Lincoln Electric Case Study Analysis
Overview of the Case of Lincoln Electric
Lincoln electric established consistent HRM policies to build trust. This has been true since inception. This long history promotes confidence in employees and surety of future reward. Workers average $17,600 per year on standard 32 hour work weeks. They are able to earn about this same amount again in bonuses. This system creates high productivity. Lincoln Electric operates on a system of equality, cooperation, and need. Each employee is given the same number of hours as others. When business slows, all workers reduce hours equally. When overtime is needed, this workload is also distributed without favor to the workers. Today, Lincoln Electric is the
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Additionally, Asian culture is very group oriented and compliant. The individual is less likely to labor dilligently for self. Compliance means not likely to speak out- this will reduce the potency and effectiveness of the regular meetings between management and workers. Third, Asians are less future-oriented than the Judeo-Christian oriented culture of North America. Dominant religious thought leans toward ideas of Islam and Buddhism. These cultures believe in fate. A Muslim driver, whose children stood up in the back seat as he sped at 75 miles per hour said, “If it is Allah’s will that we should die, die we will. We cannot overcome the will of Allah.” This aspect of thought makes Chinese less likely to work as hard as Americans for future bonuses. Additionally, part of the motivation for the American workers is that the base pay fails to earn them the poverty level income. They require the bonus monies to make a decent salary. In China, food forms a major portion of living expense. Chinese people require more regular pay and more of their pay regularly. They need their money to purchase food each day, a customary practice in the majority of world cultures.
Lincoln Electric Should Introduce Its HRM Practices into China
The Lincoln HRM policy should be introduced into China. But, some modifications are necessary. First, bonuses must be paid more frequently. Frequent payments will more quickly demonstrate to Chinese workers they can