Analysis Of Lincoln Electric Company
James Lincoln was a man who believed in the “Christian ethic”. He did not preach, but he did build a company from the ground up. He completely separated business and religion, but believed in having good morals towards both. He believed in the idea of a quality product at a low cost. He was a very driven man who had to try a few times before he made it. He was able to, in 1906, build a three story factory after only starting the business with $200.00 in
1895. That in itself shows a lot of determination, and perseverance. James Lincoln was quoted as saying, ”build a better and better product at a lower and lower price.” …show more content…
There was never a strict framework to which the company was structured.
There are a few good reasons people choose to work for the Lincoln Electric Company. The
Lincoln Electric Company does have very good incentives. This company is known for their bonuses that started way back in 1934. That first year of bonuses were 25% of wages. Since then, the bonuses have grown to literally a year’s salary. That is a great incentive for anyone who does not like to stand around at work. A busy worker is a productive worker, and most employees do not even take coffee breaks. This company does expect a high output, and their turnover rate is actually really low. They do hire a lot of people that otherwise might not be able to find decent wages, you don’t even have to have a high school diploma to work there.
There is a guarantee for employees after their first year that they will get 30 work hours a week. New Employee …show more content…
Instead, he stayed with the company as an inventor, knowing managerial skills were not his forte. There was always and still is a very laid back management style with an open-door policy. The Advisory Board had been created in 1914, and in 1929 voted to start a suggestion system. This creates a very good atmosphere for communication between management and employees. Employees bring to the table an aspect that the management might not notice.
Having that open door policy, is welcoming to the employee. Any worker is going to feel better about their place of employment when they feel like their opinions matter, instead of just a body filling a position that makes the company profits. Even the president of the company eats lunch in the cafeteria with everyone else, and has no executive suite. That would create less of a separation between management, and make it more comfortable. That too shows why they might have such a low turnover