The Lincoln Electric Company

In: Business and Management

Submitted By nannu5
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The Lincoln Electric Company
The Lincoln electric, founded by John C. Lincoln is now an American multinational manufacturer of welding products. Over the course of decades, it has obtained outstanding growth in all fronts; target markets, market share, production quantity, firm size, production variety etc. It has become a well-known and widely worked on case study, especially due to the firms policies and incentive systems. Rewarding its employees handsomely for the productivity, high quality, cost reduction ideas etc. James F. Lincoln`s philosophy of “Incentive management” with tree policies employment guarantee, yearend bonus and piecework based wages became company`s core strategy. Lincoln electric is a firm with strong fundaments and healthy business values.
Then after the death of John and James Lincoln came the hard times in 1980`s. Due to effects of inflation, higher costs, recession etc. Lincoln Electric (with George E. Wills as the firm president) faced a 40% drop in sales. Even through this management held its ground, no employees were laid off and no policies were altered. Nevertheless, sharing reward, equality for everyone, belief in the individual these shared values gave result and repaid over the next years, especially in 1993. When employees voluntarily postponed 614 weeks of vacation to meet customer demand
In order to evaluate the exportability outside the US, of Lincoln`s approach to the organization and motivation of employees, we need to first understand “the Lincoln way”. Specifically what has generated the outstanding and enduring success in US. These effects were caused by a combination of following. * Management controlling, monitoring and regulating the incentive system. * Recruiting self-motivated hard working staff, who are encouraged to work and initiate independently. Gives the employees a feeling of being their own boss.…...

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