Lincoln Electric Culture

Analysis on the company culture of Lincoln Electric Company

I will be doing a case analysis on the company culture of Lincoln Electric and the influence of the founders and managers of the business.

The continued influence of the founders.

The founders have played a major part in the culture of the company. Furthermore, a lot of the policies and procedures put in place by the founders are still core values and part of the organizational culture of the business today. From the case study, it would seem that the company has an innovative culture to some extent. There is a small hierarchy of management but employees are encouraged to bring their ideas to the advisory board who will then discuss these ideas with top management. This is furthermore

And their annual bonus is calculated based on this evaluation. There are several areas of evaluation. One of the basis of evaluation is “ideas and cooperation” which would constitute that innovation is encouraged.

Communication in the company

Employees communicate or supervisors or the committees put in place. They then communicate with top management. Could somewhat be a flat hierarchy as there are not many levels of management between the operational worker and the president of the company. There is an open door policy and people should speak to the person they think can resolve the issue instead of just talking to his/her supervisor which would encourage a flexible working environment.

The merit rating card and bonus plan

The merit pay plan has 4 different criteria’s. “quality, dependability, Ideas & cooperation, and output”. Workers are evaluated by their supervisors and results are discussed with them. Workers are then paid an annual bonus in December based on their merit card score

The management

From the case study, there is a clear feeling that the company cares about customers and employees above all else. Including shareholders. Every employee has a clear understand of their job and do it to the best of their ability. Innovativeness I encouraged and rewarded.

The organizational culture profile (OCP) for this company has multiple dimension. O’Reilly, C. A., III, Chatman, J. A., & Caldwell, D. F. (1991).

Every employee has some sort of input into the processes and procedures in the company. Whether it’s a new idea or an idea for improvement. Ultimately the decision to implement or improve a process or procedure, based on the idea of the employee sits with top management and the president of the business. Furthermore, the employees are rewarded if their ideas are implemented. Therefore, there is an innovative culture.

The company does not have an aggressive culture. They value their customers and employees above all else.

The company also has an outcome-oriented culture. Employees are rewarded based on the work they have done. This can be seen through the performance appraisals, merit rating cards and an annual bonus based on your