Lincoln Electric Company: An Analysis Of The Lincoln Electric Company

LINCOLN ELECTRIC COMPANY

Lincoln Electric Company, founded by John C. Lincoln, designs and manufactures innovative, state of the art welding equipment. Although John C. Lincoln was the company founder, he preferred to continue creating and designing equipment instead of formally managing the business with the day to day challenges.

Employees and customers have been of high importance through the years at Lincoln Electric Company. Employees are valued and compensated well for their productivity, performance and reliability. The goal has always been to have mutual respect with both the employees and the customers. When an employee or customer has something to say, whether it’s positive or negative, they know they are going to be heard.

Becoming an employee

The evaluation is done using a merit card system based on the number of points earned. This card system evaluates each employee based on their work quality, how dependable each employee is, if they contribute ideas toward the company and how much work they produce. The average employee score rating ranges between 80-100 points. If an employee scores over 110 points, a special letter is submitted to management. Each point scored is viewed as an average. If an employee scored a 90 on the merit system, it would translate to 90%. Once an employee has been rated using the merit system, the supervisor and employee sit down and discuss the scores. They discuss the pros and cons of the employee’s performance and how they can improve.

Each employee is paid based on an average wage for the specific job performed in the Cleveland, Ohio area. Wages are then broken down by piece manufactured. Once an employee has been employed by Lincoln Electric Company for one year, they are guaranteed a minimum of a 30 hour work week. Employees also have the added security of knowing there has not been a layoff within the company since