Lincoln Electric : Unique Organizational Culture With Numerous Creative Ideas

841 Words Dec 9th, 2015 4 Pages
Lincoln Electric has a unique organizational culture with numerous creative ideas.
First of all, to keep and better motivate its employees, the company implemented a special incentive system which properly distributed the resulting profits inside the firm. This system had four components: piecework, annual bonus, guaranteed employment and limited benefits. The piecework element was beneficial, because all of the employees had to ensure their own quality and there was no limit about how much one could maximum earn by working faster and harder and also brought about competition in labor amongst employees. Then, the annual bonus element was also very important since the employees were awarded in according to their contribution to the company’s performance in terms of output, ideas, cooperation, dependability and quality, this bonuses where given for honesty in the sense that even when an employee did something he was given a bonus for telling it on time before it was discovered by the superiors. Next, guaranteed employment element helped the firm assign his workers to different tasks when there were problems so that the company could prevent lay-offs. After that, the last element, limited benefits, helped the firm to minimize company-paid benefits. This component created a cost advantage for Lincoln Electric.
The Lincoln culture is also very welcoming as it is seen that despite the fact that James Lincoln grew up in a very practical Christian home the organization has never…

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