Analysis On The Lincoln Electric Company Essay

Every organization has values and beliefs that define what they do and how they do things in the organization. These values have significant influence on how the employees behaves and the general performance of the organization – it is these set of values and beliefs, rooted deep in the company’s organizational structure that depict the “dos”, “don’t” and the “hows”, of the organization and these unequivocally represents the culture of the organization. This concept became popular in the 1980s when Peters and Waterman in their book: “In search of Excellence” presented the profound argument that, the success of any organization is inextricable linked to the quality of its culture. (Carpenter, M., Taylor, B., Erdogan, B. 2009 p183). The purpose of this paper is an attempt to analyse the impact diverse cultures played in the success of the Lincoln Electric Company.

The Lincoln Electric Company was a legacy company from which the families ' personal values were incorporated in the beginning and continue to be the fundamental beliefs compromising the company 's culture. By creating and implementing a culture of service, respect, and loyalty, the Lincoln Electric Company has become an institutional leader in American business standards. Lincoln 's culture cannot be summarized by a single dimension of cultural analytics because of its multifaceted culture that is innovative, outcome-oriented, people-oriented, and team-oriented

With the years going by, Lincoln Electric Company, despite its excellent performance in production, has been growing in a very steady speed, and never really grew to a large scale 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.

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.

Organization culture which is a system of shared assumptions,values,and beliefs showing people what appropriate and inappropriate behavior can best be analysed in the Lincoln Electric Company from the P-O-L-C Framework as below.

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.

Lincoln Electric Company has a very strong culture based on shared assumptions values and beliefs. This is evidenced by the attitudes of both the company management and employees towards the organization. The unchanged policies, practices and products point towards a very strong corporate culture. High employee performance and productivity over the many years of the company’s existence is also another indicator of a strong culture.

The Lincoln Electric Company is a shining example of an effective organizational structure. In this analysis, summarized from Arthur Sharplin’s case study from 1989, several different aspects of the culture will be discussed and how they have propelled the company in to success. The first aspects will be the company’s mottos, long standing traditions and way of communication; afterward, the pay structure, including bonus programs and performance reviews and to conclude, the management style. The Lincoln Electric Company’s management and culture have been researched and referenced by many, nearly any company could benefit from at least one of the key aspects of the welding equipment manufacturing giant’s strong culture.

Lincoln Electric Company was founded in 1895 by John C. Lincoln, who was joined by his brother younger brother James in 1907 (Lincoln Electric, Inc., n.d.). From the very beginning these no-nonsense brothers set about building a company that valued its customers first, prioritized frugality, focused on delivering ever increasing value and lower consumer costs. The company has a borderline fanatical commitment to achieving competitive advantage through an employee incentive system that drives productivity well beyond any norms for the industry, or manufacturers as a whole. To this day, the influence of the founders is clear in the entire structure of the company and its operating philosophies. The

According to the usual measures of success, Lincoln has been a successful company. It 's market share is stable and productivity of the company per employee is well over average, more than twice of his contemporaries; claimed by the Founder. Many college management texts refer to the Lincoln Company plan as a model for achieving high worker productivity.

Lincoln Electric’s management style is, for one, progressive and employee-oriented. When James F. Lincoln became the active head of Lincoln

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

James Lincoln was the son of a congregational minister and his Christian values were a guiding principle in his managerial decisions. When viewing his employee policies, we can see the golden rule at work. The needs of employees at every level are thoughtfully considered and aligned with the needs of the company. More than that, the customer is also given great consideration and the creation of products with real value is given providence over marketing or advertising. There is a genuine commitment to creating real worth rather than short term profits. James treats both the customers and the employees with respect and dignity, creating a culture is that is people oriented. The only people involved in the business that are not see as important are the shareholders. They are not actively involved in the business and their interests are therefore seen as the least important. This attitude may have protected Lincoln from a gradual change toward a more aggressive or sales oriented culture.

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.