Lincoln Electric Case Analysis

722 Words2 Pages

Formed in 1895, The Lincoln Electric Company is a model of the Human Resource Management. James F. Lincoln the founder set out to organize the company. He had a strong believe that the customer came first, employees second, then the stockholders. Therefore, profits are to be last, it was preferable to give the customer the best product available at a reasonable price. The continuing influence of the founders of the company, James Lincoln created the Advisory Board Committee which allowed them to meet twice in a monthly basis to discuss company operations. This was the beginning of a series of personnel innovative policies which helped the company to distinguish from its contemporaries. As the incentive management plan has been established, …show more content…

By following that approach, the company developed customer loyalty, as their product development was well above average. The incentive management plan was a model to achieve high worker productivity. The legacy left by the founders allowed the company to enjoy success achieving higher earnings; therefore, continuing providing bonuses which maintain employee morale high and a very limited turnover staff, if any at all. Any employee leaving the company was either for retirement or something more attractive than what he was obtaining as a Lincolns employee. The performance appraisal system, In order to maintain productivity at its peak, employee performance and productivity were the keys to the company 's goal. Middle management (supervisors) maintained a "record-keeping duties". The employee performance evaluation was performed twice a year which focused on the criteria of quality, "dependability ideas and cooperation" and "output". Workers commitment to perform efficiently is highly practiced. Education policy has been a key to improved employees performance, thus, a welding school has been

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