Case Study: General Electric

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1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse and BOC? What is the source of Lincoln’s outstanding and enduring success?

Lincoln was able to grow and prosper through the process of human motivation which is called incentive management. James F. Lincoln, who founded Lincoln Electric summed up in his monograph that employees have no desire to develop their skills in the workplace unless paid properly (Lincoln, 2016). He then talks about how incentives create cooperation, for if employees are not recognized, they will not cooperate with productivity (Lincoln, 2016). The incentive system included compensation and benefits e.g. bonus systems, piece rate pays …show more content…

As soon as Massano did his research, he immediately realized that most of Lincoln’s attention was on the quality of manufacturing facilities which cause small market shares and sales (Lincoln, 2016). Another issue Massano discovered was that production had kept cost high. Once he researched all of the issues, he then developed a strategy to clean up the problems.

His two main goals in the process of cleaning up were shutting subsidiaries that could not be salvaged and also save the plants in Europe by increasing volume from improved sales (Lincoln, 2016). With Massano’s new approach in 1996, he ended up becoming CEO of Lincoln Electric. Some of his contributions were:
• Providing a new structure for the company’s international operations, including president’s for five regions
• Compensation based on Massano’s desire for interregional cooperation (Lincoln, 2016)
• Bonus system incentive motivated to develop profitable production while increasing sales (Lincoln, 2016)
• Giving international managers the ability to employ local staff for their region (Lincoln,

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