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The Lincoln Electric Company Essay

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 company James Lincoln was a role model and founder of the incentive management system, even over the years after his death the company still continued to operate on the culture he has installed on his employees. The company had an obligation to its ...view middle of the document...

Employees were allowed to purchase shares with money they got from Stock purchase plan and were allowed to resell them back to the company in times when there was serious losses in the company and buy them again when the company recovered. The employees also benefitted from several Fringe benefits which covered life insurance, health care, paid vacation, and annuity program with the understanding that these benefits have an impact on their bonuses.
Lincoln Company had a conservative financial policy in which they could not borrow money from bankers rather they could make arrangement with their employees to reduce working hours so that they save the money for production. This financial policy was used by in the company for years until such a time the company was almost closing and were forced to make heavy borrowings.
The company believes that the Customer interests were key to their business and as such much effort was placed on consistency in the products made, prices were consistent or changes a little over a period of time and a guaranteed cost reduction program for employees was in place to improve product quality and methods of producing the product as a way of building customer satisfaction and increase productivity. Pricing was supposed to reflect the efficiencies of production, which in turn would lead to competition and improve quality of products. Quality was well-known throughout the company as key to the business and retaining competition in the market
The culture in the Lincoln Company controlled the thinking and behavior of employees. This is characterized by the different decisions that were taken by the company executive and the employees in difficult situations. Employees could agree to work less...

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