The purpose of this case analysis is to analyze the culture of Lincoln Electric Company. According to Harvard Case Study by Arthur Sharplin, this company is the world’s largest manufacturer of welding machines and electrodes.
Let’s look at the Continuing Influence of the Founders of the Company.
John C. Lincoln business was incorporated but in 1906 and he expanded his workforce to 30 and sales grew to over $50,000 a year. James F. Lincoln joined the company still small and he became the General Manager and Vice –President of the company. Employee morale and productivity remained with higher profits and bonuses and Lincoln’s market share is stable. When the advisory Board came into power, between 1915 and 1917, a paid-up life insurance policy was given by the company to the employee and a welding school was begun. In 1918, an employee bonus was attempted. In 1919, the Lincoln Electric Employees’ association was formed. In addition, the Board of Directors voted to start a suggestion system in 1929. The legendary Lincoln bonus plan was proposed by the Advisory Board and accepted on a trial basis by James Lincoln in 1934.
The golden rule emphasizes on James Lincoln’s Christian ethics which he says “Treat People as you would like to be Treated” “In his words, he says if the Christian ethics control our acts, the savings in the cost of distribution will be tremendous.” In his view, the customer should always come first.
Lincoln’s Incentive Management Plan was defined by the company’s rules, regulations, practices and programs which have been consistent since the inception of the company.(Recruitment and Selection, Job security, Training and Education, Work Assignment, Performance Evaluations).
Recruitment and Selection: A Job vacancy is advertised within the organization, so employee has the privilege of applying for a higher position. This is usually pasted in the