The Story Of Lincoln Electric Company

820 Words 4 Pages
Lincoln Electric Company is an impressive story of a commitment by it 's founder, James Lincoln, to

manufacture welding machines and electrodes at the best cost for it 's customer 's with highest

quality worker productivity.

Continuing influence of founders:

Mr. Lincoln began his company with a high level of commitment and passion. He was an innovator

who is seldom mentioned as a contributor to the success of other companies like, Dow Chemical

Company. His level of passion and commitment is prevalent in the story of his earlier years when

tragedies plagued him in personal health and in professional loss. His early struggles illustrate his

dedication, commitment and belief in the company that he was building. His legacy
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With the founder bringing in his brother to manage the day to day operations.

This step was in line in my opinion of promoting from within because it was a family member. In

many ways the employees were too a family so this move exemplified that core value of not bringing

in "outsiders".

The Golden Rule was exemplified further with the "Incentive plan" that Lincoln introduced early on.

The incentive plan was his plan as a model for achieving high productivity. It was a vision that he had

from the inception of his company would miraculously remain constant as the driving force for

production even long after his death. The incentive plan helped to reinforce the results oriented

culture by addressing "what 's in it for me" as it relates to "buy in" from his employees and

management team. By allowing his team to realize doubling their salaries by the end of the year, it

proved to be the perfect motivator and gained the company a strong reputation not only with

consumers and competitors but also with the community. The incentive plan kept people satisfied

even though they were working harder than they would at another company. The reputation of
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This reinforces that production is not just quantity but quality establishing over and over

again taking pride in their work. They are also rated on their ideas and cooperation. This reinforces

the idea of team and the encouragement of everyone to be active participants in making the

company better and stronger. It gives the employees a vested interest in knowing that they

have to be present and have to be engaged on a day to day basis.

Management style:

Management style has been acknowledged to be authoritarian but with a hands off approach. The

company allows the employees to do their job with little interference and no micro-management.

As mentioned earlier, this type of approach allows confidence to grow and a sense of belonging.

I have been micro-managed in positions in the past. It only breeds insecurity and when there

is insecurity mistakes can be made because people are not confident in making choices and

when a mistake is made, the mistakes might be covered up and not disclosed. The Lincoln

Electric Company 's way of allowing people to understand the expectation, encourage them to have

ideas and reward them every year for their work, creates the perfect

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