The Lincoln Electric Company

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.

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, having an open door policy, and creating employee ownership.

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

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.

Lincoln Electric is one of the leading producers and manufacturers of Arc Welding Products and Electric Motors. It is undeniable that the success of Lincoln Electric lies on the foundation of the various company policies introduced by James Lincoln.

In 2007, Lincoln electric invested in expanding its global manufacturing footprint, one of the largest undertaking in its history, constructing and upgrading 10 plants throughout the world and thru acquisition of Vernon Tool company, which is a manufacturer of computer-controlled pipe cutting equipment, expands Lincoln’s automation solutions meanwhile acquisitions in china and Poland further tighten the grip of Lincoln electric global market position (Lincoln Electric

Since 1895, located in Cleveland, Ohio, the Lincoln Electric Company “ the world’s largest manufacture of welding machines and electrodes” was able to create the ideal organization throughout several aspects of the company’s culture.

Founded in 1895 by John C. Lincoln, the Lincoln Electric Company is a high-quality manufacturer of welding machines and welding equipment based out of Cleveland, Ohio. Lincoln Electric is founded upon a strong foundation of competitive logic, using manufacturing to create the highest quality welding equipment and the lowest costs.

merit pay plan, the bonus plan, and the management style it is clear to see that the Lincoln

In the movie “300”, the Greek King of Sparta Leonidas, leads his army to face the approaching Persian hordes. Spartan culture accentuated strength, discipline, and putting the needs of the many above self. Spartans were feared far and wide for their battle prowess and relentless commitment to mastering the art of warfare. Lincoln Electric, shares many of the qualities that made Sparta great. It is a company with a focus on mastery, frugality, industriousness, and a culture that aligns everyone towards domination of an industry that they have held leadership in for nearly one-hundred twenty (120) years. In fact, as recently as 2014, they were the largest provider in the welding supplies industry, with over 14% global market share (Samani, 2014).

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

Lincoln Electric has been manufacturing welding equipment since the late 1800’s. The company is headquartered near Cleveland, Ohio with two factories there and three in other countries. Started by John C. Lincoln with only $200.00 it has flourished into one of the leaders of the industry today. The reason it has flourished is the company culture. Built on strong Christian values and principals, Lincoln Electric has been able to grow and prosper. They were sure never to try and push their Christian ways on people though.

John and James Lincoln professed to be devout Christians and embodied their faith in their treatment of their employees early on in the company. While a clear hierarchy and protection of management control was evident in their organizational structure, they ensured that employees had regular access to the management team both formally and informally. Management roles may have been protected and controlled but they were seen strictly as tasks to perform just as every other employee was assigned their tasks. In this respect the workplace was and remains designed strictly around function, no perks exist for management that do not exist for every employee. (Sharplin) This example points to the importance of a people-oriented culture in the workplace and is almost egalitarian in nature. (Flat World Knowledge,

Getting started during an economic depression in the late 80s, that too with a capital investment of just $200.00, John. C Lincoln introduced his own new design for electric motors in the market. Moreover, after the joining of John. C’s younger brother, James F. Lincoln. The company not only expanded its product line but, introduced the world’s first portable wielding machine as well. After turning over the company fully to James, he established an Employee Advisory Board which later on help the employees cover up in a group life insurance, later on introduced a piece rate pay method and made them earned paid vacations for the first time in the country’s history in 1923. The company also launched an Employee Stock Ownership Plan, which helped them received their first annual Incentive Bonus in 1934.

The Lincoln Electric Company was founded in 1895 by John C. Lincoln. The initial investment to get the company off of the ground was $200, and it was not until a few years later in 1907 that they manufactured their first welding equipment.