What Makes Lincoln Electric Company So Famous Among Management Researchers And Study Communities?

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What makes Lincoln Electric Company so famous among management researchers and study communities? What gives them competitive advantages? Lincoln is known for its high labor productivity, very low employee turnover rate, high profitability and stable market share. The principle behind Lincoln success is their incentive management style. This famous Lincoln management style created a unique organizational culture. In this paper, I will be summarizing the organization culture of Lincoln: how is it created and what values of culture Lincoln possesses using Organization Culture Profile (OCP) topology? How is this culture created? Surprisingly, unlike other corporation, it is not the founder, John C. Lincoln, who influenced culture. It all…show more content…
For him, the stockholders ' interests come last. The reason behind this is that the stockholders will obtain their share of money regardless of their participation. In addition, he believed investors will automatically come if a company is proven itself to be successful. James believed that the interests of customers are best served by high employee 's performance and productivity. Therefore, he had implemented several plans and processes. The very first step he took was founding the Advisory Board to represent employees ' voices. This Advisory Board is the one who proposed "famous Lincoln bonus plan” which has been the backbone to Lincoln 's management system. Furthermore, Employees ' Association was formed to provide social activities and health benefits. Wages are paid on piecework system and adjusted to Consumer Price Index. One of best move taken by James was developing a "stock purchase plan” for all employees. The motive behind is to provide incentive to help run company efficiently by sharing the sense of ownership. By strolling through the interview sections of the case study by Sharplin, you get this sense; even though employees at Lincoln work hard but their satisfaction toward their jobs is high. Referring to organization culture profile, one can deduct that one value of Lincoln 's strong culture is outcome-oriented culture. Performance is evaluated under four sections: Quality, Dependability, ideas and
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