Case Study : Lincoln Electric Company Essay

759 Words Sep 25th, 2016 4 Pages
How is it that a company can thrive and not lay off a single employee due to economic circumstances, during seven generations of on and off economic instability, recessions, and the ever-changing rules and regulations of governance? (Koller, 2015). Those are some of the questions people ask when they look at Lincoln’s history books. Lincoln Electric Company specializes in the manufacturing of Electric motors and welding machines, situated in the industrial area of Cleveland Ohio. By using a unique management style, Lincoln incorporated an efficient incentive plan that includes a Performance appraisal system, with open communication that created Lincoln’s unique business model, where they seemed to have found the answer.

According to the business dictionary, an incentive is the: “Inducement or supplemental reward that serves as a motivational device for a desired action or behavior” (WebFinance, 2016), and that is the strategy Lincoln still to this day incorporate as the strategy to create a successful business. In the company’s first years James F. Lincoln, younger brother of John C. Lincoln founder of Lincoln Electric Company, took the post as president, and his early action as head of the company was to create an Advisor board. He asked the employees to elect a representative that would advise him on the company’s operations, who then become a liaison for the employees to communicate to the president effectively.

Within a couple of years in existence, the advisory board…

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