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Determinants of Organisational Culture
Determinants of Organisational Culture
Relationship exists between organizational climate and culture
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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 opera...
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...f mutual respect, participation and the belief that the customer is priority number one, followed by the employees and the stockholders. After looking at the environmental aspects the organizational culture that emerged is a combination of a People-Orientated Culture and an Innovative Culture. Lincoln Electric from the very early days encouraged ideas and innovation among its workers and allowed employees to make suggestions in areas of familiarity. The People-Orientated Culture is evident in the informal organizational structure, the open door policy, the reward system and autonomous workforce.
Works Cited
1. Carpenter, Erdogan, & Taylor. (Ed.). (2009) Principles of Management. Nyack, NY: Flat World Knowledge, Inc.
2. Sharplin, Harvard Case Study Retrieved from http://my.uopeople.org/pluginfile.php/59758/mod_workshop/instructauthors/0/Lincoln_Electric.pdf
In this life it is essential to base your work around your beliefs and to feel passionate about what you do. Then spreading your passion for your work onto others is how you grow as an individual and as a company. Which is what I felt after reading the #1 core value.
The second part, “Why It Happened: Eighty-Five Years,” explains the origins of the firm and its founding and operating principles, and it sets the basics for why several deviations from these founding principles eventually led the firm astray.
The Lincoln Electric Company is the largest manufacturer of welding machines and electrodes in the world. Since its inception in 1895 the company has been on a stable path of progress. First under the management of founder John C. Lincoln and since 1914 under James F. Lincoln, John's younger brother. One of James's early actions as the head of the company was to create a committee consisted of elected representatives by the employees of the company, that were to advise Mr James in the affairs of the firm. They were called the Advisory Board and this was one of the smartest decisions that James F. Lincoln made regarding personnel. This was one of their prerequisites to progress and success and this is what makes them unique to this day. James F. Lincoln died in 1965 and it is obvious some people thought that the famous Lincoln standards would no longer be upheld, that profits would decrease and their employee bonus-plan might cease to exist. Contrarily to what people thought, the company remained strong decades after its founding father died. Moreover, the firm has seen higher profits and bonuses every year after that. Lincoln market share which was 40 percent before, remained stable for years and years. The company's philosophy still continues to be
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The first value, integrity, refers to a strong commitment to ethics, having respect for diversity, and speaking positively of coworkers even when they are not around. Accountability puts an end to people diverting blame. If people are accountable for their actions, results become the primary focus. Passion is one of the values, and is practiced by employees having pride in their brand, as well as a passion to continually improve and innovate. Humility is a very important value in that it stresses the importance of admitting to mistakes, realizing that there is constant room for learning, and being willing to be taught....
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 satisfied and motivates them to work hard for the company.
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This essay gives a basic idea of what organizational culture is, and emphasis on the controversial issues of managing organizational cultures. As there are various definitions for organizational culture, and none of them are universally agreed. Therefore, for an easier understanding by readers, the definition of organizational culture given in this essay focusing on levels of culture, and will be discussed t together with Schein's(1983) framework. Before talking about managing organizational cultures, the types will be introduced first. Because, there are some descriptions about managing different types of organizational cultures, in the following content.
Robbins, S.P., & Coulter, M. (2009). Management (10th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
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“Values are the beliefs of an individual, group, or organization, in which they are emotionally invested” (Carpenter, Bauer, & Erdogan, 2015). Many organizations consider corporate values strategically import for building their company’s reputation and keeping the customers’ confidence and allegiance. That, however, is only a tiny portion of the strategic benefits that organizational values can offer. “Further benefits include:guidance for decision-making on all levels, selection criterion for new employees, driver for individual and corporate behavior on all levels supporting the vision, mission, and goals of the company, and effective definition and implementation of core values” (Gupta, 2015). Values within a company need to be more than just a few words that sound nice to ensure overall acceptance within an organization. “Effective core values need to be emotionally appealing and workable” (Gupta,