Case Study Analysis Of The Lincoln Electric Organizational Culture

1132 Words3 Pages
bulb-icon

Recommended: Analysis of the lincoln electric company

SUMMARY OF THE ANALYSIS ON LINCOLN ELECTRIC’S ORGANIZATIONAL CULTURE
(BASED ON THE CASES STUDY PAPER: THE LINCOLN ELECTRIC COMPANY)
BY
AFOLABI, D.A
Introduction
According to Carpenter, Bauer, and Erdogan (2010), Organizational Culture refers to a system of shared assumptions, values and beliefs that show people what is appropriate and inappropriate behaviour. Because of its strong impact, an organizational culture can influence for success or failure, especially because of the strong link it has with a company’s performances (revenues, sales volume, market shares and stocks). In view of this subject, this analysis on the world’s largest manufacturer of welding machines and electrodes is segmented into the following considerations; Founder’s Values and Preferences, Golden Rule, Incentive Management Plan, Performance Appraisal System, how People Communicate, Merit Pay Plan, Bonus Plan and Management Style.
Founder’s Values and preferences
The Founder’s values and preferences is one of the important factors for the creation of an organization’s culture. According to the study paper, Lincoln Electric’s founders’ values and preferences have really contributed positively in shaping the company’s culture. The critical indicator of the values and preferences for a people – oriented …show more content…

The management style employed at Lincoln Electric is a Participative also known as Consultative Management style, which encouraged or encourages the involvement of employees in the Advisory Board through employee representation. One of the many benefits of this style is that it ensures that issues at the front-line levels are properly captured, reported, discussed and corrective actions are recommended for improved operations. It also involves employees in decision making and as a result, employees feel valued, delighted, and take ownership of resolutions

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

  • How Did James Lincoln's Ethic And Culture Of The Lincoln Electric Company?

    950 Words  | 2 Pages

    In 1895, James F. Lincoln started the Lincoln Electric Company with only $200 and a patent to an electric motor he had developed. Over the years, the company began to grow slowly and surely, even through the Great Depression of the 1930 's. Now, the company has several factories in the United States and overseas, employing thousands of people. Uniquely, even in a company with many workers and personnel, the level of employee satisfaction is high. Why was this company able to thrive and is still active during economic hardship, a factory fire, and changing times? It is due in large part to the business ethic and culture of the Lincoln Electric Company. We will discuss how James Lincoln 's beliefs influenced the way his company was run, and why

    Read More

  • Case Study: Engstrom Auto Mirror

    497 Words  | 1 Pages

    Organizational culture is the belief system that incorporates the values, beliefs, and norms of the organization’s members. It is a guide system that tells the members of the organization how to think and act while performing the job functions. By the 1900’s when Engstrom experienced its first downturn it was operated by a manager that “lacked the sophistication with technology necessary to find quick solutions and was inept at working with an increasingly militant union” (Beer and Collins, 2008). By 1998, Ron Bent was hired to salvage the remains of the company and at that time the structure , or the organizational culture, should’ve been outline. The lack of establishing an organizational culture impacted the company in several ways: Ron Bent missed the opportunity to define the vision or the overall company direction, the opportunity to give stability and continuity to the company, and the opportunity to stimulate employee

    Read More

  • Gridlock Meadows Case Study

    998 Words  | 2 Pages

    If Beverly knew about this management styles before heading into the job at Gridlock Meadows she might have been more prepared for what was about to come. This paper might have come off a little bias but remember that each management style has its positive aspects as well as negative ones. The key is recognizing the management style and how to work with each one you may encounter.

    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

  • Culture Of The Lincoln Electric Company

    961 Words  | 2 Pages

    The culture of a company can either make or break the company itself in terms of success. In order to understand the culture of the Lincoln Electric Company, for example, one must understand the different aspects of the company itself. How has culture kept this company going for over one hundred and twenty years?

    Read More

  • Criminal Justice Leadership

    1319 Words  | 3 Pages

    Some agencies who are taking on a more leadership style role are using a democratic or participative way of engaging employees. This style allows all staff to be part of the decision-making process. Unlike the authoritarian leadership style whereby the leader takes full control and command, in this form, other staff and employees are involved in the decision-making process. This style of leadership has more positive impacts with little negatives. This style ensures that voices of staff and employees are heard and can make a decision concerning the management of the system (Singer & Singer,

    Read More

  • Analyze The Organizational Behavior And Culture Change At General Motors Case Study

    725 Words  | 2 Pages

    In order to achieve its desired public image and to acquire an organizational identity centered on quality and safety, qualitative research on GM’s culture can be facilitated. Intertwined with the study of organizational culture is organizational citizenship behavior (OCB), which is the performance that supports the social and psychological environment in which task performance takes place. OCBs were found to be positively related to overall organizational effectiveness, unit-level performance, and customer satisfaction (Greenberg, J., 2013). A study of the OCB in GM may help in the change it aims to implement. GM may start by creating an environment where its employees are truly committed to its safety policy while also increasing their job satisfaction.

    Read More

  • The Pros And Cons Of The Lincoln Electric Company

    826 Words  | 2 Pages

    Upper management collaborates with the employees represented by the Advisory Board and the have an open door policy which allows employees access to anyone who is capable for providing them with the necessary assistance or information if needed. The employees share the company’s vision and values. This is reflected in the low turnover rate and the minimal supervision that is needed while maintaining high productivity and efficiency. The job security that Lincoln offers can be attributed to high job satisfaction as there are not many companies where you are guaranteed a job or adequate hours. Because of this Lincoln’s organizational culture is strong. A strong culture is difficult to change however there is no need to change Lincoln’s culture as it has been working for over 100 years successfully and shows no indication of failing. The culture is heavily influenced by the values of the founders who implemented many of the policies and procedures which are in place today. This is part of the reason why the company has flourished through the years. The groundwork was laid by the early values of the founders and they have been improved upon in the years since. This is part of the maintenance of the

    Read More

  • Lincoln Electric Company: Harvard Case Study

    1029 Words  | 3 Pages

    One of the biggest influences of the founders of Lincoln Electric is from James Lincoln, who created a board of advisors from the pool of employees to advise him (Sharplin, 1989). The board met every two weeks when it was first started, and it still meets today, nearly two hundred years after the company began. This board of advisors is made up of active employees in the company, and they are free to raise suggestions, criticism, or any topics of interest that the employees want the company to address. This level of honesty and openness is a rare quality, and this ability for employees to directly speak with their supervisors and discuss new ideas is probably one of the reasons why employees are so pleased.

    Read More

  • Chrysler Organizational Culture Analysis

    621 Words  | 2 Pages

    The organizational culture of the automotive industry is one that underwent a drastic decline between 2008 and 2009 (Goolsbee & Krueger 2015). However, within a few years the Chrysler organization made enhancing adjustments for the better. The catalyst for the transformation from negative to positive within Chrysler organization was Sergio Marchionne, who took radical measures to realign the organizational culture (Kreitner & Kinicki 2013). Through carefully adjusting the espoused value of the company and guaranteeing that they matched the enacted values he was able to generate a high Person-environment fit (PE fit) that guided the company out of bankruptcy. By using attentive deliberation of the Chrysler culture we can learn about the

    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.

    Read More

  • Leadership and Organizational Culture

    1813 Words  | 4 Pages

    House et al. (2007) discovers that leadership and Organisational culture are closely linked together as leaders influence the culture of their organisations. Researches talk about a range of leadership definitions but it is not easy to define. (E.g. Western, 2008; Yukl, 2010). However, Cohen (2009) critically analyses definitions from Dracker (1996), Eisenhower (1969), Northouse (2004) and finally summarised the definition of leadership constitutes five elements. First of all, ask question to set direction, which means effective leaders need to listen to followers’ voice respectfully and then share the common goals and ideas with them. In addition, leaders need to seek insights and allocate resources optimally; act ethically; allow their employees to work in a conformable and most effective way. This essay will explain different leadership styles and how they influence the organisations with examples of organisations and leaders with main focus on well-known entrepreneur: Sir Alan Sugar. He grows from nothing to incredible success (£ 730 million), is a legend in the UK business history; his reality TV show “The Apprentice”, a great entertainment for recruitment appeals to the public without reasons. However, he as a person is controversial amongst people, probably due to his leadership style as bullying or harassment (destructive). There are four schools of leadership styles: Trait, behavioural, contingency and transformational. Nevertheless, in the case of Alan Sugar, trait and transactional styles match him which will be illustrated following in detail.

    Read More

  • Substance Of Organisational Culture Essay

    2275 Words  | 5 Pages

    Morley, D. D. & Shockley-Zalabak, P. (1991). Setting the Rules: An Examination of Organizational Founders’ Values. Management Communication Quarterly, 4, 422–449.

    Read More

  • Essay On Organisational Culture

    1246 Words  | 3 Pages

    Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...

    Read More

More about Case Study Analysis Of The Lincoln Electric Organizational Culture

Open Document