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 empowered employees to become part of the decision making process through the contribution of ideas through the Advisory Board which was elected by the employees from amongst themselves. Reward management systems and all the other artifacts of the ...view middle of the document...
The other elements of the incentive packages in place since the early days of the company include subsidised meals served at the plant cafeteria, stock ownership scheme available to employees, medical plan and a company-funded retirement plan. This incentive package has worked wonders for the company. In addition to increased productivity, the company has also enjoyed nominal staff turnover. The company also boasts of having laid off none of its employees since 1974.
4. The Performance Appraisal System
The performance appraisal system recognizes assesses employees for performance and suggestions for useful suggestions made towards the improvement of the operations of the company. In this regard, the culture places emphasis on performance by every member of the organization. Points are deducted for idle time as evidenced by an employee who mentions in an interview that he lost points when he was idle due to an injury. Performance evaluation scores are used for merit rating, which in turn determines each individual’s bonus. This gives the organizational culture a results-driven dimension.
5. Internal Communication
There is free flow of communication in the company. Communication is based on the open door policy system whereby employees are...