In order to gain an understanding of the Business culture at Lincoln Electric, I will create a model describing how the culture was created and continues to be maintained. I will attempt to show also that Lincoln has a strong culture which affects the way the employees think and behave. There are several factors are involved in the creation of their Business culture:
Founder's Value (Carpenter, Erdogan, & Taylor, 2009) is the first factor and is exemplified through the philosophy of James Lincoln. He believed that you should treat others the way you want to be treated. James Lincoln believed that the customer's need is the reason for our existence. He believed that ultimately the worker and management have the same needs. Lincoln says that monetary incentive should be paid to employees according to what they accomplished. He also believed that the real incentive was the status or symbol of success obtained through money. He believed in the consultative process, therefore he encouraged the workers to form an advisory committee to meet with him. These founder’s values continue to influence the company culture today.
Industry Demands says Carpenter et al. (2009) is another factor in the creation of culture. The Lincoln Company controls a forty per cent share of the market. They boast a research and development expenditure that is less than 2 per cent of their sales and an advertising budget that is less than 0.25 percent of sales. Lincoln’s pricing has always been very stable when compared to its competitors. Welding and welding equipment continues to be in high demand, ensuring Lincoln Electric viability in the future.
The early values of the founders distilled throughout the company over time to help shape the Business operation. The early values were retained and taught to pioneering employees as the modus operandi. The method of business operations, combined with Lincoln’s stability in the welding industry, in turn began to shape the culture of Lincoln Electric. The cultural values solidified over time as the business began to experience growth. In order for a Business culture to emerge, the cultural values now had to be maintained. Maintenance of
the cultural values was achieved by teaching the operational values to every new employee. The maintenance process of transferring the cultural values at Lincoln Electric will now be analyzed by examining four distinct processes proposed by Carpenter et al. (2009):
i. Attraction-Selection-Attrition (referred to as ASA) is one process through which the culture at Lincoln Electric was maintained. Jobs at Lincoln are premium and every vacant position is advertised internally first. Promotions are filled internally and only entry level positions are available persons outside the company. Lincoln Electrics hiring is done on the basis of a personnel interview, by vice-presidents and superintendents, Personnel Department then the supervisor has the final say. The attrition rate is the lowest in the...