Lincoln Electric’s Organizational Culture
The Lincoln Electric Company (hereinafter referred to as, “Lincoln”) is a multinational corporation with operations in 19 countries, over ten-thousand employees, and a reported US$2.5 billion in 2015 net sales. Founded by John C. Lincoln in 1895, today the company is headquartered in Cleveland, Ohio (USA) and one of the world’s largest manufacturers of welding equipment (Lincoln, 2016a; Lincoln, 2016b). Lincoln’s organizational culture has been the subject of multiple case studies. This paper looks at Lincoln’s management system and the unique culture it has created for their United States operations. The reader should note, that many of the topics discussed herein do not apply to Lincoln’s foreign …show more content…
Lincoln, who joined the firm in 1907 and took over leadership in 1914. James F. Lincoln is attributed to establishing an employee advisory board and a piecework payment system (1914), group life insurance for employees (1915), an employee stock ownership program and paid vacations (1923), an employee suggestion program (1929), annual incentive bonuses (1934), a pension plan (1944), and guaranteed continuous employment and a merit rating system (1950-1969). These programs were considered progressive for their time (Lincoln, 2016a).
Driving these changes, were James F. Lincoln’s business philosophies. Building consensus amongst the entire workforce, to want the same success that he desired, is perhaps the core principle. “Lincoln believed people were motivated by being respected and given a chance to develop and use their talents on the job” (O’Toole, 2013; para 4.). 102 years later, the employee advisory board continues to meet every two weeks, and every employee sits only two or three levels from Lincoln’s President (Sharplin, …show more content…
Lincoln passed away in 1965. Since that time, Lincoln has continued to uphold the company 's original values. Foremost being guaranteed continuous employment and a merit rating system. A position at Lincoln is guaranteed for life. Initially awarded after one-year of employment, this has since been raised to three years of service and a pledge of 30-hours work a week. The company has never laid off employees, even during a 40% drop in sales in the 1980s and the 2008-2009 recession (Lincoln, 2016a). Such job security is almost unheard of in other U.S corporations and has built “a sense of trust and community” (O’Toole, 2013, para.8). Lincoln stands by their commitments to their
The Lincoln Electric Company (hereinafter referred to as, “Lincoln”) is a multinational corporation with operations in 19 countries, over ten-thousand employees, and a reported US$2.5 billion in 2015 net sales. Founded by John C. Lincoln in 1895, today the company is headquartered in Cleveland, Ohio (USA) and one of the world’s largest manufacturers of welding equipment (Lincoln, 2016a; Lincoln, 2016b). Lincoln’s organizational culture has been the subject of multiple case studies. This paper looks at Lincoln’s management system and the unique culture it has created for their United States operations. The reader should note, that many of the topics discussed herein do not apply to Lincoln’s foreign …show more content…
Lincoln, who joined the firm in 1907 and took over leadership in 1914. James F. Lincoln is attributed to establishing an employee advisory board and a piecework payment system (1914), group life insurance for employees (1915), an employee stock ownership program and paid vacations (1923), an employee suggestion program (1929), annual incentive bonuses (1934), a pension plan (1944), and guaranteed continuous employment and a merit rating system (1950-1969). These programs were considered progressive for their time (Lincoln, 2016a).
Driving these changes, were James F. Lincoln’s business philosophies. Building consensus amongst the entire workforce, to want the same success that he desired, is perhaps the core principle. “Lincoln believed people were motivated by being respected and given a chance to develop and use their talents on the job” (O’Toole, 2013; para 4.). 102 years later, the employee advisory board continues to meet every two weeks, and every employee sits only two or three levels from Lincoln’s President (Sharplin, …show more content…
Lincoln passed away in 1965. Since that time, Lincoln has continued to uphold the company 's original values. Foremost being guaranteed continuous employment and a merit rating system. A position at Lincoln is guaranteed for life. Initially awarded after one-year of employment, this has since been raised to three years of service and a pledge of 30-hours work a week. The company has never laid off employees, even during a 40% drop in sales in the 1980s and the 2008-2009 recession (Lincoln, 2016a). Such job security is almost unheard of in other U.S corporations and has built “a sense of trust and community” (O’Toole, 2013, para.8). Lincoln stands by their commitments to their