The Legacy Of The Lincoln Electric Company

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.

Drucker (2005) discussed leaders with values that fit with the organization. At PONAZ, as a Christian organization, leaders must demonstrate characteristics that identify them as Christ followers. Evans (1996) discussed leaders needing to “walk the talk” (p.2). Some of the Christ-like characteristics include loving people, listening to

In the movie “300”, the Greek King of Sparta Leonidas, leads his army to face the approaching Persian hordes. Spartan culture accentuated strength, discipline, and putting the needs of the many above self. Spartans were feared far and wide for their battle prowess and relentless commitment to mastering the art of warfare. Lincoln Electric, shares many of the qualities that made Sparta great. It is a company with a focus on mastery, frugality, industriousness, and a culture that aligns everyone towards domination of an industry that they have held leadership in for nearly one-hundred twenty (120) years. In fact, as recently as 2014, they were the largest provider in the welding supplies industry, with over 14% global market share (Samani, 2014).

Founded in 1865 by John C. Lincoln, the company is known in today’s world for its high worker productivity. The secret behind this extra ordinary success lies in the company’s founding philosophies and established policies over the year. The term ‘Organizational Culture’ was not even in practice when the company established its unique policies like reducing working hours, paid up life insurance, health benefits, social activities, paid vacations, and the pension plans. These measures not only motivated the employees but also helped build trust and partisanship. In Charles G. Herbruck’s words “... these were expressions of mutual respect for each person’s importance for the job to be done.” It can be assumed that Lincoln Electric

The Lincoln Electric Company was founded in 1895 by John C. Lincoln, who then partnered with his younger brother James in 1907. The focus of the company originally was manufacturing electric motors, which then expanded to include battery chargers and in the early 1900’s to portable welding machines. (Lincoln Electric, 2016) The company was founded originally on a construct of Christian values, which may have played a role in creating the dominant culture of the corporation. (Sharplin) This paper presents an evaluative analysis of the business case study presented by Arthur Sharplin, with a focus on determining the overall corporate culture of Lincoln Electric categorically.

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 a company with a very strong culture that dates back to when it was first started in 1895 by John C. Lincoln. When their doors opened, all John had was $200 and some really big dreams. The company stayed relatively small for a little over a decade, until 1906, when John moved the company to a much larger building that was located in East Cleveland. He also hired some more employees, rounding out their employee count to 30. The Lincoln Company is one that many other companies strive to be like. It is also a company that many people in the surrounding areas would love to work for. This is mostly due to the way the company is run and the culture that has been around since the beginning.

Lincoln has grown in size due to its management style such as how its leadership has been structured and company ethos never being compromised. The founder James F Lincoln and his family members that followed after him, have always tried to maintain the morale and productivity of the company through innovative leadership and organisational skills.

The OCP’s seven values all seem to fit into the management culture that Lincoln still has to this day. Lincoln’s incentive management plan uses the outcome-oriented culture in order to emphasize achievement and results. Without pushing

For instance, hours were reduced from to 55 to 50 hours a week. Life insurance was offered to each employee. A welding school was created, which it still exists today. “An employee bonus” was contemplated, but was not accomplished successfully. But until now, the employee bonus remains in the Lincoln management system.

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

A company’s culture is inevitably tied to the personality, background, and values of its founders. The way these people want to do business determines the organisation’s rules, the structural set up, and the people they hire” (Uopeople.edu, 2016). Looking at the influence James F. Lincoln had on the Lincoln Electric Company, it is clear the things he implemented decades ago, continue to be part of the Lincoln Electric Company’s culture.

plan, the bonus plan and the management style of the company. While analyzing these areas,

Upon review of the Lincoln Electric Company case study conducted by Arthur Sharpish of Harvard University, I came to find that the culture within the company is what elevated Lincoln Electric above all other companies in that field. When analyzing the report I considered many aspects of the company in order to determine what exactly that separates Lincoln from their competition.

"Money alone can be an influence to the miser only. There must be complete honesty