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Lincoln Electric Company Culture

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ORGANIZATION CULTURE OF THE LINCOLN ELECTRIC COMPANY
INTRODUCTION
Lincoln Electric Company (Lincoln Electric) was founded in 1895 by John C. Lincoln, headquartered in Cleveland, Ohio. Lincoln Electric is the world’s largest manufacturer of arc welding products, robotic arc-welding systems, plasma and oxyfuel cutting equipment and a global market leader in brazing and soldering alloys market (Lincoln Electric, n.d). Lincoln Electric has more than 40 manufacturing locations around the world with distributors and sales offices covering more than 160 countries.
The success of the Lincoln Electric Company generates a lot of admirers from inside and outside of the company and is commonly used as a role model in achieving high worker productivity. …show more content…

Lincoln’s goal often stated “protect customer interest by building a better and better product at a lower and lower price.” Employee interest will come second and stockholders interest will come last.
INCENTIVE MANAGEMENT PLAN
The biggest driver in the success of Lincoln Electric is in its incentive management plan that rewards employee up to their approximated annual wages. Their base rates are translated into piece rates (piecework pay system) and are based on similar jobs in Cleveland area and the evaluation of their formal job. Lincoln has a strict policy in promoting from within, jobs are advertised internally on company bulletin and any employee can apply for any job.
The piecework pay system pays the worker on the number of electrode they produced. The more you make, the more you earn. Combining the piecework pay system with the annual bonus plan where worker can earn up to their annual wages, this make worker at Lincoln Electric the highest paid factory worker in the world. This incentive plan is the cornerstone of Lincoln Management System in achieving the highest worker productivity.
PERFORMANCE APPRAISAL …show more content…

The ownership of stock strengthens team spirit, make them more responsible, and value the company more as the success of the company is important to them.
CONCLUSION
After reviewing and analysing the features of the company, we can conclude the Lincoln Electric Company comprises of several organization culture profile and they are: Aggressive, Outcome Oriented, Stable and People Oriented.
AGGRESSIVE CULTURE
Lincoln Electric is very competitive and outperformed their competitors. Their productivity is twice the level of those other manufacturers in the same industry. Their aggressive culture allows them to continue to produce quality products at very low price that is unmatchable by its competitors.
OUTCOME-ORIENTED CULTURE
Workers are on piecework pay system, you get paid for what you make. The Merit Pay Plan forms the backbone of the outcome-oriented culture in Lincoln Electric, which effectively double an already average compensation salary. Because of this reward system, workers are more willing to push and work harder.
STABLE CULTURE
After a year of service, worker is guaranteed he will not be discharged except for misconduct or violation of company’s policy. Since 1949, there has been no

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