The Pros And Cons Of The Lincoln Electric Company

The polices implemented by the Lincoln Electric Company have been so effective that the rate of turnover is restricted to retirements and new employees leaving the company. Long term employees of the company usually find no reason to leave. The organization doesn’t have a formal organization chart like those of many companies today. This leaves room for flexibility and allows employees to have their problems resolved by the most capable person available. This eliminates the chain of command restrictions that are faced in companies today where you have to report the issue to your direct manager before it can reach someone who can actually fix the problem. This “open door policy is practiced throughout the company”. – Arthur Sharplin, 1989.

This can boost morale as it doesn’t limit employees to feeling stuck in a niche and gives them hope of advancement. There are no requirements that are needed to apply for these jobs with the exception of a few positions that require an engineering degree. “When an employee feels threatened by a lack of job security, she may stop putting the necessary effort into completing assignments and interacting with colleagues, due to a belief of not having a future with the organization.” – Laura Woods. Lincoln definitely subscribed to this belief and as a measure to eliminate this concern, the implemented a policy which ensures each employee a guarantee that they will not be fired after a year of employment unless they are guilty of misconduct and they will have at least a 30-hour work week each week. The Lincoln Electric Company has not had any layoffs since 1949. This would provide job security and satisfaction. They also have a very selective hiring process and external candidates are only selected for entry level positions. Once a candidate has a personal interview with the Personnel Department and have been cleared for the next level, they then meet with a committee of vice-presidents and superintendents. After the candidate has made it through that process, the supervisor who the candidate will be reporting to makes the selection. This process is the

Upper management collaborates with the employees represented by the Advisory Board and the have an open door policy which allows employees access to anyone who is capable for providing them with the necessary assistance or information if needed. The employees share the company’s vision and values. This is reflected in the low turnover rate and the minimal supervision that is needed while maintaining high productivity and efficiency. The job security that Lincoln offers can be attributed to high job satisfaction as there are not many companies where you are guaranteed a job or adequate hours. Because of this Lincoln’s organizational culture is strong. A strong culture is difficult to change however there is no need to change Lincoln’s culture as it has been working for over 100 years successfully and shows no indication of failing. The culture is heavily influenced by the values of the founders who implemented many of the policies and procedures which are in place today. This is part of the reason why the company has flourished through the years. The groundwork was laid by the early values of the founders and they have been improved upon in the years since. This is part of the maintenance of the