Lincoln Electric Case Study Essay

614 Words May 5th, 2011 3 Pages
Lincoln Electric case study

Opening statement:

Lincoln Electric is one of the leading manufacturers of welding products, welding equipment, and electric motors. Lincoln Electric has a very successful management system, Lincoln’s system worked so well in the US that management decided to extend it overseas. Unfortunately this system didn’t do as good their.

1. Does Lincoln follow a hierarchical or decentralized approach to management? Explain your answer and give examples?

Lincoln follows a hierarchical approach that was flatten because LE has fostered an "open-door" policy between production workers and executives as well as created an Advisory Board that has representatives of the workers who meet with executives twice a
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4 Should Lincoln borrow money and pay bonuses to avoid breaking trust with it’s US workers? Why or why not?

I think Lincoln should borrow money to avoid breaking trust with the US workers because if the trust between the organization and the workers is broken the Lincoln management system will be a history. This company philosophy is caring for the employees; Lincoln Electric is famous for its Lincoln Incentive Management Philosophy that recognizes dynamic teamwork and incentive as the most profitable and cost-effective way of achieving their goals. If this philosophy is broken workers will be less motivated to work for this company, this financial motivation and caring that the company give make the employees give back with hard work and dedication and maximum productivity and quality. Closing statement:
The success of Lincoln management in the US was because Lincoln Electric has established itself as a desirable employer and this company had a high commitment to the success of its employees.
Lincoln Electric is famous for its Lincoln Incentive Management Philosophy that recognizes dynamic teamwork and incentive as the most profitable and cost-effective way of achieving their goals.
The blind pursuit of profit can easily lead to poor decision-making, while trying to extend this system overseas this didn’t succeed because of cultural values of the production worker are different. Lincoln management needs to do more planning research before

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