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Revision leading successful_teams
1. Running head: LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 1
Leading Successful Teams & Organizations
Student’s Name
Institutional Affiliation
Date of submission.
2. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 2
Lincoln Electric in China (Björkman & Galunic):
Overview of Key Elements of the Case of Lincoln Electric
The key elements of the Lincoln Electric Human Resources Management (HRM) case study are
several. First, Lincoln electric established consistent HRM policies to build trust. This has been
true since inception. This long history promotes confidence in employees and surety of future
reward. Workers average $17,600 per year on standard 32-hour work weeks. They are able to
earn about this same amount again in bonuses. This system creates high productivity. Lincoln
Electric operates on a system of equality, cooperation, and need. Each employee is given the
same number of hours as others. When business slows, all workers reduce hours equally. When
overtime is needed, this workload is also distributed without favor to the workers.
Industry Leader
Today, Lincoln Electric is the largest manufacturer of welding equipment. Lincoln Electric sells
a wide range of products from common stick welders to specialty plasma welders. (Enyedy et al.,
2017) Lincoln Electric successfully expanded internationally before 1955 into England,
Australia, and France. It took this powerful HRM model into each of those nations. In the
1980’s, Lincoln Electric moved to expand simultaneously into several more nations. Funds
equivalent to nearly half annual production went into the expansion. Results returned contrary to
expectations. A new CEO backtracked and sold off some of the investments. After careful
analysis, a wider, locally responsive HRM model was developed. This new model was deployed
with a renewed international expansion effort. Today, Lincoln Electric maintains 35
manufacturing facilities in 17 nations.
Why is Lincoln Electric So Successful in the United States? Role of HRM Practices
Lincoln Electric enjoys great success in the United States. The reward systems, people
resourcing, and HRM models promote their success. The high bonus potential increases
productivity and employee loyalty. Costs of hiring and firing are nearly eliminated; employees
willingly reduce hours when need arises and work overtime when there is need for increased
production. Lincoln Electric utilizes a greater brain trust. Regular meetings with workers,
convened every “two to five weeks” (Saucier et al., 2014) purpose to focus on company
improvement. At these meetings, employees are able to broach any production issue or worker
3. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 3
grievance. This improves the company culture. Further, this employee participation makes the
company locally responsive by mining worker’s direct production knowledge. The culture is
additionally enriched by harvesting input from the open market.
Worker Pride
Part of the investment of the workers is their own input. When workers have a say in goal setting
and policy, they work much harder, and for much greater duration, than employees who simply
receive goals and targets by direction from upper management. Additionally, one of the rewards
of effort is image. Lincoln Electric's proud heritage extends fully to the workers. CEO, chairman,
and president of the company, John M. Stroke, gave credit to the employees in his August, 2010
television interview with Liz Claman on Fox Business. This creates a corporate culture of worth
in employees, and a sense of pride. This pride has real value and comprises part of the “benefit”
package at Lincoln Electric.
Potential Problems with Introducing Lincoln Electric's HRM Practices into China
Operations
Introducing the same system in China should only be employed following careful analysis and
planning for initial, short-term modifications. A key element of the reward bonus system is trust.
In China, trust between the common worker and people in power falls far short of the trust a
citizen of the United States has for those who sign paychecks. In the U.S., workers trust in a
history of Judeo-Christian morality and in the powerful American Judicial system to ensure
contract and promise fulfillment. (Tseng & Pilcher, 2015) Additionally, Asian culture is very
group oriented and compliant. The individual is less likely to labor assiduously for self.
Compliance means not likely to speak out- this will reduce the potency and effectiveness of
regular meetings between management and workers. Third, Asians are less future-oriented than
the Judeo-Christian oriented culture of North America. Dominant religious thought leans toward
ideas of Islam and Buddhism. These cultures believe in fate. A Muslim driver, whose children
stood up in the back seat as he sped at 75 miles per hour said, “If it is Allah’s will that we should
die, die we will. We cannot overcome the will of Allah.” This aspect of thought makes Chinese
less likely to work as hard as Americans for future bonuses.
Different Cash Flow Requirements
4. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 4
Additionally, part of the motivation for the American workers is that the base pay fails to earn
them the (legally defined) poverty level income. They require the bonus monies to make a decent
salary. In China, food forms a major portion of living expenses. Chinese people require more
regular pay and more of their pay regularly. They need their money to purchase food each day, a
customary practice in the majority of world cultures.
Lincoln Electric Should Introduce Its HRM Practices into China
The Lincoln HRM policy should be introduced into China. But some modifications are
necessary. First, bonuses must be paid more frequently. Frequent payments will more quickly
demonstrate to Chinese workers they can trust management and the delayed rewards program.
Second, workers familiar with the reward program and corporate policy should be brought to
new Chinese plants to demonstrate and teach corporate culture and high productivity practices.
(Young, Pierce, & Nowak, 2014) Third, management-employee meetings should initially be more
frequent. Suggestions should be implemented quickly in order to create openness and trust.
Fourth, as with all workers who do not perform well for future bonuses, material rewards do
work. So, part of the reward package should include material items like microwaves, cell phones,
or even vacation trips to Ohio headquarters in Cleveland.
When Lincoln Electric expands into China, they should implement their existing compensation
system. However, initial modifications will reduce the risk of rejection. Trust must be established
early. The success of Lincoln in international expansion in the last two decades will make an
expansion into China a likely success- and more so with careful analysis of Chinese culture.
Resources for Lincoln Electric Case Study:
Claman, L. (2010, August 23). [Interview with John M. Stropki]. Lincoln electric’sguaranteed
employment. Retrieved July 18, 2011 from the Web site of Fox Business at:
http://video.foxbusiness.com/v/4318497/lincoln-electrics-guaranteed-employment/
Lincoln Electric International HRM Case Study Analysis
Which do you feel is most important in international expansion, with regards to HRM?
● Maintaining corporate culture
5. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 5
● Understanding the culture of the new market
● Being flexible and reactive to new information and to new learning
● Accessing local talent: recruiting, utilizing, and retaining
1. How do you explain Lincoln's success in the United States? Consider in particular the
role that Lincoln's compensation and reward systemplay, but also more generally the
management of people.
The role and importance of reward systems are essential in the management of people and
success to process of managing resources. The approach is perceived to improve and enhance the
levels of performance based on compensation. The concepts are determined by the approach
involved in setting variables and paying programs. Effective goal setting by Lincoln is to align the
function of the people and interest of the business. Rewards systems are used to create a high level
of motivation to employees to meet the goals and objectives of the firm. The threshold is
responsible by maximizing performance accepted by the levels of management. Compensation
mechanisms and process create the ability of the firm to minimize costs based on performance
ratio. The rationale of proper management of people is to utilize the available resource to achieve
the firm's target. Therefore, proper management of people determines the results of the firm.
2. What are the possible problems with Lincoln’s compensation and reward system?
Reward and compensation systems for measuring performance are considered to be
inefficient and ineffective. Therefore, the desire to adopt the approach can hinder the levels of
performance as expected by the management. In most cases, it is considered to establish complex
systems that are not necessary to the operation and functions of the firm. Reward systems attribute
to disaggregation of the effective performance and measuring individual rewarding methods. Thus,
failing to elevate performance as the approach is subjective to the goals and objectives of the firm.
Nevertheless, established mechanisms can affect the profitability rate of the firm. In the long run,
the rewarding system can affect the role of teamwork in the firm as it focuses on individual roles
and performance. The success of the firm is determined by the roles of teamwork and rationale of
cooperation. As a result, it affects the productivity of the firm.
6. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 6
3. Should the company introduce the compensation and reward system and other
elements of how the firm operates in the United States also in China? Why/why not?
The companies need to introduce and ensure the success of compensation and reward
system. The strategy is essential in pulling the company's talent to ensure quality
performance among the employees. Compensation and reward system are considered to
compel the rate of retention of employees in the company. Employees are incentivized to
retain and take up roles and functions as desired by the management. Most of the companies
make losses attributed to a high rate of employees’ turnover and recruitment processes.
Nevertheless, compensation provides a platform for motivating and encouraging
employees. The factors encourage the employees to strive to achieve the greater height of
organizational goals and objectives. The systems are used by various firms to enhance
employees' career development to cope with changing market trends. Therefore, properly
structured and imperative systems determine the success and productivity of the firm.
Pushing the Right Buttons: Global Talent Management at KONE Corporation (Smale,
Björkman & Saarinen):
Please also read this link start page 31 about KONE
1. Critically evaluate KONE’s global talent management activities. What kinds of
improvements should KONE still make? Why?
Please mention: what have been done
Also, what others improvement should KONE do, why?
KONECorporation deserves to make radical improvements in the process of achieving the
requirement of global talent management. Thus, the major focus remains within the desire to
develop and retain organizational talents. Retention mechanisms and strategies create a positive
image for the development of the firm. The employees are more motivated, enhancing the success
of the organizational function and roles. High employees’ turnover rate is considered to be an
additional cost to the functions of the firm. The aim is to improve the morale of employees and
contribute to the success of the firm. These are through proper implementation of employees’
7. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 7
retention programs and balancing productivity and performance. Proper training and orientation
be enhanced on delivering the role of organizational culture to employees. Therefore, developing
and tapping the potential as demonstrated by employees in the organization. However, changing
the rationale of management is essential to ensure the success of the firm.
2. What should KONE do in China? Why?
The essential approach by KONE Corporation is to understand the trend of the global
market and expected standards of operation. These involve understanding the needs and desire of
the customer to improve service delivery. By doing so, the KONE Corporation will be able to
provide ease, efficient, and effective services to consumers in the market. (Bjorkman et al., 2017)
The strategy aims to improve and enhance the levels of consumer experience as desired.
Nevertheless, there is a need for the firm to understand social standards and state of people. Once
Kone understand the market need of the china they will be able to meet their therefore China shall
benefit out of the contribution of Kone. The approach is essential in ensuring rational recognition
of the firm to an immediate general public. Nevertheless, understanding the channels of acquiring
resources is fundamental to the success of the firm. Eventually, the firm can reduce the cost
incurred in sourcing materials and rate of production.
Southwest Airlines (O’Reilly & Pfeffer):
1. What are the bases of Southwest’s competitive advantages? Are they sustainable?
Why? (Consider in particular how the firm manages its human resources and its
organizational culture.)
Please read and adjust your answer:
http://teamsparksouthwest.blogspot.com/2012/04/southwests-competitive-
advantage.html?m=1
The success of Southwest Airlines and the competitive market advantage is based on the
rationale of human resource management. For a long period, the strategies and approaches have
been sustainable and creating a rational market network for the firm. Relative organizational
decisions are driven towards the proper management of human resources of the firm. There are
proper systems of managing physical capital resources which include equipment, finances, and
firm's plant. Therefore, the structures of Southwest Airlines are determined through appropriate
8. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 8
planning, coordination of available firm resources, and adequate implementation of human
resource management systems. As a result, the competitive advantage of the firm is due to
appropriate recognition of human resource potential. The concept can integrate the functions and
activities of the firm to achieve desired goals and objectives. Several characteristics contributing
to the success of the firm include the experience of managers and commitment among the
employees.
2. What do you see as potential future threats, and what should the firm do about them?
(ok, in my side)
Understanding the roles of competitors in the market remains an essential threat to the
development and growth of the firm. Therefore, the company should develop rational mechanisms
to determine the prices of the services. These achieved through an understanding of the market
trends and behaviors as demonstrated by consumers. (Campbell & Ma,2015) The aim is to
maintain existing consumers and attracting new clients to seek services of the firm. Lack of proper
internal control system poses a threat for the firm to thrive and succeed in the industry. As a result,
the management is responsible for controlling the functions and activities within the firm. The
approach entails determining workforce to enhance control and respective rational location of the
firm. Understanding the market and managing the available space determines the success of the
firm. These entail an understanding of the challenges of the market and forces affecting operations.
Case study digital transformation:
How (in what way) and why is digital disrupting your industry currently. Based on your
evaluation of the two readings for day 1 (Pipelines, Platforms, and the New Rules of Strategy.
Harvard Business Review, April 2016, 54-62 & How smart, connected products are transforming
competition. Harvard Business Review, 92(11), 64-88), evaluate using the provided framework
(Appendix 1- table) how digital is changing the industry, business, and market environment of
your firm. Use the given framework provided (fill in your evaluation) and write your 2-3 pages
synthesis of your evaluation and discuss implications for your firm. (name of my company-
www.elsevier.com)
9. LEADING SUCCESSFUL TEAMS & ORGANIZATIONS 9
Change drivers in Daimler's business environment
The goal: have a good grasp of megatrends affecting Daimler and understand the “big picture” as
a necessary foundation for class work (also prepared in presentation)
1. Read Gordon’s article (A DEFT Approach to Trend- Based Foresight. Foresight, Issue
17, pp 13-18)
2. Employing the DEFT Framework introduced in the article:
a. Analyze macro-level global or regional trends, forces or uncertainties that might impact
Daimler’s business as a whole within 10 years’ time horizon.
b. These can fall into any of the following categories: social, technological, environmental,
economic, political, legal and ethical
c. Feel free to explore any additional resources available to you for information
Evaluation of the article: The evaluation of the pre-assignment addresses the following elements
in the assignment: Arguments, evaluations, and opinions are justified, appropriate, and clear.
(Huber & Kleinaltenkamp,2018). Appropriate application of frameworks and ideas of provided
articles to the evaluation and elaboration of implications. The business, strategy, and firm context
(environment) appropriately considered. The assignment provides insight.
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References
Enyedy, E. A., Narayanan, B., Denney, P. E., & Peters, S. R. (2017). U.S. Patent No. 9,731,371.
Washington, DC: U.S. Patent and Trademark Office.
Saucier, P. R., McKim, B. R., Muller, J. E., & Kingman, D. M. (2014). Assessing performance
and consequence competence in a technology-based professional development for
agricultural science teachers: An evaluation of the Lincoln Electric welding technology
workshop. Career and Technical Education Research, 39(2), 103-118.
Tseng, P. H., & Pilcher, N. (2015). A study of the potential of shore power for the port of
Kaohsiung, Taiwan: to introduce or not to introduce?. Research in transportation business
& management, 17, 83-91.
Young, S. L., Pierce, F. J., & Nowak, P. (2014). Introduction: Scope of the problem—rising costs
and demand for environmental safety for weed control. In Automation:The Future of Weed
Control in Cropping Systems (pp. 1-8). Springer, Dordrecht.
Björkman, I., Ehrnrooth, M., Mäkelä, K., Smale, A. D. A. M., & Sumelius, J. (2017). Talent
management in multinational corporations. The Oxford handbook of talent management,
461.
Huber, M., & Kleinaltenkamp, M. (2018). Changes of organizational usage processes: Attitudes,
behaviours and consequences. Marketing ZFP, 40(3), 17-30.
Campbell, C., & Ma, J. J. (2015). Looking forward, looking back: Drawing on the Past to Shape
the Future of Marketing. In Proceedings of the 2013 World Marketing Congress.