Lincoln Electric

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.

Lincoln Electric (LE) has been a producer of electrical and welding technology products since the late 1800's. The company remained primarily a family and employee held company until 1995, then approximately 40% of its equity went to the public. James Lincoln, one of the founders, developed unique management techniques that effectively motivated the employees. These management techniques were implemented as an unusual (for the era) structure of compensation and benefits called "incentive management". The incentive management system consisted of four key areas: factory jobs based solely on piecework output; a year-end bonus that could equal or exceeded an individual's regular pay; guaranteed employment; and limited benefits. Management

Established in 1895 and specialized in producing and selling electric motors, Lincoln Electric Company rapidly developed after the movement to welding equipment and consumable welding products in the USA. By 1995, this company first hit $1 billion in sales and became the world largest company in welding industry. With the differentiate strategy by providing premium -price -products , this company got 60% sales in the North American and expanded internationally since the period of 1986 and 1992. Although this company is facing problems in global expansions, its overall strategy as well as practices in human resources, marketing, technology development, and international expansions is a useful lesson for other businesses.

     Headquartered in Euclid, Ohio, a suburb of Cleveland, The Lincoln Electric Company is a world leader in welding and cutting products, as well as a premier manufacturer of electric motors. The company is well known for its dedicated, talented workforce and its superior technology. Lincoln Electric Company gives its customers total solutions along with a commitment to quality. Lincoln Electric Company is also well known for its incentive management system. Many companies strive to duplicate the success that Lincoln has enjoyed over the years.

Lincoln Electric Company is a manufacturing company, which has been focusing on welding products for the recent 30 years. The company had outstanding brothers leading the company to success. John was a technical genius and he brought the best skills in production and James was good at management and he was working on the employees ' incentives. The company gained its reputation through the world war till present as the welding equipment supplier with higher quality and lower price at the same time. For the production aspect of welding equipment, it is an advanced production line with continuous flow with high flexibility and low idling time.

Elements of Lincoln Electric’s management system that made it so popular in the U.S. such as piece-rate work, bonuses, and

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 one of the largest manufacturers of welding machines and electrons in the world today, with $1 billion in sales and 6000 workers worldwide. The company is also the pioneer in the development of the arc-welding industry and the originator of the innovative employee incentive system. “It was founded in 1895 by Engineer John C. Lincoln to manufacture an industrial motor of his own design. By 1909, it began to produce welding machines, and In 1914 James F.Lincoln his younger brother became the general manager, and actively promoted the welding industry, which expanded with the need to repair the navy vessels during the First World War”. Moley Raymond. (1962) The American century of John C. Lincoln. Retrieve

Founded in 1895 by John C. Lincoln, the Lincoln Electric Company is a high-quality manufacturer of welding machines and welding equipment based out of Cleveland, Ohio. Lincoln Electric is founded upon a strong foundation of competitive logic, using manufacturing to create the highest quality welding equipment and the lowest costs.

Lincoln Electric is company based out of the east side of Cleveland, OH. Being a Manufacturing company they mainly deal with welding materials and electrodes. The company was started by Lincoln himself back in 1895; with a little inspiration and his second patent on an improved Motor. It has been recognized as one of the most stable and great companies to work over the years by multiple different associations. But what contributes to such success? In this essay I will go going through the aspects of the company and what has added to is growth, development and most importantly, its success.

The Automation Division of the Lincoln Electric Company will provide complete welding automation and fume extraction systems to customers throughout North America and provide assistance and service support to other Lincoln regions. These unique systems improve our customers’ quality, lower their costs and enhance their

The company, Lincoln Electric was created way back in the year 1895 by Mr John C. Lincoln, with the production of manufactured goods being its centre activity. For many decades, the firm has been a top leader, in the production of arc-welding goods the world over. By the time World War II come to an end, over fifty producers of arc-welding goods were present in the United States of America, but presently, roughly only six major manufacturers still exit. The Huge majority, that include huge top firms such as General Electric and Westinghouse, pulled out of this from of manufacturing mainly, due to the fact that Lincoln, sold high-value, top-quality products at lower rates that came with outstanding customer service.

One of the first incentives to work for the company where reduced work hours and health benefits (Sharplin, 1985, p. 2). This was then followed by a system that would allow workers to get a bonus based on the rate of completion, and then a pension plan that was introduced towards the end of the second World War (Sharplin, 1985, p. 2). This brings to light that the company was interested in hearing from their workers as some of these incentives came to be due to the feedback from the workers (Sharplin, 1985, p. 2). Each employee was evaluated on a regular basis and there was a clear and easy to understand system in place that each worker could follow (Sharplin, 1985, p.

Getting started during an economic depression in the late 80s, that too with a capital investment of just $200.00, John. C Lincoln introduced his own new design for electric motors in the market. Moreover, after the joining of John. C’s younger brother, James F. Lincoln. The company not only expanded its product line but, introduced the world’s first portable wielding machine as well. After turning over the company fully to James, he established an Employee Advisory Board which later on help the employees cover up in a group life insurance, later on introduced a piece rate pay method and made them earned paid vacations for the first time in the country’s history in 1923. The company also launched an Employee Stock Ownership Plan, which helped them received their first annual Incentive Bonus in 1934.

anagement control systems (MCS) have traditionally been viewed as tools to reduce variety and implement standardization (Anthony 1965). They are associated with extrinsic motivation, command and control management styles, and hierarchical structures. Because their objective is to minimize deviations from pre-established objectives, they are designed to block change for the sake of efficiency. Learning comes from planning ahead of time, not from adapting to surprises. The functioning of a thermostat, in which a control mechanism intervenes when the temperature deviates from the preset standard, has been a frequent metaphor for this model