Company Culture And Culture Of The Lincoln Electric Company

“The Lincoln Electric Company”

The aspects of the companies Culture

Formed in 1895, The Lincoln Electric Company is a model of the Human Resource Management. James F. Lincoln the founder set out to organize the company. He had a strong believe that the customer came first, employees second, then the stockholders. Therefore, profits are to be last, it was preferable to give the customer the best product available at a reasonable price.

The continuing influence of the founders of the company, James Lincoln created the Advisory Board Committee which allowed them to meet twice in a monthly basis to discuss company operations. This was the beginning of a series of personnel innovative policies which helped the company to distinguish from its contemporaries. As the incentive management plan has been established, it was the bridge to achieve high employee productivity. One of the first accomplishments was to improve the employee benefits, such as reducing the weekly journal hours; from 55 to 50 hours weekly. In addition, a "paid-up life insurance" has been provided. Moreover, an employee plan was attempted but was not continued. However, the idea became the backbone of the management system. As it was mentioned earlier, the bonus plan was brought again by the Advisory Board and accepted on a trial basis. It eventually became the cornerstone of the company management system. Unlike, many companies nowadays, Lincoln 's approach toward the stockholders was the last priority they faced. Customer 's satisfaction was the focus of the company 's culture.

By following that approach, the company developed customer loyalty, as their product development was well above