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

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

As his father was a minister, John brought some of his Christian beliefs into to his work and these were the basis of his philosophy on business. Though the company, and John himself, never pushed those beliefs on employees, customers, or the public, they are the cornerstone of how the company was run from then on and still is. For instance, he believed that customers were the main priority of his company 's business. The Lincoln Electric Company 's goal was to “build a better and better product at a lower and lower price” (Sharplin, 1989). Therefore, it was imperative that customer satisfaction and service be the number one goal. The second priority is employees. The people who work for Lincoln Electric have never had an organized labor union, and the company 's turnover rate is remarkably low. Any turnover figured is accounted for in retirements. This level of employee satisfaction is due also in part to how well Lincoln Electric compensates and treats its

With hard work and experience, a worker at Lincoln Electric can advance from a starting position to one of higher pay rate and responsibility. In the 1980 's, a high school diploma was all that was needed to be hired onto the company. Production workers are trained shortly on the job; once the worker has been employed a year, they are guaranteed at least a 30 hour work week and are not fired except for misconduct. This is a level of job security not seen in many factory jobs. Lincoln Electric tends to practice internal hiring initially; if an employee wants to advance they may apply for a job posted that is higher than their current position. If no employees apply or are qualified for the position, then it is posted to new hires and the