The Legacy Of The Lincoln Electric Company

Headquartered in Cleveland Ohio, Lincoln electric’s business model consists of distributing welding consumables, equipment’s and solutions. Lincoln initially traded electric motor cars and steadily moved on to welding. Lincoln’s vision, led by founder John C. Lincoln is to provide high quality welding, joining and cutting equipment’s globally.

Lincoln Electric Company is a manufacturing company, which has been focusing on welding products for the recent 30 years. The company had outstanding brothers leading the company to success. John was a technical genius and he brought the best skills in production and James was good at management and he was working on the employees ' incentives. The company gained its reputation through the world war till present as the welding equipment supplier with higher quality and lower price at the same time. For the production aspect of welding equipment, it is an advanced production line with continuous flow with high flexibility and low idling time.

Lincoln Electric Company was founded by John C Lincoln in 1906 starting with a start up business in a one room, 4th floor factory to a bigger building and started to expand his workforce to 30 people and had a great expand in their sales as it grew over $50,000 a year. He was humble, preferably to be an engineer and inventor rather than sitting around being labelled as manager. The company also gave each of their employee as paid-up life insurance policy in the 1915. After 2 years, welding schools are introduced. A year after the success of forming a welding school, employee bonus plan was attempted.In the 1919 's, Lincoln Electric 's employees association are formed to introduced some social activities and health benefits to care for the workers. After becoming General Manager, in 1925; a purchase stock plan are enable for all employees. Lincoln bonus plan was finally accepted as a trial by the Advisory Board in 1934.

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 Lincoln Electric Employees' Association was formed in 1919 to provide hearth benefits and social activities.This organization continues today and has assumed several addittional functions over the years.

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.

Elements of Lincoln Electric’s management system that made it so popular in the U.S. such as piece-rate work, bonuses, and

But to have an insight on how a company reached its current level of success

The founders of the Lincoln Electric Company left a legacy of an organization culture that promotes high productivity through sound management policies which have stood the test of time. The exponential growth of the company after the death of James F. Lincoln was a direct result of the establishment of a rich culture mix based on values that were widely shared and accepted by the members of the organization. Management empowered employees to become part of the decision making process through the contribution of ideas through the Advisory Board which was elected by the employees from amongst themselves. Reward management systems and all the other artifacts of the Lincoln Electric’s distinguished strong organizational culture will be analyzed in greater detail in this essay.

Lincoln Electric is one of the leading producers and manufacturers of Arc Welding Products and Electric Motors. It is undeniable that the success of Lincoln Electric lies on the foundation of the various company policies introduced by James Lincoln.

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 is founded upon a strong foundation of competitive logic, using manufacturing to create the highest quality welding equipment and the lowest costs.

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.

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.

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.)

What is the right culture to choose for your business? Do you want to be team oriented, innovative, aggressive or outcome oriented? For a business, this decision, of choosing a work culture often dictates unforeseen outcomes. But why choose one? The Lincoln Electric Company decided to use many of the of the seven work culture profiles to create their own unique business culture. It will be the goal of this essay to understand the seven different work cultures and discover which work culture the Lincoln Electric Company resembles best. The seven different work cultures that will be reviewed are innovative, aggressive, outcome oriented, stable, people oriented, team oriented and detail oriented.