Case Study Of The Lincoln Electric Company

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The Lincoln Electric Company ( LEC ), is a very interesting company to analyze because as noted in the book, Principles of Management in chapter 8, culture is a more powerful way of affecting, controlling, and managing employee behaviors, than organizational rules and regulations. In the LEC, study case paper, Prepared by Arthur Sharplin, McNeese StateUniversity, Lake Charles, LA 1989. we can see how the culture in the company has outlived the founders and in fact the culture got stronger with minor adjustments, just like any other company that makes adjustments in order to coexist in the current times. LEC seems to have an organizational structure in which, all 3 interrelated levels are in effect. Going in more…show more content…
this is combined with the leadership of the management in which there are rules in place, but at the same time they are flexible and people oriented without loosing focus of the main objective in the production of the company, which is somewhat related to the culture because the culture sets the pace for the leadership, and a good reward system, starting for the wages that are paid to the employees, this can be reflected in the minimal if not zero turnout of employees, because the get paid above industry average, also they are in a piece pay system, which allows them to make more money, there is also a merit pay bonus plan, in which they get semiannual evaluations, this evaluations have a direct impact on their annual bonuses, at the same time the have the option of stock buying option, not everyone buy stocks, but the ones that do, have a sense of belonging, because they can see how the company profits are doing, thus having an effect in their performance, because now , all of a sudden is not just them working for someone else’s company, now they are part owners of the company in which they work in, the bonus program that LEC has in place is outstanding, (i.e. in 1979, the bonuses totaled $

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