Lincoln Electric Company: Organizational Culture At Lincoln Electric Company

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Organizational Culture at Lincoln Electric Company Lincoln Electric Company has been noted as “one of the most studied [businesses] by the Harvard Business School” because of its successful business model (Wikipedia). Its business model largely relies on its culture and its people. John C Lincoln started the Lincoln Electric company with $200 and an idea. His strong Christian up-bring helped form the basis for his company philosophies. He maintained that customers and employees were the center of the business and that shareholders came last. While this is ideal for customers and employees, it may have detracted from attracting new outside investors. Lincoln was committed to making sure that customers were satisfied with products, services …show more content…

Lincoln Electric is known for paying almost double that of the standard wage paid by other companies. And year-end bonuses are calculated on an employee’s productivity and payouts are often equal annual employee salaries. This pay for products produced is a motivating factor that keeps employees engaged and rewarded for work well done. It also provides employees with a sense of belonging and accomplishment. Continuing this theme, the performance appraisal system at Lincoln Electric Company polls several different sources when evaluating an employee’s performance. Each employee is measured on the same criteria. This makes expectations easy to understand and drives associates to do their best with everyone in the …show more content…

Self-actualization is described (Maslow’s.org) as “realizing personal potential, self-fulfillment and seeking personal growth and peak experiences.” While employees must take this journey independently, the journey is much easier in an environment that supports new opportunities and advancement. As per the The Lincoln Electric Company case study, management has the complete authority to do as they see fit. We learned that the management at the Lincoln Company can make someone work overtime or make them work a short week. Management can move an employee from one job to another, it is their call. This exposes employees’ to different opportunities and

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