The Lincoln Electric Company Analysis

Lincoln comment that labor and management are properly not warring camps;they are parts of one organization in which they must and should coorperate fully and happily has made an easy effort to organize employees in the organization.

The Lincoln electric company was founded by John C. Lincoln in 1895 and has grown over

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.

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

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.

Lincoln Electric Company separated itself from the competitors for its innovative policies. 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. In addition, employees were empowered to form an association, which let to health benefits and other things. Furthermore, employees received two weeks of paid vacation and raises. These are the benefits that continue up to this day.

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.

An organization’s culture can be defined as “the system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior”. Lincoln’s culture has with stood the test of time. The current business culture’s roots can be traced back to its founder’s younger brother. James F. Lincoln was the figurehead of the company in the 1900’s assuming the titles of General Manger and Vice-President. It was James who helped mold the company philosophy. His Christian principles and facilitation of multiple incentive and employee lead programs had a profoundly lasting effect on the company even after his death. In his wake he left a mix of business culture types/practices and artifacts to demonstrate those early principles and vision; that make up Lincoln’s highly effective organizational culture profile.

That both employees and management want to be a part of something great, a part of a team that is working for the same goal of making their company successful. Lincoln believed that a worker is worthy of what they earn. If they work hard, they should be paid commensurate with that effort.

James had his priorities at Lincoln. Whereas many companies then and now focused on their stockholders, James knew that the health of the organization is a direct reflection of the health of its employees. He encouraged their autonomy and trusted their judgment when it came to nominating individuals who should be on his advisory board. Why not? The employees know first hand who has been proven to be a capable advisor and leader to their specific department. This was the foundation that been laid out. The

Since the founding of Lincoln electric to present day, the founders (Lincoln Family) ideals and management processes have been the backbone of the company. Though stemming from a christian belief the company doesn 't reflect any kind of religious organization and religion inst forced on the employees according to interviews with the employees. Instead, Many would say that their odd approach to incentives and performance would be what drives their success. Some others would say that it would be their management style, the communication within the company or event he bonus and merit pay systems in place. I think it would be a combination of great management techniques and great incentives. One of the core beliefs of the founders has been; and will always be that the “worker cares as much about a lack of income as management”. It is one of the reasons they have so many things in place like

James believed that the interests of customers are best served by high employee 's performance and productivity. Therefore, he had implemented several plans and processes. The very first step he took was founding the Advisory Board to represent employees ' voices. This Advisory Board is the one who proposed "famous Lincoln bonus plan” which has been the backbone to Lincoln 's management system. Furthermore, Employees ' Association was formed to provide social activities and health benefits. Wages are paid on piecework system and adjusted to Consumer Price Index. One of best move taken by James was developing a "stock purchase plan” for all employees. The motive behind is to provide incentive to help run company efficiently by sharing the sense of ownership.

With the Lincoln company,its attitude toward customers is very clear and very important as James F.Lincoln saw the customer’s needs as the d’entre for

James Lincoln also introduced the use of an Advisory Board, consisting of employees elected by peers, which meets with the CEO twice a month to discuss company operations and provide input on ways to make the company more successful, often by focusing on improving employee experiences. Through suggestions to management, this Advisory Board has been responsible for helping to implement the many policies and programs that have lead to the Lincoln Electric Company’s remarkable and steady success since 1935.

Lincoln’s attitude towards stockholders, is that they are given last priority. James Lincoln’s belief is that “the philosophy behind this attitude is that in his words “they (stockholders) think that it will be more profitable than investing money in any other way”. He further explains that “this policy is an alternatives for the company to work towards making some of their activities mechanistic while keeping some functions organic”. The other alternative he says is to “keep the company going as is with no change”. He cites that “absentee stockholders receives shares they deserve, even if underserved, out of the greatly increased profits that the efficiency