Organizational Structure Of Lincoln Electric

The Lincoln Electric company, under the leadership of James F. Lincoln saw a major shift in the way business was to be directed and operated with visionary mind-set emulating companies like Ford, Wal-Mart, Merck, 3M as focus was towards the customer’s needs and employee’s compensation. Philosophically customer needs become critical as the reason for being in business and the employees also being the vehicle in achieving the needs of the customers as the case study by Sharplin, A (1989, p.3) clearly positions the companies aspirations. James Lincoln places much importance on the relationship with employees that is guided by mutual respect and individual effort.

The strategy of Lincoln electric is known for its highly unique ideas for paying working according to the number of pieces they produced at works which means higher performance and productivity leads to higher pay roll. He believed in generating the best productivity and utilizing the company’s resources properly. A global organization is complex and has different task and requirement which needs different skills, education, experiences, knowledge and background. And that is why there is different kind of degree and education is available. Each major requires specific knowledge, like marketing, management accounting etc. the companies have segment in its organization also which divides the members into different groups each group have

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

The Lincoln Electric Employees' Association was formed in 1919 to provide hearth benefits and social activities.This organization continues today and has assumed several addittional functions over the years.

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 Cleveland Ohio, Lincoln electric’s business model consists of distributing welding consumables, equipment’s and solutions. Lincoln initially traded electric motor cars and steadily moved on to welding. Lincoln’s vision, led by founder John C. Lincoln is to provide high quality welding, joining and cutting equipment’s globally.

Structurally, Lincoln electric appears to use a decentralized approach to management. According to (Draft, 2010), “decentralization relies on cultural values, traditions, shared beliefs, trust and an egalitarian spirit to foster compliance with organizational goals” (p. 548-549). Lincoln Electric also uses a lateral approach between management and employees to achieve organizational goals. Examples of Lincoln Electric’s decentralized approach include their open door policy, which is for all employees from the top to the bottom of the hierarchy, their no lay-off policy and their procedure of promoting

     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.

“We are a global manufacturer and the market leader of the highest quality welding, cutting and joining products. Our enduring passion for the development and application of our technologies allows us to create complete solutions that make our customers more productive and successful. We will distinguish ourselves through an unwavering commitment to our employees and a relentless drive to maximize shareholder value” (http://www.lincolnelectric.com/en-us/company/Pages/vision-statement.aspx). This is the vision of James Lincoln, founder of Lincoln Electric Company. I will look at this vision and apply it towards the

Before anyone can truly understand and respect Lincoln Electrics’ culture values (which has one of the finest corporate cultures), we must look at how the company has evolved to become what it is today. In the early 1900s, the company transitioned leadership from John Lincoln, the original founder, to his younger brother, James Lincoln. John turned management and leadership to James Lincoln in order to pursue his ingenuity through inventing for the company. One of the first orders as General Manger was to assemble and advisory group that would report to him. He did so by requesting the employees from various departments to elect a representative to be on the committee that would meet with management – to this day the advisory group meets two times per month.

All the founders of the company had a great deal of continues influence on the positioning of the company today, form John C. Lincoln to James F. Lincoln. John C. Lincoln started it all and James F. Lincoln, who is the younger brother of John, took over the company to another level. One of James Lincoln 's early actions as head of the firm was to ask the employees to elect representatives to a committee that would advise him on company operations. The Advisory Board has met with the chief executive officer twice monthly since that time. This was only the first of a series of innovative personnel policies that have, over the years, distinguished Lincoln Electric from its contemporaries.

The ways in which the Lincoln Electric Company identifies with an innovative culture are most prominently explained by the following facets: not having a traditional hierarchy, and utilizing an open-door policy when it comes to problem resolution. As explained in the Organization Structure section of the Case Study, “personnel are encouraged to take problems to the persons most capable of resolving them [open door policy]” (Sharplin, 1989, pg. 7, para. 1). In the same section, Sharplin also mentions that, “Lincoln has never had a formal organization chart… [but] position titles and traditional flows of authority do imply something of an organizational structure… [thus determining] that production workers have two or, at

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

Lincoln Electric is one of the leading producers and manufacturers of Arc Welding Products and Electric Motors. Lincoln Electric’s success lies on the foundation of the various company policies introduced by James Lincoln. This case study analyzed the critical points on which the success of Lincoln Electric’s has its foundations.