The Potential and Limitation of Teamwork Ethics as a Success Factor in the Business World

1990 Words Oct 14th, 2011 8 Pages
The Potential and Limitation of Teamwork Ethics as a Success Factor in the Business World
Abderazak Ouassou
Texas A&M University - Commerce

The Potential and Limitation of Teamwork Ethics as a Success Factor in the Business World

Lincoln Electric, one of the most successful companies, is the world leading manufacturer of arc welding products. It is also one of the leading producers of industrial electric motors. This success is mainly driven by the ethical practices of the company. The Lincoln Electric’s main stakeholders are its customers, its employees, and its stockholders, and it has historically valued customer and employee interests over the stockholder one which helped it to be very successful. In other words, the outstanding
…show more content…
In 1919, The Lincoln Electric Employee Association was formed to provide health benefits and social activities. Few years later very interesting adjustments happened in the company. First, a piecework pay has been implemented. Employees got two weeks of paid vacation. Wages were adjusted for changes in the Consumer Price Index. And a portion of the common stock was set aside for all employees in 1925. In addition, a suggestion reward system was introduced and the legendary bonus plan was accepted and implemented on 1934. During World War II, Lincoln Electric Company was very prospering. Sales went from $4,000,000 in 1934 to $24,000,000 by 1941. At that time, the productivity per employee more than doubled. And the entire company productivity level was more than twice those for other manufacturer in 1945. Today, Lincoln Electric employees enjoy pension plans, opportunities of promotion from within, free access to management, and continuous employment.

Since its creation, Lincoln Electric recognized people as its most valuable asset. Employee tasks are facilitated by being trained in a way that enables them to work in different departments. To build positive and conflict-free work relationships, Lincoln Electric employees are encouraged to act ethically and solicited to show integrity, discipline, and
Open Document