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Introduction
Lincoln Electric (LE) is a worldwide leader in production of welding equipment with more than US$1 billion in sales and 6,000 workers. John C. Lincoln designed and made an electric motor with a $200 investment in 1895. Today, members of the Lincoln family own more than 60 percent of the stock.
The Lincoln Management System
Lincoln Electric’s management system is so successful that other businesses use it as a benchmark. They have effectively used feedback type control to achieve their success (Lincoln Electric, 2003). Many companies have tried to figure out how leverage decentralized management to achieve maximum productivity and quality from its workers, even during difficult financial times.
Lincoln Electric has been extremely successful over its 100 year history. . A large part of their success can be attributed to this unique and effective management style as well as the employee ownership and incentive management system. This style of management is further supported through a combination of structural, strategic and cultural norms.
To eliminate the hierarchical structure of flat and non-functional middle management level, LE is structurally different than other firms. Lincoln has an open door policy between workers which is well understood. Strategically, to maximize the performance and reduce costs this pushes LE into an integrated approach. For motivating all employees through bonuses, in large part provide Lincoln’s incentive management system provides a tool, of the redistribution corporation annual profits (Davis, 2009).
LE has adopted a decentralized two-fold focus as a basic control method (Lincoln Electric, 2003). Exceedingly strict performance goals are use in order to achieve top pay. These goal...
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