Analysis Of Lincoln Electric Company

The Lincoln Electric Company is a revolutionary company that has taken a new approach on how to effectively run a business. They produce welding machines and electrodes and have been doing so since 1895. The Lincoln Electric Company is very well known for its innovative management style, which is very informal and different in comparison to similar businesses in the market. Their organizational cultures have always been a considerable asset to the company. Firstly, one of the aspects of the Lincoln Electric Company that sets it apart is their merit score system. Twice a year, employees get evaluated and given a score based on their dependability, quality of work, output of production, and contribution of ideas to the company. The merit score

By paying through a piece rate, workers strive to work harder and produce more so that they will get paid more. This aspect of the company also shows how they are outcome-oriented. A downfall to this system is that not all tasks that need to be performed have the same rate of pay as others, and employees don’t get to pick which tasks they are going to do. Tasks are assigned by a supervisor. This might become a problem in the event of favoritism or if a supervisor is giving an unfair disadvantage to someone. This must not happen frequently though, because Lincoln Electric Company’s turnover rate is almost nonexistent except for retirements. Workers seem to be very satisfied with the compensation plan they have in

The organizational culture of this business values informality, and there are few degrees of separation between workers and top management. Many of the laborers know the supervisors by name and communicate with them often. By keeping top management close to laborers, it is easier for all employees to gain a sense of teamwork among them. When there is a sense of teamwork, members can support and encourage one another to do better. In this respect, the Lincoln Electric Company seems to have a team-oriented