The Lincoln Electric Company Case Analysis

Decent Essays
The Lincoln Electric Company Case Analysis

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.
Incentive System
Lincoln Electric
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Besides, managers in Lincoln Electric Company were not high in the sky, they worked and lived with workers in daily life, they had free atmosphere at work and they strengthened the feeling that workers were managing themselves.
In conclusion, this incentive system was crucial for Lincoln Electric Company’s success. However, it is difficult for the others to copy because it is based on the culture of competition and justice, which was set up in the very beginning. In the future, the effects of this system might be comparatively lower because machines, which don’t have incentive, are replacing workers in production. However, it still has advantage as there are people in the company, and their innovation in production line design will also benefit the company for long.
Problem Identifications
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.
The core problem is about their management style in top level. With such a highly efficient production line plant, the company 's management is like a job-shop, the executives take charge of every small decision of almost everyone. This greatly weakens the possibility to expand, because the one or two top management are not available dealing with so many daily issues. In addition, due to the size and life-long
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