The Legacy Of The Lincoln Electrical 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.

Lincoln Electric Company has a very strong culture based on shared assumptions values and beliefs. This is evidenced by the attitudes of both the company management and employees towards the organization. The unchanged policies, practices and products point towards a very strong corporate culture. High employee performance and productivity over the many years of the company’s existence is also another indicator of a strong culture.

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.

With the years going by, Lincoln Electric Company, despite its excellent performance in production, has been growing in a very steady speed, and never really grew to a large scale company.

Planning, Organizing, Leading, and Controlling are the four basic management functions. These four functions serves as a general guiding rule for every organization or company towards the attainment of desirable leadership style. Executives’ drive the company pursuant to its mission statement, employees should have mutual respect to one another, and the company should offer an acceptable compensation. Thereby working as one community for a crystal clear vision. Having read the Lincoln Electric Company Harvard Case Study by Arthur Sharplin, I would like to contextualize my evaluation into different perspectives. These perspective includes: Continuing influence of the founders, the golden rule, compensation schemes, open communication, and management style. Continuing influence of the founders of the company "The actual is limited, the possible is immense.” With this slogan that the company has, it actually reflects how profound the influence of the founders to the current people living in the company. It was very clear to my understanding that Lincoln treated everything and everyone as associates. Lincoln’s did not only focus on the profitability he could gain with his product nor the productivity that the employees could offer, the founders had an exquisite realization of building relationship with their product, customers, employees and business partners. The influence that Lincoln’s as founders created paved way through an inevitable inspiration that up until today, people

Lincoln Electric is a company operating with the sales of electric motors which was designed by John C. Lincoln himself, The company started off in 1895 when John C. Lincoln started the firm with an extremely low capital of only 200$. A few years later in 1907, John’s brother James decided to join the company Electric motors as a senior manager after just graduating from Ohio State Policies which has highly benefited the company as he introduced a series of policies under human resource and management which were innovative and new. In 1907 the company started to grow and decided to venture into new markets and diversify their production into Welding equipment as well, this has attained the company major success and in the year 1922 (Lincoln Electric, 2015) production of welding equipment and welding consumables has become the main business done by Lincoln Electric.

The overall impression, after reading the Case Study, is that Lincoln Electric has a strong culture. In our textbook, Carpenter, Taylor, and Erdogan (2010, p. 197) define a strong culture as “one that is shared by organizational members… a culture in which most employees in the organization share a consensus regarding the values of the company”. This can be considered the foundation of all the successive subcultures that exist within the company, and it starts at the very beginning with the founders. John C. Lincoln started the company on next-to-nothing after he had been let go from his former venture. Despite being started during an economic recession and suffering a fire after barely one year, John Lincoln moved the company to a new location and grew his workforce, which correlated to higher sales and profits. John’s brother, James F. Lincoln, joined the company and took over as General Manager/Vice President while the company was still in its early stages. The first indicator that the company took on a people-oriented culture is with the creation of the “Advisory Board”, which served as a means to advise Lincoln of operations –

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

What makes Lincoln Electric Company so famous among management researchers and study communities? What gives them competitive advantages? Lincoln is known for its high labor productivity, very low employee turnover rate, high profitability and stable market share. The principle behind Lincoln success is their incentive management style. This famous Lincoln management style created a unique organizational culture. In this paper, I will be summarizing the organization culture of Lincoln: how is it created and what values of culture Lincoln possesses using Organization Culture Profile (OCP) topology?

In those early years, James F. Lincoln implemented a number of programs and initiatives with served to define a company culture that was unique in its day and which has persisted for a century. Those programs and initiatives grew out of a stated mutual respect between workers and management, based largely on James F. Lincoln’s Christian beliefs and apparent genuine respect for the people who developed, manufactured and sold the company’s products. Among those programs was the creation of an Employee Advisory Board, a production based employee pay structure, and a group insurance program which was a rare benefit in its time. Today, Lincoln Electric continues to thrive and according to its 2014 Annual Report, generated revenues on the order of $2.8 billion resulting in net income of $255 million. The Cleveland, OH-based company now employs 10,000 worldwide where it operates 40 manufacturing facilities in 20 countries. Lincoln distributes its products to 160 countries.

Lincoln Electric Company was started in 1895 by John C. Lincoln. It was officially incorporated in 1906. Although John Lincoln started the company, he prefered engineering over management. In 1914, James Lincoln, his younger brother, took over the company. John Lincoln is the original founder of the company, but James Lincoln is what made the company into the multinational success story that still is today. During his tenure, he implemented some revolutionary changes to the culture and business structure of the company. According to wikipedia, “Lincoln Electric 's business model was listed as one of the most studied by the Harvard Business School.” ("Lincoln Electric", 2016) The company had so many new ideas that it inspired a book written about the company named Spark by Frank Koller.

The Lincoln Electric Company is the world’s largest manufacturer of welding machines and electrons. Lincoln employs 2,400 workers in two U.S. factories near Cleveland, OH and approximately 600 in three factories located in other countries. (The Lincoln Electric Company p. 1.)

The founders of the Lincoln Electric Company early-on, set systems in place such as an incentive management plan and an employee advisory board that would propel the company forward even long after the founders had retired and passed away. By fostering an environment of "mutual respect" Lincoln Electric "claims levels of productivity more than twice those for other manufacturers" with a market share of "more than 40 percent".

In 1895 John Lincoln decided to open a business with a second patent for electric motors. He started this business with just 200 dollars. His start up cost was the earnings he received from redesigning a single motor for Herbert Dow. His business started out as a small one room factory. In 1906 he spread his wings and erected a new 3 story factory. He filled those three stories with 30 new employees and the sales shot through the roof.

The creation of the Lincoln Electric Company organizational culture which is instrumental to it many years of existence and immerse growth, prosperity and benefit to the world originated from James F. Lincoln. According to the text book, it outlined that a company 's culture is inevitably tied the personality, background and values of its founder or founders, as well as their vision for the future of the organization. From The Lincoln Electric Company case study, the Company Philosophy of James F. Lincoln, who was the son of a congregational minister and who Christian principles were at the center of his business philosophy. In his statement, "The Christian ethic should control our acts. If it did control our acts, the savings in