Organizational Culture And The Lincoln Electric Company

1212 WordsApr 23, 20165 Pages
ORGANISATIONAL CULTURE AND THE LINCOLN ELECTRIC COMPANY The success of a business is intimately tied to the success of its culture. To understand better how organisational culture is created and maintained we will examine one of America’s most successfully managed companies, the Lincoln Electric company. We will examine many aspects of the company that contribute to its culture, such as the influence of the company’s founders, the golden rule, the incentive management plan, the performance appraisal system, the merit pay plan, the bonus plan, the way people communicate in the company and the management style. In analysing these we hope to understand not only what the culture of Lincoln Electric is, but also how it was formed and how it is maintained. Lincoln Electric was formed in 1895 by John Lincoln and was later taken over by his younger brother James Lincoln in 1914. While the inventions of John created the patents that formed the basis of the company’s profitability, it was James that in many ways founded the culture of Lincoln electric that still flourishes today. James saw the customer’s need as the primary reason for the company’s existence. He also saw that for a company to achieve its primary need it must do so via the productivity and performance of its employees. Seeing the employees as central to success has played a huge part in the formation of the culture of Lincoln Electric. There has never been an attempt at unionising in the company and this is partly
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