Case Study Of Lincoln Electric Company

The Lincoln Electric Company is one of the most successful, well-managed, manufacturing companies world-wide. The company’s organizational culture has played a key role in its continued success over the years. Because of its strong culture, the company has been able to maximize employee productivity which ultimately leads to its ability to offer their products at lower prices than their competitors and maintain a stable market share.
The company was started by John C. Lincoln, who was later joined by his younger brother, James F. Lincoln, who served the company in the capacity of General Manager and Vice President and who introduced certain values to the company that are still part of its culture today. The Lincoln Electric Company Advisory

Lincoln are The Lincoln Electric Welding School opened in 1917, where employees have a chance to lean various skills for their job; and The Lincoln Electric Employees’ Association started in 1919, which provides health benefits and organizes social events for employees.
These establishments as well as others, have significantly contributed to the satisfaction of employees. This is evident in the responses received by the writer of the case study during his interview with five Lincoln Electric Company employees. When asked whether they believe Lincoln Electric Company employees would join a union, the response was either “No” or “I don’t see why.”
James F. Lincoln believed in the “Golden Rule”- “Do unto others as you would like them to do unto you.” He managed the company with this rule in mind and today, the company’s management team still follows that rule which dictates how employees should be treated. This is the basis of the Lincoln Incentive Management Plan. Under this plan, employees are treated fairly and the company never laid off staff no matter what was going on in the economy or outside world. Lincoln believed that if incentives were given to staff, they would work harder for the success of the company. The company didn’t believe in sharing profits among shareholders but would share profits among their staff first. This plan has worked very well for the company throughout the years as they continue to be a top competitor in the welding

During the appraisal, an employee’s performance is measured through quality of work, dependability, ideas and cooperation and output. Bonuses are paid to employees based on the results obtained from both of their annual appraisals. The Bonus plan was started in 1934 and has continued since. This plan is yet another way the company develops a good working relationship with its employees. According to the case study, “the first annual bonus amounted to about 25% of wages.” and “recent bonuses have approximated annual wages.
The management style at the Lincoln Electric Company is not a very commonly used style. There is an open door policy at the company where employees can actually develop a relationship with managers. One of the interviewees of the writer of the case study replied positively when asked whether she knew any of the senior executives. She was even able to identify them by name. Another mentioned that she was always able to speak to one the