The Lincoln Electric Culture Analysis

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Lincoln Electric Culture Analysis

Lincoln Electric is a world-renowned manufacturer of welding equipment. The company has experienced success year over year since the early 1900s. Their success can be attributed to the unorthodox way in which the company is led and managed.

Early in the company’s life an advisory board was created which gave employees a voice that could be heard by upper management. Soon after the creation of the advisory board, working hours were reduced and additional benefits were given to employees that included life-insurance policies and continued educational opportunities.

In 1934 the famous Lincoln bonus plan was initiated which would give employees of the company a yearly bonus as a percentage of their
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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.

When looking at the way in which the Lincoln Company is organized and managed, the first thing you might notice is that their culture is very people-oriented. Fairness is very important as well as respect for employees and who they are as human beings. People-oriented companies tend to have employees that stay with their companies longer than companies with differing cultures. I believe that due to this culture of valuing employees worker turnover at Lincoln is not an issue.

The organizational structure of Lincoln is informal and there is no organizational chart. Because employees are treated with such value they have an intrinsic drive to work hard and make their company successful. This also allows there to be very need for supervision. When employees are treated with respect and are compensated for their work, the response is to self supervise.

This culture is very different from what you will find in companies today. Today, many leaders and managers truly believe that employees must be controlled and managed harshly in order to get results. There is a carrot and stick mentality that is used today to motivate employees. It’s either threaten the employees
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