Lincoln Electric Case Study

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Culture is the most powerful way of controlling and managing employee behaviors than organizational rules and regulations. Lincoln Electric Company is the one of world’s largest manufacturer of welding machines and electrodes having their own strong cultures. Their people-oriented cultures influenced on their turnover rate and the performance-oriented cultures exerted a favorable influence on employee behaviors, thinking and behavioral patterns. Their rules, incentive management, the performance appraisal system, the bonus plan and management styles were sufficient with the demands of their environment and kept their employees to be contented with the systems.

Lincoln’s management model has achieved high worker productivity which has been …show more content…

Lincoln Company evaluated their employees twice a year using the Merit Rating Cards. Employees rating consisted of four parts; quality, dependability, ideas & cooperation and output were measured to discuss individual performance with the employees concerned. Employees’ marks on the cards are converted to numerical scores and merit rating scores over 110 requires a special letter to top management. Their rating signifies individual performance marks and individual bonuses are exactly proportional to merit-rating scores. For example, a person with a score of 110 would receive 110 percent of the standard bonus as applied to his regular …show more content…

As you can see in the interviews, all employees knew senior executive very well. Lincoln had the Advisory Board, elected by the workers, meets with the Chairman and the President every two weeks to discuss ways of improving operations. This board has contributed many innovations and all employees could participate in decision making. This system can be defined as people-oriented cultures because Advisory Board existed to support and respect individual’s right. In addition, Richard Sabo, Manager of Public Relations said, “…we use is giving more responsibility to employees” and this demonstrates Lincoln expressed both respect and responsibility through the Advisory

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