Lincoln Electric Case Study

722 Words2 Pages
bulb-icon

Recommended: Challenge of performance management

Culture is the most powerful way of controlling and managing employee behaviors than organizational rules and regulations. Lincoln Electric Company is the one of world’s largest manufacturer of welding machines and electrodes having their own strong cultures. Their people-oriented cultures influenced on their turnover rate and the performance-oriented cultures exerted a favorable influence on employee behaviors, thinking and behavioral patterns. Their rules, incentive management, the performance appraisal system, the bonus plan and management styles were sufficient with the demands of their environment and kept their employees to be contented with the systems.

Lincoln’s management model has achieved high worker productivity which has been …show more content…

Lincoln Company evaluated their employees twice a year using the Merit Rating Cards. Employees rating consisted of four parts; quality, dependability, ideas & cooperation and output were measured to discuss individual performance with the employees concerned. Employees’ marks on the cards are converted to numerical scores and merit rating scores over 110 requires a special letter to top management. Their rating signifies individual performance marks and individual bonuses are exactly proportional to merit-rating scores. For example, a person with a score of 110 would receive 110 percent of the standard bonus as applied to his regular …show more content…

As you can see in the interviews, all employees knew senior executive very well. Lincoln had the Advisory Board, elected by the workers, meets with the Chairman and the President every two weeks to discuss ways of improving operations. This board has contributed many innovations and all employees could participate in decision making. This system can be defined as people-oriented cultures because Advisory Board existed to support and respect individual’s right. In addition, Richard Sabo, Manager of Public Relations said, “…we use is giving more responsibility to employees” and this demonstrates Lincoln expressed both respect and responsibility through the Advisory

Show More
Related

  • Business Analysis: Chick Fil A

    2103 Words  | 5 Pages

    Each organization big or small has its own values, ways of doing things and assumption that it operates in. The principles and ethics that exist in each of these companies are the baseline through which the company operates its affairs. This is what can be called as that organization’s culture. The culture in existence has an impact on the productivity, effectiveness and efficiency (Keyton, 2011). The basis of setting the most appropriate culture of a company is not only to move or increase the profitability but also to make the stakeholders happy and satisfied. One aspect of that is the employee or the human resource the firm who put their expertise in the firm and add a bit of creativity and innovativeness to move the products. Chick-Fil-A operates in a competitive industry thus it requires all the stakeholders.

    Read More

  • Electrocorp Case Study

    850 Words  | 2 Pages

    The United States located electronic company Electrocorp faced the problem of declining profitability due to rising production costs, specifically high wages, costly worker's safety and environmental standards. In order to solve this problem Electrocorp is deciding whether to relocate some of their plants to South Africa, Mexico, or the Philippines.

    Read More

  • Flight Centre's Culture And Organizational Culture

    1302 Words  | 3 Pages

    Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.

    Read More

  • Case Study: General Electric

    1000 Words  | 2 Pages

    1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse and BOC? What is the source of Lincoln’s outstanding and enduring success?

    Read More

  • SAS Institute Case Study: Case Analysis Of Sas Institute

    1112 Words  | 3 Pages

    Chapter sixteen in our textbook highlights the benefits of organizational culture and what it can do for any company with a strong culture perspective. In fact chapter sixteen-three(a) speaks widely on how a strong culture perspective shapes any organization up well enough to perform better than any of its competitors who do not balance any organizational culture. If not mistaken after viewing SAS institute case they are well on track with facilitating a high performance organization culture. First, SAS institute motivate all employees to become goal alignment in their field of work. This is where they all share the common goal to get their work done. In one of the excerpts taken away from this case, an employee- friendly benefits summary expresses the statement “If you treat employees as if they make a difference to the company, they will make a difference to the company.” “SAS Institute’s founders set out to create the kind of workplace where employees would enjoy spending time. And even though the workforce continues to grow year after year, it’s still the kind of place where people enjoy working.” Clearly highlighted from this statement that SAS Institute is mainly ran off of a fit perspective. Which argues that a culture is only as good as it fits the industry. Allowing a good blueprint or set up will

    Read More

  • Lincoln Electric Company: Harvard Case Study

    1029 Words  | 3 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 satisfied and motivates them to work hard for the company.

    Read More

  • Lincoln Electric's Approach to Motivate Employees

    1196 Words  | 3 Pages

    The company motivates employees by providing “reward” and “engagement”. Reward is evaluating the employees properly and giving reasonable salary, and are divided into three parts:

    Read More

  • Lincoln Electric Company Case Study

    1077 Words  | 3 Pages

    Lincoln Electric Company is a great example of how a successful organization creates successful employee satisfaction. Company founders are the key stakeholders in making the organizational culture a success. They are the leaders with the vision of how they want to promote their company and they have to present the values to their employees so that the employees also do understand that the success of an organization is a success for themselves. It was not an easy task for Lincoln Electric Company to plant the foundation of organizational culture. There were many obstacles that Lincoln Electric Company had to overcome to succeed. Lincoln Electric Company strongly believed that the customer satisfaction should be their main goal. The value on the return of the happy customer was significant that it directly impacts the success of the business. Lincoln Electric Company was very much coined on the term of customer satisfaction and they strive their best to provide the

    Read More

  • Organizational Culture

    2435 Words  | 5 Pages

    The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.

    Read More

  • Culture's Critical Role in Change Management

    2535 Words  | 6 Pages

    It is said that people are the greatest assets to an organization and it is their beliefs, customs, perspectives, attitudes, and values that constitute to the culture that prevails in an organization. Culture, a very common word in today’s world, plays a very vital role in organizations and it not only affects an employee’s professional development but also their personal harmony. Culture gives a sense of belonging to people, a sense of who they are and how productive they are at their work place. It helps in interacting with each other at a work place.

    Read More

  • Corporate Culture

    1722 Words  | 4 Pages

    Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Corporate culture is a powerful force that affects individuals in very real ways. In this paper I will explain the concept of corporate culture, apply the concept towards my employer, and analyze the validity of this concept. Research As Sackmann's Iceberg model demonstrates, culture is a series of visible and invisible characteristics that influence the behavior of members of organizations. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and Bonar Group, the engineering firm I work for, all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spiri...

    Read More

  • Theory Of Organizational Culture

    739 Words  | 2 Pages

    The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).

    Read More

  • The Impact Of Culture On Organization

    1176 Words  | 3 Pages

    Simply speaking, a company’s structure and design can be viewed as its body, and its culture as its soul. Because industries and situations vary significantly, it would be difficult and risky to propose there is a “one size fits all” culture template that meets the needs of all organizations” (Nov 30, 2012). Those organizations who have shared beliefs and values and have organized methods on chain of command going to have positive outcomes. This will help shaping their employees views and performances. The growth and profit of the business relays on their employees and their performances. Culture is the core which will help and encourage all different level workers. If the core itself is weak, it will weaken the atmosphere of the business. Many companies announce that they have great culture but fail to implement to the lower level of workers. The basic issue is when organization has one set of culture and thinks one culture will meet the needs of all the workers. Each business is different and each individual is unique and have different beliefs and behaviors. The culture that is right for one individual might not work the same for the others. The ideal approach in this case would be, looking at the bigger picture of diverse working environment and give importance and respect to what are the ranges of business firms to achieve the perfect culture for organization. Sometimes one size fits all will not going to fit anybody, so the organization have to keep their ideas open and value everyone’s presence respecting all of their culture for the betterment and

    Read More

  • Essay On Organisational Culture

    1246 Words  | 3 Pages

    Organisational culture can be defined as a total function of common beliefs, values, patterns of behaviour that held and shared by the member in an organisation. It is also a valuable resource which can improve competitiveness of a company and uses to distinguish the company (Barney 1986). From 1970's the study of organisational culture has become an important issue and closely studied in early 1980s. Since then organisational culture turned out as one of the most important factors which affects the overall performance of a company. It brought organisational culture to the performance of a company which has become a critical topic in management department. In addition to what organisational culture is, organisations need to aware and prepare changes of the expanding workforce from business growing. Companies are facing with maximizing benefits as well as profits while minimizing negative factors that comes from those changes. There is no only one answer for the issue, but some of guidelines are clear. Awareness of organisational culture, teamwork, individual performance, external environment adaptation, leadership, and measurement of organisational culture are key factors that lead a company performs better.

    Read More

  • Is Money Really an Effective Motivator?

    1057 Words  | 3 Pages

    In any organization, sometimes, monetary schemes doesnot get people involve to pursue work in a certain way, rather it demoralize and threatens the self-esteem of employees. According to Meyer (1975), “the basis for most of the problems with merit pay plans is that most people think their own performance is above average”. The amount may ...

    Read More

More about Lincoln Electric Case Study

Open Document