The Lincoln Electric Company Case Study

1027 Words Sep 23rd, 2016 5 Pages
There are plenty of reasons why Lincoln Electric Company (LEC) is successful, and a big one that people usually credit the success to is the way it’s managed. While reading the Lincoln Electric Company Harvard Case Study by Arthur Sharplin, we learned a lot about the echo of the founder’s philosophies still very present in the company, we looked at the highly rewarding merit pay plan, and we learned about LEC’s authoritarian management style. There are plenty more reasons why LEC has been so successful over the years but these three are mostly responsible for the productivity, efficiency, morale, and overall satisfaction of the factory level employees and all the way up to the President’s office. A lot of people thought that once Mr. James Lincoln (better known as ‘Jimmy Sr.’) died in 1965 that the company would stop succeeding. People thought profits would drop, philosophies would be out of use, and the company would stop following Lincoln’s system that had led them so far. Opposite to that happened. Employee turnover rate became extremely low because of care to the employees and a well thought up management team. Employee productivity stayed at the standard that was established because Lincoln’s bonuses stayed with the company even when he had left it The company seemed ‘stronger than ever’. In addition to these standards, Lincoln also thought that the company should finance new locations through earnings made at LEC, not through loans or borrowing. This philosophy could…
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