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Lincoln electric case study - Essay Example

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Lincoln electric case study

Managers respect the production workers. They are also respected and valued for their contribution to the company’s business. The fact that the worker’s contribution is no less than that of the management towards the growth of the organisation is recognized and acknowledged by each of its member. Decentralized approach has made it possible even for the workers to challenge the management in case of wrong and unfair decisions. They can voice their opinion in case they feel that a certain decision taken by the management is unfair, or likely to bring negative effects on the organisation. Most of the workers are fresh pass-outs from schools when they are absorbed by the organisation and are provided the required training to perform various functions. Some of them are promoted to the position of executives because Lincoln believes in promoting employees from within the organisation and not from outside.
The major reasons that can be attributed to the success of Lincoln are its quality standards and its responsibity towards its workers. Both these aspects have gone a long way to make this system extremely successful. The company focuses primarily on the welfare of its employees and their performance levels automatically improve. Workers are paid according to the piece rate system and rewarded for their performance. It is strictly ensured that they exceed their performance goals in order to achieve maximum pay. They are encouraged to put in their best efforts and rewarded accordingly. This company provides so much support to its employees that it has become their second home which bars them from leaving the company.
Success of the organization in United States called for the process of diversifying its roles in foreign countries. Lincoln decided to purchase a number of plants in Japan, South America and also in some of the European countries. It ...Show more


This project aims to bring forth the reasons as to why a company that had operated successfully in the home country has failed to perform equally well in a foreign land. Difference in culture of the two countries has been interrogated in this regard. The project also includes…
Author : ffunk
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