Case Study Analysis Of The Lincoln Electric Organizational Culture

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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

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