The Lincoln Electric Company was created in 1895 by John C. Lincoln. By 1914 John's brother, James F. Lincoln, took over company operations. The legacy and framework created by these brothers runs deep and is strongly reflected in company culture even nearly a century later. Many of the incentives, policies, ideas, and processes implemented during the brothers' oversight are still in practice and strongly embraced. Sharplin's case-study was published in the early 1980's and describes the way The Lincoln Electric Company is run, details company structure, and contains interviews with employees. This essay will analyze The Lincoln Electric Company culture based on Sharplin's …show more content…
Lincoln based many of the company principles on his religious beliefs. Lincoln never pushed his religious beliefs on employees nor did he use the company to promote any of his religious views. These views translated to putting customer's interests first and stockholders last. He insisted that was the best way to produce the best products at the best price in the industry. Lincoln put employees before stakeholders. He believed that employees and managers should cooperate proficiently since they are part of the same organization and have the same needs. Lincoln believed that financial stability is of the utmost importance to both the company and the employee, and he created incentives that reflected the accomplishments of employees.
The Incentive Management Plan is one of the most important legacies left by the founding brothers. The Advisory Board, open-door policy, piecework pay system, merit-based bonuses, and guaranteed employment are part of the cultural framework that make up the Management Plan at The Lincoln Electric Company. Many other benefits and incentives were implemented over the decades, which contribute to the success and culture of the company, such as a welding school, promotion from within, and the Employees' …show more content…
Managers share the same common areas as their employees, and receive no additional perks not enjoyed by other employees. Sharplin mentions how there is not a formal organization chart and that employees feel as though they are no more than two or three steps aways from the President of the company.
Management style at The Lincoln Electric Company is participatory, though authoritarian. Management's authority is of the utmost importance and is respected by employees. They expect efficiency and hard work from all employees. Even though management is considered authoritarian, they show a great deal of trust in the employees to do their jobs. Employees are rewarded for their ideas that improve business through a suggestion program, which was implemented in 1929. Management is very hands-off and provides employees with a considerable amount of responsibility, though not necessarily