Lincoln Electric Company Case Study
Culture of the Lincoln Electric Company
Reviewing The Lincoln Electric Company, we can see that the Lincoln Electric Company has a unique culture. While there are traditionally seven types of business cultures as outlined in
Principals of Management, (n.d.), it is common for an organisation to be labelled as one of these culture types. The Lincoln Electric Company is unique, in that it utilises multiple positive aspects from several of the seven cultural styles. The Lincoln Electric Company would be best described as being an Outcome-Oriented culture, but additionally they have taken and incorporated positive aspects of People-Orientated and Team-Oriented cultures as well.
Some key aspects of an …show more content…
The measurable aspect allows for a clear goal and achievement measurement for staff and management to understand and work with.
Their unique but simple merit rating card system which is utilised to gauge the overall performance of an employee (twice a year), is then converted into a numerical figure. This figure is key in calculating the individual 's bonus payments. This in turn has a direct impact on production outputs for the company and continues to be a driving force in the company 's higher productivity than its competitors. This is also endorsed and confirmed as being a key factor for high production output by the workers themselves as evidenced by their interview responses.
The company has a strong focus on cost control and low wastage, which in return helps achieve higher productivity outcomes and lowers operating costs. For each area in the manufacturing process, key tools and equipment are kept close to the area where they will be needed to increase efficiency. We can also see in all the interviews published, that not a single employee wanted to
Culture of the Lincoln Electric Company Page …show more content…
In a People-Orientated culture we see positive values focused around people, including support, fairness and perks such as higher wages, health care and other benefits. The Lincoln Electric
Company has multiple people focused benefits. They provide higher than average wages, they offer retirement plans and medical plans for their employees. They operate a cafeteria on a break-even system that makes the purchasing of food a lot cheaper for employees. They consider the fairness of perks and whether that can be made available to all workers, this is reflected in their policies. If we look at an early quote from the company in relation to the importance of workers being paid,
“The greatest fear of the worker, is the same as the greatest fear of the industrialist in operating a company is the lack of income”, The Lincoln Electric Company (1989). This helps highlight that even early in the company 's history, the rights and fairness of the workers were considered important and a key part of the business culture.
One of the outcomes often observed with a business that has a People-Oriented culture, is staff