Essay On Lincoln Electric Case Study

Essay on Lincoln Electric Case Study
Lincoln Electric
Case Study
Table of Contents
Introduction................................................................................3
Vision, Mission and Value statement..................................................3
Attitude towards Customer..............................................................3
Attitude towards Stockholders...........................................................4
Attitude towards Unionism..............................................................4
Beliefs and Assumptions about Employees............................................4
Management incentive and Employee Bonus Plans...................................4
Human Resources Practices..............................................................5
Strategic Issues............................................................................7
Reference...................................................................................................,,,,......9
Lincoln Electric
The Lincoln Electric was founded in 1895, and is the world leader in the design, ... Show more
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An example is promoting employee involvement in cost reductions and quality improvements.
Human Resource Practices Recruitment and Selection Every job opening is advertised internally on
company bulletin boards and any employee can apply for any job so advertised. External hiring is
permitted only for entry–level positions. Selection for these jobs is done on the basis of personal
interviews––there is no aptitude or psychological testing. A committee consisting of vice presidents
and supervisors interviews candidates initially cleared by the Personnel Department. Final selection
is made by the supervisor who has a job opening. Job Security Lincoln not only earned profits, but
no employee was laid off and year–end incentive bonuses continued. To weather the storm,
management cut most of the nonsalaried workers back to 30 hours a week for varying periods of
time. Many employees were reassigned, and the total workforce was slightly reduced through
normal attrition and restricted hiring. Performance Evaluations Each supervisor formally evaluates
subordinates twice a year using the cards. The employee performance criteria, "quality,"
"dependability," "ideas and cooperation," and "output" are considered to be independent of each
other. Suggestions for improvements
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The Legacy Of The Lincoln Electric Company Essay
The Lincoln Electric Company has dominated the market of welding machine manufacturing since
its infancy in the late 1900's. Their continued success is due to companies' ability to adapt different
organizational cultures, into a beautiful melting pot of profitability. Management could be described
as a mix of both outcome–oriented and stable styles, with a hefty dose of people–oriented cultures,
all wrapped into one.
In 1895, engineer, inventor, and businessman John C. Lincoln started Lincoln Electric Company.
His brother James would join him shortly, in his business endeavor, starting in 1907 (Sharplin, A
1989). James managerial style would most closely be described as people–oriented. He once said
"Labor and management are properly not warring camps; they are parts of one organization in which
they must and should cooperate fully and happily." (Sharplin, A 1989) Early on, he created the
Advisory Board, a committee made up of both employees who were elected by their peers and upper
management, including the chief executive officer. The Advisory Board continues still to this day,
meeting bimonthly to discuss employee policies, working conditions, etc. Though these meetings,
employees have gained such things as health benefits, life insurance, paid vacation time, retirement
pension plans, stock incentives, continued on and off site education, and much more. (Sharplin, A
1989)
Another early result of the Advisory Board meetings was the creation of the employee incentive and

Lincoln Electric 's Business Model Essay
Lincoln Electric Company was started in 1895 by John C. Lincoln. It was officially incorporated in
1906. Although John Lincoln started the company, he prefered engineering over management. In
1914, James Lincoln, his younger brother, took over the company. John Lincoln is the original
founder of the company, but James Lincoln is what made the company into the multinational
success story that still is today. During his tenure, he implemented some revolutionary changes to
the culture and business structure of the company. According to wikipedia, "Lincoln Electric 's
business model was listed as one of the most studied by the Harvard Business School." ("Lincoln
Electric", 2016) The company had so many new ideas that it inspired a book written about the
company named Spark by Frank Koller.
Company Culture
Lincoln Electric is a textbook example of what is referred to as a people–oriented culture. A people–
oriented culture is a culture that values fairness, supportiveness, and respecting individual rights.
(Principles of Management, 2016) There are many examples of this people–oriented culture. One
example of the people–oriented culture is that the company didn't carpet the president's office. It
might seem like a small gesture but it reinforces the idea of fairness. To continue on the fairness
idea, the company only allowed in house training. Since not all employees could take advantage of
off site training, they decided that nobody could go. Furthermore, executives

Lincoln Electric Essay
The Lincoln Electric Company
Headquartered in Euclid, Ohio, a suburb of Cleveland, The Lincoln Electric Company is a world
leader in welding and cutting products, as well as a premier manufacturer of electric motors. The
company is well known for its dedicated, talented workforce and its superior technology. Lincoln
Electric Company gives its customers total solutions along with a commitment to quality. Lincoln
Electric Company is also well known for its incentive management system. Many companies strive
to duplicate the success that Lincoln has enjoyed over the years.
John C. Lincoln founded Lincoln Electric Company in 1895 with a capital investment of $200. At
first he only ... Show more content on Helpwriting.net ...
Why were Lincoln employees willing to work overtime during an August vacation time in 1994?
The following benefits are some of the main reasons why Lincoln employees will do almost
anything to help its employer:
&#61623; an employee stock purchase plan
&#61623; company–paid life insurance
&#61623; piece rates adjusted for inflation
&#61623; a pension plan
&#61623; promotion from within
&#61623; a practice of lifetime employment
&#61623; paid vacations
Since its inception in 1895, Lincoln Electric Company was privately owned. This allowed for the
protection of the processes that has kept Lincoln in the lead. However, after two years of losses in
1992 and 1993 due to a harsh foreign market, Lincoln Electric Company had to go public.
With multi–million dollar, domestic updates and acquisitions in such countries as Italy, China, and
Indonesia, Lincoln Electric Company wasted no time by dwelling on its first losses in
Lincoln&#8217;s history. Lincoln is back on track as the world leader in arc welding, after
faltering for only two years. Lincoln is committed to providing substantial value to all of its
stakeholders.
SWOT ANALYSIS
STRENGTHS
&#61623; Very satisfied, dedicated and talented employees

&#61623; Worldwide manufacturing
&#61623; Superior technology
&#61623; Commitment to quality
&#61623; Incentive performance system
&#61623;

Case Study: Lincoln Electric
Introduction
Lincoln Electric has always been a leader and innovator in the design and production of arc welding
equipment and consumables. Headquartered in Cleveland Ohio, we are also a worldwide leader in
robotic arc welding systems as well as plasma and ox fuel cutting equipment. The catalogue you
hold in your hands contains some of the best performing, most well–made and tested Welders and
Consumables on the market today.
(http://www.lincolnelectric.com/assets/US/EN/literature/ed122.pdf)
Lincoln Electric was the result of two exceptional siblings, John C. furthermore James F. Lincoln.
John, the organization author, was a creator and visionary who had minimal enthusiasm for
everyday administration. John was additionally at first pulled ... Show more content on
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A couple of countries identify with arrangements prospects. Others have opened up opportunities to
deliver in the prospect country. Lincoln Electric has joint meandered in China to give snappy
business sector area and a close–by base. This accommodated them lively section and business
region to the detriment of complete control. Lincoln Electric has moreover acquired its course into
business segments. The association reported seven acquisitions in its 2008 yearly report.
(file:///C:/Users/Y400/Downloads/annualreport2008.pdf)
(http://ir.lincolnelectric.com/phoenix.zhtml?c=100845&p=irol–reportsannual)
SWOT Analysis
SWOT analysis of Lincoln Electric has been extracted from the given case study.
Strengths
Wide range of products.
Large, technically trained field sales force.
Innovative incentive systems and human resource policies(no–layoff policy).
Very Advanced research and development department.
Strong brand image and identity.
Global network of cost effective manufacturing facilities.
Weaknesses
Lack of knowledge in foreign country's laws, regulations and labour practices. Eg; India.
A lot of expatriate managers in new markets, difficult for them to perform in new location.
The company is still very dependent on their very developed market of North America for the

Case Study Of Lincoln Electric Company
Lincoln Electric Company Harvard Case study By Arthur Sharplin
1. Introduction
The Lincoln Electric company, under the leadership of James F. Lincoln saw a major shift in the
way business was to be directed and operated with visionary mind–set emulating companies like
Ford, Wal–Mart, Merck, 3M as focus was towards the customer's needs and employee's
compensation. Philosophically customer needs become critical as the reason for being in business
and the employees also being the vehicle in achieving the needs of the customers as the case study
by Sharplin, A (1989, p.3) clearly positions the companies aspirations. James Lincoln places much
importance on the relationship with employees that is guided by mutual respect and individual
effort.
2. Influence of the Founder on the company
All visionary companies have a semblance trail and influence of the founder through and ... Show
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(2009) the definition of outcome–oriented culture, "emphasize achievement, results and action as
important values" (p. 196 pdf). This kind of culture reflects in Lincoln Electric Company with a
critical management practice of using incentive to elicit employee contribution and commitment to
the job, by providing bonuses which is the benchmark of the management system and introducing
other benefits like pension plan policy, promotion from within policy hence insuring flexibility in
the benefits structure and retention mechanism. The artifacts of open door policy and flat
hierarchical structure of management with empowered employees were employee's plan and
organise their own work whilst management do not pay much attention to the operations Carpenter
et el (2009). For example according to the case study, the office of the president was located within
the plant location and uncarpeted symbolising equal platform of the work environment and
relationships. The company does not have worker turnover except for retirement and other natural
wastage like

The Lincoln Electric Company 's Aspects Of The Company
According to Carpenter, Taylor and Erdogan (2009) Organizational culture could be considered as a
system of defining standadrds of appropriate company's staff behavior and control of inappropriate
company's staff behavior, and plays very important role in company's life. On the one hand it is
absolutely necessary for continuous motivating of workers through sharing of values within
organization. On the other hand it is used as means of control since in certain circumstances it has
more influence than formal rules and guidelines (Carpenter, Taylor and Erdogan, 2009).
Organizational system consists of three aspects: assumptions – the deepest level of organizational
culture, based on thoughts and understanding about human nature and reality; values, which define
standards and principles of work and artifacts – really existed things, tangible aspects.
The aim of this essay is to analyze the Lincoln Electric Company's aspects of the company's culture.
All aspects will be considered on the basis of study case prepared by A. Sharplin.
The company was formally established by John C. Lincoln in 1895. In 1907 James F. Lincoln,
John's younger brother, joined the company and later on (in 1914) he was promoted to become
General Manager and vice–president. He organized the advisory board the main aim of which was
to improve company processes and operations. It was established from the employees'
representatives. It had a strong impact on the further company life since it was about

Company Analysis Paper: The Lincoln Electric Company
Within reading just one page of "The Lincoln Electric Company" paper, I wanted to work for the
Lincoln Electric Company. The Lincoln Electric Company is a rare combination of a stable, rule–
oriented company that also succeeds at being innovative, in a mostly non–innovative industry, and
people–oriented in a manufacturing setting. The Lincoln Electric Company has a motto that could
have just as easily come straight out of a current Silicon Valley company:
"The Actual is Limited, the Possible is Immense".
The founders of the Lincoln Electric Company early–on, set systems in place such as an incentive
management plan and an employee advisory board that would propel the company forward even
long after the founders had retired and passed away. By fostering an environment of "mutual
respect" Lincoln Electric "claims levels of productivity more than twice those for other
manufacturers" with a market share of "more than 40 percent".
The Lincoln Electric Company has "nurture and propagated" a feeling of "mutual respect" between
management and employees by having a consistent company culture that management and
employees both share a stake in.
ASA, or Attraction, Selection, and Attrition are handled very specifically at The Lincoln Electric
Company; "External hiring is done only for entry–level positions". Hiring is done with "no aptitude
or ... Show more content on Helpwriting.net ...
Our enduring passion for the development and application of our technologies allows us to create
complete solutions that make our customers more productive and successful. We will distinguish
ourselves through an unwavering commitment to our employees and a relentless drive to maximize
shareholder value." In this vision statement you see that The Lincoln Electric Company values, in
order of appearance its; (1) Customers, (2) Employees, and (3)

The Legacy Of Lincoln Electric Company Essay
From a company started with 1895 with only $200 (roughly $6,000 in 2016 with inflation) and a
dream, Lincoln Electric company has grown exponentially over the past 121 years. John C. Lincoln,
disenfranchised with his lack of involvement with the Elliot–Lincoln company he was formerly
with, set out to develop and manufacture a new patented form of electric motors.
Lincoln Electric company, officially incorporated in 1906 by John C. Lincoln, was created as an
engine manufacturer. In 1907, James F. Lincoln, John's younger brother joined the company, gaining
managerial control in 1914.
From the beginning, James Lincoln took a deep interest in ways to improve his and his brother 's
company and their employees work related functions. He instituted an "Advisory Board" made up of
elected representatives from within the workforce. Since its creation sometime around 1915, actions
directly benefiting employees were instituted. Among them, reduction in working hours, completely
paid life insurance, and in 1917, a welding school was instituted.
In the bi–monthly Advisory board meetings, representatives take suggestions or issues presented by
employees to the Chairman and President. The employee representatives do not have direct input as
to whether these ideas will be instituted, rather an authoritarian management system takes these
ideas under advisement and decides whether or not instituting or ending them would be of benefit to
the workforce and company as a whole.
Employee

Lincoln Electric Company: Case Analysis Of The Lincoln...
Analysis of Lincoln Electric Company submitted on Sunday, 24 April 2016, 9:28 PM
The case study for Lincoln Electric Company located near Cleveland, Ohio USA, shows a company
with a distinctive organization culture of people oriented and team culture. The founder of welding
products and equipment (machines and electrodes), with more than two thousand four hundred
(2,400) workers in two us factories and six hundred (600) factories in three (3) global factories. It is
considered to be one of the best managed manufacturing companies in the world.
Details in the case study of "the Lincoln Electric Company" obviously shows that the leader's
(Lincoln's) Christian values helped establish an organizations culture of "team orientation, among
employees ... Show more content on Helpwriting.net ...
For its employees, the company provides an amazing level of pay and additional benefits, not to
mention incomparable job security.
While Lincoln Electric's does not possess a formal organizational chart its objective of maximum
flexibility and open door policy have encouraged personnel to take the problems to the persons
capable of solving it. Such an organizational structure is deemed to be one which improves
efficiencies, integrate operational and product development processes in an effort to better serve
customer needs. "This structure also leverages the functional and technical strength the
organizations core teams in developing markets, speed up profitable growth.
Lincoln's attitude towards stockholders, is that they are given last priority. James Lincoln's belief is
that "the philosophy behind this attitude is that in his words "they (stockholders) think that it will be
more profitable than investing money in any other way". He further explains that "this policy is an
alternatives for the company to work towards making some of their activities mechanistic while
keeping some functions organic". The other alternative he says is to "keep the company going as is
with no change". He cites that "absentee stockholders receives shares they deserve, even if
underserved, out of the greatly increased profits that the efficiency

The Legacy Of Lincoln Electric Company
Founded in 1895 by John C. Lincoln, the Lincoln Electric Company is a high–quality manufacturer
of welding machines and welding equipment based out of Cleveland, Ohio. Lincoln Electric was
founded upon a strong foundation of competitive logic, using many levels of synergy in its
manufacturing process to create the highest quality welding equipment and the lowest costs.
Through the company's unique management system and vertical integration strategies, they have
created and maintained a strong competitive advantage in the welding industry. Lincoln has
outlasted and defeated multinational competitors to become the world's leader in welding
technology and equipment.
Lincoln Electric focused on lowering costs in all aspects of the ... Show more content on
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After the Great Depression in 1934, the company developed the Lincoln system. The Lincoln
system is a three–pillared approach towards employee compensation consisting of yearly
discretionary bonuses, a piece rating system and a promise of guaranteed employment. Yearly
bonuses are paid out based upon personal worker performance and company profits. The company
uses a performance evaluation system to determine the amount of each individual's yearly bonus.
Lincoln Electric adopted the piece rating system so workers ' compensation is based upon the
quality of each material unit rather than quantity of units produced (Dyer et al., C–114). In 1958, the
company implemented the guaranteed employment promise which guaranteed workers up to 30
hours per week regardless of current economic conditions (Dyer et al., C–114). The Lincoln system
has increased the company 's competitive advantage in the welding equipment market by increasing
productivity and decreasing turnover rates.
In the 1980s, Lincoln Electric began its first major wave of foreign investments. Under CEO Ted
Williams, Lincoln Electric heavily expanded abroad into adjacent markets by using a mixed
diversification strategy of Greenfield expansion and acquisitions. Lincoln Electric saw globalization
as the answer to the problems the company was experiencing in the U.S. market with cyclical
economic fluctuations and the increasing importation of foreign–made welding equipment. For the
first

What Is The Lincoln Electric Code Of Ethics
The Lincoln Electric Company has been built on clear and solid ethical principles. The reason for its
centenarian success can be found in the fact that the ethic culture of respect and customer orientation
fostered by its founder has remained unchanged. James F. Lincoln had a strong Christian
background that guided his culture and vision. As he wrote, "The Christian ethic should control our
acts. If it did control our acts, the savings in cost of distribution would be tremendous. Advertising
would be a contact of the expert consultant with the customer, in order to give the customer the best
product available when all of the customer 's needs are considered. Competition then would be in
improving the quality of products and increasing efficiency in producing and distributing them; not
in deception, as is now too customary. Pricing would reflect efficiency of production; it would not
be selling a dodge that the customer may well be sorry he accepted. It would be proper for all
concerned and rewarding for the ability used in producing the product" (Lincoln J. F., 1961. p. 64).
The culture of the Lincoln's brothers was centered on satisfying the customer's needs. Their efforts
were not devoted to increasing profits rather to a constant search for cheaper and more effective
products that would improve customer's satisfaction. For the Lincolns customers represented the
reason for the company's existence. He made sure that this philosophy permeated the company until
the very last

The Organizational Culture Of The Lincoln Electric Company
After analyzing the story of Lincoln Electric Company I've come to the Conclusion that their
organizational culture they practicing is People–oriented culture. Because the company values
fairness, supportiveness and they respect individual rights. There is a greater emphasis on
expectation of treating people with respect and dignity.
All the founders of the company had a great deal of continues influence on the positioning of the
company today, form John C. Lincoln to James F. Lincoln. John C. Lincoln started it all and James
F. Lincoln, who is the younger brother of John, took over the company to another level. One of
James Lincoln 's early actions as head of the firm was to ask the employees to elect representatives
to a committee that would advise him on company operations. The Advisory Board has met with the
chief executive officer twice monthly since that time. This was only the first of a series of
innovative personnel policies that have, over the years, distinguished Lincoln Electric from its
contemporaries.
The Lincoln Electric Employees ' Association was formed in 1919 to provide health benefits and
social activities. This organization continues today and has assumed several additional functions
over the years. By 1923, a piecework pay system was in effect, employees got two–week paid
vacations each year, and wages were adjusted for changes in the Consumer Price Index.
Approximately 30 percent of
Lincoln 's stock was set aside for key employees in 1914 when James

The Organizational Culture Of The Lincoln Electric Company
The Organizational Culture of the Lincoln Electric Company
The Lincoln Electric Company is one of the largest manufacturers of welding machines and
electrodes in the world. With about 2,400 employees in the USA and near 600 workers in other
countries. The Lincoln management plan is well known for accomplishing the highest worker
productivity. His founder Mr. James F. Lincoln died in 1965, leaving a profitable and reliable
company. As a president of the business, he invigorated a committee that was confirmed by
representatives elected by employees. This committee called the Advisory Board met with him twice
a month to advise him on the company operations. The Advisory Board was the pioneer of personal
policies to provide benefits to their employees including the reduction of hours from 55 hours to 50
hours a week. In 1915 the workers received a paid–up life insurance. Two years after, the company
opened a welding school that is still operating today. In 1919 The Lincoln Electric Employees'
Association was created to offer Health benefits and social activities to their employees.
By 1923 employees received a two–week paid vacations each year and wages were according to the
consumer prices guide. The Lincoln Electric company was designated about 30% of their stock for
essential workers. During his period of general manager Mr. James F. Lincoln in 1925, initiated
commodities purchase plan for all the workforce. In 1934 a Legendary Lincoln plan of a bonus was
proposed by the

Lincoln Electric Company 's Culture
The Lincoln Electric Company 's culture is a wonderful example of how to create an exceptional
culture within your business. Lincoln Electric has been a leading manufacturer in welding machines
and electrodes for over 100 years. During this impressive tenure, the Lincoln Electric Company has
adhered to its founders' philosophy that the customer always comes first, the employee always
comes second, and stockholders come third. This philosophy is upheld throughout the entire
organization, from the executive team down to its factory line workers and is evident in their daily
business culture. Displayed through a plethora of initiatives; including employee compensations, a
concentration on productivity, encouragement of management and supervisors to participate in
active leadership and a general appreciation for its employees ' input and feedback; the working
culture in this organization is the backbone of the company's continued achievements. Through the
demonstration of their philosophy, Lincoln 's founders and management team have created a culture
that has become a timeless model of employee productivity for the world.
While there are several contributing factors aiding the Lincoln Electric Company to excel in creating
a wonderful business culture, there is a constant evolution of progress. During its startup in 1895;
the founder (John C. Lincoln) was able to experience moderate success and growth through the
standard business practices of the day.

Essay On Lincoln Electric
Introduction
Established in 1895 and specialized in producing and selling electric motors, Lincoln Electric
Company rapidly developed after the movement to welding equipment and consumable welding
products in the USA. By 1995, this company first hit $1 billion in sales and became the world
largest company in welding industry. With the differentiate strategy by providing premium –price –
products , this company got 60% sales in the North American and expanded internationally since the
period of 1986 and 1992. Although this company is facing problems in global expansions, its overall
strategy as well as practices in human resources, marketing, technology development, and
international expansions is a useful lesson for other businesses.
The primary features of the Lincoln Electric business model and employment system
Primary features of the Lincoln Electric business model and employment system are displayed
through the company's overall strategy, philosophy, compensations and benefits policy, leadership,
and communication within and outside the organization.
Overall, this company is offering premium – price –products to customers, ... Show more content on
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An application into the case of Lincoln Electric shows that this company is correct in doing
international expansions. Such actions are suitable for the market development strategy when the
company wants to increase sales outside the domestic market. In addition, because of diversified
markets during the global expansions, this company has customized products to fit for or developed
new ones. Thus, it is changing towards diversification strategy. The both success and failures of
Lincoln during the international expansions are helpful for other industries. Importantly, a thorough
understanding of the local is a key for international expansions (E. Porter,

The Lincoln Electric Company Analysis Essay
The Lincoln Electric Company is one with a long–standing history of success and profit, as
evidenced in the Case Study conducted by Arthur Sharplin. The success of Lincoln Electric is
largely based on the company's culture. In this case analysis, I will discuss different aspects of the
company that provide insight into the types of culture it has.
The overall impression, after reading the Case Study, is that Lincoln Electric has a strong culture. In
our textbook, Carpenter, Taylor, and Erdogan (2010, p. 197) define a strong culture as "one that is
shared by organizational members... a culture in which most employees in the organization share a
consensus regarding the values of the company". This can be considered the foundation of all the
successive subcultures that exist within the company, and it starts at the very beginning with the
founders. John C. Lincoln started the company on next–to–nothing after he had been let go from his
former venture. Despite being started during an economic recession and suffering a fire after barely
one year, John Lincoln moved the company to a new location and grew his workforce, which
correlated to higher sales and profits. John's brother, James F. Lincoln, joined the company and took
over as General Manager/Vice President while the company was still in its early stages. The first
indicator that the company took on a people–oriented culture is with the creation of the "Advisory
Board", which served as a means to advise Lincoln of operations –

Organizational Culture Of The Lincoln Electric Company
Introduction
The Lincoln Electric Company is the world's largest manufacturer of welding machines and
electrons. Lincoln employs 2,400 workers in two U.S. factories near Cleveland, OH and
approximately 600 in three factories located in other countries. (The Lincoln Electric Company p.
1.)
The main focus of this paper is to analyze the organizational culture of this company, by doing so, I
will point out the different features, the rules and norms, beliefs and philosophies and the systems
implemented by the management team through the processes of communication among employees,
stockholders, providers, costumers, etc. and other processes like production and commercialization
that are essential to produce the best products at a low cost, put them in the best market and obtain
the best results for the company.
To better analyze and understand the organizational culture of this company I will implement the
subjects learned in chapter 8 of unit 3, which are, Organizational Culture Elements p. 102–203.
To start with, I would like to mention some of the aspects that the company implemented in favor of
the organization and its employees:
They ask employees to elect representatives to a committee that would advise management on
company's operations.
Lincoln Electric Company's Organizational Culture Analysis 3
Reduced employees hours from 55 to 50 a week.
The company gave employees a paid–up life insurance policy, a welding school

The Legacy Of Lincoln Electric Company Culture
Lincoln Electric Company Culture
In 1906 John C. Lincoln incorporated his business East Cleveland, Ohio forming what we know
today as the Lincoln Electric Company. Though the company started out as a relatively small
operation, it is now one of the largest producers of welding Machines and electrodes. Branching out
from Cleveland, Ohio the company now has more factories in U.S. as well as in other countries. The
company's success has be attributes to several different factors, one of which is the company's
unique culture.
Founder's Influence
An organization's culture can be defined as "the system of shared assumptions, values, and beliefs
that show people what is appropriate and inappropriate behavior". Lincoln's culture has with stood
the test of time. The current business culture's roots can be traced back to its founder's younger
brother. James F. Lincoln was the figurehead of the company in the 1900's assuming the titles of
General Manger and Vice–President. It was James who helped mold the company philosophy. His
Christian principles and facilitation of multiple incentive and employee lead programs had a
profoundly lasting effect on the company even after his death. In his wake he left a mix of business
culture types/practices and artifacts to demonstrate those early principles and vision; that make up
Lincoln's highly effective organizational culture profile.
Outcome–Oriented Culture One dimension of Lincoln Electric Company is its emphasis on results
and unlimited

Case Study : Lincoln Electric Company Essay
Case Study: Lincoln Electric Company
Lincoln Electric Company is headquartered in Cleveland, Ohio. Established in Euclid, Ohio by John
C. Lincoln and James F. Lincoln. The organization has been very successful and is now the world
leading manufacturing company of welding products for over 120 years. Through their vision, John
C. Lincoln and James F. Lincoln established a habit and culture of modernization and distinction
that continues to drive the Company. Everyone at Lincoln strives to keep their legacy alive through
James's beloved motto, The Actual Is Limited; The Possible Is Immense" (Sharplin 3).
"The definition of business culture is a blend of the values, beliefs, taboos, symbols, rituals and
myths all companies develop over time. Whether written as a mission statement, spoken or merely
understood, corporate culture describes and governs the ways a company's owners and employees
think, feel and act" (Vcampus,n.d).
"A culture is created by the preferences and values of the founders and industry demands" (Chapter
8, pg. 191).
The simplest definition of culture is how things get done in an organization. Each company has a
culture and Lincoln Electric Company seems to have a strong culture based on limitless
possibilities. Continuing influence and vision of the founders are still evident when analyzing the
company and its vision.
"We are a global manufacturer and the market leader of the highest quality welding, cutting and
joining products. Our enduring passion for

The Legacy Of The Lincoln Electric Company Essay
The Lincoln Electric Company is the largest manufacturer of welding equipment in the world. John
C. Lincoln founded the company in 1895 and incorporated it in 1906 where he moved it "from his
one–room, fourth–floor factory to a new three–story building he erected in East Cleveland."
(Sharplin, 1989, A Historical Sketch pp. 1.). In 1907 John's younger brother joined the company and
in 1914 became the general manager and vice–president. It is here where the company began to
define its culture with James instituting an employee elected advisory board who would be tasked
with keeping James apprised on the operation of the company. This committee was also to be the
voice of the employees to the executive team, a practice that is still performed today with twice–
monthly meetings. The incentive programs set forth in these early years have laid the groundwork
for sustaining high production levels while engaging employees in the feeling of pride and
ownership of their and the company's success. Many of the original incentive programs have
changed little over the years and they continue to influence Lincoln Electric today.
The incentive management plan within Lincoln Electric began its journey in 1914 with the
formation of the advisory board. The first change made reduced the weekly working hours from 55
to 50. One year later, they gave every employee a fully paid life insurance policy, welding school in
1917 and a bonus plan in 1918. Of these three the bonus plan was,

A Case Analysis Of The Culture Of The Lincoln Electric...
A case analysis of the culture of the Lincoln Electric Company
James F. Lincoln was the founder of The Lincoln Electric Company that is well known all around
the world now. Of course, the company's organizational culture was not established by just one
person but with efforts of many coworkers. Values of the founder were a guiding light for all
workers and the managerial staff. When Lincoln died in 1965, the employees of the company were
frightened that old system of the founder would not work as well as before, but since the company
had its long history and it was an already formed organizational culture, they successfully gone
through the death of the great founder and succeed. The values of the man are still alive. The
founder was a great believer and he had the golden rule that sound as following "The program that
Christ announced, 'As ye would that others would do to you do ye even so to them' is the complete
answer to ... Show more content on Helpwriting.net ...
Assess the situation. What are you being asked to do? Is it illegal? Is it unethical? Who might be
harmed? – What the company ask workers to do is understandable, hard working style will give
some additional for the bonuses. Bonuses will result in high salary and this is a great part of their
justice.
2. Identify the stakeholders and consider the situation from their point of view. For example,
consider the point of view of the company's employees, top management, stockholders, customers,
suppliers, and community. – All the people are viewed in a similar way with no special preferences;
this is the company's working atmosphere.
3. Consider the alternatives you have available to you and how they affect the stakeholders. – In the
company is two main alternatives work hard or in slower pace with less money. Personal integrity in
the company is purely outcome–oriented.
4. Consider the effects of your actions. How does the action make you feel about yourself? – If I will
keep up with the pace of the company, it's okay. I'm a profit oriented

The Lincoln Electric Company's Culture
In 1989, Arthur Sharplin produced a case study, Sharplin (1989), outlining the organizational
structure and culture of the Lincoln Electric Company. This report will be focused on analyzing
Sharplin's case study to discern aspects of the Lincoln Electric Company's culture. First, we will
discuss John & James Lincoln and their influence on the development of the culture of the company.
We will discuss their Christian influence, and how applying the golden rule of doing to others as you
would have them do to you, helped them shape their company. Additionally, we will discuss the
company performance appraisal system, the way people communicate in the company, the merit pay
plan, the bonus plan, and finally, the management style. After ... Show more content on
Helpwriting.net ...
An example from Sharplin's research is Lincoln's policy to "at all times price on the basis of cost
and at all times keep pressure on our cost..." Clearly, this is giving the customer what they wanted.
Another example from Sharplin's research is the fact that the Lincoln Electric Company hasn't had a
layoff since 1949! Lincoln identified early on that, "The greatest fear of the worker... is lack of
income." By providing job security and great wages, Lincoln was able to give his employees what
they wanted. Even stockholders, despite being listed by James as least important, still benefited
from James' strategy because taking care of customers and employees first naturally increased the
company's profitability. Increased profitability is what every stockholder wants.
Sharplin found that the Lincoln Electric Company completed performance evaluations twice a year
using merit rating scores that would normally range between 80 – 100. Scores were based on ratings
in the categories, Quality, Dependability, Ideas & Cooperation, and Output. This gives employees
and managers two formal times a year that they can communicate issues and

Lincoln Electric Company Essay
The written assignment of this week is going to focus on a very well known and well organized
company. The Lincoln Electronic Company is the world largest manufacturer welding machine and
electrodes. Since it has been created by the Lincoln family, the company has known enormous
success, in this essay I going to look at some critical elements contributed that company's success;
such as:  The continuing influence of the founders of the company.  The incentive management
plan.  The performance appraisal system.  The way people communicate in the company.
Lincoln Electric Company 3
Write a three page case analysis that summarizes your understanding of the culture of the Lincoln
Electric Company.
Being successful in life has ever been an ... Show more content on Helpwriting.net ...
192). That definition leads me to think that an organization running without having the
organizational culture will sooner or later fail. Because, that is the culture that tells people what to
do and what not to do; without it, everybody will work according to their minds and do what sound
right for them.
Lincoln Electric Company 4
Though, in reading the Lincoln Electric Company Harvard Case Study by Arthur Sharplin, add up to
what I learned from chapter eight this week, I can realize the that the organizational culture is the
cornerstone for the growth of any organization. The success of Lincoln Electric Company is due to
the environment that is previously established by the Lincoln's family. If we look at in the
introductory of the Harvard case study, Arthur Sharplin states that "The Lincoln incentive
management plan has been well known for many years. Many college management texts refer to the
Lincoln plan as a model for achieving high worker productivity." (pp. 1). This is to say that they
have already set some policies to make the company what it has always been since its creation.
We can also see from the time Lincoln took out his second patent and began to manufacture his
improved motor. The company never stops growing in 1906; John C. Lincoln incorporated his
company and moved from his one–room, fourth–floor factory to a new three–story building

Lincoln Electric Essay
The two most important issues that Lincoln Electric is faced with are as follows. First, the inability
to meet customer demand because of the shortages in supply creates opportunities for competing
firms to enter the industry. What resources and capabilities does Lincoln Electric have that can
mitigate this threat of entry. Second, the emphasis put on the monetary incentive plan leaves the
company vulnerable in economic hardships. How can Lincoln Electric continue to encourage
competition and quality without a high emphasis on monetary incentives? Examining the arc
welding product industry structure will help identify the opportunities associated with that structure.
Arc welding is part of the emerging, mature, and international ... Show more content on
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For example, their valuable and rare inventory control team maximizes efficiency and lowers cost
by loading palettes completely full of product while the competition loads palettes only half full of
product wasting valuable room. The threat of suppliers, threat of buyers, and threat of entry are the
significant threats in the arc welding product industry. Suppliers in the arc welding product industry
include all of the employees that make up a company. The suppliers can threaten performance,
quality, and production cost. The temporary competitive advantage that Lincoln Electric uses to
mitigate this threat is a valuable, (fairly) rare, (fairly) costly to imitate, organizationally competent
employee compensation program. The program includes large bonuses, pays per piecework, and
guarantees 75% employment forever. This program also exploits the opportunities associated with
the cost advantages in the mature and international industry through economies of scale. For
example, the learning curve illustration in figure 6.2 and equation 6.5 in chapter 6 of Barney shows
that as the cumulative amount of time spent on a project increases (turnover is low), per unit cost
decreases. Due to the rapid change in industry demand, the threat of buyers quickly becomes an
issue. Without adequate supply, buyers are forced to move to new suppliers. This can lead to a loss
in future business. Lincoln

The Lincoln Electric Company Case Study Essay
There are plenty of reasons why Lincoln Electric Company (LEC) is successful, and a big one that
people usually credit the success to is the way it's managed. While reading the Lincoln Electric
Company Harvard Case Study by Arthur Sharplin, we learned a lot about the echo of the founder's
philosophies still very present in the company, we looked at the highly rewarding merit pay plan,
and we learned about LEC's authoritarian management style. There are plenty more reasons why
LEC has been so successful over the years but these three are mostly responsible for the
productivity, efficiency, morale, and overall satisfaction of the factory level employees and all the
way up to the President's office. A lot of people thought that once Mr. James Lincoln (better known
as 'Jimmy Sr.') died in 1965 that the company would stop succeeding. People thought profits would
drop, philosophies would be out of use, and the company would stop following Lincoln's system
that had led them so far. Opposite to that happened. Employee turnover rate became extremely low
because of care to the employees and a well thought up management team. Employee productivity
stayed at the standard that was established because Lincoln's bonuses stayed with the company even
when he had left it The company seemed 'stronger than ever'. In addition to these standards, Lincoln
also thought that the company should finance new locations through earnings made at LEC, not
through loans or borrowing. This philosophy could

Examples Of Organizational Culture At The Lincoln Electric...
Case Analysis of Organizational Culture At The Lincoln Electric Company There have been many
examples of organizations that have maintained a competitive advantage as a result of their culture.
One such example can be found in the Lincoln Electric Company. A case study on the Lincoln
Electric Company, prepared by Arthur Sharplin (1989), gives us keen insights into the relation
between culture and productivity, the influences that founders have on organizational culture, as
well as how certain cultures manifest themselves in organizational policies, communication, and
management styles.
Sharplin's case study makes it evident that James F. Lincoln, who joined Lincoln in it's early stages
had a profound influence on the organization's policies ... Show more content on Helpwriting.net ...
9). This, however has not stifled the atmosphere of equality at Lincoln, that is consistent with the
POCP. The management style at Lincoln Electric is best summarized by a quote from James F.
Lincoln, brought to attention by Sharplin on page 9, "...Management is the coach who must be
obeyed. The men, however, are the players who alone can win the games." The spirit of this quote is
exemplified, not only by the empowerment of employees, but also by the lack of preferential
treatment for stakeholders who are usually given a great deal of consideration. Management is not
afforded any extravagance, even being made to eat in the same area as blue collar workers (p. 10).
Stockholders take last priority on Lincoln's list of stakeholders ( p. 3). Lincoln was very focused on
improving the efficiency of his processes, not for the profit of stockholders, but for the benefit of the
customer. He knew that everything else would follow. Lincoln, instead of catering to the wishes
white collar stockholders, made an effort to enhance the financial well being of his employees. By
setting aside 50% of the company's stock for employee ownership (p. 10). The inclusiveness of the
employee ownership program, as well as the way other stakeholders are treated is essential to
maintaining a sense of fairness at the Lincoln Electric Company and in turn their

Analysis Of The Lincoln Electric Company
Analysis of the Lincoln Electric Company
Upon review of the Lincoln Electric Company case study conducted by Arthur Sharpish of Harvard
University, I came to find that the culture within the company is what elevated Lincoln Electric
above all other companies in that field. When analyzing the report I considered many aspects of the
company in order to determine what exactly that separates Lincoln from their competition.
First, I examined the ongoing influence that has been exerted by the founders of the company.
Lincoln Electric was founded by James F. Lincoln at the turn of the 20th century. His influence in
leadership and his approach toward the customer has stood the test of time. James believed that the
success of his company lay with the customer and a motivated labor force.
It is obvious that the customer 's interests, not the stockholder 's, should come first." In 1947 he said,
"Care should be taken ... not to rivet attention on profit. Between 'How much do I get? ' and 'How do
I make this better, cheaper, more useful? ' the difference is fundamental and decisive." (J, Lincoln)
James valued customer satisfaction above all else, which inevitably led to the innovation and
production of a great product that met the consumer's needs.
His views on employee retention continue to be a guide within the company. If fulfilling customer
needs is the desired goal of the company then employee performance and productivity are the means
by which this goal can best be achieved.

The Lincoln Electric Company Analysis
The Lincoln Electric Company was originally started by an entrepreneur named James Lincoln.
Lincoln took out his second patent after his departure from Elliot–Lincoln Company, to begin the
manufacturing of his new and improved motor. Taking this step began what is now known as the
Lincoln Electric Company that went from employing 30 to over 2,400 employees. Lincoln had a
plan that he knew would create a successful company but he could have never dreamed just how
successful it would become.
Lincoln almost immediately wanted his employees to begin electing representatives to give them an
opportunity to voice their feedback to improve company operations. Quickly, they were able to
negotiate less work hours and each employee a paid life ... Show more content on Helpwriting.net ...
As mentioned before, the relationships that were built continued to keep the company aligned
moving in one direction, toward growth. More productivity, more sales, more money, created bigger
bonuses and happier employees. Lincoln wanted to embrace the people–oriented culture and relate
with employees to show them you value and respect them.
The incentive management plan emphasized the outcome–oriented culture that focused on
rewarding achievement. It was a great way to keep employees motivated and performing at their
best abilities by evaluating them twice a year. Lincoln used a merit rating card to identify where the
employee ranked within four key areas: quality of their work, their overall dependability and value
within their company, how much production they pumped out, and if they were consistent with
providing ideas and cooperating as a team. Employee's evaluations were then scored and used to
determine the amount of their bonus. The bonuses were paid to employees once a year and were
determined from company profit. Employees had the potential to receiving up to 110% of the
average bonus. Their scoring on their merit cards was the same percentage that was used to
determine their actual bonus. According to the assigned article, the average bonus in 1980 was
roughly $ 17,500. Now, that's a huge bonus in today's time and even more enormous in 1980.
Lincoln Electric's management style was the foundation of successfully becoming

Analysis Of Company Culture Of The Lincoln Electric Company
Analysis of the Company Culture of the Lincoln Electric Company Analysis of the Company
Culture of the Lincoln Electric Company
"Lincoln employs 2,400 workers in two U.S. factories near Cleveland and approximately 600 in
three factories located in other countries" (Sharplin, 1989), numbers which don't include their
substantial field sales force.
Lincoln Electric's founder, a John C. Lincoln, was a man of sound business practices who, after
being frozen out of Elliott–Lincoln Company in 1895, built his own company from the ground up,
starting with one of his patents and building improved motors from its design (Sharplin, 1989).
James F. Lincoln, John C. Lincoln's brother, joined the company after John had a battle with a bout
of typhoid, in 1907. He became acting head of the company in 1914. James was a man of sound,
ethical business practices who valued customers first and employees second, and who put
exceptional emphasis on fairness of compensation and humane treatment of his employees.
The motto of Lincoln Electric is "The actual is limited, the possible is immense" (Sharplin, 1989),
and the way I interpret this is "the way things are is not the way things have to be," which would
reflect Lincoln Electric's progressive, otherminded history and policies.
Influence of the Founders: Plans, Performance, and Management Style
Lincoln Electric's management style is, for one, progressive and employee–oriented. When James F.
Lincoln became the active head of Lincoln

Taking a Look at the Lincoln Electric Company
Lincoln Electric Company
From the Harvard Case Study by Arthur Sharplin,it is clearly indicated that Lincoln Electric
Company is the world's largest manufacturer of welding machines and electrodes.This company
employs about 2,400 workers in its U.S factories and around 600 workers in three of its factories in
other countries. Continuing influence of founders.
The the founders of this company had the spirit of innovation .John Lincoln who was the main
founder of this company,remained the president but dedicated most of his energy on his innovative
job.This innovative attitude still can clearly been seen in the comany's activities.From the paper,it
can be found that all manufacturing are in line with the latest innovation.James F.Lincoln also
brought in Advisory Board which meet with the Chief Executive Officer twice a month.This policy
is still practice in the company.
The founders of Lincoln Electric did not put any organizational chart.The aim being to insure
maximum flexibility.Therefore an open door policy is practice and personnels are encourage to take
problems to any related person who can effect solution faster and effectively.Here,it will be true to
say that routine inspection does not exist with Lincoln Company as employees are all enthusiastic
about their jobs. Th Golden rule
With the Lincoln company,its attitude toward customers is very clear and very important as James
F.Lincoln saw the customer's needs as the d'entre for

Significance Of The Lincoln Electric Company
In the Harvard case study from 1985, Arthur Sharplin gives us a great overview about the history
and governance of the Lincoln Electric Company. The company was founded by John C. Lincoln at
the beginning of the 20th century and he was later joined by his brother James F. Lincoln (Sharplin,
1985, p. 1). We can already see that John C. Lincoln had a strong desire for his company to succeed
because he continually looked at how he could improve the company. This is shown in his opinion
that worker input is important (Sharplin, 1985, p. 2). In the book, Principles of Management,
Carpenter, Taylor, Erdogan (2009, p. 187 – 189), introduce us to a variety of profiles of
Organizational cultures. The first impression from reading the early history of the company from the
Harvard Study could be that the Lincoln Electric Company is an "aggressive" company, however, a
person would err in their conclusion. The Company actually is "outcome" oriented. What does that
mean? It means that a company, in this case the Lincoln Electric Company, has a culture that is
geared towards accomplishing goals (Carpenter, Taylor, Erdogan, 2009. p. 188), this is due to the
people that first ran the company John and James Lincoln. ... Show more content on Helpwriting.net
...
One of the first incentives to work for the company where reduced work hours and health benefits
(Sharplin, 1985, p. 2). This was then followed by a system that would allow workers to get a bonus
based on the rate of completion, and then a pension plan that was introduced towards the end of the
second World War (Sharplin, 1985, p. 2). This brings to light that the company was interested in
hearing from their workers as some of these incentives came to be due to the feedback from the
workers (Sharplin, 1985, p. 2). Each employee was evaluated on a regular basis and there was a
clear and easy to understand system in place that each worker could follow (Sharplin, 1985, p.

Lincoln Electric Culture Case Analysis
Lincoln Electric Culture Case analysis.
One of the world 's biggest maker of welding machine and electrodes is the Lincoln Electric
company. Since 1965, has seen the higher net income and incentives. Employees turnover is
nonexistent except for retirement and Lincoln 's organization culture supported on closeness, trust,
percentage control and classless tone is one of the reason why its so prosperous. History and
influence of ownership
In 1895, John C. Lincoln took out his second patent and began to fabricate his improved motor.
Establishing his new business with two hundred dollars he had earned designing a motor. John
Lincoln rather than being a manager preferred being an engineer and inventor. That 's why in 1907,
he give the General ... Show more content on Helpwriting.net ...
Lincoln claims levels of productivity more than double then the other manufacturers from 1945
onward.
The golden rule
James F. Lincoln was the son of a minister and Christian values were at the middle of his
philosophy. However, nothing pointed that he attempted to evangelize his workers, customers or the
public. His slogan was ' 'the actual is limited, the possible in immense ' ', which didn't display any
religious beliefs. He also had different views on customers, stockholders and union members. He
believe that customers interest should be the top priority and that stockholders should be the last
priority which is still the philosophy til today. He also Excused mistreatment of union power as and
believe that there must be absolute honesty and understanding between the hourly worker and
management if high efficiency is to be acquired.
The incentive management plan
It is a sort of complex scheme of management with an incentive program that has taken the
company a lengthy time to evolve to the point that new employees will trust it. It has four central
elements the open door policy, the merit–based bonuses, the use of piecework and the believable
promise of guaranteed employment. The four policy elements strongly strengthen each other out on
the factory floor.
Open door policy
The open door policy consist of representatives elected from various

Culture Of The Lincoln Electric Company
Written Assignment Unit 3
Culture of the Lincoln Electric Company The company culture of Lincoln Electric is one of
teamwork, support and innovation. After reading and reviewing the case study done on Lincoln
Electric by Arthur Sharplin of McNeese State University, I have come away with a better
understanding of how the company has become the role model for management world–wide.
Many different programs have been incorporated into the company that insures morale and
productivity levels remain high. Among these include end of year bonuses, good merit rewards, and
great benefits, all of which we go into detail later on.
How this culture came to be in the Lincoln Company begins with the founder's values and
principles. When James Lincoln ... Show more content on Helpwriting.net ...
If it did control our acts, the savings in cost of distribution would be tremendous. Advertising would
be a contact of the expert consultant with the customer, in order to give the customer the best
product available when all of the customer 's needs are considered. Competition then would be in
improving the quality of products and increasing efficiency in producing and distributing them; not
in deception, as is now too customary. Pricing would reflect efficiency of production; it would not
be selling a dodge that the customer may well be sorry he accepted. It would be proper for all
concerned and rewarding for the ability used in producing the product." (Lincoln, 1961)
It is said that early company values exert influence over future company values. This is true in the
case of Lincoln electric. As stated earlier, many programs have been incorporated into the business
to aid employees. The first year the advisory board was put into place, the work week went from 55
to 50 hours. In 1915, the company gave each employee a life insurance policy. In 1917, a welding
school was created which still continues today. In 1918, a bonus plan was put into action on trial
basis. It was removed and then reinserted later and became a strong point of Lincoln's management
system. In 1919, Lincoln created the "Employee Assocation" to provide health benefits and social
activities for employees. By 1923, employees were given two weeks paid vacation

The Legacy Of The Lincoln Electric Company
The Lincoln Electric Company was created by John C. Lincoln in 1895 after being forced out of the
Elliot–Lincoln Company. The Lincoln Electric company would go on to become the world's largest
manufacturer of welding products and machines. This all came to be due to the business culture
instilled by the founders and continued up to the present. A Harvard case study done by Arthur
Sharplin, shows the organizational culture within Lincoln Electric is unique to any single ordinary
business culture. There is evidence that points to the use of all seven OCP (Organizational Culture
Profile) principles, in order to maintain one of the world's most successful and efficient companies.
John Lincoln started the company and the values for its ... Show more content on Helpwriting.net ...
Even in 1977 when the company expanded by building a plant in Mentor, Ohio, they financed it
with $20 million in earnings. Even though John started the company, James Lincoln had the biggest
impact on the management style and practices. He created an advisory board that still to this day
meets twice a month in order to listen to employees who may have ideas or suggestions. The board
is made up of each department in order to allow every person in the company to have a voice. He
also helped start an in house welding school that still trains new employees to this day. He helped
create the Employees' Association to help provide health benefits and plan social events for
employees. He helped create a pension plan and a revolutionary incentives plan that is still used as
one of the best benefits of working for the company. He started allowing employees to buys stock in
the company as to inspire them to work harder. Finally although he never publicly stated it or
pushed religion he said believed a company should operate with Christian values, and that the
priority in the business would go first customers, second employees, and third stockholders. These
values and priorities still hold true in the company even today. The OCP's seven values all seem to
fit into the management culture that Lincoln still has to this day. Lincoln's incentive management
plan uses the outcome–oriented culture in order to emphasize achievement and results. Without
pushing

Challenges Of Lincoln Electric
Table of Content
Introduction ...............................................................................,,............pg 2
Lincoln Electric business model and employment system........................................pg 3–8
Lincoln business model to other business...........................................,.................pg 9
Lincoln Electric approach to employment and incentive in other country.......................pg 10
Challenges faces by Lincoln Electric ................................................................. pg 11–12
Conclusion................................................................................................pg13
References ..........................................................................................pg 14–16
Introduction Lincoln electric was founded by John C. Lincoln in 1895 with a minimal amount of
capital investment of only $200. During the early period of the company, Lincoln electric produce
and sell electric motors that was design by John himself. In 1907, ... Show more content on
Helpwriting.net ...
Porter five forces is the best choice to understand a market before entering it. Porter five forces peek
at the strength of 5 vital forces which affects the business competition. These five forces are
Supplier power, Buyer power, Competitive rivalry, the threat of substitution and the threat of new
entrant (Analyst 2015).
Supplier Power Firstly, Supplier power in porter five forces refers to how easy it is for supplier to
increase price of inputs. Fewer number of supplier choices means that supplier power is higher
(Analyst 2015). Lincoln Electric must choose their supplier wisely because choosing the right
supplier means that they would be able to maintain their cost and main competitive advantages in
India.
Buyer Power Secondly, Buyer power in porter five forces refers to how easy it is for the customer to
bring prices down. The higher the number of buyer means that the buyer power is higher (Analyst
2015). Lincoln Electric must attract customer in a unique way to win over customer that are already
purchasing from their competitor.
Competitive

The Golden Style Of The Lincoln Electric Company
The most–admired company
Lincoln Electric Company is an epitome of a well–run company with an outstanding record of
accomplishment in terms of productivity. This success has achieved by prioritizing the needs of its
employees. Even the group of stockholders will be the last order of priority of the company.
The company's philosophy has centered on Christian ideology. Lincoln Electric Company has an
astounding reputation of being generous company in terms of giving bonuses and other benefits,
which the company continues to embrace since the early beginnings of the company. Because of
that, it achieved tremendous success by properly motivating its employees. ... Show more content on
Helpwriting.net ...
Aside from it, this essay will enumerate the golden rules of the company, which I believe the core of
its success. This will base on the Case Study of Arthur Sharplin from Harvard University in 1989. In
the concluding part, I will describe based on what I learned from this case study about the kind of
management style does Lincoln Electric Company

The Legacy Of The Lincoln Electric Company
The Lincoln Electric Company, located near Cleveland, Ohio, USA, is one of the world's
largest welding machines and electrodes manufacturers. It is a company with a distinctive
organization culture and not only is it one of the world's largest, but also is considered to be one
of the best managed manufacturing companies in the world. By taking a closer look at the
ongoing influence of the founders of the company, the golden rule, the incentive management
plan, the performance appraisal system, the way people communicate within the company, the
merit pay plan, the bonus plan, and the management style it is clear to see that the Lincoln
Electric Company is indeed a very well–run organization due to its unique and diacritical ... Show
more content on Helpwriting.net ...
Also, a welding school was started in 1917, and continues to provide
educational services to today. Furthermore, an employees' association was formed in 1919 in
order to provide health benefits and social activities to employees. This association is still active
today and has accounted for several functions over the years and will continue to do so.
The Lincoln Electric Company was founded based on Christian principles and James
Lincoln believed that every action be motivated by Christian ethics. Although, James Lincoln
held such strong Christian beliefs, there is no evidence that he tried to preach the Christian
gospel to his employees, customers, or even the public. Even today, in recent interviews, the
current senior executives do not talk about the Christian gospel message. The motto of the
company is, "The actual is limited, the possible is immense", which actually has nothing to do

with Christian beliefs. The company motto is very fitting and correlates well with the
organizational culture of the company. The Lincoln Electric Company believes heavily on
incentives and production based compensation, therefore, adding to its belief that the possible is
indeed immense. Adding to this, even advancement in the company is based more on merit and
production than the amount of time that one has been at the company. In an interview conducted
with Ed Sanderson, one of the company's employees, Ed says that,

Essay On Lincoln Electric Case Study

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Essay On Lincoln Electric Case Study