Does Lincoln Electric Inc. Follow a Hierarchical or Decentralized Approach to Management

Does Lincoln follow a hierarchical or decentralized approach to management?

Lincoln Electric, Inc. follows a decentralized approach to management. At foremost a decentralized approach to management according to Daft, “culture, values, traditions, shared beliefs, and trust are used to foster organizational goals” (Daft, 2012, pg.553). This approach emphases a unifying goal which is shared and is worked upon in a unifying effort for success by every member of the organization. Decentralization control management prides itself in workers autonomy and high performance work systems in respect to performance standard. Workers autonomy from the perspective of managers may be defined as, “interpersonal styles where managers take the perspectives of subordinates into account, present reasons for the decisions taken, behaviors requested, and originate opportunities for choice and self-initiation” (Baard, Deci, & Ryan, 2004, pg. 651). Thus, workers are able to utilize their skill as it pertains to specialization with little monitoring; however, this type of freedom is not counterproductive toward organizational goals, but more so geared toward high performance work. High performance work system can be considered as, “systems of human resource practices designed to enhance employees skill, commitment, and productivity in ways that employees become a source of competitive advantage” (Datta, Guthrie, & Wright, 2005, p. 135).

A candid example of this system is the Lincoln Management Control System itself, “where every employee is allowed to input his or her values towards, organizational management, employee fairness, and quality production output” (Daft, 2012, pg. 566). According to Bandura, “initial self-efficacy fluctuates as a functio...

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...trategy as a failure upon foreign soil, however, they should have contemplated introducing and new system in a foreign country. Operation on foreign soil is great for the expansion of business, foreign nationals, and the foreign economy, but not at the expense of the organization to lose its worth.

Works Cited

Baard, P. P., Deci, E. L. and Ryan, R. M. 2004. Intrinsic need satisfaction: A motivational basis

of performance and well-being in two work settings. Journal of Applied Social

Psychology, 34: 2045–2068.

Bandura, A. 1997. Self-efficacy: The exercise of control, New York, NY: Freeman.

Daft, L. R. (2012). Management. Managing change. Mason, OH: South

Western Cengage Learning.

Datta, D., Guthrie, J., & Wright, P. (2005). Human resource management and labor productivity:

Does industry matter? Academy of Management Journal, 48(1), 135–145.