The Lincoln Electric Company Case Analysis

Lincoln Electric (LE) has been a producer of electrical and welding technology products since the late 1800's. The company remained primarily a family and employee held company until 1995, then approximately 40% of its equity went to the public. James Lincoln, one of the founders, developed unique management techniques that effectively motivated the employees. These management techniques were implemented as an unusual (for the era) structure of compensation and benefits called "incentive management". The incentive management system consisted of four key areas: factory jobs based solely on piecework output; a year-end bonus that could equal or exceeded an individual's regular pay; guaranteed employment; and limited benefits. Management

The strategy of Lincoln electric is known for its highly unique ideas for paying working according to the number of pieces they produced at works which means higher performance and productivity leads to higher pay roll. He believed in generating the best productivity and utilizing the company’s resources properly. A global organization is complex and has different task and requirement which needs different skills, education, experiences, knowledge and background. And that is why there is different kind of degree and education is available. Each major requires specific knowledge, like marketing, management accounting etc. the companies have segment in its organization also which divides the members into different groups each group have

Planning The company is primarily engaged in the manufacturing and sale of arcwelding products-electric welding machines and metal electrodes.Lincoln also produces electric motors ranging from half horsepower to 200 horsepower. Motors constitute about eight to ten percent of total sales. James F. Lincoln,who was the founder of the organizatio came from a Christian background.HisChristian principles at the centre of

Introduction Established in 1895 and specialized in producing and selling electric motors, Lincoln Electric Company rapidly developed after the movement to welding equipment and consumable welding products in the USA. By 1995, this company first hit $1 billion in sales and became the world largest company in welding industry. With the differentiate strategy by providing premium -price -products , this company got 60% sales in the North American and expanded internationally since the period of 1986 and 1992. Although this company is facing problems in global expansions, its overall strategy as well as practices in human resources, marketing, technology development, and international expansions is a useful lesson for other businesses.

“We will distinguish ourselves through an unwavering commitment to our employees and a relentless drive to maximize shareholder value”; as found within Lincoln Electrics’ Vision Statement (Lincoln Electric 1999-2016). The beliefs and values transferred from company founders and instilled into employees can have an overwhelming impact on corporate culture.

Elements of Lincoln Electric’s management system that made it so popular in the U.S. such as piece-rate work, bonuses, and

As stated in the assignment profile, Lincoln Electric is considered one of the best managed companies in the world. I believe this to be partially attributed to their hiring process. Lincoln Electric has strict requirements to weed through unqualified candidates who will not buy in to the company culture of excellence. This is an especially important aspect of their hiring process particularly due to the fact of leadership – a trait that plays a vital role in implementing and sustaining a company’s culture.

The Founders’ Legacy 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.

The Lincoln Electric Company is one of the largest manufacturers of welding machines and electrons in the world today, with $1 billion in sales and 6000 workers worldwide. The company is also the pioneer in the development of the arc-welding industry and the originator of the innovative employee incentive system. “It was founded in 1895 by Engineer John C. Lincoln to manufacture an industrial motor of his own design. By 1909, it began to produce welding machines, and In 1914 James F.Lincoln his younger brother became the general manager, and actively promoted the welding industry, which expanded with the need to repair the navy vessels during the First World War”. Moley Raymond. (1962) The American century of John C. Lincoln. Retrieve

1 Introduction Headquartered in Cleveland Ohio, Lincoln electric’s business model consists of distributing welding consumables, equipment’s and solutions. Lincoln initially traded electric motor cars and steadily moved on to welding. Lincoln’s vision, led by founder John C. Lincoln is to provide high quality welding, joining and cutting equipment’s globally.

Lincoln Electric Case Analysis The Lincoln Electric Company is a successful business. They boast record profits, have remarkably low employee turnover, and have created an organizational structure that is both researched and respected. The have managed to do these things by focusing on key elements of their business: valuing their employees,

Cultural Analysis of Lincoln Electric Company When Mr. John C. Lincoln left his then employer, the depressive Elliott-Lincoln Company, to start his own venture, it seemed that the unpleasant working experience at the former employer had instilled the initial thought of creating a worker-friendly working environment for his business. This laid the foundation of the company’s culture – to treat its employees well. Furthermore, John’s senior brother, James F. Lincoln joined the company in 1907 and became the active head in 1914. James, as the son of a Congregational minister with Christian philosophy at the center of his business philosophy, helped facilitate the setup of an Advisory Board that would advise him on company operations, a reflection that the company Lincoln Electric engages employee to create a more open atmosphere and a flat-to-some-extent structure. The two founder’s personalities, background and

A case study by Arthur Sharplin indicates that the Lincoln Electric Company is the world's biggest maker of welding equipment and supplies with a market share of more than 40 percent. The case study further says that the company has two factories located in the U.S. near Cleveland where it employs 2,400 workers and about 600 employees in three factories situated in other countries. These figures exclude field sales force of over 200

People before Profit: Lincoln Electric Company Sase Study Summary The Lincoln electric company should be applauded and used as a great evaluation point for manufacturing companies looking to improve direct expenditures while enriching their work force. Their company has earned much success over the decades by doing business under the credo that “at all times price on the basis of cost and at all times keep pressure on our cost."

Introduction Lincoln Electric has always been a leader and innovator in the design and production of arc welding equipment and consumables. Headquartered in Cleveland Ohio, we are also a worldwide leader in robotic arc welding systems as well as plasma and ox fuel cutting equipment. The catalogue you hold in your