Organizational Culture And The Lincoln Electric Company

ORGANISATIONAL CULTURE AND THE LINCOLN ELECTRIC COMPANY The success of a business is intimately tied to the success of its culture. To understand better how organisational culture is created and maintained we will examine one of America’s most successfully managed companies, the Lincoln Electric company. We will examine many aspects of the company that contribute to its culture, such as the influence of the company’s founders, the golden rule, the incentive management plan, the performance appraisal system, the merit pay plan, the bonus plan, the way people communicate within the company and the management style. In analysing these we will reveal a strong people oriented culture formed and maintained for over a century. Lincoln Electric†¦show more content†¦Consequently, there has never been an attempt at unionising within the company and this is partly due to there not being a need. When workers are not being exploited, there is no need for them to fight back. 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 . Lincoln’s incentive management plan is not only exemplary in its structure, but also in its implementation. For example, piece work has been shown to increase worker productivity, but has also been widely abused as a means of rewarding workers less for the work Organizational Culture And The Lincoln Electric Company ORGANISATIONAL CULTURE AND THE LINCOLN ELECTRIC COMPANY The success of a business is intimately tied to the success of its culture. To understand better how organisational culture is created and maintained we will examine one of America’s most successfully managed companies, the Lincoln Electric company. We will examine many aspects of the company that contribute to its culture, such as the influence of the company’s founders, the golden rule, the incentive management plan, the performance appraisal system, the merit pay plan, the bonus plan, the way people communicate in the company and the management style. In analysing these we hope to understand not only what the culture of Lincoln Electric is, but also how it was formed and how it is maintained. Lincoln Electric was formed in 1895 by John Lincoln and was later taken over by his younger brother James Lincoln in 1914. While the inventions of John created the patents that formed the basis of the company’s profitability, it was James that in many ways founded the culture of Lincoln electric that still flourishes today. James saw the customer’s need as the primary reason for the company’s existence. He also saw that for a company to achieve its primary need it must do so via the productivity and performance of its employees. Seeing the employees as central to success has played a huge part in the formation of the culture of Lincoln Electric. There has never been an attempt at unionising in the company and this is partlyShow MoreRelatedOrganizational Culture Of The Lincoln Electric Company1107 Words   |  5 PagesThe Culture of a Company, or the Organizational Culture like it is mentioned in Principles of Management, has gotten a new dimension for me in term s of importance to assure the success of a company. This Organizational Culture is based on a series of values that are defined and established by the founder of a company for instance, which has a deep relation with his ethics and moral values. Therefore, the first factor to outline would be what the culture of a company shows, that can describe alreadyRead MoreOrganizational Culture Of The Lincoln Electric Company1439 Words   |  6 PagesIntroduction 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 implementedRead MoreThe Organizational Culture Of The Lincoln Electric Company1035 Words   |  5 Pagesthe 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 itRead MoreOrganizational Culture At Lincoln Electric Company Essay957 Words   |  4 PagesOrganizational Culture at Lincoln Electric The Lincoln Electric Company, a manufacturer of welding equipment and supplies, was founded in 1895 by John C. Lincoln as a manufacturer of electric motors. In the early years of the 20th century, James F. Lincoln joined his brother’s company and by 1914 replaced John as the company head, allowing the latter to concentrate his efforts on scientific investigations. In those early years, James F. Lincoln implemented a number of programs and initiatives withRead MoreThe Organizational Culture Of The Lincoln Electric Company1016 Words   |  5 PagesThe 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 wasRead MoreThe Impact Of Organizational Culture On The Lincoln Electric Company892 Words   |  4 PagesThrough my reading about LINCOLN ELECTRIC COMPANY I can see that organizational culture played an important important role in success of this company. All main elements that form Oranizational culture represented in THE LINCOLN ELECTRIC COMPANY, that what made this company prospered and thrived in its activity through the applying The P-O-L-C Framework effectively. I can discern the aspects of influence of oraganizational culture in manging this co mpany towards higher levels in output through theRead MoreOrganizational Culture And The Lincoln Electric Company1303 Words   |  6 PagesORGANISATIONAL CULTURE AND THE LINCOLN ELECTRIC COMPANY The success of a business is intimately tied to the success of its culture. To understand better how organisational culture is created and maintained we will examine one of America’s most successfully managed companies, the Lincoln Electric company. We will examine many aspects of the company that contribute to its culture, such as the influence of the company’s founders, the golden rule, the incentive management plan, the performance appraisalRead MoreAnalysis Of Lincoln Electric Company Of Cleveland Ohio Usa S Organizational Culture877 Words   |  4 PagesLincoln Electric Company of Cleveland Ohio USA`s organizational Culture is exceptional and has earned it the acolade of being the best managed manufacturing company in the whole world. I will explore and attempt to identify culture aspects of Lincoln Electric from several issues such as; the continuing influence of founders of the company, the golden rule, the incentive management plan,the performance appraisal system, how people communicate in the organization, the merit pay plan, the bonus planRead MoreThe Legacy Of The Lincoln Electric Company Essay718 Words   |  3 PagesThe Lincoln Electric Company proves that the right mix of â€Å"organizational culture styles† can achieve profitable business growth over the long haul. The continuing influence, employee benefits/incentives, and management styles initiated by company founder John C. Lincoln and James F. Lincoln have built a profitable business for shareholders and employees alike. Let’s, look at Mr. Author Sharplins Harvard Case study and The Lincoln Electric Company webpage to further delineate the styles of organizationalRead MoreLincoln Electric Company s Impact On Corporate Culture905 Words   |  4 Pagesvalue†; as found within Lincoln Electrics’ Vision Statement (Lincoln Electric 1999-2016). The beliefs and values transferred from company founders and instilled into employees can have an overwhelming impact on corporate culture. By establishing a positive corporate culture one can influence exceptional company performance. This is clearly demonstrated by Lincoln Electric Company, from its early days until its present day. I will present how the Lincoln Electric Company has done just that! Before