The Influence Of Lincoln Electric Company's Culture

Lincoln electric company 's culture is based on openess and trust, shared control and egalitatmrianism. However the company also has subcultures which are people-oriented ,outcome oriented, role modeling, customer service, and reward systems.These culture as well as the influence (beliefs,views towards employees) of the founder J. Lincoln is what contributes to the company 's sucess. Production workers receive merit pay, they are paid according to how many units they produce instead of hourly wages and salaries,hence this is an integral part of the company 's culture. Due to the fact that each worker 's payment is based upon performance it means that individual employees must work hard to achieve top pay. Because of this system everyone is …show more content…
Everyone is open to give their ideas and these ideas are noted and considered if they are worthy using or not worthy. At Lincoln electric company the influence of the founder still continues, his first pruority where the customers and this culture of customer service is still being practised in the company, hence they produce products to satisfy the customer at good prices. His other priority were the workers, he believed that for the worker to work hard and produce quality things they had to get paid and be given incentives as well and this influence continued in the company, even after his death the management still gave workers bonuses. Also Lincoln 's financial policy of selling stocks to employees, this helped in creating a spirit of ownership of the company among employees and it helped them work harder bearing in mind that the more they work the more profit the company gets and the price of their stock increases, this system continues in the company and it attaches workers to their …show more content…
Even if they have to work hard with less time for socialising, the workers at Lincoln electric company seems happy, this is because of the incentives they get which are far above other industries. They also have a team oriented culture, workers have to cooperate with others. Because there are scores given to an employee for cooperating with others and this score contributes to other scores which determines the amount of his or her annual bonus, a worker is forced to work hand in hand with others as well as collaborate with others inorder to get more scores on this aspect thereby earning more money at the end of the year. Employees are also paid according to their output, this means that one is responsible for whatever they do and great caution is taken when producing things. And this has helped in the company maintaining high quality products and high quality