The Legacy Of Lincoln Electric Company Essay

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.

It is the world’s largest manufacturing company that primarily makes welding products. It has also become one of the world’s leading manufacturers of arc welding equipment since World War II. The company’s organizational culture and philosophy is still consistent and continues to persist. Lincoln’s culture and philosophy has made it remain successful over the years. The company’s approach to motivate employees is both simple and unwavering. It has built a condition that that fosters individual growth, continual improvement, and productivity and has implemented a clever incentive

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.

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.

In 1895, engineer, inventor, and businessman John C. Lincoln started Lincoln Electric Company. His brother James would join him shortly, in his business endeavor, starting in 1907 (Sharplin, A 1989). James managerial style would most closely be described as people-oriented. He once said “Labor and management are properly not warring camps; they are parts of one organization in which they must and should cooperate fully and happily.” (Sharplin, A 1989) Early on, he created the Advisory Board, a committee made up of both employees who were elected by their peers and upper management, including the chief executive officer. The Advisory Board continues still to this day, meeting bimonthly to discuss employee policies, working conditions, etc. Though these meetings, employees have gained such things as health benefits, life insurance, paid vacation time, retirement pension plans, stock incentives, continued on and off site education, and much more. (Sharplin, A 1989)

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.

John and James Lincoln professed to be devout Christians and embodied their faith in their treatment of their employees early on in the company. While a clear hierarchy and protection of management control was evident in their organizational structure, they ensured that employees had regular access to the management team both formally and informally. Management roles may have been protected and controlled but they were seen strictly as tasks to perform just as every other employee was assigned their tasks. In this respect the workplace was and remains designed strictly around function, no perks exist for management that do not exist for every employee. (Sharplin) This example points to the importance of a people-oriented culture in the workplace and is almost egalitarian in nature. (Flat World Knowledge,

The effectiveness of the company’s doctrine is attested to by its continued growth after James F. Lincoln’s death in 1965. This illustrates that the culture he had founded was strong enough to ensure the company continued to prosper even in his absence. When still in infancy, the company suffered major setbacks including being gutted down but bounced back to employ about 30 workers by 1906 while sales kept growing too. James Lincoln pioneered an advisory committee that was elected from the staff members. The innovation, akin to a tradition, has persisted to date whereby the CEO meets with the Advisory Board twice every month. This kind of representation is critical in ensuring that the employees’ interests are taken care of. This certainly is a disincentive for go-slows and strikes as the grievances can be routinely handled at the highest

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

brother join the company and subsequently became general manager and vice president in 1914. One of James early actions was to have a committee that would advise him on company operations. Employees was asked to elect representatives to the committee. They met twice monthly with the executive officer ever since. A welding school was formed in 1917 and still continues today. In 1918 an employee bonus plan was initiated then discontinued. It returned later on however. In 1934 the bonus plan was purposed by the advisory board, their has been a bonus every year since then. In 1919 the Lincoln Electric Employees Association was formed providing health benefits and social activities. This has continued today with added functions. The board of directors started a suggestion system that is still in effect today. At least since 1935 Lincoln productivity has been well above the average productivity vs. similar companies.

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 was founded at the end of the 19-th century by John C. Lincoln. He was a talented engineer who invested 200 dollars in his product electrical motors. Soon he was replaced by his younger brother James F. Lincoln, and the founder of Lincoln Electric dedicated his time to engineering activities and inventions. James F. Lincoln was a different type of inventor. He was a good manager with the nice strategic point of view over manufacturing. At the beginning of the 20th century, the company started manufacturing welding machines which become their iconic product. That is not the only thing Lincoln electric became famous for. The incentive management plan was one of a kind at that time and was the first step of creating company culture with a high focus on the employees, something unheard among the other manufacturers at that time of the century. Both Lincoln brothers were inventors and this was crucial for the earlier company development. Both were pioneers and the vision and the mission that was integrated especially from James Lincoln played a major role in the dramatic company development during the World War II.

James F. Lincoln founded The Lincoln Electric company and he died in 1965. Based on

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.

In 1895, John C. Lincoln took out his second patent and began to fabricate his improved motor. Establishing his new business with two hundred dollars he had earned designing a motor. John Lincoln rather than being a manager preferred being an engineer and inventor. That 's why in 1907, he give the General