Harvard Case Study: The Lincoln Electric Company

Superior Essays
After reading Arthur Sharplin’s Harvard Case Study, the Lincoln Electric Company (1989), you get an incredibly good idea of just why it’s considered one of the best managed manufacturing companies around. The culture of entire company seems to be one that is focused primarily on people instead of profits. Looking at the case study with the ideas of Organizational Culture Profile in mind, you can see evidence of several different values that have combined to create the unique culture that permeates the company.

Throughout Sharplin’s case study, you see the underlying theme of a people-oriented culture, but with elements from other values as well. Some of the other values I found were outcome-oriented, team-oriented, and detail-oriented. I hope
…show more content…
13-16), you can see that the employees overall feel that they are entirely invested in the Lincoln Electric Company. Many of them state that compensation is the leading advantage of working there. Some state their salary, along with bonuses, was around $50,000. According to the US Census Bureau, the median household income before taxes in 1980 was $17,710 (US Census Bureau, 2003). The difference in the average household income and the income from Lincoln Electric is large. Several of the employees interviewed stated that upper management knew them by name, which is something else that sets this company apart from others.

After analyzing the case study, you can understand the culture of Lincoln Electric Company leans toward its people at all times. When looking at the company culture, there does not seem to be any sign of subcultures within separate departments, even though several different values are seen throughout. Here, each value or culture is maintained simultaneously throughout the whole company. That flexibility has enabled Lincoln Electric to produce a quality product and keep employees that are totally invested in the company, which in turn, allows for a much higher level of productivity than other

Related Documents

  • Great Essays

    Globoforce Case Study

    • 1451 Words
    • 6 Pages

    Introduction A leader is a person who leads a group of team and drives them towardsthe achievement of company’s goal and objective (Adair, 2007). He motivates people working under him and gets the work done by them. However whenever a leader exercises his power and responsibilities some problem occur, some conflicts arise. This report will address those topics.…

    • 1451 Words
    • 6 Pages
    Great Essays
  • Decent Essays

    Gfs Corporate Culture

    • 222 Words
    • 1 Pages

    Corporate culture is an important part of business often being the influence of the employees. A good company culture can motivate and boost individual’s moral when the culture matches their own beliefs. Working for Gordon Food Service (GFS) I was told to follow a servant leadership approach in everything we did. I was in charge of training our employees on customer approach.…

    • 222 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    An organizations' culture is its values and behaviors that contribute to the unique environment of the group. Organizational culture includes an organization's innovations, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability (Robbins and Judge, 2016). Within the organization, the dominant culture indicates the group's core values held by the majority members (Robbins and Judge, 2006). Culture can further define the rules of the game within an organization or create the climate of a group. Corporations such as Chic-fil-A have achieved tremendous success by any business standard, and have done so by creatine conceptual pillars such as purpose, mission, and values that have mapped…

    • 498 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Aetna: Improving Culture Equals Improving Profit Aetna is one of the US’s largest health insurance providers. However, in 2000, the company found itself in financial duress – their reputation with customers and doctors was corroding, they were inundated with lawsuits, and they were losing approximately $1 million dollars every day due to outdated processes and high overhead costs (Katzenbach, Steffen, & Kronley, 2012). Aetna’s culture attributed to the majority of the problems it faced. The company had a 150-year cultural history that it valued and avoided changing. It even had a nickname – “Mother Aetna” – and it encouraged employees to maintain the status quo, avoid risk, and be suspicious (Katzenbach et al., 2012).…

    • 1661 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    (Unknown, N.D.) Christian principle was apparently of great importance to the Lincoln 's, and was a key ingredient in the creation of their company 's founding principles and resulting corporate culture. (Unknown, N.D.) As one can see from reading the assigned pages, the Lincoln Electric culture was possessed of components of more than one of the well defined types of corporate culture. The Lincoln Electric Company was, without a doubt, an outcome oriented company, in which productivity was rewarded.…

    • 942 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Researching corporate cultures and the working environments of many modern companies led me to find very interesting and unpredictable results. The most two most intriguing corporate cultures I came across were Zappos and Southwest Airlines. Zappos struck me as unique because they have a “cultural fit interview” which carries significant weight in the hiring process of new employees. They also offer new employees 2,000 dollars to quit their job after one week of training. This is intended to seek out employees that have any doubt about whether or not the job is for them.…

    • 549 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The infrastructure of Lincoln was interesting due to the fact that so much output came from so few people. Efficiency was at the heart of LE, evidenced by various decisions all in the name of saving money. One way that the company stayed efficient, was to employ minimal staff to administrative departments that were part of overhead. In regards to minimalism, the text described the entire facility as “Spartan”, eluding to the fact the company believed in conservatism in decoration. Another efficient infrastructure design was that of the plant layout.…

    • 1008 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    1.0 Introduction People in the industry world will defiantly hear the word strategy, but the question is how many of them even know the meaning of strategy! Strategy is an integrated and coordinated set of commitments & actions designed to exploit core competencies and gains and gain a competitive advantage. There are some different definitions for strategy that belongs to different authors such as strategy is a unified, comprehensive, and integrated plan designed to ensure that the basic objectives of the enterprise are achieved. In addition some authors said that strategy is the pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole. A good strategy neutralizes threats and exploits opportunities while capitalizing on strengths and avoiding or fixing weaknesses.…

    • 2108 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Organizational culture, or corporate culture, is important to HR because it determines many factors within human resources management. Organizational culture is the “amalgamation of values, vision, mission, and the day-to-day aspects of communication, interaction, and operational goals that create the organizational atmosphere that pervades the way people work” (Miller, 2012). Corporate culture is defined as “the collection of beliefs, expectations and values learned and shared by corporation’s members and transmitted from one generation of employees to another” (Hunger & Wheelen, 2011). This culture defines how policies and procedures are established, how supervisors and managers manage their people and how the general atmosphere of the organization is perceived. As with a well-structured organization, if the “culture is compatible with the…

    • 1152 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    The culture of the organization helps the company define how to operate both inside and outside of the organization. General Motors is an example of an organization that…

    • 204 Words
    • 1 Pages
    Decent Essays
  • Great Essays

    Lincoln Electric Final Exam Success of Lincoln Electric Lincoln Electric has created a unique culture in the organization that motivates its employees to deliver remarkable results and takes great pride in being the best manufacturing company in the world. There are several factors that contribute to the success of Lincoln electric: Strategy: Lincoln’s strategy has remained consistent for several decades to create the best quality product at the lowest cost and pass on the savings to its customers. This philosophy and consistent strategy have been a major driving factor in Lincoln’s success. Rewards: The second success driver has been Lincoln’s compensation policy that gives every individual worker an opportunity to earn and develop their…

    • 1408 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    The Lincoln Electric Company is considered as one of the top best managed manufacturing companies on Earth. Out of all companies, what makes Lincoln Electric stand out of the crowd? The answer lies within the paragraphs of Arthur Sharplin’s, Lincoln Electric Company Harvard Case Study. He shares his knowledge of the company’s pay, bonuses, and management policies and ideals.…

    • 713 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    CULTURE Joe Bertotto, Chief Culture Officer MY CU Services states, “While all companies lose valuable employees through relocation or family changes, losing them because of a poor culture are preventable. Building a great workplace requires intentional effort but the benefits of having a highly committed, unified team of employees will prove priceless” (Bertotto). As Joe suggest building culture is not easy, nor is it a quick process as it can take years to set up a good culture. However, he also says that the benefits of doing so are “priceless”. So priceless in fact that many companies such as Joe’s employ an executive with the sole purpose of building culture called CCO’s…

    • 1003 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The foundations to organize company’s personnel are different between the public and the private sectors. These may also be different from one country to another or from one company to another according to the organization, the context of evolution and its environment. And from these foundations and values that are shared by all staff, a corporate culture is set. The corporate culture is a key variable to explain the daily life and strategic choices made by a social group.…

    • 694 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    1. From ethical and legal perspectives, what do you feel business has learned from the Bernie Madoff financial fraud? In my opinion, I do not only think that businesses can learn from the mistakes that Madoff has caused, they can also use this case as a way to avoid the same type of conflict. With that being said, that can use the mistake that Madoff caused and the many lives that he also has affected to strengthen their code of ethics, build a stronger corporate culture and make sure that their organization is aligned with the rules and regulations that the government has put in place or take more preventive measures.…

    • 893 Words
    • 4 Pages
    Improved Essays