Taking a Look at the Lincoln Electric Company

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.

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

The founder, James F. Lincoln used his Christian upbringing as the basis for his vision of how he defined entrepreneurial success. The customers ' needs are first priority, the employee second, and the stockholders are last. Quality and cost efficiency are the two most important factors considered in their product engineering and manufacturing. The hierarchy is stringent, however, the culture of the company is greatly people-oriented. This company has a strong culture that is instilled in new employees from the beginning and continuously practiced by every member of every facet in the organizational structure.

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.

The written assignment of this week is going to focus on a very well known and well organized company. The Lincoln Electronic Company is the world largest manufacturer welding machine and electrodes. Since it has been created by the Lincoln family, the company has known enormous success, in this essay I going to look at some critical elements contributed that company’s success; such as:  The continuing influence of the founders of the company.  The incentive management plan.  The performance appraisal system.  The way people communicate in the company.

Lincoln Electric has been on top in relating to the country’s culture of the United States. James Lincoln realized that treating people fair and realized their needs will sustain the company for the long haul. For an example, in 2008 when the United States was in recession, many major corporations laid of its employees. The feeling of discontent was high in the United States. However, Lincoln Electric did not lay off one person. Instead, the company lower their hours until the recession is over. Not only this method saved the employees’ jobs and it also sustain their morals and spirits.

Mutual respect is the foundation of all relationships in the Lincoln Company starting at the top of the firm. Respect is the ability to recognize of what is, a good manager are able to recognize the value of people, things and situations. A good team leader also evaluate the results and situations, take into account the pluses and the minuses, strengths and room for improvement, risks and opportunities…He is very interested in the potential of his employees. That is what James F Lincoln have brought since the beginning in the Lincoln Company. He understood that by seeking a committee advisor elected by the employees, on company operations is the best way to align a good management.

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’s Tradition of innovative solutions, technological leadership and commitment to customers, employees, and shareholders stems from the vision of its founder, John C. Lincoln and his brother, James F. Lincoln

Lincoln Electric’s management practices an open door policy. They have never formally constructed an organizational chart. Management wants its employees to take their problems to the person who can solve them without regards to rank or the chain of command. Researchers

Lincoln Electric Company is an epitome of a well-run company with an outstanding record of accomplishment in terms of productivity. This success has achieved by prioritizing the needs of its employees. Even the group of stockholders will be the last order of priority of the company.

The aim of this essay is to analyze the Lincoln Electric Company’s aspects of the company’s culture. All aspects will be considered on the basis of study case prepared by A. Sharplin.

As mentioned before, the relationships that were built continued to keep the company aligned moving in one direction, toward growth. More productivity, more sales, more money, created bigger bonuses and happier employees. Lincoln wanted to embrace the people-oriented culture and relate with employees to show them you value and respect them.

Shortly after the Great Depression The Lincoln Electric Company was born. The company survived the hard times but did not thrive. The original owner John Lincoln later decided he would be better served as an engineer and inventor and handed the hat of management over to his younger brother James Lincoln. One of James’ first initiatives was creating a committee of employees to keep him informed of everyday operations. The advisory board has met twice a month ever since and is an effective way of communicating. It’s one of the many influences from the original founders. James, with the help of the advisory board, established programs to empower the employees, including welding training, employee stock,

James F. Lincoln was the son of a minister and Christian values were at the middle of his philosophy. However, nothing pointed that he attempted to evangelize his workers, customers or the public. His slogan was ' 'the actual is limited, the possible in immense ' ', which didn’t display any religious beliefs. He also had different views on customers, stockholders and union members. He believe that customers interest should be the top priority and that stockholders should be the last priority which is still the philosophy til today. He also Excused mistreatment of union power as and believe that there must be absolute honesty and understanding between the hourly worker and management if high efficiency is to be acquired.