just as much as the business did, and that the employee and manager should work as a team to be most effective. The employee does not wish to support shoddy work, just as management does not want to pay for shoddy work, and that customers want the best possible value. This translated into the mindset that customer satisfaction is the top priority, employee satisfaction is the second priority, and that stockholders are the third priority.

Lincoln Electric Company was founded in 1895 by John C. Lincoln, who was joined by his brother younger brother James in 1907 (Lincoln Electric, Inc., n.d.). From the very beginning these no-nonsense brothers set about building a company that valued its customers first, prioritized frugality, focused on delivering ever increasing value and lower consumer costs. The company has a borderline fanatical commitment to achieving competitive advantage through an employee incentive system that drives productivity well beyond any norms for the industry, or manufacturers as a whole. To this day, the influence of the founders is clear in the entire structure of the company and its operating philosophies.

That mentality still stands strong today in the technology industry where the stereotypical ranking of companies is pretty much nonexistent or presented in a more lenient way. James Lincoln was also a strong believer in treating his employees in a way that values them almost as much as the customer. He didn't believe that hard workers should be treated unfairly, but instead, stood with them and made sure that they and their families for financially secure for their hard

Even though John started the company, James Lincoln had the biggest impact on the management style and practices. He created an advisory board that still to this day meets twice a month in order to listen to employees who may have ideas or suggestions. The board is made up of each department in order to allow every person in the company to have a voice. He also helped start an in house welding school that still trains new employees to this day. He helped create the Employees’ Association to help provide health benefits and plan social events for employees. He helped create a pension plan and a revolutionary incentives plan that is still used as one of the best benefits of working for the company. He started allowing employees to buys stock in the company as to inspire them to work harder. Finally although he never publicly stated it or pushed religion he said believed a company should operate with Christian values, and that the priority in the business would go first customers, second employees, and third stockholders. These values and priorities still hold true in the company even today.

What is the right culture to choose for your business? Do you want to be team oriented, innovative, aggressive or outcome oriented? For a business, this decision, of choosing a work culture often dictates unforeseen outcomes. But why choose one? The Lincoln Electric Company decided to use many of the of the seven work culture profiles to create their own unique business culture. It will be the goal of this essay to understand the seven different work cultures and discover which work culture the Lincoln Electric Company resembles best. The seven different work cultures that will be reviewed are innovative, aggressive, outcome oriented, stable, people oriented, team oriented and detail oriented.

The Lincoln Electric Company Since 1895, located in Cleveland, Ohio, the Lincoln Electric Company “ the world’s largest manufacture of welding machines and electrodes” was able to create the ideal organization throughout several aspects of the company’s culture. Its founders, first John C Lincoln and James Lincoln, who later joined the company as the General Manager, had one duty to get done; to ask his employees to elect a committee that would give him advice in regards to the company’s operations. Since then, an organization structure was performed. Lincoln Electric Company separated itself from the competitors for its innovative policies.

The Lincoln Electric Company, a manufacturer of welding equipment and supplies, was founded in 1895 by John C. Lincoln as a manufacturer of electric motors. In the early years of the 20th century, James F. Lincoln joined his brother’s company and by 1914 replaced John as the company head, allowing the latter to concentrate his efforts on scientific investigations.

It is said that early company values exert influence over future company values. This is true in the case of Lincoln electric. As stated earlier, many programs have been incorporated into the business to aid employees. The first year the advisory board was put into place, the work week went from 55 to 50 hours. In 1915, the company gave each employee a life insurance policy. In 1917, a welding school was created which still continues today. In 1918, a bonus plan was put into action on trial basis. It was removed and then reinserted later and became a strong point of Lincoln’s management system. In 1919, Lincoln created the “Employee Assocation” to provide health benefits and social activities for employees. By 1923, employees were given two weeks paid vacation

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

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.