Lincoln Electric Essay

878 words - 4 pages

Introduction
Lincoln Electric (LE) is a worldwide leader in production of welding equipment with more than US$1 billion in sales and 6,000 workers. John C. Lincoln designed and made an electric motor with a $200 investment in 1895. Today, members of the Lincoln family own more than 60 percent of the stock.
The Lincoln Management System
Lincoln Electric’s management system is so successful that other businesses use it as a benchmark. They have effectively used feedback type control to achieve their success (Lincoln Electric, 2003). Many companies have tried to figure out how leverage decentralized management to achieve maximum productivity and quality from its workers, even during difficult financial times.
Lincoln Electric has been extremely successful over its 100 year history. . A large part of their success can be attributed to this unique and effective management style as well as the employee ownership and incentive management system. This style of management is further supported through a combination of structural, strategic and cultural norms.
To eliminate the hierarchical structure of flat and non-functional middle management level, LE is structurally different than other firms. Lincoln has an open door policy between workers which is well understood. Strategically, to maximize the performance and reduce costs this pushes LE into an integrated approach. For motivating all employees through bonuses, in large part provide Lincoln’s incentive management system provides a tool, of the redistribution corporation annual profits (Davis, 2009).
LE has adopted a decentralized two-fold focus as a basic control method (Lincoln Electric, 2003). Exceedingly strict performance goals are use in order to achieve top pay. These goals precisely defined for individual employees.
Lincoln’s Internal Culture
An organizational culture based on openness and trust, shared control, and an egalitarian spirit helped Lincoln succeed. Although firmly drawn, the line between managers and workers is, to many aspects of the business managers respect the expertise of production workers and value their contributions. An open-door policy for all top executives, the company has, middle managers, and production workers, and encouraged, regular face-to-face communication among them (Lincoln Electric, 2003).
LE has built a reputation on the principle of faith in the individual. This philosophy is an fundamental part the management style at Lincoln Electric. They substantially reward competition and teamwork in its workforce to enforce the principle of faith. With wage are being calculated on the basis of production output \not on fixed wages over time. The number of pieces that an employee is able to finish will determine how much the company pays in an annual bonus (O’Connell, 1998).
Exporting Lincoln’s Culture
Lincoln’s system had been working so well in the domestically, management decided to extend it overseas. Using Lincoln's expertise with management control...

Find Another Essay On Lincoln Electric

Organizational Culture at Lincoln Electric Essay

755 words - 4 pages Introduction: Motley Fool (2013), a multimedia financial company named Lincoln Electric to be the eight best companies in America. It is a phenomenal achievement to maintain the company’s ranking for several years. This implies that the organizational structure and culture should play a tremendous role in the Company’s continuous success and progress. This essay assess the assess the culture and different trends followed at Lincoln Electric

Lincoln Electric Company: Harvard Case Study

1171 words - 5 pages As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees

Analyzing organization culture on Lincoln Electric Company

607 words - 3 pages The Lincoln Electric Company is the world’s largest manufacturer of welding machines and electrodes. The Lincoln incentive management plan has been well known for many years. There are many specific organizational cultural characteristics at the Lincoln Electric Company. For the attitude toward the customer, it’s clearly stated that Lincoln’s goal is “to build a better and better product at a lower and lower price.” Also Lincoln said that “It is

Case Study Analysis Lincoln Electric: Venturing Abroad

1532 words - 6 pages Lincoln Electric (LE) has been a producer of electrical and welding technology products since the late 1800's. The company remained primarily a family and employee held company until 1995, then approximately 40% of its equity went to the public. James Lincoln, one of the founders, developed unique management techniques that effectively motivated the employees. These management techniques were implemented as an unusual (for the era) structure of

The Culture of the Lincoln Electric Company

690 words - 3 pages The Lincoln Electric Company (LEC) was the world's largest manufacturer of welding machines and electrodes. It was established the company in 1906 by John Lincoln. LEC employed 2,400 workers in two U.S. factories near Cleveland and approximately 600 in three factories located in other countries. However, this did not include the field sales force of more than 200 people. Lincoln's estimated market share was more than forty percent. John

The Culture of the Lincoln Electric Company

698 words - 3 pages The Founders’ Legacy 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

Lincoln Electric

1216 words - 5 pages Its a company which was far ahead of its time, they were cruising lead by the path of innovation and intense focus on high employee satisfaction which propelled the success of linolenic company in the times to come. It has a very large dynamic and motivated labor force. Numerous management schools refer to Lincoln's plan as a model to achieve maximum worker gain. After the demise of J F. Lincoln, their were speculations and financial experts

Creation and Maintenance of the Business Culture at Lincoln Electric

998 words - 4 pages 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

The Lincoln Electric Company

929 words - 4 pages Culture in the Lincoln Company was determined by the attitude, behavior and beliefs of the company employees as set out in the history of the company by the company founder. The founder’s belief that Christian ethics should control company culture by reinforcing the behavior of right/wrong behavior and thinking. To a large extend the company culture was shaped by the Incentive management system which was performance based. The founder of the

Questions and Answers to Lincoln Electric case study by Harvard Business School

858 words - 3 pages What features of LECO account for its long-term success in the US? There are several factors that have contributed to the long-term success of Lincoln Electric in the US. Most notably, the productivity of the labor force and the efficiency of operations have generated a competitive advantage over the market. Existing and potential competitors are not able to produce at the same low costs and subsequently are not able to offer competitive prices

Lincoln

3667 words - 15 pages 1925*Over 90% of stock owned by employees and Lincoln family members.SWOT AnalysisStrength*Brand and ReputationThe Lincoln Electric Company is considered a leader and innovator in its industry due to its dedicated and talented workforce, superior technology, worldwide manufacturing capability, commitment to quality, strong distribution and customer service, and an incentive performance system. Lincoln's commitment to providing the most innovative

Similar Essays

Lincoln Electric Company Essay

1279 words - 6 pages .  The incentive management plan.  The performance appraisal system.  The way people communicate in the company. Lincoln Electric Company 3 Write a three page case analysis that summarizes your understanding of the culture of the Lincoln Electric Company. Being successful in life has ever been an easy thing, let say it is not a piece of cake. All of the successful people have inclined themselves to some rigid principles. Those principles require

Lincoln Electric Co Essay

1065 words - 4 pages substantial practical knowledge about the details of effective interpersonal relationships in a piece-rate system. These aspects of the organization's culture are not easily replicable by other firms. For example, it would be difficult for another organization to replicate the cohort of senior workers that serve as role models for younger employees. The success of Lincoln Electric has been built on two basic ideas. One is producing more and more of a

Lincoln Electric Case Study

1436 words - 6 pages MULTINATIONAL BUSINESS STRATEGY (INT700)LINCOLN ELECTRIC - CASE ANALYSISCevdet KIZIL(Graduate MBA)Southern New Hampshire UniversityMultinational Business Strategy (INT700) - Prof. Aysun FiciciSeptember 28, 2004Manchester, New HampshireTable Of ContentsTitle Page iTable of Contents iiOrganizational Strategy 1II. International Strategy 2III. Analysis of International Expansion 3Recommendations 4Bibliography iiiLINCOLN ELECTRIC: VENTURING ABROAD

Lincoln Electric Company Essay

1297 words - 6 pages orter’s five forces In determining the competitive intensity and attractiveness of the market, Porter’s five forces is a framework that would help analyze the manufacturing industry of Lincoln Electric and observe the external and internal environmental factors that influence business strategy development for companies within the industry. The five forces are assumed to determine competitive power in a business situation in which these five