Management at the Lincoln Electric Company has always been concerned with employee productivity and satisfaction. In order to ensure that their employees are productive, they have implemented a number of policies and practices. One of these is the “Profit Sharing Plan”, which allows employees to share in the company’s profits. This plan motivates employees to work hard and be productive, as they know that their efforts will be rewarded financially.
Another policy that Lincoln Electric has implemented is the “Gain Sharing Plan”. This plan encourages teamwork and cooperation among employees, as it rewards them for working together to improve efficiency. Finally, the company offers its employees a number of benefits, such as health insurance and retirement plans. These benefits help to attract and retain high-quality employees.
Lincoln Electric is a global leader in arc welding equipment and electric motors. James Lincoln’s various business policies provided the foundation for Lincoln Electric’s success. This study looked at the key factors that helped to make Lincoln Electric successful.
There are three primary areas which have been focused on in this case study, they are: Management, Employment and Company. Management policies of Lincoln electric are discussed in the first section while the second section looks at how the employment policies add to the company’s success. The last section focuses on how different the company is from others in terms of its organizational structure and control system.
The management policies of Lincoln Electric emphasize on decentralization and delegation of authority. Decentralization gives more power to plant managers which increases their motivation to perform well. Delegation of authority ensures that tasks are carried out efficiently as people are accountable for their actions. The company also has a profit sharing plan whereby employees share in the profits generated by the company. This motivates employees to work harder as they know that their efforts will be rewarded.
The employment policies of Lincoln Electric are such that there is no job security for anyone in the company. This may seem harsh but it actually motivates employees to work harder as they know that their jobs are not guaranteed. The company also has a policy of promoting from within, which means that employees have an opportunity to progress within the company if they perform well. This encourages employee loyalty and motivation.
The organizational structure and control system of Lincoln Electric are different from other companies. The company does not have any hierarchical levels and all decisions are made by the top management. This ensures that there is no bureaucracy and decision making is quick and efficient. The control system is based on financial measures and Lincoln Electric has a very strong focus on cost control.
Lincoln Electric is a very successful company which has achieved great success due to the policies and practices in place. Management, employment and organizational policies have all contributed to the success of the company. It is important to note that these policies may not be suitable for all companies but they have certainly worked well for Lincoln Electric. Management should always consider the specific needs of their company before implementing any type of policy.
Lincoln Electric’s foundations are built on principles of trust, openness in leadership, self-reliance, integrity, responsibility, accountability, and collaboration. These values and moral code became a powerful foundation for Lincoln’s culture and management by regularly giving accolades to deserving workers. Along with pride of workmanship comes a sense of involvement and participation at Lincoln Electricians.
Management at Lincoln has always believed in employee empowerment and giving them a sense of ownership. The company’s decentralized organization structure ensures that decision-making authority is vested at the lowest levels possible. This bottom-up decision making process, gives employees a great deal of control over their work lives and careers. Management trusts its employees to make the right decisions for the company and provides them with the resources they need to be successful.
Lincoln Electric Company was founded in 1895 and is headquartered in Cleveland, Ohio. The company is a leading manufacturer and developer of arc welding products, robotic welding systems, plasma and oxyfuel cutting equipment. Lincoln Electric has more than 40 manufacturing locations, including operations and joint ventures in 19 countries and a worldwide network of distributors and sales offices covering more than 160 countries. The company’s products are sold under the Lincoln, Tweco and Miller brands.
Lincoln Electric has always been profitable, even during periods of economic downturn. In recent years, the company’s profitability has been driven by strong demand for its products in emerging markets, as well as continued cost-cutting measures. Lincoln Electric’s success is due to a number of factors, including a long history of employee empowerment, a commitment to research and development, and a focus on operational excellence.
The company’s culture encourages employees to work hard by keeping them up to date on the company’s operations and financial success. James Lincoln, for example, felt that consumers are valuable assets for businesses. The primary objective of a business should be to benefit its clients. Researchers have developed theoretical models linking consumer satisfaction with company growth (Kanji 2010). In his article, Kanji puts customer satisfaction at the top of the list.
The basic idea behind this model is that customer satisfaction leads to customer loyalty, which results in the growth of business. The second factor important for the company’s success is employee satisfaction.
The feeling of empowerment and trust shown by the management team towards its work force make them feel more comfortable and relaxed while coming to work. This increases their efficiency as well as motivation level (Liang 2014). Management also provides on job training to workers so that they can update their skills according to changing technology.
In order to achieve sustainable competitive advantage in global market, it is very important for the companies to focus on both these factors: customer satisfaction and employee satisfaction. The management of Lincoln electric Company has adopted policies which are beneficial for both the employees as well customers.
Management has been successful in creating a work environment which is conducive to creativity, innovation and hard work. The feeling of job satisfaction among employees is very high which leads to their high motivation level. This has helped the company to achieve economies of scale and experience curve effects.
